25 Aug What Is Data-Driven Marketing?
Data-driven marketing is an internet marketing method which utilizes multiple data points for campaign optimization, it takes the guesswork out of marketing and focuses on marketing methods and outlets that work. Utilizing a data-driven marketing approach ensures that all campaigns are highly-optimized, reducing and eliminating ad spend on ineffective marketing campaigns.
Stop guessing, start knowing.
Many business and marketing firms implement marketing strategies that they think is best, but have no clue how many leads are actually being generated from these campaigns, this is not how WebByte Media operates. We only focus on effective marketing strategies by analyzing analytical data, user behavior, and conversion data. Data-driven marketing focuses on trimming the fat and maximizing profitable campaigns.
Example of Data-Driven Marketing
For the sake of simplicity, let’s say you are running two marketing campaigns. One campaign is advertising through Facebook and the other is advertising through Google AdWords, each campaign has data-analytics setup, actively tracking all leads and phone calls coming in from each campaign.
Each campaign has a budget of $5,000 and the objective of each campaign is to maximize conversions, after 30 days the campaigns are evaluated. Using a data-driven approach we find that the Facebook campaign generated 5 leads total, so the average cost per conversion is $1,000. The AdWords campaign generated 500 leads, so the average cost per conversion is $10.
The data-driven approach tells us that your marketing dollars are spent more effectively in the AdWords campaign which has a much lower cost per conversion. But it doesn’t stop there, we can drill down into the exact keywords, demographics and time of day that are generating these leads. Utilizing that data we can further optimize the campaign, increasing the number of conversions and decreasing the average cost per conversion.
What does this mean for your business?
In the example above, utilizing a data-driven approach results in your business saving thousands of dollars on ineffective marketing efforts. Since we identified an ineffective outlet we can then transition that ad spend into marketing outlets that are yielding a significantly lower cost per leads. This results in less money being spent, and more revenue being generated.
What about offline ads?
Data-Driven marketing is also applicable to offline advertisements. For example, we can implement a tracked, unique VOIP phone number for a print ad campaign. The number will seamlessly and instantaneously forward to your main phone number, but we can track all calls generated from that specific ad. In addition to tracking the number of calls, we can score the quality of those calls to determine the effectiveness of that offline ad campaign, seeing how many leads were generated from it and determine if it is worth to continue with the campaign.
Is data-driven marketing for me?
Data-Driven Marketing is for any businesses who is interested in maximizing every dollar spent on advertising. If you are interested in running highly-effective campaigns while maximizing every dollar spent, call WebByte Media today.