With every online marketing touchpoint or visit to a website, consumers leave their digital fingerprints and tell us about their interests, dislikes, intentions etc. In theory, the Internet offers advertisers excellent opportunities to reach their potential customers with relevant advertising messages using the right channels.
For many marketing managers, however, this opportunity remains a major challenge. Performance and sociodemographic audience data are often available, but scattered across different systems. Marketers do not get a unified view of the customer to find the right channels, devices and tactics to reach him.
In order to provide the user with a relevant advertising experience, the split between audience and performance data must be resolved.
WHAT IS SOCIODEMOGRAPHIC DATA?
The term sociodemographic data is used to describe information obtained using methods from empirical social research. Within the scope of market research, random samples are taken from the population in order to be able to make statements about the distribution of population characteristics.
Examples of sociodemographic data:
- Marital status
- Household size
- Professional situation
- Household net income
Sociodemographic data can be used to define the population as a whole. They often form the basis of market segmentation and target group identification.
WHY ARE SOCIAL DEMOGRAPHICS IMPORTANT IN MARKETING?
Understanding the ideal customer
Every company has an ideal customer profile: It consists of characteristics and qualities a customer has, that would buy a particular product or service. When you create the ideal customer's profile, you take a closer look at his or her tastes, preferences and potential problems that he or she can solve with the product. This enables you to improve and develop marketing measures that target individual customers.
Reducing marketing costs
If advertisers know the demographics of the target group, they can expand their advertising budget by serving advertisement in places where they find their ideal customer. For example, if you want to reach millennials, who can be reached primarily through social media, you don't need to spend budget on direct email campaigns.
Identification of new opportunities
Sociodemographic data not only helps to define and find the ideal customer, but also to identify gaps in your marketing strategy. For example, the advertiser markets exclusively on generation X and realizes that people of other generations are disregarded.
The most important function of sociodemographic data in marketing is to increase sales. By understanding your customers, every company can align its marketing efforts to target customers who are most likely to buy the product. So, it is worthwhile knowing your customers and what they really want.
ATTRIBUTION SYSTEMS LACK AUDIENCE INSIGHTS
Marketing Attribution offers advertisers the opportunity to measure and analyze their customers' user journeys in order to understand the influence of each marketing touchpoint between the customer and the brand on the purchase decision.
The challenge is, that most attribution systems can evaluate the performance of marketing campaigns, but not in connection with audience data. Thus, Marketing Attribution can determine how successful advertising measures are and what influence they have had on the user's purchase decision, but not whether every measure works equally for each target group or whether there sociodemographic differences exists in campaign performance.
INTEGRATING SOCIODEMOGRAPHIC DATA IN MARKETING ATTRIBUTION
In order to achieve maximum efficiency with their marketing measures, advertisers need a platform that combines sociodemographic profile data of customers and prospects with the results of marketing attribution.
When audience data and performance measurement merge, marketing managers gain insights if and to what extent different channels or measures influence a specific target group. This way, advertisers can not only optimize the customer experience for their customers, but also optimize their advertising budgets within and across different channels to drive conversions, brand commitment, sales or other success metrics.
It is important, to be able to identify the unique customer distinctively across all channels and devices. This is the only way to enable personalized marketing. The basis for this is usually a unique identifier, such as a customer id or an encrypted email address. The actual identity of the customer must remain unrecognizable at all times. This first party data is then combined with information from external partners (third party data). Users, that were previously identified based on devices and cookies, are synchronized with insights of demographics, transactions and behavior (age, income, purchase intent, etc.). Thus, robust customer profiles can be created. An unknown user therefore becomes an individual with specific characteristics.
Identifying the consumer as an individual
The enormous power of person-based marketing is the ability to target real people instead of generic target groups. Understanding who customers and prospects are, what they like and how they behave, is the key to delivering tailored messages that meet the unique needs and preferences of the customer.