Why is data about me important to companies?
How does marketing and advertising work?
Marketing and advertising is intended to help you with your buying decisions. With so many buying choices today, it has become harder and harder for companies to understand exactly what you really want. That’s why targeted marketing is so important. Targeted marketing uses data about consumers to reach a specific audience – whether it’s a certain age group, gender, interest, whatever.
How is the Internet, mobile, etc. fueled by data?
Ever wonder why it’s free to visit your favorite Internet sites and mobile apps? It’s because they are funded by ad sales. Data ensures that the ads that you are seeing on websites and mobile applications are tailored to your wants and needs. For instance, when you purchase a pair of athletic shoes online, you may see an ad appear for a treadmill the next time you browse online. The treadmill company pays the website for the web ad. It’s not only convenient; it also helps ensure that your favorite websites and mobile apps continue to offer free content.
The reality is that ads won’t stop – if companies don’t have data about consumers, the ads are still shown, they just won’t be targeted. That means that a middle-aged man in the market for a new car might see ads for kids’ toys instead. But with the right data, his local car dealership would be able to reach him with information on the next big sales event offering big discounts on the latest models. And he would soon be riding in new comfort and style.