According to the recent white paper, “The Balancing Act: Getting Personalization Right”, Yahoo’s researchers uncovered that consumers don’t necessarily have a problem with online advertising. Their issue is with advertisingThat is not relevant and excessively intrusive. According to their study, respondents found only 37% of desktop-based internet ads to be relevant, while only 30% were found to be relevant while using a smart phone.
Where Do I Begin?
There are three things you need for successful personalized ads. You need to know the target’s interests. Next, you need to make sure the language resonates with the reader. Last, and possibly the most relevant to this conversation, you need to value their time and make sure the ads they see are personalized and of interest to them. According to The Balancing Act, “Personalization represents the ultimate in consumer dialogue. Instead of advertisers pushing product, they participate in an adaptive online experience, interacting with the consumer, building a relationship with the brand.” Having personalized ads builds engagement and purchase intent, however, how do you get personalized ads that can do this? Having the right data is a critical part of the answer. It’s vital to find out the visitor’s location, demographics, behavioral, metadata, first party, and third-party data. The more information you can collect about your audience, the better.
The key to providing a personalized ad requires the proper data for targeting, the correct creative assets that can be built dynamically for the specific audience, and the proper tools to put it all together. Once you have the creatives built and the dynamic ad serving set up, you will need to focus on getting the proper data. The method that you use to acquire your data can make a difference in how well it targets your audience. Using first-party data that is gathered via cookies from website visitors can be very useful. When combined with third-party demographics data from a data aggregator, it can become even more powerful. Once you have the data, it can be used to make media buying decisions or to create programmatic rules. Other parts of the data will be used during the ad serving process.
Some of the demographic data can be used to make sure that ads are served to the appropriate viewer’s gender, age, shopping history, and more. You can also use the personalization data to mix with location data to find an offer, product, or store near the user.
When to Use Personalized Ads
Personalized ads can be helpful as the viewer moves closer to making a decision. One of the first steps is bringing awareness of a product or service. In many cases, this may start with ads based on a simple search. Once they start to evaluate the product, you can then begin to personalize the display ads. This is a critical time where retargeting can come into play by reminding the visitor of the product they are searching for and helping them find possible solutions. Of course, personalized advertising doesn’t end once the person makes the initial purchase. It can help them become aware of a potential upsell and then bring them back to close the deal.
Data is key for proper ad personalization. This data can come from your website. You will also need to purchase third-party data from companies like Experian, AGS, or Nielsen. Once you have this information, you will need to have creatives built and an ad service provider in place. Combined, you will be ready to start your journey into ad personalization.