Personalization 3.0
Through various targeting techniques, you can obtain precise information about the buying habits of individual users. The newly acquired data can then be used for advertising in online marketing. This also ensures that a man in his mid-30s who’s interested in soccer and NASCAR doesn’t get any ads for cosmetic products and spas. Every user leaves a digital footprint that the online marketer can then use to their advantage. Therefore, the results are based on millions of pieces of customer data that have been collected and combined.
This is possible thanks to data management platforms. DMPs collect data from customers by analyzing cookies, among other things. They can be seen as giant warehouses that store customer data, analyze it, and make it available when needed. DMPs issue this data to marketers to help them when placing their ads online so that they can reach the exact users that belong to their defined target groups.
Unique performance measures
Using online marketing techniques, you can observe how effective your advertising measures are (if at all). Analytical tools and tracking tools can be used to see who views which ads and how often they’re clicked on. When it comes to offline measures, there aren’t so many ways to track your success. If you rely on outdoor advertising, you can only estimate how many people have seen your advert. You can then only gather a rough estimate of how many people have gone on to buy the product shown in the ad, by carrying out customer surveys, but this process is unreliable and time consuming. However, when products are purchased online, it’s possible to measure performance and success rates precisely. It’s possible to monitor an ad’s CTR (click-through rate) as well as the conversion rate, which reveals how many users have bought the product after seeing the ad.