In a growing digital world, people are at the core of all business success. Everyone is a client: as investors, staff, vendors and other stakeholders, consumers. Whether it is in their capacity as consumers, citizens or workers, individuals and the ways in which you engage, serve and empower them are key to future business growth. All parts of your organization and ecosystem need to be connected and aligned as revenue drivers to optimize customer experience(s).
It is hard to predict exactly how our daily activities and technology will become entangled in the future, with the technological advances of the past. Nevertheless, it is crucial that digital marketers do their best to understand how the existing Internet of Things in the market works, the risks involved, and how the digital marketing environment is evolving with big data.
Recent research from the Boston Consulting Group shows that 98% of advertisers do not realize the full value of data-driven marketing. According to Google research, customers view only one out of three brand interactions as really useful.
Many industries claim that IoT is not relevant, according to a study conducted by Dresner Advisory Services. Nonetheless, IoT and digital transformation developments all point to IoT technology’s potential to change the company’s face as we know it. Issues such as big data and emerging digital technologies pave the way for new strategies for digital marketing and technical introductions that can make life easier.
IoT devices will produce unprecedented amounts of data, which means we will have to advance how we calculate and measure the device’s impact. Furthermore, with this massive amount of data storage, tracking, and analysis, it is up to developers and companies to minimize security risks.
Disruption in Digital Marketing
While the introduction of IoT devices into a growing number of areas of our lives seems like the natural progression of technology utilization from here, the prominence of these devices is changing industries and how they operate, including digital marketing. This disruptive revolution demands that industry professionals begin to take more seriously the inevitability of IoT innovations, as they will have an effect not only on consumer behavior but on the marketing channels used to catch their attention.
Best-in-class digital marketers, however, should take this opportunity to create a digital marketing strategy that harnesses IoT technology’s power and adapts to industry-wide shift. Digital marketers need to consider how IoT can affect consumers and use this digital transition to their benefit in order to make the most of a revolutionary business model.
So how exactly is digital marketing undermined by the Internet of Things?
1. Big Data
Is Here to Stay With the Internet of Things, a wider range of information from different touchpoints is possible. From the point of view of digital marketing, this is extremely helpful in creating a better understanding of the consumer experience in beginning to end. For example, advertisers can see when the interest of a customer in a product begins, their shopping process, up to the point of purchase.
Digital marketers will also have the ability to use these data to their benefit throughout this journey. Since IoT technology participation helps marketers to see where a customer is on the buying path, more touchpoints can also be created for successful customer interaction. Through increased access to consumers, advertisers will be able to find new ways to communicate with them in an earlier stage to answer questions and build a bond with the brand, rather than when a purchase is made.
It should be remembered, however, that any use of customer data must take into account privacy concerns that will only become more strict over time. The European Union’s General Data Protection Regulation (EU GDPR) will be enforceable on 25 May 2018. Regulations such as these set strict limits on how data processors and storage entities can disclose customer data, limiting how much big data digital marketers and research companies will be able to access.
2. IoT Ushers Consumers Into The Information Age
The Internet of Things does not just access information a consumer chooses to publicly share on platforms such as social media, but information about their daily lifestyle.
Consider the types of IoT-enabled devices that the general customer will use: there are just a few coffee makers, thermostats, home automation systems, and wearable devices such as smartwatches. Such machines are integral parts of the daily routine of a customer-from waking up in the morning to going to bed. Exposure to consumer patterns data means they can see how, where, and why particular goods or services are being used for digital marketers.
3. Enhancement of the SEO
As these apps become more sophisticated, individuals specializing in SEO will undergo a major shift in their business, thanks in part to the IoT’s popularity, according to Beth Kotz.
The IoT is changing how apps and computers manage human language, because people often ask questions more naturally when they are spoken than when they are typed into Google. For yourself, you can experiment with this theory: the next time you ask Siri a question, take note of the wording you use when compared to typing out your question online. Chances are, when you talk to Siri, you can find your language more “humanized.”
Beth Kotz from Type A Communications goes on to explain that the use of AI technologies such as Apple’s Siri, Amazon’s Alexa, and Google Home means “search engines are striving to understand the user’s purpose as opposed to honing in on a keyword.” Web pages will no longer be ranked solely on keyword inclusion, but on the natural language found within its text. To advertisers, a major aspect of the IoT environment will be this change from keyword-based SEO content to intention-based writing.
