What is Data Driven Marketing 

 Last Updated May 16, 2023

By Zaid Ammari

Data-driven marketing is when businesses obtain data from their current and potential patrons and then use it to help them to develop their advertising and selling strategies. It helps to show the companies the customer’s patterns and allows them to predict their habits in the future so they can change their advertising strategies accordingly.

Analytics driven marketing, is made up of the procedures and technologies businesses use to assess how successful their advertising and other strategies are doing. It does this by measuring the business’ performance via vital metrics like return on investment (ROI), marketing attribution and the overall effectiveness of their marketing efforts. Through analytics driven marketing, a business can determine how well it is doing overall.

Why is data driven marketing important?

Data driven marketing strategies help a business truly know their customers’ needs. When advertising is targeted, it works more efficiently and customers respond more often and are more likely to buy your products or services. This data is collected through methods like email, buying history, prior communications, spending habits, and their profile (i.e. birthday, gender, income, etc.).This form of marketing works much better than some of the traditional digital marketing trends like content, videos, or location based advertising. This is due to the fact that it invests more time and resources into the process and therefore helps the business to get the advanced information they need to attract more customers.Ways it works to get more conversions. There are several reasons why this form of marketing works better than the older forms of digital marketing. These include:

1.Data driven choices

All of the top businesses know that their decisions for their stores need to be made by using the most data as possible from customers. This provides them with all they need to produce an advertising campaign that actually gets the top sales they need to make a profit.The bottom line is that businesses need to embrace technology and the new and trending ways to collect data that can help them to better target their selling practices to reach their current and potential customers. The easiest channels to collect data from are paid marketing channels such as ppc or social media.

2. Businesses need to invest more in optimization processes

Another thing that successful businesses are discovering is that if they invest more in optimizing their strategies, and gather the right kind of data, then they are doing much better in making a profit.

Studies have shown that businesses need to put more of their budget to these analytics driven marketing schemes. It is vital for the businesses to figure out what their customers need and what will drive them to buy their products and services.

However, many of these companies aren’t doing it in the right way and they are failing to sell as much as the companies who are doing it correctly.

3. More Targeted content

Another way to do this is through targeted content on your business websites instead of generic content. Customers want their problems and concerns answered, they don’t want to just read boring and generic articles on your products. Studies show that targeted content ends up getting twice the conversion rates as generic content.

All in all, data-driven advertising methods are no doubt the method businesses should be using these days to reach more customers and to keep their current customers. They should approach these new methods by focusing on data collection and personalization of their advertising so they are meeting their customers’ needs.

Zaid Ammari Headshot

About the author 

Zaid is a leading expert on data driven digital marketing; focusing on analytics and actionable insights from data. Founder of PPC Masterminds - he helps businesses build & run profitable data driven digital campaigns.

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