These days, audience targeting is about so much more than testing for age or gender. Thanks to huge advancements in audience activation and advanced targeting in the last decade, first-party and third-party data are giving marketers more insights than ever. With all this data at your fingertips, it’s not about whether you’ll use it, but how. And now that holiday season is off to the races, it’s up to you to build smarter campaigns that target users actually likely to convert. Demographic targeting can convert users into customers, but it’s not cheap. This method of targeting makes certain assumptions: for example, that your message will attract males aged 35-50 by virtue of their age and gender alone. If you want to maximize your budget these next two months, take deeper dive into your data.
Let’s use a hypothetical—you’re female, in the 18-25 age bracket, and you love luxury fashion. You get targeted with an online ad from the luxury beauty brands Urban Decay and Two-faced. Now, this is not totally random; you’re a millennial woman with an affinity for luxury brands. But, it only accounts for your general interest in luxury items— but does it account for the fact that you actually shop for luxury clothing more than you do luxury beauty? Ultimately, this is not the most effective use of ad spend; you’re somewhat relevant, but you’re not relevant enough. Taking your targeting one step further will make a huge difference between potential customers and current ones.
Our recommendation for your holiday campaigns? Target users based on a psychographic data, as opposed to demographic data alone. Psychographic data describes consumer behavior such as transaction history, search and web browser history, interests, etc. These are stronger indicators about whether a consumer will want to buy your product, or even care about it. To develop your target audience, identify an end goal: is this campaign more driven by exposure, or sales? Create a separate campaign for each goal you have. Then, organize your data on both existing and potential customers into audience lists, and keep them separate. Avoid grouping users together that are at different places in your sales funnel. Once you have developed detailed audience targeting lists, create an audience exclusion list. This final step ensures that you don’t spend money on users who aren’t interested in your brand. Advanced targeting allows you to target and retarget audiences at a granular level— and is crucial to boosting conversions.
If you want to see a successful holiday campaign, get more intel on your current customers to target your potential customers. Not only will you see higher conversions, but also a more effective use of your budget. This season, target based on actions, not just inherent qualities-— the consumers viewing your advertisements (and your KPIs) will thank you.
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