What is Digital Transformation?
Too often these days, customers are faced with ads that do not appeal to their needs. Marketing ads can either be incorrectly focused or timed, showing things they don’t want, or pressuring them to buy items they’ve already purchased. But how do you make sure your marketing campaign meets your audience’s needs? Relevance here is important, and as most advertisers know, data is the secret to user relevance unlocking. You will push beyond mass marketing with the right data and begin to have meaningful relationships with individual consumers.
What Can Marketers Do from Digital Transformation in Digital Marketing
- Take Ownership Taking ownership of the process is the first step to get a digital transformation program started. This involves getting to know what digital transformation can mean for the company and knowing how it has been implemented by other companies.
- New technology is always needed for digital transformation and, as mentioned earlier, if marketers want to launch a digital transformation program, they need to keep up with technology innovations. One participant said the issue they faced during the process of transformation was that they had too much technology in their business. With dozens of platforms in use, monitoring the systems was almost impossible for the team, much less suggesting how they could be used by other departments. One recommendation was that marketers first incorporate the basics — web, email, and CRM — and then slowly and carefully add new platforms.
- Outsourcing We will always have limited resources, no matter how large the marketing or digital transformation teams are. Instead of overloading team members with the wide variety of technology and digital services required for change, participants agreed it was best practice for the team to collaborate with the team members on what they could accomplish realistically. Regarding things outside the experience of the team, everyone decided that time was well spent finding the right partners. This can be particularly problematic when new platforms, particularly video-based ones, are perceived to be very time-consuming as the time and resources needed to produce high-quality material.
What does digital advertising mean?
The world of online marketing is opening new possibilities: with revised search algorithms, shifting market trends, increasing consumer interests, developing new and better technology, etc. There are a number of factors in this context that make it impossible to continue to do the same things, as marketers use to do in the past.
Digital advertising is the process of providing consumers with promotional material across different online and digital channels. This leverages platforms including social media, email, search engines, mobile apps, affiliate services, and websites to display viewer advertising and messages.
Brand Awareness: For The Right Target Audience at The Right Time
This form of advertising allows you at the right time to reach the right people with the right message. You can assume that through magazines, posters, or radio ads you are already doing this. But as we discuss marketing campaigns together, you’re going to see just how much digital advertising raises the bar.
The best way to reach consumers is to be where they spend most of their time. The Web. The Internet. The popularity of trusted sites such as Facebook, YouTube, Yelp, Google Search and more is leveraged. They sell you ad space on their websites to deliver services to their own customers.
Effective Measurable Rates
Not just advertising on Twitter, Pinterest or Yahoo, digital advertising. This uses Internet-based advertising resources to study, monitor, track, evaluate and optimize online advertising campaigns.
When done effectively, digital marketing seamlessly integrates your target customer’s user experience on that website and directs them back to your own website and business. To optimize value to your target customer, it can be personalized. It, in effect, maximizes the rate of conversion. And because it’s digital, in relation to your ad you can track virtually every move your customer makes. This allows you to generate an ROI that can not be reached by other means.
The Tomorrow of Digital Advertising
Whether everything that has happened or is happening is all that you’ve seen until now. But, as we mentioned earlier, the online advertising world is constantly evolving. This causes us to wonder: where are we going? What will your company look like in the world of online advertising?
Such issues seem to be highlighted by different current trends; it makes you wonder how much things are going to change in just a few years.
- Data analytics specialist agencies It is estimated that up to 10% of the money invested in worldwide ads ends up being spent on commercials that no one ever sees. In this light, the future will include data control agencies, blocking fraudulent traffic, and eliminating this excessive expenditure.
- App for SEO Marketing This methodology aims to bring together two different concepts required for any application to achieve a higher number of users.
- Instagram and Facebook ads The world’s largest social network is also Instagram’s shareholders. Facebook is currently promoting the integrated use of both channels to create ads that interact with each other, and we’re sure to see more of that in the years to come.
- Socio-virtual networks If today’s social media didn’t seem like they could go any further a few years ago, a whole new world is about to begin now with the arrival of virtual reality. The online advertising industry will have a field day with limitless creative possibilities at its fingertips with a personalized experience for each customer.
