Despite a habit of early adoption in the Adtech space, conversion in this $133 billion-dollar industry isn’t getting any easier. Smart Insights recently reported the average click-through rate (CTR) for display ads is just 0.1%, though averages are higher for rich media advertising. Adtech professionals are struggling to become more competitive in light of changing consumer expectations and increased consumer adoption of ad blocking technologies. The adtech pros who succeed are taking a deep dive into big data technologies for improved targeting.
Consumer needs and preferences can change minute-by-minute, and adtech professionals need access to up-to-date insights on “behaviors, lifestyles, actions, motivations, and other factors” to generate precisely the right offers at the right time. Remaining competitive in adtech requires insights that are minutes or seconds old, not months or years. In this article, we’ll examine why real-time data exchange and the Data Exchange Platform (DXP) is necessary to micro-targeting, segmentation, personalization and other emerging trends in adtech.
Why Micro-Moments Matter
Google Vice President Sridhar Ramaswamy wrote recently that the adtech industry has a tendency to focus on the wrong things entirely. “Micro-moments,” defined as the points in time when consumers perform “short bursts of digital activity” are increasingly common among individuals with access to mobile and internet technologies. Delayed gratification is becoming increasingly scarce for consumers who can research, compare, and purchase products while waiting for the subway during their morning commute.
Unless brands have the ability to present perfectly relevant offers during these micro-moments, they’re unlikely to connect with the 69% of consumers who admit that quality, timing, and relevance are key purchase factors.
Big Data for Micro-Targeting and Personalization
Being able to identify and present advertising that’s targeted towards consumer preferences in micro-moments requires access to real-time, cross-platform insights that can paint an entire picture of consumers. Grouping consumers by demographics via traditional data vendors in your data management platform isn’t sufficient for today’s customers, who may book a trip abroad while waiting for dinner at a restaurant. Months-old segments based on your DMP vendor’s desktop browsing data won’t allow you to capture the interest of consumers who’ve already spent their annual vacation budget via smartphone. Targeting consumers during micro-moments requires a comprehensive understanding that’s only possible through real-time data exchange.