Data science for marketing and advertising is the bedrock on which modern businesses rest their business plans for improving customer engagement, scaling and designing marketing campaigns. The right data-driven insights can help businesses to stay ahead of the market competition and maintain a touch of personalisation in the products and services they offer.
While marketing data is necessary for modern businesses, most firms need more infrastructure, resources and planning to efficiently leverage data science for marketing and advertising. This guide will explore the importance of data for marketing decisions and the best ways to utilise data science in your business. We will also be looking at how modern marketers use data and the relevance of digital marketing in 2023.
Is data important for marketing and advertising?
Data can completely transform the success rate and approaches for marketing and advertising, allowing companies to target specific consumer bases with better ROI and higher conversion rates.
With the shift towards big data, companies can gather information from multiple sources, including purchasing patterns, social media and demographics. This allows the marketing department to understand customer needs and preferences, which helps create targeted marketing messages for specific consumer groups.
While there is no doubt that marketing data can help businesses with new campaigns, it is equally successful in improving existing campaigns where it can highlight performance issues and provide a better look at which strategies are working and which are not. This is done by tracking the progress of the marketing campaigns using key performance indicators (KPIs) like customer acquisition costs, conversion rates and click-through rates. This also optimises the performance of other business departments, allowing them to take better data-driven decisions.
What are the applications of data for modern marketers?
Data has several applications in modern marketing and product development, and it helps drive business success by providing insights that enable marketers to strategise. Some expected benefits of these applications are optimised pricing decisions, improved customer engagement, marketing budget optimisation, less customer churn, more sales and improvements in customer relationship management.
Some typical data applications for modern marketers include customer profiling, data analytics, marketing performance analysis, sentiment analysis, predictive analytics and customer segmentation. Here is a detailed look at some of them:
Customer profiles help businesses to understand the particular behaviour, needs and preferences of individual customers, which in turn helps them to build up marketing messages that appeal directly to their target audience. As a result, targeted messages have a much higher success rate than general advertising. For instance, a beauty brand could use these customer profiles to identify which products work best for their key audience and how they can provide better services to increase customer satisfaction.
Marketing performance analysis
Another use of data for modern marketers is marketing performance analysis, which can track how effectively a specific campaign or product performs and what steps can be undertaken to ensure better results. For example, a digital entrepreneur could do this by monitoring certain KPIs like conversions and click-through rates on the content they have put out for customers. This could help them tailor their messaging and overall strategy to improve these conversion and click-through rates.
With competitive analysis, marketers can look at the financial performance of competing businesses, and the data patterns can provide a better look into what works and what could help them to differentiate themselves. Marketers can track several elements as part of this analysis, including their competitors’ marketing campaigns, content, pricing strategies and product launches. For instance, a restaurant owner could look at what deals a competing restaurant has put out for customers and devise a better combination with better pricing to stay competitive.
Predictive analytics is often used with big data sets to identify the trends and marketing patterns that will help businesses make better predictions about future consumer behaviour and interests. This marketing data can then be used to increase sales, plan future marketing campaigns and improve customer engagement. For example, wedding planners and travel companies often use predictive analytics to identify what trends and destinations are most likely to appeal to specific consumer bases and design their seasonal offers accordingly.
While we have already looked at how data can be used to create customer profiles for individual consumers, it is also possible to use it for audience segmentation, which identifies and divides consumer groups based on behaviour, demographics, interests and other criteria. Like customer profiling, this data is also helpful for creating more personalised marketing campaigns that target these individual groups. For example, one everyday use of this information is to look at purchasing patterns and past popular purchases with specific demographics. In addition, this data can be used for email marketing and to create more personalised product recommendations.
How to leverage data science for marketing and advertising?
Several data science components and analysis systems, like machine learning algorithms and statistical analysis, extract actionable insights from data. They are used to contextualise data sets, evaluate market trends, identify patterns, analyse customer behaviour and enable personalised lead generation.
To get the best results with data science in market research and for your marketing and advertising campaigns, you must have clear primary goals and data sources before you start. Other than that, it is also essential to have an open approach to implementing critical improvements to your strategy.
Goals and data sources
Before implementing any data science process in your marketing and advertising strategies, it is crucial to be very clear on your marketing goals, including the specific objectives your campaigns are trying to achieve, whether generating leads and sales or increasing brand awareness. After doing this, it is essential to determine which data sources you plan to use to accomplish these goals. For instance, you could use web analytics, social media, or customer data.
After this, it is time for data collection, and you need to collect the relevant data and run it through data science processes like data modelling and data cleansing to use it in your strategies.
Implementing improved strategies
Once you use data analysis to develop insights into your data, you can identify what part of the overall business process you can optimise. This could include predicting future trends, understanding customer segments, and potential demand for different products and services.
Next, you need to test and refine these advertising campaigns to ensure they provide better results. You can use processes like modifying certain creative elements, adjusting the target criteria, or A/B testing. Whichever insight you act on, track its success and optimise it using KPIs.
With the correct data and proactive decision-making, you can drive business growth, improve customer targeting and optimise advertising campaigns.
Is digital marketing important in 2023?
Digital marketing is a critical component of every successful business’s strategy, given how most customers with any purchasing power have moved to online shopping post the Covid-19 pandemic.
Targeting customers through the smartphones and social media apps they engage with is much easier than targeting them through traditional billboards. In addition, a digital approach to marketing helps improve direct conversion, lead scoring and channel optimisation, and the process is much more cost-effective and efficient than its contemporaries.
Businesses use several systems in their digital marketing strategy, like content marketing, email marketing, pay-per-click advertising (PPC), social media marketing and search engine optimisation (SEO). The end goal can be anything from boosting sales and generating leads to increasing brand awareness and website traffic.
These strategies are also much easier to track regarding performance and success rates with tools like Google Analytics that clearly show what is working and what is not. With a detailed look into customer behaviour, businesses can optimise their strategies for a better return on investment (ROI).
Digital marketing is the future, especially with the scale of international business and the limited attention span of most users. Soon, companies will be able to communicate their entire message through an omnichannel digital marketing strategy.
There is no doubt that data influences every marketing decision and helps businesses create more personalised marketing campaigns that can drive business growth and increase customer engagement. In short, it has revolutionised the entire marketing and advertising industry,
While businesses that understand the importance of implementing data-backed decisions will be able to stay one step ahead of others who do not, this also leads to a rise in the demand for data scientists who can work with these specialised tools, data science skills and knowledge, and who can implement the insights in a targeted and strategic manner.
Staying up-to-date with the latest market trends is an essential practice if you want to move into this exciting industry. However, ensuring that you have a solid academic base in data science, machine learning and artificial intelligence from a trusted school like the Institute of Data is also key.
You can book a career consultation with one of our experts now to learn how you can approach your data science career in a manner best suited to your personal and professional criteria!