Yahoo Finance What Are Ads on Your Phone Really Selling? 7 Pros of Sharing Your Data
At this point in the technological revolution, one thing is clear: information on our smartphones and devices — data we may have thought to be private and secure — is being shared worldwide with a variety of companies. Why? To take the info on the personal tech and use it to mine marketing demographics in order to sell products back to us.
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One of the biggest buyers of digital information stored on personal devices is the federal government, according to the Wall Street Journal. Our information comes at a premium to companies who pay a lot to know what we scroll, tap, and stay on during our time in the digital space. And because they shell out top dollar for this valuable data, they tailor the advertising back in a very specific way.
How valuable is the information on your device and what are the ads on your phone really selling? Let’s break it down.
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Personal Connection
The value of consumer information on devices lies in the ability to create hyper-targeted ads that resonate on a personal level, according to Kevin Watts, founder and president of Raincross. One powerful use of this data is in creating personalized and contextually relevant ads.
For example, Watts said, “Personalized advertising is becoming increasingly effective. Research shows that over 60% of U.S. online users prefer ads tailored to their interests. This could mean a simple email greeting that uses your name or a highly specific ad on Facebook targeting users based on behaviors like recent purchases or upcoming life events (new job, engagement).”
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Specific Benefits
There might be the same ad targeted toward your phone as millions of other users, though it could be adjusted slightly to fit your needs, preferences and personal specifications.
Adam Degraide, CEO of Bambam Tastic Games, said “…in my current venture Anthem Business Software, we use CRM data to tailor marketing messages that address the unique business challenges faced by small enterprises.”
He added, “By studying purchase patterns and service history, the ads we serve feel more like personalized solutions than generic pitches, dramatically enhancing engagement and conversion rates.”
Instant Gratification
There’s a dopamine hit every time a heart is given or received via social media and smart devices. Companies know that and leverage this intelligence to increase the satisfaction that comes with engaging in online platforms where their marketing is in full force.
“Think of the last time an ad prompted you to make a purchase from your phone — it’s about serving you just what you need, exactly when you need it,” highlighted Elliott Kosmicki of Major Impact.
Kosmicki continued, “While running marketing at an e-commerce company in the music industry, we saw a significant uptick in conversions by targeting ads based on user behavior data. If someone was browsing for guitars, we’d serve them ads for accessories or tutorials, making the shopping experience seamlessly interconnected.”
Recurring Services
It’s not just a one-time engagement that needs to happen to make these marketing conversions profitable. It’s an ongoing relationship to form services that will be needed again and again, provided by the companies who are tracking your habits on your phone.
“For recurring services, such as our ongoing tech support plans, ads tailored based on past behaviors and preferences — like types of devices owned and frequency of tech issues — can be incredibly effective,” said Hagan Kappler, CEO of Daisy Co. “This form of predictive advertising helps in retaining customers by consistently meeting their evolving needs, ensuring that they see value in remaining within our service ecosystem.”
Relevancy
Watts pointed out, “On mobile devices, ads leverage real-time data to provide immediate relevance. Companies like Google and Facebook use location data, browsing history, and even purchasing habits to craft ads that target users with pinpoint accuracy. For instance, we often utilize geo-targeting for local campaigns, displaying ads only when users are near a client’s physical store, dramatically increasing foot traffic and conversion rates.”
He included the fact that these ads aren’t just selling products; they’re selling convenience, personalization and immediacy. “By understanding and leveraging user data effectively, advertisers can ensure their message cuts through the noise and speaks directly to the consumer’s needs or desires in real-time,” Watts concluded.
Location Perks
You might be in a strange and unfamiliar place, but your smartphone knows exactly where you are and is sharing that location with companies all the time. Kappler noted that her company will often use real-time data to reach potential customers when they are most likely to engage.
“By targeting mobile users based on their location data and recent search history related to home automation, we can push out ads that highlight how our smart solutions can immediately improve their living conditions,” Kappler said. “This not only makes the ad relevant but also positions our solution as a timely answer to their current needs.”
Degraide reported that “location-based targeting has shown impressive results” with a number of different companies and clients. For one in particular, he said, “We harnessed geo-targeting to send out timely ads to users within a specific radius of insurance agency clients. This approach led to higher foot traffic and better customer acquisition rates. Analyzing real-time location data and coupling it with consumer search history creates a powerful tool for hyper-localized marketing, driving immediate and measurable business outcomes.”
More Data
The more we use our smart devices and the longer we stay online, the more data we generate and can be mined for future marketing campaigns by major corporations. Utilizing “insights from tools like Google Analytics can’t be overstated” in Kosmicki’s view. “Tracking metrics like website traffic, conversion rates, and customer engagement allows us to refine ad strategies continually.”
As an example, Kosmicki posed that “tracking a local bakery’s blog posts led to a 20% increase in foot traffic, proving that well-placed ads can drive offline actions effectively when they’re tailored to meet consumer behavior and preferences.”
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