The end of boring commercials?
With improvements in technology and marketing, companies have more options than ever before to put their messages across, as digitization and the emergence of smartphones, tablets and laptops have opened up a new era of marketing. Adverticumʼs new subsidiary DataMe provides a comprehensive, highly effective opportunity for advertisers to deliver relevant, appealing messages to customers.
Data-driven marketing is likely the most important marketing strategy these days. Using data-driven marketing helps determine relevant target groups based on demographic and behavioral factors. Automated systems ensure that a campaign reaches its target audience. This way guessing can be avoided in terms of media planning, which means that the message will surely reach its targeted customers. Besides the message getting to the right place, its content may be more relevant to potential consumers as well.
In recent years, several large companies have adjusted their services as a result of data-driven marketing. While some companies offer a variety of subscription packages, they have noticed that despite the expansion in supply, the number of subscribers has decreased and the predefined key performance indicators (KPI) could not be reached. It turns out that the packages they have compiled no longer meet the needs of existing and potential customers. Therefore customers have chosen products and services from competitors. However, after detecting anomalies with data-driven marketing tools, companies have been able to optimize their campaigns in order to reach the right customers.
Not surprisingly, data-driven marketing is continuously driving down the amount spent by corporations on traditional marketing tools and channels (e.g. printed ads). This is why more and more domestic businesses decide to use a data-driven marketing-based service to compete against business rivals more effectively.
Based on European research by IHS Markit and IAB Europe, this type of advertising spending rose from EUR 1.95 billion in 2013 to EUR 8.11 bln in 2016. Accordingly, from 2015 to 2016, the Hungarian automated advertising market has also produced an impressive increase of 77%, resulting in total spending of more than HUF 1 bln.
It can be stated that the growth rate in Hungary exceeds the world market average, which was 66% from 2015 to 2016. Moreover, the growth rate will probably continue to increase over the coming period, since 70% of general managers interviewed by IAB said they will spend more on data-driven marketing in 2017.
Meeting changing needs
In line with this, media planning behavior has also changed, with more and more companies moving from previously media-oriented planning to an audience-focused approach. Designing audience means, among other things, that companies are not thinking in terms of campaigns, but aim to build relationships with clients in the long term. Targeted ads and native content are essential for this.
It is obvious that advertisers’ and agencies’ demand for adequate quality and quantity of data on Hungarian internet users has considerably grown. Meanwhile, content providers’ intention to sell relevant information as effectively as possible has also intensified. Consequently, a common marketplace was needed where supply and demand can meet.
Responding to the changing need in the autumn of last year, Adverticum Ltd. founded its new subsidiary DataMe Ltd. DataMe’s centralized IT system, the so-called Data Management Platform (DMP), is able to aggregate, integrate, process and manage large amounts of data from different sources.
Effectively, and by the rules
The designers of DataMe’s system have paid special attention to data protection. Data management is anonymous and is in accordance with the law (Hungaryʼs Act CXII of 2011 on Informational Self-Determination and Freedom of Information) in all cases. The engine of DataMe processes aggregated databases and browsing data received from, for instance, third party ad servers (e.g. Adverticum AdServer). Afterwards, the system segments user data, i.e. normalizes them according to category.
Segmented data can then be conveniently sold in the marketplace of AdForm. Moreover, larger partners even have the possibility to purchase unique, personalized audience segments. Cooperation with DataMe does not require exclusivity, and the company offers an indefinite contract in which settlement is based on revenue sharing.
DataMe provides a comprehensive, highly effective opportunity for advertisers to deliver relevant and appealing messages to their customers. This means that companies would be able to save significant amounts that can be invested in further, useful improvements for clients. From a customer perspective, annoying banners would eventually disappear and only those ads and content would be displayed that are relevant and interesting to them.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.