Digital marketers sit at the epoch of a technological revolution with the ability to use Big Data to target like never before. And even though they continue to preach about targeting and reaching the right people, in the shadows, one parasitic foe continues to drag down the potential success that digital advertising can drive. So why is it that marketers continue to accept the enormous amount of waste in campaigns from non-converters, even as pressure to deliver better results increases?
The Empty Calories Drag You Down
Traditionally, there were no solutions to identify and avoid non-converters. They invariably became an accepted part of doing business—the skeleton in every marketer’s closet. Even as martech solutions besiege the industry, marketers continue to permit non-converters to persist across digital campaigns.
Non-converters are those consumers who will never convert to your brand or product, regardless of how perfectly personalized the creative is or how many times they see the ad. We recently worked with a financial services company that had hit a ceiling with their conversion rates.
This company understood that their direct response campaigns were a mix of converters and non-converters, but had no way to address it. And so, this firm reached out to us with the challenge to take their campaigns to the next level.
Abolishing the Walking Dead
We’ve created an audience filtering solution that uses Big Data and predictive targeting to identify people highly unlikely to convert, and filter them out of existing direct response campaigns.
The Audience Filtering process analyzes thousands of offline data factors per profile to build a data-driven model that accurately predicts consumer conversion rates. Based on these insights, we score 220 million U.S. adults—one at a time. The people with low scores are then avoided through the Audience Filter—similar to using negative keywords for search targeting. The filter can be applied across all direct response campaigns.
Our client tested the Audience Filtering solution in a controlled side-by-side test with a direct response campaign. The client created identical control and test groups, applied the Audience Filtering solution to the test group, and after only two weeks saw meaningful results. The test group had increased conversion rates by 39% over the control group, and had lowered the cost per acquisition from $118 to $91—a 23% CPA improvement.
The non-converters that had once constrained our client’s campaign results were now defunct. This success serves as a reminder that marketers should not only demand the best from martech vendors, but also reject the status quo. Precise, accurate ad targeting to high-value consumers is important, but in order to build the best industry practices marketers must also demand the swift elimination of wasteful spending on grim campaign zombies who will never convert.
Published on 10/21/2015 on Masterclassing.com