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Precision insights: How data-driven marketing lights the path to greater results
October 19, 2023
The digital world is an enormous, ever-changing landscape. Populated by countless destinations and with new channels seeming to pop up overnight, navigating this vastness can often leave digital marketers feeling disoriented and unsure of how to locate and engage consumers. If you don’t know where people are or what they’re doing, how can you expect to convert them?
In this article, we delve into how data-driven strategies can serve as a lighthouse for modern marketers. We’ll unpack the power of precision insights and discuss ways marketers can improve outcomes by leaving guesswork behind.
The revolution will be digitized
Digital marketing has undergone a seismic shift in recent years thanks to the rapid evolution and adoption of media like TikTok, Netflix, and Spotify.
These digital playgrounds can become household names overnight, in some cases capable of captivating audiences for hours each day. For example, YouTube’s annual browsing time in 2021 reached 142.6 billion hours worldwide, making it the second-most visited site in the world (Google took the number one spot).
New media represents the death of old, intuition-based marketing strategies that often depended on literal automobile traffic to generate ad views. Today, an ever-increasing reliance on consumer data is revolutionizing marketing strategy. Data is proving to be the bedrock of successful marketing strategies (and for good reason).
This data-first digital marketing transformation is no fad; it's a necessity. And marketers are investing heavily to get their messages out online. Statista reports that US advertisers devoted 80% of their marketing budget to digital advertising last year.
Statista continues: "An estimated $616 billion dollars were projected to be spent on digital advertising worldwide in 2022, and this figure is forecast to increase at a rapid pace in the upcoming years. According to the latest projections, global digital advertising revenue will surpass one trillion US dollars by 2027."
A trillion dollars. It sounded crazy until I noticed other sources sharing similar projections.
Enhancing reach and engagement
Reach and engagement are vital for the success of digital marketing campaigns. After all, no one buys from brands they can’t see. Thus, it's essential for modern marketers to invest in data-driven strategies to make meaningful connections with audiences.
A 2023 HubSpot survey reveals that 36% of marketers said data is essential for reaching target audiences and understanding customers, while 32% said investing in it boosts marketing ROI. These marketers have discovered that data-driven insights enable them to pinpoint precisely where their target audiences spend their time, reducing wasted efforts and budget. Moreover, understanding consumer behavior allows marketers to deploy hyper-targeted content and explore new channels. One such channel is SMS, which has the potential to dramatically increase customer engagement.
Consider these findings recent reported by Forbes: "Marketers seeking to maximize the ROI of their budget and maintain customer engagement levels should consider increasing their investment in SMS, which consistently outperforms other messaging channels. In addition to a near universal 98% open rate…[text] messages also have an excellent response rate of 45%. Compare that to a 21% open and paltry 2% response rate for email campaigns."
Boosting conversion rates
Conversion is the name of the game in digital marketing. Your content might have reached millions of consumers, but if they don't convert, the effort seems futile. Precision insights help identify not only your audience but also the best time and platform on which to reach them.
Tactical use of data results in shorter sales cycles, an improved customer experience, and increased conversion rates.
But the cherry on top is the return on investment that precision insights can deliver. When you're investing your budget on campaigns driven by accurate consumer data and insights, the money spent has more potential to increase ROI. This comes into play in scenarios such as retargeting, when you attempt to re-engage a consumer who didn’t convert on the first try. According to Zippia, ads that retarget consumers are 70% more likely to convert them.
Wielding the tools of the trade
Modern marketers have access to an array of tracking and management tools designed to help harness the potential of data, focusing it into a beacon of strategic insight. Analytics platforms, CRM systems, and data management software are essential components involved in any successful digital campaign. These tools not only help in collecting data but also in analyzing and deriving actionable insights that marketers can use to determine what to do next.
The role of marketing technology (MarTech) is growing at an unprecedented rate. According to ChiefMarTec, in 2011, there were 150 MarTech solutions. Fast forward to today, and the number has swelled to more than 8,000.
But it's not just about the tools; it's about how you use them. Data is more than columns and rows in a mere spreadsheet. These insights are a treasure trove of customer behaviors, interests, and preferences. When harnessed skillfully, data reveals the roadmaps to effective marketing campaigns.
The future of data-driven marketing
The future of digital marketing is a likely to be a thrilling one, powered by emerging trends and technologies. Marketers are already witnessing the transformative impact of new technology with the arrival of AI. Artificial intelligence and machine learning are set to revolutionize the precision of insights and personalization with their ability to rapidly examine large amounts of data.
It may not be long before we see a world where marketing is not just data-driven but also anticipatory, predicting consumer behavior and capable of delivering bespoke content at precisely the right moment in the buyer journey.
The power of precision insights in digital marketing cannot be overstated. From enhancing reach and engagement to increasing conversion rates and ROI, insight-driven strategies are reshaping the marketing landscape. Modern marketers have an opportunity to double-down on data, test new strategies, and adapt their content for higher engagement or risk being left behind in a bygone era.