Digital advertising scores over conventional forms of advertising by tracking and measuring the ROI of campaigns with high precision in real time
From Khushboo Solanki Sharma
Technology has turned the digital advertising landscape upside down and the Covid-19 pandemic has accelerated the digitization process. In an age of cutthroat competition between brands and the flood of information on social media, technology is the powerful tool to implement an out-of-the-box strategy to stand out from the crowd. Here are some of the ways technology is redefining the digital advertising landscape.
Increase efficiency: Automation has permeated every sector and digital advertising is no exception. The use of new technologies to optimize digital advertising processes and improve operational efficiency is known as marketing automation. Automated advertising platforms save time and resources, increase efficiency and free marketers from repetitive, everyday tasks. Marketing automation also provides strategic insights to make decision making easier. The marketing automation tools come in handy in this day and age of multi-channel, multi-device digital advertising as they allow the entire campaign to be managed smoothly and seamlessly.
Precise alignment: Identifying the target group is a crucial step in the digital advertising strategy. Not every customer is your target group. Technology helps narrow down and filter the target audience and enable their segmentation based on demographics, geographic region, interests and behavior. For example, the Facebook Ad Manager is a powerful tool that offers a variety of options to help you build your target audience’s profile. Technology also helps identify what type of content is likely to reach your potential customers. Tools like BuzzSumo and SEMrush allow you to understand the psyche of your target audience and their behavior on the internet. Similarly, you can also exclude a portion of the audience that may not be relevant to your brand.
Measure ROI: Digital advertising scores over conventional forms of advertising by tracking and measuring the ROI of campaigns with high precision in real time. It also gives marketers the leeway to make course corrections and modify the existing campaigns to improve results. Technologies like artificial intelligence have excellent tracking and analytics skills to make quick decisions and increase business revenue. Likewise, machine learning has the unique ability to analyze infinite data points and provide a deep understanding of various customer touchpoints and the impact on brands. Marketers are increasingly using predictive analytics to identify patterns and influence customer behavior.
Personalization: Personalization has become the core of brands’ digital advertising strategy in order to maintain a competitive advantage. A customer-centric approach is critical to growing your business. Personalization refers to reaching and staying connected to your target audience and adapting your branding strategy to the profiles of customers. Research from Montate-Econsultancy found that 94% of marketers consider web experience personalization to be critical to the success of their business. An Epsilon study found that 80% of customers said they intended to buy from personalization brands. Email marketing tools like Mailchimp, Google Forms, and others will help you stay connected with your target audience and incorporate their suggestions to make them feel valued. Amazon Assistant, for example, offers product recommendations beyond the Amazon website in order to offer you a personalized surfing experience.
Maximizing the customer experience: New trends like video marketing and voice search have redefined the customer experience and the relationship between brands and their customers. A study found that video generates 50x more engagement than plain text. Likewise, YouTube viewers are 1.4 times more likely to view and share ads on mobile devices than non-video ads. The boom in virtual reality and augmented reality, including wearable technologies, has opened up a myriad of opportunities to retain customers and provide them with a superior experience. For example, Instagram reels and Snapchat photo filters are growing in importance due to their ability to attract and entertain audiences.
Promotion of customer loyalty: One consequence of the personalization and the outstanding experience is the expansion of the customer base and improved customer loyalty. Digital advertising also includes a remarketing strategy to stay connected with your customers, rekindle their buying intentions, and trigger repeat purchases. In fact, remarketing is an important part of the marketing funnel today. It helps drive a number of brand loyalists who recommend your brand through digital media or social media platforms. Watchfinder, a luxury watch brand, achieved a 1300% ROI in 2014 and a 13% increase in average order value (AOV) from remarketing.
Affecting business results: The various benefits that digital advertising technology offers such as improved efficiency, increased sales, expansion of the customer base, impact on business results. The technology has helped brands take a “digital-first” approach and use an omnichannel marketing strategy to target different customer profiles.
Promote innovation: Technology is also a trailblazer to fuel creativity and fuel innovation. Brands are increasingly developing disruptive campaigns that embody creativity and innovation to stand out from the clutter. The best example of this is a Souptube ad from Campbell, who used Google’s Vogon technology to create a YouTube pre-roll campaign with over 1,700 targeted executions. The tool supported bespoke creatives for a variety of audiences that resulted in 1.5 million views and a 55% increase in Campbell’s Simply Soup sales between May and July 2016. Likewise, British Airways Billboard ads in Piccadilly Circus and Chiswick in London, equipped with surveillance technology, detect and activate billboards when an airline’s flight flies overhead.
Technology has emerged as a panacea for brands to influence business results and stay ahead of their competitors. Still, it should be noted that storytelling and personalization are at the heart of any digital advertising campaign and technology is just one tool to enable these two components. The technology also has a downside, such as user privacy concerns, cybercrime risks that, among other things, make certain job roles obsolete. The key to leveraging the technology is finding the right mix, ensuring it is used carefully, and keeping up with the latest trends in the industry.
The author is the founder of Zero Gravity Communications
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