Personalization marketing is a type of targeted marketing tactic that uses a customer’s browsing and/or buying habits to deliver individualized purchasing recommendations, content, ads or similar items. Personalized marketing is designed to be more effective because it’s responding to a current or potential customer’s wants, needs or interests. The use of personalized marketing campaigns is expected to exponentially grow over the coming years since – for the most part – it can be quickly and easily added to nearly any type of campaign.
Importance of Personalization
A recent article in Advertising Age indicated that marketers consider personalization as a key component to successful marketing in the future. Personalized marketing campaigns ensure that businesses are addressing their customers or potential customers with the most relevant products and advertising.
This allows for smarter, more budget-conscious campaigns than ever before. Plus, target audiences prefer personalized marketing.
Katana Personalization Marketing Study Results
Recently, Katana performed a study of their clients to determine the effectiveness of personalized marketing campaigns. This study included:
- Analysis of over 200 million impressions from display, video and social media.
- Clients from $10 million through $1 billion in sales per year and from 22 different industries.
Personalization is executed with custom approaches against two categories (targeting, buying, optimization and/or messaging) in a combination. It was discovered that only 12% of impressions (24 million) can be attributed to a personalized approach to online media. With the addition of Katana’s proprietary audience solutions to personalized marketing would customers see a lift in results? Or would they remain the same as the general public results?
The Study Methodology
With each campaign, Katana introduced personalized methods by creating high volume audience segments and assigning real-time unique approaches to targeting, buying, optimizing and messaging. Katana’s proprietary Audience Yield Manager quickly identifies campaign patterns for the purpose of creating audience segments initially and on an ongoing basis.
As a result, each campaign received – at a minimum – a total of eight clearly defined audience groups. These groups received custom basic execution methods of buying (where to reach them and how often to reach them), targeting (when to reach them and where to reach them) and messaging (ad creative). The purpose of choosing only limited customization methods was to identify immediate lifts without introduction of too much complexity.
The outcome of the study proved that every company needs to invest in some level of personalization marketing. The below table shows the lift that the campaigns received within a 30-day measurement period from transitioning from a standard campaign into Katana’s “LEVEL 1 Personalization Approach”:
The Katana Approach
Since 2013, Katana has been transitioning clients’ online marketing campaigns from their previous setup, i.e. internal management or other services providers to highly personalized campaigns in targeting, buying, optimization and messaging. The result has been successful, personalized and on-point campaigns that are setting companies apart from their competitors.