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
Latest posts
Autotrader leverages The Tapad Device GraphTM to achieve higher performance and reach new audiences across all devices New York, NY – September 6, 2017 – Tapad, the leader in cross-device marketing technology and now a part of Experian, today revealed findings from a campaign conducted with Autotrader which connects with more actual car buyers than any other third-party listing site.* Autotrader’s premium audience, combined with the Tapad Device GraphTM, delivered significant audience extension across desktop, mobile, and tablet to drive awareness and maximize both reach and delivery across screens. To help analyze shopping behaviors across multiple devices, the global automotive brand for this campaign turned to Autotrader and Tapad, who created a cross-device pre-roll video strategy with a focus on viewability, concentrating on potential customers already searching for vehicles. By using a one-to-one connection, instead of look-alike modeling, Tapad also ensured that the automotive brand discovered only new consumers across all of their devices. This approach discovered a new potential audience of more than 14 million consumers, eliminated communication waste and the risk of duplicates, increased overall performance, and ensured more of their campaign dollars reached meaningful audiences. Overall, this case study represents a leap forward in terms of audience-based targeting and the highly-sought after multi-touch attribution modeling. “We really enjoy working with the team at Tapad to help execute our Audience Extension campaigns”, said Lynne Green, product manager at Autotrader. “Their ability to meet the demands of an ever-changing industry, as well as their dependable customer service has allowed us to confidently deliver against our unique in-market automotive audience and provide our clients ongoing messaging opportunities to our audience beyond Autotrader.com.” “How identity relates to conversion behavior is a complex part of any advertising campaign,” said Jeff Kelosky, RVP and head of global automotive at Tapad. “After identifying auto consumer’s behavioral patterns and device usage while shopping for vehicles, we knew we could successfully help Autotrader and its automotive brand clients maximize campaign viewability and drive results.” To learn more about using Audience Extension with Autotrader, click here. For more about the Tapad Device GraphTM, or to request a demo, visit https://www.experian.com/marketing/consumer-sync Contact us today
With campaigns applied to seven major holding companies, Tapad continues to see healthy adoption with The Trade Desk clients NEW YORK, NY – August 23, 2017 - Tapad, now a part of Experian, the leader in cross-device marketing technology, today announced its ongoing momentum with The Trade Desk, Inc. (Nasdaq: TTD), a global technology platform for buyers of advertising. Tapad is providing cross-device segments from the groundbreaking Tapad Device GraphTM through The Trade Desk’s platform. Since 2015, Tapad has seen steady growth in the use of its cross-device data across The Trade Desk platform. This forward progress continues, as 1H2017 saw important milestones for Tapad. Seven major private and independent holding companies now apply Tapad’s data to their campaigns, in addition to more than 1,500 unique brands. Tapad’s proprietary Device GraphTM connects billions of devices, providing unified and insightful data for brands, agencies, and marketers across the globe. Several of these clients, representing varying industries from financial, to auto, CPG and retail, apply Tapad’s data across a number of key tactics and strategies, including: first party CRM extension, third party audience extension, cross-device retargeting, cross-device frequency management, and more. Clients in these verticals continue to rely on Tapad’s cross-device data, as Tapad saw the amount of usage by financial and retail clients grow by four times over the past year, and double for automotive and CPG clients. “We are pleased to offer our clients access to Tapad’s device graph”, said David Danziger, VP of Data Partnerships, The Trade Desk. “Their cross-device identification capabilities have been a powerful addition to our omnichannel platform.” “This integration is a shining example of the amplifying effect of two of the best platforms working together,” said Chris Feo, SVP of Global Partnerships at Tapad. "Clients leveraging Tapad's Device Graph in The Trade Desk platform have the potential to see higher returns and reach with access to substantial cross-device data, as well as a very effective media platform." Contact us today
Tapad Device Graph™ and Sojern’s mobile offering unify travel intent signals; achieve amplification rate of more than 600 percent NEW YORK, June 15, 2017 – Tapad, a part of Experian, the leader in cross-device marketing technology, is partnering with Sojern, travel’s direct demand engine, to provide marketers with an even stronger understanding of travelers as they research and shop across multiple devices. Combined with its 350 million global traveler profiles and billions of predictive purchase intent signals, Sojern utilizes the Tapad Device Graph™ to resolve the complex travel consumer journey, target travelers more precisely, and derive more actionable insights for its travel clientele. According to Sojern’s research, travelers visit hundreds of websites preceding their trip purchase, with some consumers reaching upwards of 450 touchpoints prior to booking. Sojern’s partnership with Tapad will help unify these touchpoints across devices, enabling travel brands to more effectively nurture and engage potential buyers during the purchase process, regardless of which device they use. “Sojern’s been focused on travel for over a decade, helping brands activate predictive purchase signals and leverage our traveler profiles into effective performance marketing campaigns,” said Mat Harris, Sojern’s VP of Product, Enterprise Solutions. “The cross-device insights we gain from the Tapad Device Graph provide a valuable tool for our customers to reach travelers across devices in real-time and at scale, on the right device.” Prior to selecting Tapad as its cross-device partner, Sojern surveyed several probabilistic and deterministic cross-device vendors and performed an extensive global test. The test was an examination of scale, match rate and several other factors, which enabled Sojern to learn as much as possible about each vendor. After examining the final test results, Sojern selected Tapad based on its excellent test performance, tried-and-true experience in the market and complimentary business model. To date, Sojern has already seen an amplification rate of more than 600 percent as a result of the integration, meaning that the Tapad Device Graph is connecting an average of six or more device and browser IDs for every one existing Sojern ID. “Not only is Sojern a compatible partner for our singular Device Graph capabilities, but they are also an incredible data partner to help expand our work in the travel industry,” said Pierre Martensson, SVP and GM of Tapad’s global data division. “Working with the team at Sojern allows us to solve a true challenge within the travel industry today: creating a unified view of customers so travel brands can better understand and access their key audiences at every point along their path to purchase.” Contact us today