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BizReport : Advertising archives : March 23, 2015

What expected data spend really means for brands

The Winterberry Group reports US marketers will spend $11.5 billion in 2015 on data and related solutions. Specifically, data-related spending will rise by 35% in email marketing and 21% in display. But what does this spending forecast really mean for brands?

by Kristina Knight

Kristina: What does the $11 billion+ number actually mean?

Aaron Beach, Data Scientist, SendGrid: The fact that U.S. marketers are predicted to spend $11.5 billion this year on data and related solutions means that marketing teams have started moving toward a "data-driven" culture. This is only the beginning. Within the next couple of years we're going to see marketers invest more and more money into data and related technologies.

Kristina: For email marketers, what kinds of data are the most important?

Aaron: The most important data for email marketing campaigns is engagement and conversion data (opens, clicks, purchases). On an email delivery platform, this is gathered in two different ways: 1) When images are opened, the pixel URL is tracked and each URL can be made unique and tracked when it's opened; and 2) Once you click on a link through your email, you are automatically redirected to the website. However, as you're being redirected, the information is sent to your email delivery platform before you reach the retailer's website.

Kristina: What about bounce-backs and unsubscribes?

Aaron: You can also track other events like bounce back rate, unsubscribes and spam complaints which will help marketers manage their email recipient lists. For example, if you see a big spike in your unsubscribe rates after a specific campaign, that's your data telling you that your message wasn't what the recipient was expecting. Good email deliverability comes from knowing how to send the right message, to the right person, at the right time, with the right frequency. Data helps prevent spam complaints that could have marketers cleaning up their sending reputation for a long time.

More from Aaron and SendGrid, including the four rules marketers must follow for successful email campaigns.

Image via Shutterstock

Tags: advertising, email marketing, email marketing tips, SendGrid

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