The Importance of Data
Data collection is such a controversial topic. In some parts of the world it is completely transparent while in other parts of the world it is a breach of privacy. However, no matter what your stand is towards data, it is important to highlight that without it, marketers would be completely lost.
How is the ad you are being served relevant to you? How do advertisers know exactly what you are thinking? How does your phone remember what you were talking about? All these mysteries are solved with just two words: data collection.
Technology and tools have allowed us to develop data collection at such an advanced level. With our phones, laptops, tablets, or home devices: someone, or rather something, is always listening. Data collection tools’ main purpose is to monitor consumer behavior and create personalized ad serving for each different consumer. Therefore, knowing what you are thinking, saying, and wanting is basically the job of this type of tool and getting the relevant ads means you have been properly targeted and the job was successful. Let’s break this concept down in order to better understand data.
1. How is data collected?
There are various ways for data to be collected, notably through cookies, google searches, website browsing, geo location, and social profiles - to name a few. Your online behaviour is studied to better understand your preferences, in order to relevantly serve you ads. Here’s a simple way of explaining how your data set is constructed, using a person X for example. X has an Instagram account where their interests can be deducted from the profiles they follow and pictures they like, they then proceed to go have a coffee at one of their most visited places on Google Maps giving marketers more insights into their preferences. X then downloads a game on their phone letting our data collection tools know they enjoy gaming and finish by browsing tech gadgets on Amazon indicating what they buy.
2. How is data analyzed?
Why is data so important? It’s a simple answer: relevance. We already have our reservations towards ads and ad serving but imagine if, additionally, the ads had zero relevance to you. You could be a teenager interested in the latest hair trends while being constantly targeted with diaper ads. The reason data is collected is so ads are able to serve you better, remind you of an item you may have forgotten, point you towards the latest trends, or introduce products that are similar to your interests. Let’s be honest, we’ve all clicked on an ad in our feed for a new product that caught our eye, and some of us actually bought it.
3. How to incorporate it in your campaign?
The smartest campaigns are based on data collection, sometimes from within the consumer base. Remember Spotify’s end of year wrap up that summarized each user’s favorite artist, most played song, etc? This is purely based on their data collection and the result was as expected: Spotify’s users were all sharing their year wrap ups, but most importantly they felt special, unique, and understood.
Collecting and using data correctly can create a great connection between business and consumer, bridging the gaps for consumerism. Hence why at MC Portfolios, we advise on data collection for our clients in order to create the right content for the target audience, resulting in higher engagement and conversions.