In terms of marketing and advertising, 2020 was a transformative year. The huge growth in online retail and ecommerce has helped marketing professionals change their strategy and dedicate most of their budgets to digital channels. In fact, 76% of marketing professionals plan to increase spending on online video ads, while 70% want to invest more in social media stories and 68% in social media feeds.
Increased levels of online competition, however, increase the risk of additional spending on advertising budgets. So digital marketers need to take steps to ensure that high-targeted ads are delivered through the right channels to minimize unnecessary costs.
Understand the problem
According to a global survey of global marketers in 2018, an average of 26% of budget is wasted on ineffective channels and strategies. For most digital marketing teams, the root of the problem lies in the lack of effective insights and decision-making to objectively evaluate their efforts. Research from the work of ROI Hunter with hundreds of clients spending billions has shown that about 50% of dynamic ad impressions typically go to just 1% of the catalog products. More worryingly, marketers have no control Which 1% of their products are promoted, or even visibility which products receive it.
This problem is compounded by the fact that product data is often found in separate silos across different organizations. Marketers rarely have access to product margins or return rates, and merchandisers often do not know the advertising costs behind each item. This lack of control and central visibility means marketers are only able to see part of the image. As a result, advertising strategies and costs are often based on the best estimates from a limited data set.
Product data facility
One way digital marketers can eliminate speculation and improve the effectiveness of digital advertising strategies is by using their product performance data to inform promotional plans. By syncing product data across their channels, digital marketers can unlock new insights for driving more performance. For example, marketers can identify their bestseller products and increase publicity based on revenue or transaction volume.
The easiest and most logical way to use this product performance data is through a Product Marketing Platform (PMP). PMPs empower marketers with insights into the performance of individual products across their channels. Unlike more well-known customer data platforms that focus on collecting and integrating customer-level data, product marketing platforms focus on collecting and consolidating product-level performance data such as margins, generated revenue, advertising spend or transaction numbers across different channels. .
Marketers can use a custom source to connect business data, such as stock levels and returns, for even more advanced campaigns. With the help of these cross-channel product performance data, marketers are able to create highly dynamic product sets based on their specific goals. A PMP creates a single source of truth, enabling digital marketers to automate, scale and increase the profitability of their digital promotions.
A PMP combines this integrated data with campaign creation tools. The extra layers of performance built on Insights (a Photoshop-style template editor, and a tool for converting images into product videos) make it easier and more efficient to place dynamic ads on a large scale, while the data behind those ads helps generate higher revenue.
Keep ahead of the competition
With regulations restricting the use of customer data, digital marketers need to take action by providing more effective and targeted advertising across the right channels with the right products. The key is to use product data. Without it, marketers will continue to spend extra on the wrong products and potentially spend less on them.
Product data will ultimately transform digital advertising and promotional plans, enabling digital marketers to achieve better returns on investment and allocate valuable budgets more efficiently. The first step in achieving this is to collect and aggregate cross-channel product data to report performance, and the most effective way to create this single source of truth is through a product marketing platform.
Leading global brands are personally interested in hearing discussions on topics like this? Learn more about the Digital Marketing World Forum (#DMWF) Europe, London, North America and Singapore.