Digital media buyers constantly seek ways to maximize return on investment (ROI) for their clients' digital advertising campaigns. But, achieving this goal is often easier said than done, as numerous factors can influence the results of a digital campaign.
Nevertheless, there is a powerful tool that can level the playing field – programmatic data. Below I explore best practices for using persona-based audience data to improve ROI and drive optimal digital campaign results.
Before we dive into best practices, let's take a moment to define programmatic data. Programmatic data is the foundation of programmatic advertising, which is the process of buying and selling advertising space in real time using automated systems. This data can include everything from basic demographics like age and gender to more complex data points like interests, behaviors and purchase intent.
Programmatic data enables advertisers to target their ads to specific audiences automatically so advertisers only spend money on what’s working instead of buying in bulk and having inventory left over. This precision ups the odds of reaching the right people on their preferred devices at the right times. But advertisers need access to high-quality, persona-based audience data to make the most of programmatic advertising.
Persona-based audience data is a type of programmatic data that uses customer personas to help advertisers target their ads to specific audiences. A persona is a fictional representation of your ideal customer based on real data and insights. Persona-based audience data helps advertisers get beyond mere data points to how people actually live and be more intentional in their ad targeting. Doing so not only maximizes ad spend but also creates a better experience for the ad receipt because they aren’t served an irrelevant ad.
Using persona-based audience data can help you create more relevant ads, improve targeting, and drive better campaign results. Here are some best practices for using persona-based audience data to maximize ROI:
Use Audience Segmentation to Improve Targeting
One of the key benefits of persona-based audience data is that it allows you to segment your audience into smaller, more specific groups. This can help you create more targeted ads tailored to each group's specific interests and behaviors.
For example, if you're advertising a new athletic apparel line, you might create different ads for people interested in running, yoga, or weightlifting. By targeting your ads to specific interest groups, you can create more relevant ads that are more likely to resonate with your audience.
Test and Refine Your Audience Segments
Once you've created your audience segments, it's important to test and refine them over time. This means tracking the performance of your ads for each segment and adjusting as needed.
For example, you might find that your ads perform better for certain age groups or that certain ethnic groups are more responsive to your ads. By tracking your performance data and adjusting your audience segments, you can continue improving your ads' targeting and effectiveness.
Use Lookalike Audiences to Expand Your Reach
In addition to targeting specific audience segments, you can use persona-based audience data to create lookalike audiences. Lookalike audiences are groups of people who share similar characteristics to your existing customers, allowing you to expand your reach to new, qualified audiences.
For example, if you have a group of customers interested in hiking, you might create a lookalike audience based on their interests and behaviors. By targeting this lookalike audience, you can expand your reach to new people likely to be interested in your product.
Use Zero-Party Data to Improve Personalization
Zero-party data is data that customers intentionally and proactively provide to a company, such as preferences, opinions, and purchase intentions. This permission-based data is highly valuable because it allows advertisers to create more personalized experiences for their customers.
Using persona-based audience data combined with zero-party data, advertisers can create personalized ads with a look and feel that resonate with consumers. For example, if a customer has indicated a preference for eco-friendly products, you might use that information to create ads featuring your company's sustainability initiatives.
Using zero-party data also allows you to build stronger relationships with your customers by showing that you care about their preferences and needs. By providing personalized experiences, you can increase customer loyalty and improve customer lifetime value.
Measure and Analyze Your Results
Finally, it's essential to measure and analyze the results of your campaigns to determine what's working and what's not, and programmatic puts all those metrics in one place for easy tracking. By tracking metrics like impressions, click-through rates and conversion rates, you can identify areas for improvement and make data-driven decisions about your future campaigns.
Persona-based audience data is a powerful tool for maximizing ROI with programmatic advertising. By using audience segmentation, lookalike audiences, dynamic creative optimization, and data analysis, advertisers can optimize their targeting and creative elements to create more personalized and effective ads that yield better results and achieve desired business outcomes.
This blog post was originally published on MediaPost.
Conducting market research in the Hispanic market can be challenging, especially for researchers unfamiliar with the community or living in another country. Here is a quick guide to building a representative sample and obtaining accurate results.
Define the study objectives: Before you begin, establish clear research objectives. Determine the information you need and the questions you want to answer. This will help you focus the study and determine the aspects of the Hispanic community you want to investigate.
