The emergence of social media and the steady decline of mass media are the two biggest marketing stories of the decade. Both print circulation and TV viewership have been falling consistently since the turn of the century; TV viewership, for instance, is down almost 50% since 2002. In contrast, social media has reported massive gains since the early days of MySpace, with social media usage among US adults increasing by 800% over the past eight years. For marketers, this is the opportunity of a lifetime.
The rapid transition from mass to social media presents the opportunity to create impactful, relevant marketing messages. This data-powered personalized marketing approach is not only much more effective, but also more cost-efficient and scalable.
Conventional Marketing vs. Personalized Marketing
Conventional marketing is like trying to hit a thousand bullseyes with one arrow. For too long, marketers have accepted absurdly low conversion rates for the deployment of an an email or banner ad, with a singular message for a massive audience. This typically requires significant upfront investment and large-scale deployment, without a guarantee that those marketers are even reaching the most appropriate customers. Personalized marketing using social data-triggered programmatic techniques, on the other hand, can be scaled from an extremely narrow, niche audience ("18-22 year old males in Portland who like Daft Punk") to an audience numbering in the hundreds of thousands ("18-22 year olds who like electronic music"). By looking at a group of users' behavior data and social profile, marketers can create tailor messages for higher relevancy and, ultimately, effectiveness.
The Three-Step Personalized Marketing Process
Every personalized marketing campaign is a three-step process:
For far too long, marketers have relied on old technologies and tactics to attract customers and boost conversions. We've accepted abysmal conversion rates as the norm, but now we possess the technology and the insight to transform our marketing efforts. By leveraging deep identity data through technologies like social login, marketers can finally make marketing relevant again and regain control in the age of the connected consumer.
Excerpted from an article by John Elkaim, V. P. Marketing, Gigya