Advertising–as-a-service is on its way

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Recently, German telecommunications operator T-Mobile put their own customer data to work in the planning and targeting of a large digital media campaign.  Huge amounts of T-Mobile CRM data were analysed and customer value-based segments were created. Compared to traditional digital media planning, the level of acquired customer insight was remarkable.

The campaign results were astounding. The marketing ROI grew 38% and the turnover in chosen segments by 200 %. T-Mobile has now decided to run all future digital advertising campaigns based on customer data, where possible.

The conversation around marketing data is burning hot. It seems data is not only the new oil, but a much needed new source of energy. The company-owned data inside the CRM-systems appears especially attractive.

Never before has it been possible to collect, analyse and harvest this much information regarding customer behavior, buying habits, demography and preferences. Previously, direct data-driven customer communications were limited to addressable channels such as mail.

It has taken a few years, but as advertising technology has begun merging with marketing technology, a whole new landscape of possibilities has unfolded. In the future, the seam between these two realms of technology will be practically invisible.

Marketing operations will be executed around a single comprehensive technology solution. Nor will activity be limited to online only, because beacons and the Internet of Things will create engagement opportunities far beyond the present digital sphere.

So far, large scale utilisation of data in digital advertising has not shown its real

potential. Much more can be done, and will be done. The biggest challenge is to change how we view media planning.

The new starting point is people and the information they bring, not the media channels themselves, buying mass audiences or anonymous cookie data. This change requires investment in customer analytics, predictive modelling and solid CRM-technology. The toolbox of the old school media-planner rarely contains the necessary resources and robust technological know-how to make this much needed change happen.

Despite the looming challenges, no company should opt out of a golden opportunity.  With the growing trend of personalisation in digital advertising messaging, people increasingly expect a unique approach in the commercial messages they receive.

Advertising thus becomes a service. And data, when carefully managed, is in the very heart of this service.

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