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BizReport : Advertising archives : June 25, 2018

Expert: Brands missing mark in data, retargeted campaigns

Recently, the Wall Street Journal released findings of a new study which found, among other things, that consumers are feeling more spammed by brands than ever. This, according to one expert is partially because of the disconnect between brands, consumers, and data utilization.

by Kristina Knight

Kristina: A new study from the Wall Street Journal indicates consumers feel they're being spammed by digital ads - why is this?

Boaz Cohen, Chief Product Officer, Clinch: There has never been more data and media buying automation tools at a marketer's fingertips, enabling he or she to deliver ads with precision, however, it is up to the brands to create responsible retargeting strategies with smart frequency caps (the number of times a consumer should see a single ad) to ensure a great opportunity doesn't turn into a detrimental one. Additionally, the better the creative the less frustrating an ad will be to the consumer. Often times a brand can be so consumed with their data strategy that creative can take a backseat. This is a mistake.

Kristina: What are consumers not understanding about digital advertising?

Boaz: If a consumer finds an ad to be too annoying or not relevant there are ways to opt-out or report that ad. However, the majority of consumers understand that value exchange between free services and advertising and want ads that are relevant to them.

Kristina: How can brands better explain their strategy to consumers?

Boaz: While General Data Protection Regulation (GDRP), which just went into effect last month, took things to the extreme, brands can take some of the good communication elements form this EU law, and explain to the consumer how and way the data is used.

Conversely, there is a problem for advertisers, too. What, in your opinion, is causing the disconnect between brands collection of customer data and their strategy in retargeted advertising?

Brands are using separate providers for display, video and social. This is a huge mistake and causes a disconnect because these providers aren't sharing data and creative strategy with each other. Instead, they are blowing through frequency caps and ineffectively reaching the same user, with the same message, just through a different medium. We believe that consolidation will lead to better outcomes for brands and agencies.

Kristina: It makes sense for retailers, especially, to set up an algorithm to "cut out" advertising for products that have been purchased - why isn't this happening?

Boaz: There are two separate reasons depending on verticals:
* purchase -- there is a long lag between the time a consumer purchase something offline and the time the digital retargeting company gets that info. During this period a consumer may be retargeted.
* purchase -- Lack of usage of cross device data could also be the issue (someone purchase something on mobile and the retargeting company continue retargeting on desktop)

Also remember that many times brands pay their retargeting tech provider per impression, so there is zero financial incentive for the retargeting provider to stop retargeting, even if the person has purchased the product.

Kristina: What are two or three "first steps" brands/merchants can take to begin updating their strategy for retargeted advertising?

Boaz: * Understand their data and what their strategy will do - There is a lot of data available to advertisers and many rely on third parties to manage it. They need to understand the strategy they are undertaking. For example, brands may want to move money from retargeting to upsell/loyalty campaigns. Many brands often put advertising dollars against retargeting while the low hanging fruit is to get an existing client to buy more.
* Do NOT neglect the creative. Marrying data and creating high-quality, personalized ads pays dividends. If you have access to data and are spending large sums of money, there is no excuse not to invest in personalizing your creative to generate the most effective returns.
* Set frequency caps - Understand the right number of times that a consumer should see an ad and don't exceed that number
* Test, test, test - The only way to truly optimize a campaign is to test and make adjustments in real-time.

Tags: advertising, advertising data, advertising trends, Clinch, data analysis, data strategy, data trends

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