3 big problems with common, overused data resources
The sale of data is big business. Data is of course used by businesses to target consumers who are likely to be interested in their products. Media companies use this same information to sell advertising packages for everything from TV and radio spots to direct mail services and digital ads on websites. And many organizations use data to inform market research that drives strategic decisions.
Unfortunately, there are three big problems with much of the stuff that is being sold and used: data that is too vague, massive overuse of the same third-party data, and flat-out incorrect information.
Problem #1 – Data that is too broad
The data that is being sold by most companies tends to be very broad and much of its use is based on predictive analysis rather than solid information. For instance, the predictive analysis projects that 10 million people might be looking to buy a new car, based on third-party data that shows these individuals are about to pay off their car loan. However, statistics might indicate that only about 1 million of those people will be actively looking to purchase a new car.
Marketers who rely on traditional data and predictive analytics are forced to market to all 10 million – wasting nine out of every 10 ad dollars on people who will never turn into customers. The numbers get even worse, of course, when factoring in the different response rates for different marketing vehicles.
And certain marketing firms looking to sell a business a direct mail campaign or an online ad buy, for examples, aren’t always interested in having a client reaching an exactly relevant audience. It’s in their best interest for the marketing vehicle to work, of course – but it’s also in some of their interest to upsell campaigns to 10 or 20 or 30 million potential targets, necessitating more impressions or pieces of mail.
Problem #2 – Massive overuse of third-party data
Another common problem is third-party data overuse. Basically, everyone is using the same playbook. Or the same databases, in this case.
If football teams followed this strategy, games would be a lot less competitive. The problem with overuse is that most platforms sell much of the same info to everyone, and the information they do sell is not very narrowly targeted. This doesn’t provide much of a competitive edge, in addition to the inefficiencies involved.
Problem #3 – Incorrect data
If you buy data from a company, you probably assume the information is correct. In many cases, this assumption is wrong. There are often mistakes in lists. The data could identify a consumer as a 35-year-old male when that person is actually a 35-year-old female. An individual could have moved from a previous address four years ago, but if the data is not sufficiently cross-referenced with other sources to verify it is current, more marketing dollars are wasted.
It’s crucial to authenticate data, and not all platforms have the capacity to do this effectively – either because they don’t have the right algorithms or they don’t have access to a wide enough range of sources.
How BDEX solves these problems
BDEX collects data in real time based on known behaviors of consumers. For instance, our data tracks when someone has searched online for a car or any other product or service, such as appliances, flights, and even diapers.
We also use the technology called “geofencing” that allows you to see the physical locations people have visited, whether that’s a car dealership, an IT services provider, or an appliance store. This gives you better quality data that includes your true target audience – only the individuals who are actively looking to buy your product, rather than the 10 million or so who are just maybe, possibly, likely to buy.
We also double, triple, and quadruple check information from multiple sources, to authenticate our data and ensure that it is current and correct.
BDEX features the first-ever Data Exchange Platform (DXP). The BDEX DXP and DAAS platforms enable companies to acquire impartial, quality-scored, third-party data reaching the right people at the right time like never before. We offer cross-device matching, auto dealership services, DAAS, real-time targeting, and custom segment building that is ideal for any industry, including auto dealers, retailers, brands, agencies, out-of-home, and franchises. Contact us today to get your customized marketing data.