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
Distribution via LiveRamp enables seamless cross-device customer experiences through more platforms NEW YORK, Nov. 15, 2016 /PRNewswire/ – Tapad, now part of Experian and the leading provider of unified cross-device marketing technology solutions, today announced an expanded partnership with LiveRamp™, an Acxiom® company and leading provider of omnichannel identity resolution, to make the proprietary Tapad Device Graph™ accessible beyond Tapad-hosted direct integrations. Through LiveRamp, Tapad's Device Graph Access now extends to more than 400 ad tech and mar tech platforms. Tapad's Device Graph™ enables marketers to understand, monetize and measure consumer engagement across all digital channels, and Tapad's unified consumer view is recognized as one of the most accurate, scalable cross-device solutions in the market today. Through the expanded partnership with LiveRamp, the Tapad Device Graph can be distributed to the hundreds of platforms used to reach consumers on digital channels and measure campaign performance – even as devices are added daily to Tapad's extensive graph. "Increasingly, marketers want access to cross-device targeting and measurement capabilities within their preferred platforms," said Anneka Gupta, chief product officer of LiveRamp. "Our expanded partnership makes it easy for marketers to access Tapad's graph through the rapidly growing set of integrations available in our partner ecosystem." This is the latest of several initiatives between the two technology platforms designed to make the integration of cross-screen platforms seamless, privacy-safe and easy to use for dynamic and engaging marketing efforts. "During the past year, Tapad has expanded its global presence and rapidly grown its data business – Tapad Coral – doubling the number of companies integrating our device graph into their platforms and growing our annualized run rate by 210%," said Pierre Martensson, GM of Tapad Coral and APAC. "Our expanded partnership with LiveRamp positions us to meet the increased demand for Tapad Device Graph Access and enable new platforms to apply our graph with unprecedented speed." Contact us today
Cross-Screen Pioneer Explores the Power of Connected Cars as a Vehicle for Customer Engagement LAS VEGAS, NV — (October 26, 2016) –Kate O’Loughlin, GM of Media for Tapad, addressed the J.D. Power Automotive conference audience today in Las Vegas, NV. With more than 1,400 participants representing every facet of the automotive marketing profession, the conference has become the industry's leading marketing event. Bringing the unified, cross-screen perspective to the stage, O’Loughlin discussed the vital role of connected cars in the consumer engagement process. She is a founding member of Tapad which launched the world’s first cross-screen marketing technology in 2010. Tapad was acquired by the Telenor Group early in 2016. Key points from O’Loughlin’s J.D. Power 2016 address included: The marketers who deliver relevant and engaging content in a privacy-safe setting will be in the strongest position to navigate the proliferation of connected devices, including the connected points in cars. As automakers innovate the technology in cars, marketers need to be prepared for the size and diversity of data available for understanding consumers. It’s going to be increasingly difficult to wade through the data, so now is the time to build a solid framework for understanding the person behind the data. Marketers who evolve — and take a holistic approach — to their campaign measurements will achieve marked improvements in efficiency and an enhanced understanding of their core audiences. Actionable brand engagement metrics like Viewable Exposure Time (VET) will continue to overtake traditional advertising performance metrics. VET evaluates the optimal amount of time an ad is present on a screen to incite consumer action. In early testing by Tapad, campaigns that employ VET see conversion rate performance improvements from 13 to 60%. The consumer-centric technology solutions of the future need to be as scalable as they are affordable. Learn more about Tapads’ recommended Viewable Exposure Time metric contact us today! Contact us today
NEW YORK, Sept. 28, 2016 /PRNewswire/ – Tapad, the leader in cross-device marketing technology, today announced a new metric for cross-device marketers, Viewable Exposure Time (VET). Viewable Exposure Time measures across screens and ad formats, identifying the optimal amount of time a consumer spends with an ad before they take action. The announcement coincides with Unify Tech '16, Tapad's third-annual cross-device summit during Advertising Week NY. Frequency caps are currently used to ensure that dollars aren't wasted on redundant ads. Viewable Exposure Time evolves the frequency capping approach to include accelerating a consumer's ad exposure rate up to the optimal time spent with the brand. VET is used in affinity, digital transaction and offline purchase models as a key indicator of marketing budget well-spent. Beta users of VET span every vertical, though interest is especially high from CPG, Automotive, Telecommunications and Retail. Viewable Exposure Time unifies and upgrades marketers' predictors of advertising success by leveraging cross-screen engagement across digital and television, with vendor-agnostic viewability scores for video, rich media and display. "Today's current measurement options, like click-through rate (CTR) and TV gross ratings points (GRP) tell an incomplete story," said Tapad GM of Media Kate O'Loughlin. "Tapad is focused on measuring what really matters to marketers – building an efficient connection with a customer. Innovation in metrics was long overdue." More than just a measurement tool, Tapad also provides clients with VET activation. Factoring in time spent with ads in viewable seconds and minutes, these analytics inform marketers about which audiences are underexposed, enabling them to adjust campaigns and deliver according to optimal viewable exposure time. This effectively increases conversion rates at the lowest cost. Contact us today