With new privacy rules coming into place, the ways that marketers are able to reach and learn about customers has drastically changed. The main way that brands and businesses are collecting data involves collating the information of their own consumers, known as first-party data.
This post is going to explain how this data provides an opportunity for marketers to understand their audiences better while optimising campaigns, so keep reading to find out more.
Why are TV-driven customers a high valued audience?
With such a multitude of ways for audiences to consume content, it’s difficult for advertisers to reach consumers at the right frequency and on the right screens. Research shows that brands are now recognising the need for a unified, audience-based advertising strategy across TV and digital and are making strides to streamline how they target audiences.
In fact,89% of marketers have said they expect to see a “significant shift” away from traditional TV marketing, as brands start to take an audience-based buying approach in attempts to maximise their investments.
How to capture data from linear and streaming TV campaigns
Traditional TV advertising is very broad in scope and limited by legacy broadcast technology. Advertisers can try to personalise their ads by limiting views to specific regions or channels, but overall, the process isn’t perfect.
Online ads, by comparison, can be highly personalised, which means scale is less important. Not to mention that ad interactions are more immediate and measurable than with traditional broadcast advertising.
But today’s TV providers also have a wealth of data collected by the connected devices used by today’s viewers. When collected and used in the right way, this data can be transformed into insights which allow providers to identify specific demographics, work out the best ways and times to serve targeted ads to them, and report accurately on viewer engagement.
So, when done correctly, addressable media can give advertisers the best of both worlds, combining the targeted focus on online advertising with the extensive reach of TV. Plus, unlike with online ads, TV ads can’t be hidden with browser extensions!
Examples of brands that have improved performance by applying first-party data insights
Netflix is a great example of a brand that uses data analytics for targeted advertising. With more than 100 million subscribers, the company is able to collect huge amounts of data. This data is then used to give Netflix insights into what interests the user most. The recommendation system, for example, influences about 80% of the content streamed on Netflix overall.
PepsiCo uses big data for supply chain efficiency. The company’s clients provide reports that include their inventory to the company, and this data is used to resolve and predict the production and shipment needs to ensure that retailers have the right products, in the right volumes and at the right time.
The final example is Amazon Fresh and Whole Foods. Data driven logistics give amazon the necessary expertise to understand how customers buy their groceries and how suppliers interact with the grocer. This data gives insights wherever there is a need for further changes to be implemented.
And there you have it – all the basics you need to know about first-party data, how it works, and why it is so effective for effective TV advertising.