Segment the Hispanic market: The Hispanic community is diverse with varying cultural, linguistic, and geographical characteristics. To better understand their needs and preferences, consider segmenting the Hispanic market into more specific groups based on factors like country of origin, generation, income level and geographic location. This segmentation will allow for a more comprehensive analysis of each segment.
Hispanics are geographically distributed throughout the country, with certain areas experiencing higher concentrations:
Design the questionnaire: Create a questionnaire that aligns with your research objectives and is tailored to the Hispanic audience. Use clear and understandable language, avoiding jargon or complex concepts. Translate the questionnaire into Spanish for those who prefer to respond in their native language.
Consider Hispanic culture: Culture plays a vital role in the Hispanic community's attitudes, behaviors, and preferences. When conducting your research, consider relevant cultural aspects like family, traditions, values, and festivities. Doing so will help you understand how these cultural nuances influence Hispanic consumer purchasing decisions and behavior. At ThinkNow, we have an acculturation algorithm that allows us to profile our panelists based on the number of years lived in the United States, language spoken at home, the language selected in media consumption, and self-identification giving us visibility into how these panelists see themselves, consume media and live their lives.
Use multiple data collection channels: To ensure a representative sample of the Hispanic community, it is important to analyze the ideal data collection channels. At ThinkNow , we primarily conduct online surveys when engaging our Hispanic panelists. We also conduct telephone interviews, focus groups, and in-person interviews to allow us to cater to diverse segments within the Hispanic community and individuals with different communications preferences.
Consider linguistic diversity: English and Spanish proficiency among Hispanics varies. If relevant to your study, offer bilingual response options or allow participants to respond in their preferred language. Through our ThinkNow panel, we can profile respondents based on acculturation level: High, Medium, and Low. High acculturation levels indicate predominantly English-speaking individuals and medium levels denote balanced bilingualism where individuals speak Spanish and English equally. Low levels of acculturation represent non-acculturated individuals who do not speak or adopt the English language.
Analyze the results: Once data is collected, analyze it appropriately. Conduct comparative analyses among different segments of the Hispanic community, and compare them with other relevant demographic groups. Look for patterns, trends, and significant differences to obtain valuable insights.
Remember that each market research study is unique and may require specific approaches. Adapting your research methods and questions to the Hispanic community will help you obtain more relevant and valuable data, enabling informed decision-making in your marketing strategy.
100% electric vehicles are fantastic. They’re zippy, require less maintenance, save money on gas and are generally pretty cool. Given these attributes, it might seem logical to assume that every new car buyer would opt for an electric vehicle (EV). Yet only 5.8% of vehicles sold in the U.S. in 2022 were electric, and 94.2% of brand-new cars sold last year were not. Why?
As part of our Sustainability Study released in April 2023, ThinkNow conducted a nationally representative quantitative survey of 2,050 Americans and probed their reasons for buying or rejecting EVs. Here is what we found:
Cost is the single largest barrier to EV adoption. The lowest cost internal combustion engine (ICE) vehicle currently on the market has an MSRP of $17,650. Over two dozen ICE vehicles are available for under $25,000. Meanwhile, General Motors announced that it was discontinuing the lowest-cost EV on the market, the Chevy Bolt (MSRP $25,600), in favor of producing higher profit-margin pickup trucks. Tax credits for EV purchases help, but they're limited to U.S. produced vehicles, and the low-cost options on that list are scarce. For EV adoption to take off, it has to be accessible to all car buyers, not just high-earning early adopters.
After price, charging is the next big barrier to purchasing EVs. Thirty-four percent of respondents said they wouldn't purchase an EV because they do not have charging available at home or work. This aligns with the 36% of American households living in rental properties less likely to have on-site charging than single-family homes. Public charging is part of the solution, but the availability of public charging varies considerably by city and state. Even in states with relatively high levels of EV penetration, like California, there are cities without a single non-Tesla public charging station (I'm looking at you Mammoth Lakes, CA). The U.S. currently has 56,256 charging stations with around 147,700 individual charging ports. Still, McKinsey & Company estimates that if the U.S. wants to reach the goal outlined in the Infrastructure Investment and Jobs Act recommending that 50% of all vehicles sold yearly be zero-emission by 2030, it will likely need 1.2 million public and 28 million private EV charging stations. It's important to note that this number falls short of what is required for achieving 100% EV adoption.