- Artificial intelligence has been applied to campaigns Among many online marketing systems, automation exists. The future is optimistic in developing this dimension, which would also allow for more efficient contact with consumers and better use of resources.
What is Traditional Advertising
Traditional advertising uses interruption primarily as a means to attract new customers. It shoots for wide demographics such as millennial women who like fashion that may or may not be in your area.
What people actually respond to your ad is difficult to track. Clearly, you can not attribute a sale to a particular ad or program. You can get some help from the customer with your analytics if they fill out a section called “Tell us how you heard about us.”
What is advertising in digital form? It’s advertising that you know works because you can see if you’re getting results, often in real-time.
The Explosion of Personalization
Each marketer knows that consumers are expecting a custom experience, but where did it all start? It would be a good bet: the mobile. Such personal devices have always redefined how people find information and buy goods and services and, in effect, have provided advertisers with another avenue to target individual consumers.
Consumer’s lives change daily basis, they are updated with daily trends, with most people spending more than five hours a day on mobile devices, and they need to reach the customer where they are — which happens to be on their smartphones to be effective. Thanks to the omnipresent use of location services and location data, mobile phones are one of the best opportunities for personalization.
This data provides marketers with highly targeted insights to reach the right consumer in the right place at the right time. Programmatic mobile ad spending in the U.S. grew 25 percent in 2018 from the previous year’s $24 billion. According to eMarketer, Mobile will soon represent about 78 percent of the $46 billion programmatic ad market.
Location intelligence also makes the online-to-offline link more visible, enabling advertisers to monitor the ROI for personalized, location-based targeting. According to data from Simpli.fi, location-based mobile targeting solutions drove an average 391% increase in incremental physical site visits for clients from target areas as reported by Geo-Conversion Lift in 2018.
In order to track how mobile advertising spending has influenced their business, marketers need to accept benchmarks related to sales and force their partners to implement conversion-based metrics.
The use of mobile and the resulting influence of location-based advertising is at the core of a major industry-wide change in the distribution of targeted ads by marketers. Location-based purpose data helps advertisers go beyond targeting items like cookies and search data, and reach the right customer specifically on the basis of how they communicate with both the digital and physical world.
Integrate Customer Data for Seamless Marketing
Clearly, collecting data from customer behavior and other databases will help boost revenue, but don’t forget that spending less is another way of making more money. The right type of customer data, in addition to increasing profits, can also help increase productivity and reduce waste, both of which can increase the revenue.
Your customer data, for example, shows that more and more of your marketing response comes from YouTube and Instagram, and less from Facebook. This may be an indication that you can spend less on your Facebook advertising for your company and target market— or cut it down entirely— and put more effort into the channels that get good results.
Integrate Client Churn Data
“Customer churn” is a term used to describe the turnover rate of sales or consumers from frequent buyers to other companies. It’s another field where big data can make a big difference, paired with analytics.
This process is about looking at your user data and arriving at conclusions that help explain why some customers remain loyal, and others support your business for a specific period and then leave. In customer retention, you can consider relationships between drops and when you stop supplying those goods. Alternatively, you can find some sales or times of the year that will give you a big spike.
Social Media Data
Audio, documents, and photographs are up to 80% of the data generated today, much of which is posted on social media. Analyzing social media and using the unfiltered, unsorted data that appears to exist can be extremely helpful not only in figuring out where the audience is, but also in finding out what a market wants or is looking for.
It is important to recognize that content that appears on social media can be symptomatic indicators for the businesses that pay attention to other patterns and factors to capitalize on. So, don’t just see social media as a way to access your audience, realize that it can also be a gateway into what the consumer might be looking for, and you can get ahead of the curve to provide it. Do not neglect the patterns, use them.
Personalized Customer Communication
There are three big brands that get a disproportionate share of the disposable income of many consumers, not only because of their products and services but also because of the way they talk to customers. Amazon, Nespresso, and Netflix are doing one thing above all else–building an environment that can make people feel happy and satisfied.
Nespresso knows when to remind you to order more packets and how to remind you not to be a nag. As a result, scores of people have encountered dozens of new films and series they would never have seen otherwise. With its promotions, Amazon does a good job, suggesting things people might want to buy.
