A DMP is an excellent system to use for managing data and a data exchange helps to expand your options of how your organize your data. But what is data exchange, exactly? How does a data exchange work? Here is a basic breakdown of the data exchange to help you understand why data exchanges are so important to you as an advertiser, publisher or digital agency.
A data exchange gives you access to more data points to use for expanding your target audience or filling in gaps of information about your current audience. Lotame’s Data Exchange provides access to multiple data types such as website data, social data, mobile data, CRM data, and third-party data. From these data types you are able to understand your target audiences behavioral patterns, demographic similarities, common devices used, and interests/affinity groups. One important expert recommendation when using a data exchange is to make sure the data is accurate and of high quality. In order to ensure that your data is free of spam Lotame partnered with Are You a Human to identify bot and non-human traffic in data and remove these data points for quality measurement.
You have the opportunity with a data exchange to pull ready to use bundled audience segments with all the data you need for effective targeting. You can target your audience using multiple points depending on your needs, whether that be integrating behavioral interest data with offline purchase data or looking at data from mobile devices and social influencers in your industry. Third-party data in invaluable in helping you build out your campaigns and create carefully crafted that will lead to a high ROI.
Data exchange is an essential resource for publishers, marketers, and agencies who either do not have the time or resources to wait for their first-party data to become a large enough set to discover more about their target markets. Publishers are able to impress their advertisers and optimize their campaigns to create messaging leads their target audiences to higher CTR and conversions. Marketers can become experts on the audiences they want to target with a full understanding of the groups them are trying to reach and how to best reach them with unique messaging and targeted strategies. A data exchange platform can also help agencies by raising them above competition and excel past client expectations by providing clients with access to data and information that they normally would never have access to. A data exchange is an excellent resource for making better decisions for campaigns through enhancing your understanding of your target markets.
To understand why the data exchange is so important when trying to capture today’s consumer, it’s important to understand how today’s consumer has evolved in the digital age. Before the information age, the main strategy for marketers was the straightforward sales pitch. Whether it was a door-to-door vacuum cleaner salesman, a direct mail ad for furniture or a television commercial, the model was, “we have something to sell you and here’s why we think you should buy it.”
The approach was advertiser-focused, rather than consumer-focused. Sure, the advertiser would tell you why it would be great for you to have the product, but he didn’t know anything about you, so how could he really know? There was no way to measure the efficacy. Some people bought and some people didn’t, and that was that.
In the information age, things changed radically. It was possible to know a lot more about consumers and it was possible for consumers to independently find out a lot more about products. No more did they have to submit to being “sold to.” A consumer could go online, compare brands and features and tell you what they wanted to buy. At the same time, advertisers had access to more data than ever before about who was buying what and when.
This necessitated a new approach — one where the advertiser’s job was to identify a target market’s problem, present a solution and hope the sale would take its course as a result. This required targeting the right people, hence the need for data collection. But the old way of data collection, while better than a shotgun approach, still had the problem of treating people like data points. A marketing campaign based solely on “they bought before, they must want what we’re selling,” is prone to the same problem of making the consumer feel like one of a horde of people being sold to.
Learning to use a DMP with a data exchange to create target audiences within your target markets and offer products to the truly motivated buyers is the most evolved marketing strategy you can adopt.
Lotame’s data management platform can help you take full advantage of data exchanges, whether you are a publisher, advertiser or digital agency. You have the opportunity to truly understand your audiences better with a time efficient process. Lotame’s 3rd-party data exchange gives you access to billions of data points across the web and throughout the world. Contact one of Lotame’s customer care representatives to learn more and view our Data Exchange Overview.