The following three barriers to EV adoption in our survey were "I don't know enough about them," "They take too long to charge" and "I don't think they're good for the environment." These three issues can be countered by better communicating the benefits. EV owners spend a lot less time charging their vehicles than people spend at gas stations. Most non-EV owners don't realize EVs typically charge overnight 2-3 times a week. Plugging and unplugging an EV takes less than 30 seconds. So EV owners spend fewer weekly minutes physically charging than ICE vehicle owners spend standing in front of gas pumps.
EVs are also unequivocally better for the environment than gas-powered vehicles. Most arguments suggesting otherwise are premised on faulty assumptions. One argument states that the electricity produced to charge EVs is worse for the environment than gasoline. While coal is still responsible for about 20% of U.S. power production, it is rapidly being replaced by wind and solar. Even accounting for current coal and natural gas-powered electricity emissions, research shows that an EV is typically responsible for lower levels of greenhouse gases (GHGs) than an average new gasoline car. Battery manufacturing is also frequently cited as being bad for the environment because it takes energy to mine Lithium and manufacture batteries. Here's a comparison of a typical gas-powered car's lifetime greenhouse gas emissions and a 300-mile range EV.
Perceptions of EVs also vary by generation and ethnicity. Communication campaigns must address knowledge gaps within multicultural segments to ensure the successful adoption of electric vehicles (EVs). These communities may have limited exposure to information about EVs compared to other racial groups. For instance, our multicultural research indicates that Asian Americans, in particular, are more prone to experiencing range anxiety compared to other groups which may make them less likely to adopt EVs.
Making EVs more affordable and expanding charging infrastructure will help accelerate the transition to a greener transportation system. Clear and accurate communication about EV charging times and their environmental benefits is also essential in dispelling misconceptions and encouraging broader acceptance.
Policies must consider that renters and people of all income levels and ethnicities buy cars. EVs can't be playthings for the well-to-do and pipe dreams for everyone else. Addressing these challenges and promoting EV adoption is crucial for achieving the sustainable and environmentally friendly transportation system the U.S. and the world needs.
Implementing a multicultural marketing strategy is one of the most impactful ways brands can tap into the new mainstream. The U.S. consumer market is speeding toward a multicultural majority. Marketers are tasked with gaining a deeper understanding of these diverse consumer segments and crafting messaging that appeals to them and motivates them to action. Hispanics comprise the largest ethnic group, while Asian Americans account for about 7% of the U.S. population. Among them, Chinese, Asian Indian, Filipino, Vietnamese and Korean are the largest groups.
But marketing to Asian American consumers can be challenging for some marketers, as two-thirds of this group are foreign-born. This demographic difference means their motivations, preferences, and purchasing behavior may differ significantly from their U.S.-born counterparts. Similarly, researchers must be mindful of these differences when conducting consumer surveys and providing insights to marketers, as insights that apply to U.S.-born Asian Americans may not apply to foreign-born Asians.
In general, online sample providers have not kept pace with the consumer market's changing dynamics to the same extent as they have done to reduce fraud in the industry. Many researchers recruit survey respondents in English only from the general market, resulting in a lack of representation of diverse consumers on panels and low incidence rates.
On this episode of The New Mainstream podcast, Iris Yim, Principal and Chief Strategist at Sparkle Insights and Board Member and Vice President of the Asian American Advertising Federation, delves into the mechanics of effectively engaging Asian American survey respondents and the impact it has on multicultural marketing.
Meet Iris Yim:
Iris is a seasoned researcher well versed in both qualitative and quantitative research methodologies. Her experience in research across different industries and cultural segments makes her a versatile researcher that approaches research in a holistic and innovative way to solve clients’ business problems and uncover insights.
The types of studies Iris have conducted include market opportunity assessments, customer satisfaction, attitude and awareness, ad testing, positioning, segmentation and new product development. She has experience in a wide range of industries including CPG, travel and leisure, financial services, automotive, and healthcare.
Iris is the Research Chair of the Asian American Advertising Federation and serves on the Supplier Diversity Committee of the Alliance for Inclusive and Multicultural Marketing, affiliated with Association of National Advertisers. She is an alumna of the RIVA Training Institute and holds an MBA from the University of Michigan and a master’s degree in public relations from the University of Southern California.
