Originally appeared in MarketingProfs
We all understand the importance of data quality. Metrics like third-party validations, match rates, and accuracy scores help us assess data quality on its own terms. Yet too often, organizations struggle to connect high-quality data with real-world business outcomes. How does data accuracy directly impact the ability to reach target audiences and campaign performance?
Scale and cost: The tradeoffs of accuracy
Marketers are frequently incentivized to prioritize broad reach, even at the expense of precision. This often leads to decisions driven by short-term gains—reaching more people at a lower cost. The temptation is deceptively straightforward, but deep down we know overly simplistic approaches are likely to fall short.
Cheaper data solutions, even if they seem to provide greater reach, mask a deeper issue. The data may not be accurate. In fact, the initial savings from cheaper data typically result in higher long-term costs due to inefficiencies and waste that are hard to track. Unless you’re carefully evaluating your campaign results, it can be difficult to see where the inefficiencies are creeping in.
The hidden cost of inaccurate data
Programmatic platforms make it easy for mistargeted impressions to slip through unnoticed. Common issues include:
Stale data, where consumer behaviors and locations have changed but the data hasn’t.
Inactive signals, where you think a digital identifier like a device ID is addressable, but the device hasn’t been used in months.
Disparate or duplicative data, where you think you’re reaching three people but in fact it’s just one person who you’re frequency bombing. Nobody likes getting the same ad over and over again. It’s like if your co-worker messaged you “hey” five times in a row.
Direct mail waste is tangible: towering stacks of returned mail serve as undeniable reminders of inefficiency, not to mention the financial costs of wasted postage. Digital campaigns, by contrast, often obscure their inefficiencies within complex programmatic platforms or impression reports. It’s like watching a gust of wind scatter piles of paper into the ether—it’s hard to track and quantify.
As a result of these data inaccuracies, brands mistakenly assume they’re optimizing their budgets when, in fact, they’re hemorrhaging money and reaching the wrong people with a message they don’t care about. It’s a marketer’s nightmare scenario.
The perceived savings from cheaper, less accurate data turn out to be an illusion.
The compounding effect of inaccurate data
Consider a situation where an inaccurate insight or signal prompts a brand to adjust its targeting toward an underperforming segment. Each new campaign uses this flawed data to guide its optimizations, amplifying the waste. What starts as a minor inefficiency quickly becomes a significant budget drain, funneling resources into segments that aren’t delivering.
If you bake a cake but use salt instead of sugar–each new ingredient only makes the final product more unpalatable. With ad targeting, the feedback loop created by optimization tools exacerbates this issue. Decisions are made based on misleading metrics, perpetuating flawed strategies and causing brands to over-invest in underperforming tactics. Without scrutiny, brands risk building entire strategies on fundamentally flawed insights.
The value of investing in the highest quality data
With accurate data, brands can zero in on the right audience. This is particularly critical in lookalike modeling. By enriching customer files, brands can understand the nuances of who their best customers are—and how to find more of them. Tailored messaging, based on a consumer’s actual behaviors and interests, deepens engagement. Conversion rates rise as campaigns meet customer needs.
Accurate data also provides insights that aren’t immediately obvious. Sometimes, seemingly minor behaviors or unexpected demographic segments can emerge as key drivers of conversions. It’s like finding the one avocado at the grocery store that’s perfectly ripe…you’re well on your way to delicious guacamole.
To truly grasp the impact of data accuracy, traditional validation metrics such as third-party assessments (e.g. Truthset) should be paired with other performance indicators that show you how well data reflects actual consumer behavior. With this complete picture in view, the choice is obvious: quality data is worth the premium.
Acting on what the data tells you
Collecting accurate data is just the first step—the real challenge is having the ability to act on what it reveals. Many brands enter campaigns with preconceived notions about their target audience, only to find the data tells a different story. Ignoring these insights stifles growth. The value of data-driven marketing lies in trusting the insights and adapting strategies accordingly.
