How will this change the marketing ecosystem?

Alex Song is CEO and Founder Proxima Centauria data science company that helps brands better reach consumers across all major platforms.

With technological advancements and the explosion of marketing channels, marketers have more information, insights and opportunities to connect with customers than ever before. On the one hand, this makes it easier for marketers to deliver the personalized, connected, cross-channel experiences that modern customers demand; on the other, it amplifies the complexity of doing so.

As the marketing ecosystem continues to evolve, the need for data and insights will continue to grow. Especially in a challenging economic environment, 94% of marketers They are already feeling more pressure to deliver ROI than before. Meeting rising expectations while overcoming new constraints is critical to succeeding in today’s changing environment. To do this, marketers need to understand the current state of the marketing ecosystem and what can be done to ensure short- and long-term success.

Will targeted advertising be the same?

A specific area under the marketing microscope is targeted advertising. Due to changes in iOS privacy, social media platforms cannot effectively find the right audience. Targeted marketing used to be the key to personalization, increased brand awareness and increased engagement, especially through social media channels. But now, consumer privacy rules are threatening to destroy targeted advertising.

For example, due to changes in iOS, Facebook said it will Loss of $10 billion income this year. Some predict this is the end of targeted advertising.

Targeted advertising has a bad reputation. It has a purpose, and that purpose need not conflict with consumer privacy. It is important to note the value of targeted advertising: they not only provide consumers with products and services that meet their specific needs, but they also help reduce acquisition costs and ultimately affect the final price for consumers.

So what can brands do to manage the changing face of targeted advertising while still delivering a superior customer experience and brand success?

Try new platforms.

TikTok is having a great time right now and it feels like the Wild West. But the reason for this is that audience engagement is very high and customer acquisition costs are very low. A clear playbook for success has yet to be written, but those willing to try the platform are reaping big rewards by joining early. As this ecosystem matures, acquisition costs will increase and stabilize. At the same time, there are huge opportunities for digital businesses with strong creative content strategies, optimized conversion funnels and effective growth marketing capabilities.

hustle and bustle.

Marketing leaders need to work hard and try multiple strategies across multiple channels to maximize return on ad spend. This volatility is better for entrepreneurs because uncertainty creates a more competitive environment – one where everyone is focused on winning more ad dollars rather than easily protecting huge market leadership.

Start with your first-party data.

First-party data is valuable because it is collected directly from consumers and is fully owned by the brand. But in today’s environment, first-party data is still hard to come by and may only be available on a limited scale, depending on the size of your business. Additionally, it only provides brand information about current audiences, not brands that have not yet participated. Nonetheless, scaling up your first-party data should be your top priority, because with enough data, this dataset can reduce advertising costs and improve your return on targeted advertising.

Look for second-party data.

Second-party data obtained through brand partnerships with consumer consent eliminates the middleman and can be a good source of high-quality, accurate data. Since consumers have opted in, this data has not been affected by the iOS privacy changes. Using second-party data can give you insights into current and potential consumers, while adding transparency to the process.

Leverage third-party data and artificial intelligence.

Third-party data providers have become increasingly sophisticated and can now optimize their datasets using artificial intelligence and data science. This helps them learn and iterate, which has proven to be an effective way to find new audiences while protecting consumer privacy. Third-party data combined with machine learning and artificial intelligence is paving the way for the future of targeted advertising.

If marketers have learned anything recently, it’s that the only constant is change. As the marketing ecosystem continues to evolve and the rules of targeted advertising continue to change, modern leaders must remain nimble. Those who are not afraid to experiment with new audience targeting methods will be in a better position to deliver the high-quality experiences customers crave and achieve the ROI needed for brands to thrive.

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