The racial reckoning of 2020 brought diversity, equity, and inclusion to the forefront, although the concept itself is not new. Unfortunately, many brands have taken advantage of this movement for their benefit, resulting in broken promises and hollow commitments that have undermined their reputation. However, for brands like LVMH, there is an urgent need to approach DEI with genuine commitment and intentionality, actively embracing cultural differences to enhance the employee experience and drive business results.
For Benefit Cosmetics, an LVMH brand, DEI expands beyond human resources to developing inclusive products and other elements that impact all facets of the organization. This culture shift is important as the U.S. consumer market becomes increasingly diverse, blurring the lines between DEI and multicultural marketing.
Implementing DEI is not only the right thing to do from a moral standpoint but is also a savvy business move. Brands that fail to tap into the purchasing power of diverse communities, particularly Black and Hispanic consumers, are missing out on a significant opportunity.
Yet, the beauty industry still lacks a broad spectrum of cosmetics that cater to the diversity within these groups. It's essential to look beyond race and gender and start meaningful conversations around other dimensions of diversity, such as ability and sexual orientation. Brands have a unique opportunity to raise awareness of the barriers that underrepresented groups face and use their privilege to empower them.
Mia Talavera, Director of Global Diversity, Equity, & Inclusion at Benefit Cosmetics (LVMH), stops by The New Mainstream podcast to share her insights on the urgent need for genuine commitment and intentionality concerning DEI at the organizational and product levels.
Meet Our Guest:
Mia Talavera is a high-performing Diversity, Equity & Inclusion Leader passionate about inspiring positive culture change by designing and driving global DE&I strategies to promote and advance inclusion in the workplace. Mia has advised and consulted organizational leaders across various industries on leveraging innovative DEI initiatives, most recently driving real change within the beauty sector with Benefit Cosmetics.
Mia is the Director of Global Diversity, Equity & Inclusion at Benefit Cosmetics (LVMH). She is also a certified Unconscious Bias Facilitator and earned a Bachelor's Business Degree and D&I certification from Yale Business School of Management.
The earth isn’t having a good 21st century. In terms of environmental health, the planet is deteriorating across all metrics, and most governments worldwide have failed to address this issue adequately. Politicians may be more willing to push for substantive policies on issues like climate change if they feel their constituents would support them, but they need the data. So, to commemorate Earth Day and Arbor Day, ThinkNow conducted a nationally representative quantitative consumer research study to identify sustainability policies that Americans support and to highlight their views on environmental concerns.
Download the study here.
Environmental concerns vary significantly by generation. For example, when asked about the importance of personally using renewable energy, 46% of Millennials said it was important, very important or extremely important (Top 3 Box response on a 10-point scale), whereas only 29% of Baby Boomers and 32% of Gen Z agreed. Millennial Americans were more likely to support and engage in every sustainability measure we asked about.
Millennials were also more likely to say they personally engaged in sustainability practices more than the general population and that those practices positively impacted the world.
However, sustainability can be expensive. Some policies increase the cost of goods and services, which is often cited as a reason politicians choose not to pursue them. But Millennials are willing to shoulder the expense more so than any other generation, with Gen Z a close second.
Some attitudes and behaviors surrounding sustainability appear to be influenced by ethnicity. Eighty-eight percent of Asian Americans, for example, say they take shorter showers to conserve water, whereas only 77% of non-Hispanic Whites say they do that. Non-Hispanic Whites were most likely to say they buy used/thrift items at 76%, while only 61% of Asian Americans were thrift shoppers.
Among the different ethnic groups, African Americans displayed the lowest level of concern regarding the planet's future, with only 68% expressing worry. On the other hand, Hispanics had the highest level of anxiety, with 76% expressing concern. This discrepancy could explain why Hispanics are also the group most willing to shoulder the financial costs associated with sustainable practices.
Income level is key in predicting an individual's likelihood to support or engage in sustainability practices. Opting to go green can get expensive, which explains why only 34% of individuals earning less than $40K per year believe that personally using renewable energy is important, in contrast to 50% of high earners who do. Additionally, certain practices, such as growing one's own food, are more feasible for individuals living in single-family homes than those residing in multi-unit buildings.
