This article was originally written for, and published at, PerformanceIn.
Read the original article, “Five Barriers to Activating Your Data — and How to Tackle Them”, here.
It’s true that 1st-party data is the foundation of customer relationships. It can provide rich, relevant and cost-effective insights into consumers—and, as such, it’s just what is needed to create highly effective, personalized ads. So why are many marketers struggling to make healthy returns on it?
It all boils down to data activation—the process of unlocking value in data through developing and acting upon insights that you uncover. It means putting the data stored in a data management platform—or DMP—into action.
As such, here we outline the five key challenges marketers are facing when it comes to data activation and, of course, how to overcome them.
Challenge 1: [In]accuracy
Today, brands collect enormous amounts of information about consumers, from what they like to buy to where they like to buy it. But too often, these insights are incomplete or inaccurate. The consequences of this can hurt a brand’s image and empty its pockets.
To help overcome this challenge, brands must cross-reference 1st-party data with other (verified) data sources to create a more complete and up-to-date view. In this way, effective data activation requires building connections within your systems. By combining online and offline first-party information with other pieces of data such as browser history, location, device type and transactional data, it is certainly not mission impossible for advertisers to display a personalized ad to the right person at the right time.
Challenge 2: Regulation
The General Data Protection Regulation (GDPR) comes into effect next year and is calling for companies to change how they gather and use data. These new laws won’t just impact European businesses. Any brand that operates in the EU or uses EU data will need to comply. This poses new challenges for marketers and will force companies across the globe to transform how they collect and utilize 1st-party data.
As such, advertisers will have to do more than just hire a data privacy expert. Brands will need to shift their corporate cultures, putting respect for consumers’ privacy at the heart of the business, if they don’t already. Don’t forget that this is the foundation of building respectful and personalized relationships with consumers. Remember: data-activated, one-to-one marketing is not only expected by today’s customers, it is also the key to transforming transactions into enduring relationships.
For the other three challenges, read the full article on PerformanceIn.