05 Feb Drive Conversions With Data Responsive Creative
A single ad today has more reach than ever before. A print ad in a shop window once reached hundreds, maybe thousands of people. Radio and TV ads reach hundreds of thousands or even millions of people. Now a single ad can touch a billion people or more.
Marketers and advertisers face one major challenge as ad reach continues to grow. Digital advertising campaigns need to shift focus away from reaching as many people as possible and instead focus on using new technology to reach the right person with the right ad. Many advertisers discuss dynamic creative and data-driven creative in the same breath, but they are not the same thing.
Dynamic creative customizes ads in real-time by pulling together creative images and messaging on the fly when a server requests an ad. Dynamic creative also ensures that communicated sale prices and discounts are up to date.
Data-driven creative customizes ad messaging so that it aligns with the user’s specific interests based on actual or inferred data signals. Data-driven creative uses audience information to inform creative messaging.
Both types of creative address a specific need, but they work best paired together. The strategic combination of both types of creative drives optimum performance, and above all, it’s important to focus on serving the right ad with the right messaging to the right individual at the right time.
Example: Perfect Pasta Sauce and the Perfect Ad
Advertisers work in pursuit of perfection all of the time. But the reality is that there is no perfect way to advertise because people have individualized opinions about the ads they see.
In his TED Talk, Malcolm Gladwell discusses the work of Dr. Howard R. Moskowitz with Campbell’s Soup on their Prego pasta sauce line. In the mid-1980s, Prego came to Dr. Moskowitz, hoping he could help them compete with Ragu – the market leader at the time. They wanted Dr. Moskowitz to create the perfect pasta sauce, one that would appeal to every single pasta-loving person in the world.
Dr. Moskowitz did a great deal of research, traveled the country interviewing focus groups, and tracked responses from participants who ate a lot of pasta with different sauces. And what he discovered is that there is no such thing as the perfect sauce.
There are only perfect sauces depending on individual taste.
Some people like smooth sauce, some like spicy. Some people like chunky, some creamy. Trying to sell one sauce to everyone was never going to work. So Prego diversified and began to produce multiple types of sauces, meant to appeal to the full range of customer’s taste preferences.
Smart marketers actively research their audience. They know who converts well, who does not, and most importantly, they know how to appeal to their top converters. And yet, in many cases, while advertisers target audiences, they don’t build the ads for the audience. It’s the same ad, no matter what the individual viewing the ad values.
They’re trying to sell the perfect pasta sauce.
Data-driven creative is the powerhouse behind programmatic advertising, which accounts for 67% of all digital display ads But data responsive creative gives advertisers the ability to craft the perfect ad for each potential customer. By leveraging data responsive creative, a brand can also deliver a unique ad to a unique person.
This level of customization not only facilitates a more genuine conversation with your customers but also measurably influences your bottom line. BookIt.com, for example, saw a 20% increase in year over year revenue after pivoting to Data Responsive Creative.
The days of marketing with a one size fits all mentality are behind us. If you’re not already building your ad elements with the flexibility to shift into multiple variations of the perfect ad, now is a great time to start. Learn more about how we leverage the dynamic ad technology to serve customized ads to your audience.