The infrastructure bill passed in 2021 aims to increase the number of electric vehicles (EVs) on the road. However, 52% of our representative sample said they would not buy an EV in the future. This presents a problem if the U.S. hopes to reduce its reliance on fossil fuels. At 64%, the main reason survey respondents gave for not planning to purchase an electric vehicle was cost. EVs are more expensive than their gas-powered counterparts. Range, on the other hand, was a barrier a few years ago, but only 15% of respondents cited that as a reason today. A lack of charging accessibility was the second most likely reason respondents would avoid EVs, with 34% stating they had nowhere to charge at work or home and an equal 34% stating there aren't enough charging stations.
Sustainability and environmental concerns are becoming increasingly important to Americans, particularly younger generations. Millennials and Gen Z are more likely to support and engage in these practices, even if they come at a cost. The passage of the infrastructure bill in 2021 represents progress in decreasing our reliance on fossil fuels. However, the cost of purchasing an electric vehicle remains a significant obstacle for many Americans. To effectively address environmental degradation, policymakers must consider their constituents' attitudes, behaviors, motivators, and barriers when formulating policies to tackle this crucial issue. Further action is necessary to ensure that sustainable solutions are accessible and feasible for all.
As digital marketing continues to evolve, creating personalized marketing experiences for consumers has become critical to successful marketing strategy. In the past, marketers relied on tools like third-party cookies to personalize the customer journey. But with cookies going away in 2024, it’s more important than ever to collect zero-party data to create those personalized marketing experiences while respecting consumer privacy.
Equally as important, however, is the use of multicultural data. The U.S. is becoming increasingly diverse, with much of that growth driven by young consumers. Using multicultural insights helps to personalize their experiences, thus creating stronger bonds that ultimately improve business outcomes.
According to the U.S. Census Bureau, multicultural consumers currently represent approximately 40% of the U.S. population and are projected to account for 55% of population growth over the next five years. Therefore, brands looking to succeed in the U.S. market must understand the needs and preferences of these consumers. It’s important to remember that people change, societies evolve, and cultures shift. Brands that stay attuned to national population trends and behavioral pivots and make efforts to understand the cultural drivers influencing them are in the best position to engage this consumer market successfully.
Personalized marketing experiences are no longer a ‘nice to have’ but a necessity. Consumers today expect to receive messages relevant to their interests and needs, and marketers who fail to deliver such experiences will be left behind. One of the keys to creating personalized marketing experiences is the use of zero-party data. Zero-party data is data that consumers intentionally and proactively share with companies. This type of data is valuable because it provides insights into what consumers want. As third-party tracking tools retire, zero-party data is becoming one of the most sought-after permission-based tools for engaging consumers more effectively.
Zero-party data, however, is just one piece of the puzzle. Another key component of personalized marketing is the use of multicultural data. ThinkNow research shows that multicultural consumers have unique needs and preferences, and understanding these nuances is crucial for creating effective marketing campaigns. For example, diverse cultures may have different values, beliefs, and traditions that can influence their purchasing decisions. By understanding these differences, marketers can tailor their messaging to resonate more strongly with multicultural audiences.
Multicultural data can also help brands avoid cultural missteps that could damage their reputation. ThinkNow research has shown that multicultural consumers are more likely to engage with brands that prioritize diversity and inclusion in their marketing efforts and are willing to stop frequenting a store that does not. From campaign strategy to execution, multicultural data can help brands build a deeper connection with multicultural consumers by helping them market in-culture, avoiding common mistakes that could prove very costly.
To effectively use multicultural data, it's important to ensure that it is collected and analyzed ethically and responsibly. Brands must take care to avoid stereotypes and assumptions when analyzing multicultural data and should work to understand the nuances and complexities of diverse cultures. Additionally, brands should be transparent about their data collection practices and ensure that consumers know how their data is being used.
Using zero-party and multicultural data to personalize marketing experiences has become a business imperative. Multicultural consumers are a diverse and rapidly growing segment of the population, and brands that don't consider their needs and preferences risk alienating a significant portion of their potential customer base. Cookies are on their way out, so the demand for zero-party data will only increase.
By using these types of data in an ethical and responsible manner, brands can create more authentic and meaningful connections with their audiences and drive business success.