How Unstructured Data Is Redefining Display Advertising Part 2
Yesterday, we left off talking about what had gone wrong in using the new, current wealth of data in display advertising and how most companies of ill-equipped to handle this wealth of info. Jumping right back in, we cannot stress enough the importance of using raw data and core attributes to optimize a user into segments, rather than manipulated variables.
We would be willing to safely bet that the importance of this is lost on about 98% of the tech companies we know. These businesses are unable to articulate which data initially created the impression, and they cannot tell you whether or not this data is current. Even if the information could be identified, users have already been grouped into fixed segments, which forces bids and changes to optimization to be spread across the length of the group. In modern campaigns, advertisers are throwing millions of dollars into custom audience segments that hold members only loosely associated with the campaign goals.
One of the latest trends we have seen on the market is algorithmic black magic. Supposedly, it is able to predict and rate the value of impressions or audience segments, and this information is then used to reduce less desirable impressions for the bid, which will increase the chances that those targeted are going to convert. The honest truth is that algorithmic black magic is simply programmatic buying at the group level. Even with this tool, individual attributes are still not used to identify, bid, and report on impressions.
How Unstructured Data Is Changing the Game
Today, new technology is being employed in the DSP and DMP arenas to alter how individual audience attributes are used for buying, optimizing, and reporting on the efficiency and success of display campaigns. In their raw, unstructured form, client first party data, CRM data, and 3rd party data are now being used.
Each individual element is serving an ad in real time, as its own standalone segment. The particular data that created the initial impression is being shown in real time, right along with the age of this information, which is referred to as recency. Once these elements have been identified, bidding decisions can be made in real time based upon the performance of the organic data elements and traditional optimization metrics.
The Implications of Unstructured Data
The creation and utilization of technology designed specifically to manage unstructured data is going to alter the face of the digital industry for the better. Brands and corporations will be able to utilize the full potential of display advertising by eliminating traditional segment based targeting in favor of real time decisions. The results of this evolution are going to enable display campaigns to perform better and provide more profound insights into audience behavior and motivation than ever before. With unstructured data, the person is now defined as “premium”, rather than the webpage.