The rise of People-based marketing
One of the biggest challenges for marketers when running an advertising campaign to acquire new customers, is that you never know where in the buying process a potential prospect is when they see your ad.
Even if you are doing search keyword advertising, each individual within your audience could be at different stages within the process of making a buying decision.
Although ad tech has progressed to be able to target those most likely to buy based on demographic information, it is only through a person's behaviour that we can determine if someone is actively pursuing a purchase or just researching.
People-based marketing represents an industry shift from targeting devices to connecting with the right people at the right time, with the right message. Rather than targeting ads to devices based on cookies, which is fraught with inadequacies, marketers can now reach people across the many devices they use, thanks to persistent identity. By including behavioural and demographic data we can build this persistent identity and our targeting intelligence becomes more contextual and predictive. We can apply that insight to bring highly personalised experiences to our audience, and we can help marketers do the same. Marketers will be able to reliably reach their relevant customer in a meaningful moment, and measure the reach and ROI of their message. That connection to their audience will become increasingly seamless and intuitive across devices.
So how can you use this in your business to grow your profits?
Let's look at the audience your current advertising is reaching at a deeper level. If we analyse where in the buying process they could possibly be, we see that the majority are not yet ready to buy.
The shocking part is that only 3% of your audience are in the ready to buy stage. The other 97% are going to require far more education based marketing to get them into that ready to purchase stage. That means the cost to get them to make a buying decision is going to be a lot higher than those ready to purchase. All you need to do with the top 3% is educate them as to why buying from you is the best buying decision. That is a much easier and cheaper task.
Those potential customers in the ready to buy stage are what we call In-Market.
If you could spend the majority of your advertising budget focusing on those already In-Market what result would that have on your profits?