How to Enhance Your Targeted Advertising ROI

CDP Use Cases|[wtr-time]

How to Enhance Your Targeted Advertising ROI

In this new age of customer data privacy, there is certainly a case to be made against targeted advertising that uses both consumers’ behavioral and contextual data.

After all consumers remain leery of “lending” their personal information to brands.

Even if said lending is meant to allow companies to personalize and individualize relevant offers to them via targeted search engine ads and across social media platforms.

However, the pros of targeted advertising — notably, delivering timely online ads to existing and potential customers you know have an interest in the products or services promoted to them — far outweigh the cons for growth-focused professionals today.

The simple truth is digital advertising isn’t going away anytime soon — nor should it.

Having said that, it’s in your best interest to adapt accordingly to the data privacy era and ensure your contextual and behavioral advertising both hits the mark and complies with users’ consent preferences (which can change from one day to the next).

That means delivering ads only to those who actually (and explicitly) state they’re fine with receiving marketing messaging from your brand that factors in their personal data.

One proven to continually improve your targeted advertising ROI and alleviate consumers’ data collection and usage concerns is by applying their interest data in your ads — an undertaking the customer data platform (CDP) can help you master.

targeted advertising

Improving your targeted advertising ROI (while considering consumer privacy)

Before diving into why it’s ideal to employ interest data for prospects and customers in your targeted advertising efforts in search engines and on social networks, let’s take a step back and evaluate the merits of online advertising in this increasingly data-conscious era.

As with any marketing activity implemented by companies today, there is a risk-reward component factor for targeted advertising businesses need to consider:

  • The risks: The most obvious one is turning off your audience by over-personalizing. That is, serving up ads that up the “creepy” factor for them. Aside from that, there’s also the legal and ethical element of potentially (and unintentionally) delivering ads to individuals whose consent you don’t have. Simply put, using these individuals’ sensitive information and data to serve ads they’ve ‘opted out’ of receiving can open up a can of worms for your brand and lead to hefty fines.
  • The rewards: On the flip side, there are clear pros to targeted ads, when implemented properly. Arguably the biggest (and most apparent) benefit is you can use browsing-history and general engagement data associated with past website visitors  and other contacts to show ads to those individuals — known and unknown contacts alike — across social media, web browsers, and devices. In turn, you can increase your chances for conversions — notably ‘prospect-to-customer.’

It’s a fine line between executing targeted advertising in a lawful, principled manner that helps you meet your many lofty engagement goals that carefully considers consumers’ privacy and delivering targeted ads that cross the line and lead to audience mistrust.

As New York Times Business Reporter Sapna Maheshwari recently wrote:

Ideally, you regularly deliver targeted ads on Facebook, Google, and other online avenues based on audience interests (more on this shortly) to contacts in a careful manner they enjoy (or, at least, don’t mind) seeing and that doesn’t “intrude” on their privacy.

In a worst-case scenario, you employ over-the-top advertising that constantly serves a barrage of ads that essentially stalk your target customers digitally. Ones that annoy them to the point they set up ad blockers to evade your messaging (or opt out of it altogether).

It’s the former avenue that will lead to the targeted advertising ROI for which you (and your CMO) aspire. And your best bet to realize this sizable, always-improving marketing ROI for your targeted ads is to leverage your leads’ and customers’ behavioral data.

targeted advertising

Personalizing your targeted advertising based on customer interest data

In short, targeted ads based on specific individuals’ engagement are your key to unlocking greater targeted advertising ROI. Consider the Interest Ranker 2.0 Listener in our CDP:

  • BlueConic customers can add “keywords” to contacts’ profile properties that pertain to their content and product browsing habits and preferences (e.g., for different clothes of interest to a retailer). This helps our customers gather information about their audience is most interested in on their owned channels.
  • These keyword-based interests are then ranked on a points system (i.e., based on whichever keywords, and products or content related to them, that matter to you most). In conjunction with behavioral data, this data can be activated in targeted advertising and other effective personalized and individualized messaging.
  • As our customers collect more interests to their contacts’ unified profiles, they’re able to build increasingly richer segments that help them execute gradually more cost-efficient advertising across channels that improve their most critical metrics — acquisition, retention, and lifetime value among them — and reduce ad spend waste.

More conversions, less marketing spend squandered, greater audience insights gained: That’s what the Interest Ranker 2.0 Listener, and our CDP, offer companies.

In short, the more interest keywords from engagements tracked, the more success you’re likely to see with your targeted ads (not to mention your other important customer lifecycle marketing activities) and, in turn, the greater targeted advertising ROI you realize.

Using audience engagement to improve segments (and targeted ads’ success)

To take full advantage of the ability to capture and score your customers’ interests, you can use flexible, easy-to-adjust rules within the Interest Ranker 2.0 Listener to define engagement milestones or specific interests that matter most to you and your business.

Let’s say you’re a bicycle retailer looking to advertise more methodically:

  • You could implement the listener on the product pages for certain models: best-sellers, high-priced bikes, accessories — any and all pages of importance to you. Anytime a contact lands on one of these pages, they’re assigned a pre-determined amount of points (again, based on the importance of those pages to you).
  • What’s more, you can get even more intricate and assign rules to page elements. For instance, you can give points for any time a visitor scrolls beyond 50% of the page or clicks on or views a header or other page element that features keywords you’ve designated as ones to track in the listener.
  • As net-new prospects, first-time buyers, repeat customers, and loyalty program members engage with you in various capacities (adding items to their carts, clicking calls to action, etc.) their profiles update dynamically. This gives you a persistent, eternally accurate single customer view.
  • You can then use the scores based on your rules to ensure the right individuals in your database remain in, are added to, or are removed from segments automatically (and in real time) and, in turn, boost your targeted advertising ROI (and, subsequently, your return on advertising spend).

That’s the beauty (well, one of the beauties) of the customer data platform:

  • Your first-party data syncs with all your other tech, updates upon each interaction those solutions track (email opens, ad clicks, site sessions), and unifies into their respective CDP profiles moments later — not hours, days, or weeks later.

The lengthy time lags traditionally associated with segment creation, optimization, and hand-off to marketers, customer experience teams, and other technology users from their IT teams are a thing of the past with the customer data platform.

Now, intricate, dynamic customer segmentation is substantially streamlined when growth-focused teams connect their CDPs to related technologies — CRMs, ESPs, and the countless other acronymed tools — as they constantly and immediately update.

It’s only with this real-time data access you can implement truly impactful targeted advertising — among other critical engagement activities — that resonates with the individuals and segments to whom they’re served due to their timeliness and relevance.

Enhancing your digital advertising ROI with a customer data platform

You undoubtedly have many goals for your customer engagement program. None of your core objectives associated with your strategy — including and especially improving your targeted advertising ROI — will come to fruition, though, without:

  • 1) A concerted focus on consumer privacy in every marketing activity
  • 2) A unified effort within marketing to prioritize customer identity
  • 3) A leading customer data platform as your chief marketing database

With consumer privacy preferences top of mind with your online advertisements, there’s no reason it can’t and shouldn’t remain a prominent tactic in your engagement playbook.

Without a customer data platform, though, your targeted ads will fail to reach the heights — and bring about the return on investment — desired by you and your business.

Watch our on-demand webinar to discover the return on investment enterprises realize with a customer data platform at the heart of their technology stacks.

cdp roi

See what BlueConic can do for you.

Whether you’re looking for operational efficiencies or improved marketing effectiveness through data activation, our customer data platform can help.