Contrast that with the experience I had recently purchased a refrigerator from an online retailer of appliances. The buying experience was great, the product was on the spot, and I was very pleased with everything. Then I got emails selling fridges from them. Endless emails trying to sell a refrigerator to me. I already purchased a fridge, I didn’t need another one, and I was very surprised they didn’t do that. Nothing else I purchased from them.
So, what was wrong with this appliance store that the other three brands didn’t? They were messing up their data usage. Someone there knew that I had purchased a fridge but hadn’t told the marketing people, or the marketing people hadn’t bothered to look, or the data was most likely not accessible.
How Can Customer Data be Useful for Digital Marketing?
Your business sells fitness equipment that is not conventional. You are rolling out a new line of products, selling forged steel gadas, a form of weighted mace from South Asia that has been used for thousands of years and is becoming popular in some circles in the West recently. These are extremely robust and flexible, but they are more than trivially costly, and there is very little knowledge of how they are used and what to expect from their preparation.
From your study, you have concluded that men between 25 and 35 and women who have experience with other types of Eastern training, such as yoga, will be particularly popular with these. Then you can look back through your documents and send an email to the clients that fit the profile.
You can find women who have purchased yoga equipment or similar clothing by looking at transaction history. You can run ads that suit your ideal customer on Facebook groups with readership demographics. You may post videos on YouTube, displaying gada workout types. If someone is watching those videos, the trigger event that flags an email account or some other outreach. You will use customer data for educating, advertisement, encouraging, and converting, of any kind.
Nearly everything is connected to the web where every instant data on our fashion, computer, sport, etc. preferences is being drawn. Customer data can be used to analyze and adapt the higher conversions and sales organizational strategy. Customer data is rapidly evolving. Social networks, web page views, etc. collect data from consumers at all times. This makes understanding and drawing meaning from it more difficult. It requires focus to decode the truly relevant facts.
The foundation on which you create every aspect of your digital marketing strategies come from your customer data.
Localized Business Strategy
We make it possible for businesses to be more competitive. According to the latest Forbes report “Insights / Treasure Data,” the vast majority of marketing executives (93%) agree that using and analyzing customer data for decision making and designing strategies can give them a significant advantage while meeting disruptive and competitive challenges. Furthermore, 53 percent believe that the transparency provided by these platforms will enable their teams to react faster to market changes or customer preferences.
It is not possible to overestimate the importance of targeted targeting. Nomenclature, local tastes, and purchasing habits vary widely across the country from city to city. But having the technology or staff to customize campaigns to the required degree for tens, hundreds or thousands of markets is rare for advertisers.
It is clear that advertisers need to adopt a localized programmatic strategy to enhance performance. Multi-location brands, companies that represent them, and local media outlets seeking regional audiences for national campaigns are the marketers who stand to benefit most from a targeted programmatic approach.
Technology advances that make the use of unstructured data are one of the most promising inventions for a programmatic strategy to find. Traditionally, organized clusters of data and audiences have been leveraged as the most successful way to target. Nonetheless, when it comes to programmatic marketing, these segments have significant limitations, including unknown data sources, no consistency in the recency of purpose or behavior, as well as the fact that optimization can only occur at the segment level, not at the data item level.
- Effect of Local Business To help marketers understand how does programmatic mobile strategies work and to refine these strategies in real-time, geo-fencing, addressable geo-fencing, and OTT / CTV have emerged as the leading trends in the state of localized programming.
- Geo-Fencing It is the point of entry for many advertisers into regional marketing. Geo-Fencing is a location-based mobile advertising technology that uses data on latitude and longitude to target specific geographic areas. Both data sources and filtering models ensure highly accurate GPS data in order to enable advertisers to target individuals based on the places they have previously visited or are in.
Advertisers were quick to adopt this targeting strategy, and investing in regional mobile ad spending was largely responsible for swaying national advertisers. In fact, it is estimated that the global geofencing market will surpass $1.7 billion by 2024.
- Addressable Geo-Fencing It is one of the largest growing fields for localized programming. Addressable Geo-Fencing is a groundbreaking way of targeting specific digital advertising households and businesses through smartphone, video, and/or OTT / CTV ads. Addressable Geo-Fencing is the next logical step in the localization and personalization of programmatic advertising. This approach uses application line and GPS data to deliver programmatic ads from first-party databases or curated lists based on various demographic targeting variables to individual households, rather than IP-based targeting.
