From a business perspective, Big Data seems like the ultimate way to target your customers. And yes, to some extent, it is pretty remarkable.
Management Consultant and Theorist, Geoffrey Moore, said it best: “Without Big Data, you are blind and deaf in the middle of the web freeway.” But before you spend your entire marketing budget on data research, outlined below are three pros and cons of using Big Data in digital advertising.
- Strategic Insights
Big Data is changing the game from one of guessing to one of certainty. Behavior-driven data enables companies to give customers exactly what they want; which may even include products or services they didn’t even know they wanted before they were brought to their attention. By leveraging insights gained by Big Data, you can now carefully tailor your offer to the right people.
In other words, Big Data is about understanding consumer needs and satisfying them with your product or service.
Furthermore, incorporating Big Data into your creative framework indicates to your clients that your company maintains the balance of insight-driven ideas with sound execution, sending them a clear message saying: we know and care about you.
Which brings us to the next benefit-
Advanced analytics have created the ability for personalized, targeted marketing campaigns, where companies are directing specific messages to specific segments of their target audience at exactly the right times.
A McKinsey study found that businesses who utilized data-driven personalization delivered five to eight times the ROI on their marketing spend, and according to Zest Digital, 78% of customers believe that custom content shows the company is committed to building a relationship with them. Using Big Data renders the purchase decision-making process an easy one; for who doesn’t want to invest in a company that invests in them first.
- Marketing Attribution
Through various technologies, data not only provides information on the customer, but how he or she interacts with your brand digitally. By tracking these interactions, you get the opportunity to attribute leads and conversion to specific advertising platforms and channels, optimize your campaigns and increase ROI. Data provides sound facts on what works and what doesn’t, what your potential clientele responds to and what they ignore- confirming your money is being well spent.
However, before you sign the check and commit your marketing dollars to Big Data, take the following into account.
- No Insight into the WHY
Though data analytics certainly shows customer patterns and usage, it gives no insight or explanation as to the why. Without understanding WHY your customers interact with you, you’ll find it hard to maintain your competitive advantage. Relying too heavily on the associations found through Big Data means you’re at risk for discovering false truths or even creating the truths that you wish to see. Don’t get caught up merely in the numbers. Your customers should be first, understand why they take certain actions, not just their end results.
- It Cannot Predict the Future
Think of Big Data more as a history measure. You need to be forward-thinking to keep ahead of the market curve, and that cannot be accomplished by relying solely on Big Data.
Use other forms of market research such as benchmarking, interviewing industry leaders and researching marketing trends to fully understand your customers.
- Data Can Be Deceiving
Not all data is created equal: good data has to be specific to your needs.
With so much information out there, one can easily find any set of data to support any argument. The tools are available to help you segment the data, but it is your responsibility to make sure you are asking the right questions. Consider where the data is coming from, and how it is collected- before changing your marketing strategy to comply with its findings.
In conclusion, there is no doubt that incorporating Big Data in your arsenal of tools will have a positive effect on your business. However, keep in mind that it is only one means to an end.