By Jake Gardner, MediaWhiz Director of Display Ad Operations
Today, online display advertisers are looking for more demand for their dollar. A good way for advertisers to reach their target audience is by using online and offline behavioral data. The strategic targeting of potential consumers is at the heart of the data revolution. It involves bringing the appropriate ad to the right user at the right time. If properly purchased and placed, data can drive increases in click-throughs, conversions and revenue. But the trick is navigating the vast data landscape by using it effectively with scale.
Data has always been part of the online advertising discussion. The major question was, “How do we use it?” Today, a variety of data partners and exchanges, including BlueKai, Exelate and dataLogix are giving advertisers a way to better target their ads. Incorporating geographical, behavioral and demographic targeting greatly increases the probability of engaging relevant consumers.
Not sure how data targeting works? Think of your last search. Maybe you are a thirty-something female living in New York. You might see a banner ad promoting women’s apparel sales. Believe it or not, this ad was targeted specifically towards you. If data targeting were not in effect, you might have seen ads for NASCAR or menswear sales. This would not be cost-effective.
Data does have its share of question marks. What is the value of data? How much data are websites willing to release in lieu of privacy concerns? The best way to quantify what data is worth is to leverage the expertise of a robust ad network. A leading ad network will adhere to best practices improving targeting, information management and monetization. As for privacy issues, a top-tier ad network will implement enhanced privacy protections without hindering the user experience.
Display advertising is expected to grow by 60% in 2011, according to advertising consultants Borrell Associates. Therefore, investing in data-driven media buying is a sound strategy – as long as you have the right network to help you hit the right target.