3 Reasons Why Personalized Campaigns Work

Personalized Marketing Campaigns

What’s the best way to get someone’s attention in today’s overcrowded online space?

Delivering a targeted message based on their unique interests, tastes, and behavior. It’s an experience many other brands are failing to provide, thanks to their generic ads. Programmatic allows you to can tap into the full potential of personalization. Doing so helps make every impression feel like a valued individual. That translates into higher engagement and conversion rates, resulting in a more profitable ad spend. For the businesses that have implemented personalized marketing campaigns, they’re already paying off.

The Challenges Digital Advertisers Face

The digital advertising world is moving at a dizzying pace. As the Internet matures and evolves, audiences are becoming more fragmented. Advertisers are hard pressed to keep up with their target customers across a variety of devices and traffic channels. There’s also a lot more competition. New businesses are setting up shop online every day. Attention spans are shortening. There are millions of new ways for people to occupy their attention besides poorly targeted ads. Consumers also have more control over how they interact with brands online. There are many more options than before, and they’re keenly aware of it. Successful advertisers can overcome these challenges – quickly showing users they’re the best option among countless others – if they’re willing to abandon generic, broadcast-style ad campaigns.

Personalization is key.

Understanding the Importance of Personalization Isn’t Enough

Most marketers understand the importance of delivering personalized ad experiences online. But many haven’t turned that understanding into action. 2011 research from content management provider EpiServer found that while most marketers grasped the importance of delivering personalized communications to users, 64% hadn’t done so! The marketers chalked up a lack of action to poor tools, ad tech, and software to help them personalize their ads. 45% of the participants from the same survey felt their personalized campaigns would be more effective with access to more relevant data. They also considered integrating data across various digital channels a major challenge in their personalization efforts. These marketers’ concerns were legitimate just a few years ago. But they are no longer an issue, thanks to rapidly evolving programmatic technologies. Unfortunately, many marketers have remained closed off to the latest programmatic developments. Outdated perspectives keep them from seeing that personalized ad campaigns are not only possible, but they’re profitable for a variety of reasons.

3 Important Reasons Why Personalization is Paying Off

With programmatic, marketers can deliver personalized messages based on a subset of their audience’s specific wants, needs, and interests. These highly targeted impressions are much more likely to turn into conversions, making them more cost-effective than the traditional “spray and pray” approach to digital display ads. For businesses that are already delivering personalized ad experiences to target customers, the results are tremendous. Personalization pays off for several different reasons, and these will only multiply as the technology evolves.

The following are three important reasons why personalized ad campaigns are paying off:

1. Gives Consumers What They Want

A study from Conversant found that 86% of senior retail marketers agreed that individual messages are more effective than mass messages. One potential reason for this overwhelming consensus: marketers are simply picking up on a larger shift taking place in the minds of consumers. Consumers used to be more tolerant of generic ad messaging 5 or 10 years ago, but this is changing rapidly. A wide range of products, from Pandora radio to the Sleep Number bed, has emerged giving consumers unprecedented flexibility to customize purchases to reflect their unique personality and needs. Consumers have come to expect and demand personalization. And this attitude has spilled over into the way users engage online. According to Scott Eagle, CMO of Conversant, “today’s consumers demand communications relevant to their personal needs and interests.”

2. Recreates an Intimate In-Store Experience

One of the most difficult challenges of digital advertising is getting target customers to feel like they’re having a one-on-one conversion instead of tuning into a broadcast for anyone willing to listen. Personalization is helping brands overcome this challenge. With personalization, brands are able to recreate – and in some ways surpass – the experience of going into a store and having a friendly sales associate guide you to the best buying decisions. Brazilian retailer Dafiti used this strategy to capitalize on sales leading up to Mother’s Day, the second busiest day for online shopping in Brazil. Over a two-week period leading up to mother’s day, they targeted individual users and delivered personalized product recommendations based on their purchase history. This approach resulted in a 50% sales increase for the two weeks leading up to Mother’s Day – 15% higher than expected. Dafiti advertised to countless users across Brazil. But personalization made their ads feel like one on one communications, resulting in an extremely effective campaign. In a way it creates an even better experience than chatting with a sales associate. Users get the personal attention they want and expect – and the convenience of experiencing it from their computer, tablet, or mobile phone.

3. Taps into the Enormous Potential of Mobile

Walker Sands found that mobile traffic is increasing at a rate of 78% per year. Mobile already accounts for 28% of the total traffic online, and this will only increase over time. Smart phone technology has turned mobile phones from communication devices into a new way to experience ads. Many consumers carry their phones with them wherever they go – including when they shop. This creates a huge opportunity to deliver personalized ad experiences to them at opportune times. The possibilities with mobile are limited only by the imagination. Retailers are already using their customers’ current location to tailor offers, with some even going as far to tailor offers depending on which aisle in the store the consumer is currently shopping. Columbia used an ingenious mobile campaign to drive sales of winter jackets in 2013. They served banner ads based on the users’ location and recent mobile search history. By focusing on users in cold weather markets who had searched for winter coats, Columbia drove many to nearby retailers that carried Columbia jackets. This resulted in a click-through rate 54% higher than the industry average.

Personalization is the Future

In an increasingly competitive and fragmented online space, consumers are demanding something more. They’ve come to expect unique experiences that appeal to them as individuals. Successful marketers will use personalization to deliver these to them. Some are already using personalized ad campaigns to connect with users and create memorable (and profitable) ad experiences. As ad tech continues to evolve, these payoffs will only increase over time.

Personalizing your ads doesn’t just give users what they want.

In a world where generic advertising is quickly becoming obsolete, it’s a smart way to do business.