How to test if your current approach is working
We understand that changing data providers can feel daunting, but there are low-lift ways to explore whether your current approach is truly delivering. Test the waters by selecting an Experian Audience on a major platform or building a custom audience to see how your campaigns perform. Alternatively, collaborate with Experian’s insights team to gain a deeper understanding of your audience and determine if it aligns with your current strategy. It’s a small step that could lead to a big impact.
Get in touch with our team today
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We’re excited to introduce our new Q&A series, Ask the Expert! Ask the Expert will feature a series of conversations with product experts. We’ll spotlight and dive into the areas you care most about: identity resolution, targeting, attribution, and more. Our first segment features a conversation on Hashed Email. Jeff Tognetti, the Product Development Team Lead at DealerX joins us to chat with Experian’s Chief Revenue Officer, Chris Feo. Chris and Jeff review how to future-proof your identity strategy by exploring Hashed Email use cases, technical details, and offer an expert point of view on the cookieless future. Let’s review a few highlights from their conversation. DealerX’s use case When DealerX first started working with us, we focused on digital identity. DealerX wanted to understand the browsing habits of their first-party shoppers that relate to their clients: What they’re doing How they’re interacting with client sites and products Apply those learnings to target them across the web Eliminate ad fraud and targeting waste Our partnership gave DealerX the ability to take an anonymous consumer from anywhere across their portfolio of customers and understand who they are, while in an anonymous state. Then, they could activate on any channel where that consumer may be in the market for a product. This allowed DealerX to resolve who these people are as they browse the web, leading to reduced ad spend and targeting waste. This was the original and primary use case for DealerX when partnering with us. So, when did Hashed Email come into the mix for DealerX? Before we dive into the specifics, let’s take a step back and understand Hashed Email. What is Hashed Email? Hashed Email is a privacy-safe identifier that can further enrich the connection between the online (digital) and offline (real world) ecosystems. When paired with the Tapad Graph with access to Tapad’s universe of email data, it can provide maximum coverage for targeting and measurement when combined with IDs such as cookies, mobile ad IDs (MAIDs), connected TV (CTV) IDs, and IP addresses. Email hashing uses a method of coding to transform an email address into a jumble of numbers and letters so that it’s fully pseudonymized and privacy safe. Hashed emails can then be used as a digital identifier when a user is logged in to that email and trace their activity – without linking back to the user’s real email address. This allows marketers to collect data on their users and understand their behavior without knowing their email address – a win for both consumer privacy and marketer insight. 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We grew the product by iterating on features that worked best for Jeff and his team. The rollout was organized, efficient, and lacked bureaucracy, which can slow down an implementation timeline. While we started our relationship with DealerX as a vendor, now we're partners. How did we transition from vendor to partner? Transitioning from vendor to partner The key to a great partnership is trust. It’s tough to navigate an ecosystem with numerous companies that claim to have the same products and services. The relationship will start off as vendor-client, and both teams will get to know each other’s strengths and weaknesses. As the vendor makes your work seamless and offers an efficient implementation process, the relationship turns into a partnership. There’s more! This is just a taste of Chris and Jeff’s conversation. Visit the Ask the Expert content hub to watch a recording of the conversation. Stay tuned for future segments in our Ask the Expert series. We’re just getting started! Get in touch About DealerXIn just a few short years, DealerX has grown to serve 1,000’s of Tier 3 dealerships across all brands, enterprise partners and OEMs. Their keen approach to data, analytics, machine learning and programmatic initiatives have led DealerX to quickly become the most savvy player in the automotive space. DealerX has helped automotive retailers save 10’s of millions of dollars by avoiding fraud and eliminating wasteful ads pends, while dramatically reducing “cost per sale." In doing so, their partners significantly outperform those leveraging generic “one size fits all” competitive offerings. To learn more, visit their website at Dealerx.com.
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