For the last couple of years, we have been talking about Industry 4.0 as part of the digital transformation. The main idea of digital transformation is to connect and intertwine digital and physical technologies using cloud services, artificial intelligence, the Internet of Things and robotics in order to provide more flexible, responsive and connected forms of operation based on data. If this transition to Industry 4.0 has been more subtle in recent years, we have now witnessed exponential progress. What has been the common thread of the past two months? Digitalisation and data. If you were not aware of their significance before the current situation, now, in the light of the new reality, the answers have come. Where is the digital marketing in this process?
Digital marketing is based on data
A unique advantage of digital marketing, compared to other forms of advertising, is the data that allows insight into consumer behaviour, more effective target group reach and customisation of its effect in real time. Insights into customer behaviour and adaptation have become even more important in times of unpredictable circumstances. How to leverage smart data for better decision-making and planning is one of the key issues that marketing departments are facing today, while working in close collaboration with development and IT departments. It is about finding synergies between the left and right hemisphere, between logical and mathematical work, and between creative, systemic thinking outside the established boxes. I am convinced that the winners of modern times are those who seek synergies and strengthen the cooperation inside the team in order to achieve surpluses and provide exceptional user experience.
While the marketing director works closely with the technical director, as the client relations director, I am in daily contact with the various teams on the client’s side. This involves various staff profiles, from marketing experts, digital marketing specialists and data analysts all the way up to company management. I can confirm from experience that their work is better and they are better prepared to face this new reality where these functions are coordinated with each other. It is also very important that a digital marketing function is recognised and correctly placed into the structure of the company and connects different departments. IPROM is similarly organised, working accordingly to the principles of lean control, and agility is one of the key rules of operation.
Data is gold today
In a time of exponentially rapid changes, accelerated digitalisation and changed shopping habits, consumer data is a key foundation of the company’s competitive advantages, as it provides immediate insight into the market. Modern advertising data management platforms, including iPROM DMP, enable the organisation of consumer data, a better understanding of the purchasing process and the most advanced targeting based on the use of artificial intelligence and predicting the future behaviour of each target group. Such insights enable the design of concepts and solutions tailored to the customer, and their activation through effective communication and addressing at the right time in the right place when the customer is in favour of certain content.
Using data to better understand consumers
Newton’s third law says that if the first body acts on the second body with a force, it acts on the first with an equally large, but oppositely directed force. This rule can also be applied to the company organisation and the total sales. It is difficult to provide good products and services without understanding the market needs and consumers’ wishes. We can have a great marketing campaign, but without offering the right user experience and an effective sales strategy, it will at best win the creative competition prize. Today, understanding consumers is crucial, so modern marketing strategies are based on the use of data. Brands that sell directly to customers (D2C) are very well aware of this. The latter are at a great advantage in these times, as they can communicate directly with consumers, adapt the strategy to the current needs and exploit the potential of marketing through the flourishing digital channels. Among the better known is Netflix, which has experienced record growth in recent months. The current situation has provided perfect conditions for this, and their marketing strategy, which is entirely based on the use of data and advanced analytics, allows for quick adjustments to the platform. In Slovenia, data-based marketing strategy was used excellently by telecommunications and internet service providers, who provided their customers with free or more favourable upgrades to subscription packages, including additional services.
Marketing budgets in the new reality
Marketing budgets and the allocation of advertising resources are a key strategic issue today. What and how much to advertise? Where to advertise? How to effectively talk to customers? The equation is actually simple. The more you know your consumers, the more accurately you can address them and profiles similar to them, the better the response will be. If we simplify the equation, then the following stands: range x resonance = response. Today, advertising effectiveness is more important than at the beginning of the year, as both advertisers and consumers have become more price sensitive. The record digital media growth in March and April this year is also maintained in the new reality, and advertising in these channels has long provided the best ratio between investment and efficiency. In addition to various forms of advanced data targeting, digital channels also enable accurate measurements, customisation and real-time campaign testing and a very clear impact on sales for D2C brands.
Programmatic advertising, dynamic creatives and hyperpersonalisation
If we started testing dynamic creatives in digital advertising years ago, these have become an important element of digital strategies in the age of hyperpersonalisation. Their construction is based on data that, after going through automation procedures and the use of advanced algorithms, enables the composition of a message in real time with content and in a form that more effectively addresses the consumer. In the world of programmatic advertising, which has now become even more important due to its efficiency and the possibility of advanced targeting and reaching the target audience in practically all markets, dynamic creatives are key to optimising advertising budgets meant for their preparation.
Today, it all starts and ends with data
Today, planning is virtually impossible without a clear insight into the operation and market needs. It is difficult to talk about the effectiveness of the activities carried out if we do not have a clear insight into their analysis. More than ever, then, due to the need for transparency and greater cost sensitivity, digital advertising will prevail today, and advertising technology associated with the efficient use and exploitation of smart data has become even more important in this intense transition to Industry 4.0 than ever before.
The full article was originally published on the Marketing magazin’s webpage.