Importance of data-driven advertising in today’s world


Advertisers are focusing on how to use data to influence the customers and attract a particular product or service and also to understand the movement of data among the customers. Marketing agencies provide information to advertisers so that they can predict the future preferences of the customers.

 Using artificial intelligence and big data tools, personalized messages are created to attract and retain customers leading to the technology of data-driven advertising. Data-driven advertising is a smart upgrade from traditional advertising. According to research done by IHS Markit, data-driven advertising was found to be more effective than traditional advertising. Moreover, it increased the value of advertising.

The growth of the digital advertising market is highly dependent on behavioral data. Brands can satisfy the demands of the customers through data-driven advertising and increase their ROI. It has enabled economic growth by reducing the barriers to entry and also enabling innovation and competition. There are various other ways in which the data helps the advertisers which include recommending advertising, predictive advertising, programmatic advertising, and retargeting.

How user data is used in retargeting is by capturing user’s online activity and behavior and helps in driving remarketing campaigns.  A remarking code called tag gets triggered when the user visits the brand’s website. This generates a cookie file stored in the user’s browser. When the user browses the website, they will see the ad of the products through the ad platform.

 Programming advertising uses data analytics to automate the space buying process based on which the ad purchase decisions are made and bidding is conducted via a digital exchange. In programming advertising, advertisers reach user characteristics like demographics, geography, interests, behavior, etc. without any human intervention. 

Predictive advertising uses predictive analytics to foresee responses and outcomes. While predictive analytics uses artificial intelligence and statistical algorithms. Predictive advertising uses highly targeted messages to the potential audience on the right platforms. Artificial Intelligence analyzes customer behavior, characteristics, past responses, and purchases with the help of statistical algorithms to anticipate future sales and responses.  When it comes to recommendation advertising, advertiser’s studies about the user’s search history and make advertisements based on it.

Companies can launch successful advertising campaigns based on data-driven advertising. Data-driven advertising helps to learn about the customer’s behavior in digital platforms. It also simplifies the personalization process and is more consumer-centric. In simple words, data-driven advertising helps the brand to reach the right customers at the right time.


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