Performance Driven Advertising. You hear it all the time. The world of advertising has changed. Digital has transformed the way we do everything. Traditional advertising is dead. All of this is 100% true but have you ever stopped to wonder why? Let’s take a look at the two.
For many years, traditional channels like TV and radio were the dominant go-to advertising platforms. Traditional advertising agencies could easily sell you a slot on TV or radio with very basic information or statistics on what results you can expect and you just had to wear it. In reality, they didn’t really know what you were going to get in return. Sometimes it was a hit, sometimes it was not. There was not and still is not enough data available from these channels to help you or these agencies find the magic formula. The recipe that allows you to put in x dollars and get out x dollars.
We consider these channels to have non-performance data. Sure, you may be able to get some stats on how many people watch TV and when but that does not make people engage with your commercial. Therefore the data does not equal results.
These channels include:
Radio, TV, Print advertising, Outdoor advertising
With the introduction of digital and digital advertising, brands, businesses and media owners have had greater transparency around where their money goes. They also have the ability to track how their customers interact with their campaigns. Meaning they can learn from each campaign. No stabbing in the dark, every move is made based on concrete data. Agencies cannot pull the wool over your eyes and charge you absurd amounts for a specific time without being able to tell you the return. With digital channels, your agency is able to tell you what the investment is and exactly what you can expect to get out of that.
Because digital is based on performance, we consider these to be performance data channels.
These channels include:
Social Media, Email marketing, PPC, SEO, Display advertising
Invest Your Money Where You Can See it Return
As an advertiser, you buy data when you invest in a campaign. Obviously, it makes more commercial sense to pay for this data on a performance level (e.g. email marketing on a CPL basis or social media) versus paying for advertising where you cannot ascertain its performance (e.g. radio or tv).
Performance data allows you to ascertain performance and optimise. Optimisation is key. Performance data allows you to learn from each and every campaign. The benefit of this is not limited to just making more money. These insights allow you to get closer to your customers. You can begin to see their personalities and you can make decisions based on understanding your target market.
Digital advertising allows you to be specific and tailored. You may be marketing to the masses but it does not have to be generic mass marketing that fails to hit the heartstrings because it does not relate to all. Digital advertising allows you to segment your audience and deliver them tailored, relevant information that was served to them because you have data that tells you who they are and what they want to see from you.
Simply, digital advertising converts. It offers you transparency which leads to better forecasting and greater clarity over your business and your customer base. Which makes the most sense… Throw your money in the air and hope for the best outcome, or invest it into channels that will show you where it has gone, what it has learned and how much it is giving back?