By David Jakubowski, CEO, Aggregate Knowledge
In the world of “big data”, marketers are continuously struggling to understand what data to believe, what to leverage, and what is most accurate to drive their future actions. To start, two of the most important goals that marketers have are to grow their addressable market and drive sales. The online advertising industry has been talking a lot about the need to grow online users (via cookie pools) and control data loss; however this is only half of the equation.
Data quality makes up the other 50% of the equation. Marketers wonder why they buy users (cookies) but do not see the conversion rates that they expect. Two key elements of data that leads to generating more sales are time and quality. LiveRamp is our trusted partner in the onboarding market to ensure accuracy with regards to offline data. Data collection has one purpose – to help advertisers find more users efficiently. Let’s walk through an example of what happens today in the quest to reach performing audiences.
Marketers buy users based on attributes that they believe make up their target audience (Age: 30-39, Location: Mid-West US, Income: $50-75K). In this example we will use a sample size of 10,000 users for a client’s online campaign. What AK has found is that:
Online Data Source:
- 10,000 users
- 4,400 actually saw an ad (10,000 X 44%)
- 3,036 only saw the ad once (4,400 X 69%)
- 1,364 saw the ad repeatedly – this is your addressable audience!
Now let’s look at users sourced from an Offline Data Source:
- 10,000 users
- 9,900 actually saw an ad (10,000 X 99%)
- 3,762 only saw the ad once (9,900 X 38%)
- 6,138 saw the ad repeatedly – this is your addressable audience! (4.5X larger than from online data source)
To reiterate from above, data collection has one purpose: to help advertisers find more users efficiently. This makes it a “garbage in/garbage out” problem. By comparing online and offline data providers, we have found that on average, marketers see 2 to 5 times better performance when using data that came from offline providers.
Why Does it Matter?
From a business perspective, it makes the most sense to focus on the highest quality data up front to ensure minimal cookie loss and give the transparency necessary to make active decisions around media spend and campaign placement.
From a measurement perspective, offline data provides the most consistency and predictability for targeting (media buying) and offers marketers the ability to hold their data sources accountable for quality.
In one specific case, Aggregate Knowledge (AK) worked with its telecommunications customer to better optimize its campaigns, identify users who were more likely to convert (targetable users), and increase the number of targetable users. As a result of integrating and working with data from offline sources, AK’s customer saw an increase in targetable user volume by 25X and increased the ROI for targetable users by 6X.
AK works with Fortune 100 companies to help them measure and analyze their data and media across all mediums and channels in order to take action to grow ROI, value, and sales. In partnership with LiveRamp, the ability to onboard offline data has enabled AK’s customers to:
- Quickly adjust campaigns and media mix for improved performance and reach
- Discover best performing audiences and attributes to drive reach, clicks, and conversions
- Understand site visitors to inform content systems and target best performing users
About Aggregate Knowledge
Aggregate Knowledge is a leading measurement and analytics company providing marketers with actionable insights across the digital media mix to drive increased ROI, value, and sales. For more information, visit: www.aggregateknowledge.com.