The way we use data to target audiences is constantly evolving. The first phase in targeting was fairly simple in that we relied on only a few simple demographics, like age and gender, to segment consumers. Then audience groups were formed. More advanced and specific, audience groups were, and still are, based on consumers’ shared interests. The newest chapter in data targeting, utilizing real-time insights, merges information about demographics and audience groups with real-time activity. But that’s just the tip of the iceberg. Real-time data isn’t just information about your consumers’ spending habits in the last month. True, real-time insights let you know what your target customers are searching for the moment they shop online.
In the mid-20th century, marketers focused on only a few consumer demographics when developing marketing campaigns. While factors like age and gender were more important sixty years ago when people sourced their news and entertainment from the same place, the traditional methods for obtaining consumer data are not as relevant anymore. McKinsey’s John Forsythe demonstrates the problems associated with using only a few, superficial demographics by citing the differences between Prince Charles, Queen Elizabeth’s son and her heir apparent, and Ozzy Osbourne, lead singer of heavy metal band Black Sabbath. While both men are British and the same age, a marketer obviously wouldn’t market to them the same way.
Marketing and brand expert Adam Paulisick also believes that simple demographics don’t provide enough information to properly target consumers.
Segmenting consumers by age and gender or other demographics is inefficient at best, even for more traditional marketing campaigns because there are no hard and fast rules anymore for what a man or a women will intuitively buy (with few exceptions).
While we might not know the hard and fast rules that drive what a consumer buys, we can know the next best thing: what product they are shopping for the moment they shop. Real-time data takes into account everything we used to know about consumers based on demographics and audience groups and merges it with live activity.
Keith Sayewitz, Chief Marketing Officer and Head of Sales at BDEX, a market-driven exchange platform that provides users with real-time data, explains the value of real-time analytics for marketers.
For years a company depended on simple demographics to identify a certain consumer, like ‘soccer moms.’ Then audience groups were formed, so we discovered those soccer moms were interested in fitness. But now, with real-time data, we learn which of those soccer moms are in the market for a treadmill or are switching to vegan cuisine. This information is incredibly powerful because it allows for truly advanced targeting. We know that this customer is likely to buy a treadmill because she is in the market for one at this exact moment.
Marketers can then create specific ads for the desired consumer, increase the probability for conversion, and, therefore, create more sales. The insights provided by real-time data are essential to brands, retailers, and agencies who want to stay up-to-date on consumer activities and truly understand their customers’ needs.
BDEX, the first ever Data Exchange Platform (DXP), is currently the only source for true, real-time data. For more information about BDEX’s unique services, click here.
Image Credit: NEC Corporation of America