The Beginner’s Guide to
Let’s face it. The days when advertisers could reach the masses over evening television are long gone. The proliferation of internet devices has caused the media landscape to explode into a bunch of fragmented channels, and audiences are now scattered far and wide. There are now more ways than ever to reach today’s consumers, and advertisers have taken full advantage of this trend. The average consumer is hit with 5,000 marketing messages each day. As a result, consumers have gotten pretty good at filtering them out. Cutting through the noise requires a new strategy for delivering the right message to the right people at the right time. That strategy is called people-based marketing.
What is People-Based Marketing?
The term “people-based marketing” has been generating buzz for the marketing industry ever since Atlas, Facebook’s ad server, entered the media buying landscape in 2014. Even If you’re new to people based marketing, you may know it by another name.
A few phrases that are synonymous with people-based marketing are Audience-based marketing, Identity-based marketing, People-centered marketing, and person-based marketing.
So what the heck is people-based marketing?
People-based marketing focuses on creating personalized interactions with your most valuable audience members across all your media channels and touch points. A people-based approach allows brands to leverage deep insights about your customers and what drives them to convert. These insights enable brands to create a seamless omni-channel customer experience.
The traditional “spray and pray” approach to marketing involves targeting everyone in the hopes that your message reaches your intended audience. On the opposite spectrum is the people-based approach. A PBM strategy allows you to strategically place your ads where ready-to-buy audiences are actively paying attention. PBM helps brands focus ad dollars on reaching audiences who care about your product or service while reducing wasted spend on audiences less likely to convert.
How Does People-Based Marketing Work?
Data is at the heart of people-based marketing. Data management technologies combine your first-party data with data you buy from third-party providers to build an identity graph of the audiences closest to the point of purchase. You can then match the identity graph to media publishers’ inventories without disclosing personally identifiable information about your customers.
While data may be the heartbeat of a people-based approach, it’s only as reliable as a company’s ability to collect it, analyze it and make it actionable. That’s where data management tools come into play. There are a ton of data management tools to choose from, but it’s important to note that not all systems and platforms are created equal.
The right data management tools will vastly improve your chances of success with a people-based marketing strategy. If you’re considering a new data management system, our data management tools evaluation checklist can help you find the best tools for your business. You can find a link to our checklist at the bottom of this article. Wingman’s proprietary Audience Management Platform, haloAMP™ is one such tool. We use haloAMP™ to help our clients make the most informed media selections for a winning people-based marketing strategy.
How to Leverage First Party Data to Inform People-Based Marketing
Remove Data Silos
Use an audience management platform to collect your customer data across multiple silos, such as offline contact data and online response metrics. This data is stored in a centralized location where you can match it with signal data to create rich customer profiles.
Assign Identity Link
A universal identity link, or persistent identifier, is assigned to each profile. This step makes personally identifiable information (PII) anonymous before you share your data with downstream data partners.
Perform Data Match
Anonymized audience segments are matched with media consumption data and additional signal data from third-party data providers. This data reveals deep insights into your audiences’ media habits across every channel, screen and device.
Buy Media Inventory
Use the enriched audience segments to buy inventory across the media channels and formats that reach your most relevant audiences wherever they are paying attention.
How is PBM Different?
The key difference between traditional targeting and people-based targeting is the quality of the data, The most common forms of old-school audience measurement include market ratings and web cookies. A people-based approach, on the other hand, leverages deep data insights from REAL people who buy from you. Let’s take a deeper look at the types of data used in both of these strategies.
Old School Strategies
1. Market Ratings
Market ratings or “legacy ratings” limit targeting to demographics, such as age range and gender. Nielsen Company has had a monopoly on the market ratings business since the 1950s. The data is aggregated from small samples of panel-based audiences which only represent a tiny fraction of the population.
Because age ranges within a demo are so broad, the individuals within these segments typically share very few behaviors, interests, and motivations. Despite these limitations, market ratings are still used in the majority of media transactions for broadcast television and terrestrial radio and many digital campaigns.
2. Website Cookies
The problem with website cookies? They create data silos, or isolated data that isn’t connected with other touchpoints such as mobile app usae, call center data, email marketing and in-store sales. For this reason, website cookies are no longer sufficient for targeting your digital audience.
PBM: A Smarter Strategy
A people-based marketing strategy takes the guesswork out of targeting because it leverages insights from the real people who care about your message – your customers. Advertisers are thus able to target their most valuable audiences across multiple platforms with granular precision. PBM leverages first and third-party data to narrow your target and focus on your most relevant audiences.
First-party data is the data you collect directly from your customers, Thus it provides advertisers with some of the most valuable insights to target your key audiences. Here are a few examples of first-party data:
- CRM data
- POS and other transactional data
- Lead lists
- Offline customer data
- Website user data
Third-party data is sourced from companies that don’t have direct relationships with consumers. It generally comes from big data aggregators like Axciom and Infogroup who license the data to marketers. These companies collect all sorts of valuable data signaling purchase intent which can be layered onto your first party data to create high value lookalikes.
Signal data comes in many forms such as shopping behaviors, customer loyalty memberships, credit card data and media consumption data like website browsing behaviors.
Why Should Advertisers Care about PBM?
People-based marketing helps foster better relationships with your customers by creating seamless one-to-one experiences with your brand across all channels. This is essential in marketing because consumers are now demanding a more personalized customer experience from their interactions with brands.
The biggest benefit of people-based marketing is that it avoids wasted ad spend by reducing the number of impressions spent on audiences with low engagement. This allows you to focus your ad budget on the inventory that reaches the people who care about your message, while they’re actively paying attention. This advantage drives greater response from your most valuable audiences.
People-based marketing enables marketers to move beyond the limitations of website cookies and reach real people in a true 1:1 manner and deliver on their needs at every touch point in the customer journey.