- Information on revenue per customer This measure offers insights into patterns in sales. If you analyze your loyal customer’s behavior and cross that data with product sales, you will be able to see which products work best and use this information for your marketing campaigns
- Opinions of consumers Consumers rely on friends and family recommendations. And make it very easy for them to leave comments and feedback is in your best interest. You should also track user views (with tools such as social mention) on Amazon and social networks.
- Buying Journey Track customer travel data through various devices, from the first brand contact to the conversion.
- Analytics from Google According to Nielsen, company websites are the second biggest factor behind the reviews of friends and family to assess consumer confidence in the brand. So get your hands on the job to clean up pages and inactive links, solve loading problems and make sure you have Google analytics fully integrated.
Gone are the days when intuition and experience guided marketing decisions. Big data now affects crucial marketing decisions. It applies to the analysis and implementation of massive, complex databases, which conventional data processing systems are unable to handle. Such statistics give rise to perspectives that can lead to better business decisions and strategic movements. Using the right technology improves the quality of decision-making and process information.
As the number of outputs and consumer experiences has increased, businesses face huge amounts of both structured and unstructured data. That level of processing goes beyond the capability of traditional software and databases.
Data Leverages your Pricing decisions
Companies are historically pricing products and services using basic information such as product cost, competitor pricing, consumer perceived product value and demand. For big data, you can make pricing choices using many other variables.
You may, for example, use data from closed transactions, rewards, and data based on performance. Big data emphasizes making pricing decisions as granular as possible, particularly in the business-to-business (B2B) market, since each deal differs from the next one. Companies need to remember that they may already have plenty of unused data at their disposal when using big data for price setting, such as customer preferences and general economic information.
The question is how this knowledge can provide valuable insight. Does your pricing strategy, for example, consider what goods a particular customer has bought over the past five years? What is their earnings at disposal? How much can a company be paid for? Does your pricing strategy also take into account macroeconomic indicators such as quarterly GDP growth rate, inflation rate, exchange rate, interest rate and government spending of the countries in which you operate? It will lead to better pricing decisions by integrating these perspectives.
Big data also helps you to automate, which can save time in market settings and lead to more precise pricing decisions as there will be no human intervention and therefore less risk of error.
Promoting the Right Web Content to the Right People
Online marketers will be able to serve their website visitors with personalized content by tapping into their knowledge base to assess which content is more appealing to each user.
Netflix does an outstanding job providing individualized suggestions to guests based on the films and shows they’ve viewed. While designing your website, you can apply the same principle by refraining from thinking about your page as a static site. For example, look at “time spent on page” data to determine what the user is interested in; you can show them relevant content based on their browsing history the next time a specific visitor comes to your website.
Just as search engines return different results in different places when searching for a word, your website can look different based on who is looking at it. Although presenting personalized content will be a technical challenge, a growing number of consumers are requesting customized experiences. Digital marketing departments that are unable to fulfill these expectations won’t help their companies succeed on the market today.
Using deductive research, inductive research and customer-selected methods, build your personalization strategy. The customer must ultimately decide where to click and what to buy, and businesses that can better serve those customers will win the game. Because they have an initial lead, it will be the early adopters who win the race.
As an effective tool for digital marketers to gain insight into what their consumers need and want, big data has gained tremendous attention. Compared to traditional systems, the ability to process large datasets is much more complicated and advanced. Like early adopters, big data was not incorporated into their marketing strategies by all organizations. Those businesses that have not begun already will have to review their existing systems if they want to succeed.
When it comes to their advertising, marketers see the need for more personalized, localized targeting, and the market is growing in response to this need to achieve higher performance. It is imperative that advertisers understand the consumer expectations behind the change to location and have clear discussions about the advantages of a localized programmatic strategy.
Multi-location brands, companies representing them, and local media organizations looking to target audiences for national campaigns are the marketers who are most likely to benefit from a targeted programmatic approach. Through the use of geo-fencing, addressable content, and OTT / CTV advertisement strategies, advertisers can meet the right customer at the right time, bringing the digital and physical worlds together.
Online advertising is the present, but the future of online communications offers a lot of resources to be a cutting-edge business that interacts successfully with its target market. Are you going to join us? Learn the tools and technologies needed with a Masters in Digital Marketing to meet tomorrow’s challenges.