Here’s How Big Data Is Disrupting Digital Advertising

By Author: Jency Jane
Total Articles: 5
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Advertising has greatly evolved with digitization. Today, big data is ubiquitous and placing its mark in every industry. Digital advertising is one such industry that is stepping into the next stage of advancement exploiting big data.

According to a 2019 CMO Survey, the majority of ad tech and mar-tech leaders agree - big data and innovative technologies are two pillars on which their marketing strategies are based.

Here are some capabilities that digital advertising is achieving with big data.

Identify the right order

Digital advertising effectiveness relies on the potential to identify the right order. This requires virtuous data gathering, processing, and analyzing from various sources.

Surplus data is generated every day in the form of photos, videos, comments, feedback, reviews, etc. but the actual pain point is that 80% of this plethora of data is unstructured but possesses potential insights.

Leveraging big data analytics platforms helps media companies to integrate and assess behemoth data in real-time and deliver factual insights to make well-informed ...
... decisions.

Predict your audience

The advertising industry is no less than a battlefield. At the end of the day, all that matters is if your audience is convinced - and, in order to convince your audience, you need to know what your audience are looking for?

Industries today are reshaping to be more customer-centric. While different consumers have different preferences, an added challenge from today’s consumers is their attention span.

According to a study by Microsoft, “the average human being now has an attention span of eight seconds. This is a sharp decrease from the average attention span of 12 seconds in the year 2000.”

Hence, knowing your customers will not get the job done in this day and age. Rather predicting your consumer’s behavior during various situations will become a necessity.

With big data, companies are mapping consumer behavior with historical data to segment consumer personas to provide the right content to the right audience at the right time at the right platform.

Perform targeted advertising

Market trends are constantly evolving. And consumers today can assess such information in no time – all regards to the innovation of smart devices. In today’s fast world, targeted advertising has become important to increase digital conversion across advertising networks and keep pace with competitors.

While harnessing big data helps comprehend consumer preferences, mapping big data with traditional demographic data can help perform micro-segmentation of customers and deliver targeted and personalized digital advertising campaigns.

Augment Customer acquisition and retention

Customer churns are bitter. Remember how much sweat is invested in convincing a customer about a product or show or service, but how easily the customer gets annoyed and leaves half-way?

Well, with big data we may have a solution to handle such painful moments. Employing big data analytics can help media organizations understand their consumer’s likes & dislike, and, build products or services likewise. Additionally, this can educate companies about the overlooked factors which may be a potential customer churn factor. Big data analysis can enable companies to sketch appropriate promotional and product strategies to entice and retain the right costumer.

Consider Warner Bros, they leveraged software applications with sales data to obtain prompt access to actionable and accurate reports to gain knowledge to improve customer acquisition and retention.

Hyper-localized Advertising

Hyper-localized advertising is a promising digital advertising strategy today. Combining consumer data with location data, companies can deliver promotional ads or discounts or incentives to boost customer engagement and conversion rates. This can actually open the doors of potential opportunities for digital advertisers.

Think about those Facebook notifications and suggestions when you check-in at a particular location. Mobile devices (smartphones) are an added advantage as they enable hyper-localized advertising in real-time.

Future of Digital Advertising

The crux of Digital advertising is end-user experience and big data can enable companies to create such experiences. With big data, companies can be watchful of the dynamic consumer preferences, make informed decisions to improve customer acquisition and retention, mitigate customer churn as well as create alternative revenue channels.