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:
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
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.
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NEW YORK, Oct. 16, 2019 /PRNewswire/ – Tapad, part of Experian and a global leader in digital identity resolution, and The Trade Desk, a global advertising technology leader, partnered to integrate The Trade Desk's unified ID solution in April 2019. The Trade Desk's unified ID solution's objective is to serve as a standardized cookie ID to help marketers reach more of their audience on the open internet. After an initial six month period, Tapad reports significant adoption rates and enhanced customer results since their joint integration in April. As a result of the partnership, client brands, agencies, DMPs/ DSPs, Data Providers, Mobile Networks and Measurement/Analytics Providers, saw increased match rates up to 38% and more global coverage without compromising precision. With this combined offering, Tapad's global, privacy-safe digital cross-device solution, The Tapad Graph, connects brands with consumers over 4 billion devices globally. "There is a need for digital identity solutions outside the walled gardens that can accommodate the need for both precision and scale," said Chris Feo, SVP of Strategy and Global Partnerships at Tapad. "Through our partnership with The Trade Desk, we are empowering companies to have a comparable digital identity resolution across the open web as compared to the walled garden environments." Over 25 companies who license The Tapad Graph, such as Annalect, Semasio, Retargetly, and ThinkCX, have also included The Trade Desk's unified ID solution as a key identifier in their graph output. "The vast improvement in scale that Tapad has seen illustrates the value digital identity resolution products can bring for brands," said Nate Gawel, General Manager of Data Partnerships at The Trade Desk. "We're looking forward to continuing work with Tapad to prove that the open internet can deliver the very same benefits many reserve for large platforms." Adoption of the unified ID solution allows all parties across the supply chain (SSPs, DSPs, DMPs and data providers) to utilize The Trade Desk's cookie footprint to increase their own cookie coverage across the global independent internet. For more information, please visit The Trade Desk's unified ID solution site, or https://www.experian.com/marketing/consumer-sync to learn more about Tapad's digital identity resolution products. About Tapad:Tapad, Inc. is a global leader in digital identity resolution. The Tapad Graph, and its related solutions, provide a transparent, privacy-safe approach connecting brands to consumers through their devices globally. Our one-of-a-kind Graph Select offering enables marketers the flexibility and freedom of choice to correlate devices to varied objectives, driving campaign effectiveness and business results. Tapad is recognized across the industry for its product innovation, workplace culture and talent, and has earned numerous awards including One World Identity's 2019 Top 100 Influencers in Identity Award. Headquartered in New York, Tapad also has offices in Chicago, London, Oslo, Singapore and Tokyo. About The Trade Desk:The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, Twitter, LinkedIn and YouTube. Contact us today
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