Let's Go Hyper-Digital with IP Targeted Ads

Let's Go Hyper-Digital with IP Targeted Ads


By Keith Snow, President, B2E Data Marketing

As marketers, we’re always in search of the next greatest thing that ​​​​​​​​​​​​​​will maximize sales and in​​​​​​​crease ROI. As an industry, we’ve veered into a space where marketing campaigns are no longer successes or failures based on creative alone; campaigns are won or lost based on data, targeting and technology. Being a data guy, this is exciting! 

Have you heard the term hyper-digital? Hyper-digital is what happens when data and technology are incorporated into online advertising. Gone are the days of spraying online ads all over the internet – they’re not very cost effective, they present attribution issues when calculating ROI, and they are ignored because they are being shown to people who are not your prospects.

IP addresses: everyone with internet has one. Households or businesses, makes no difference really. In the new hyper-digital world, online ads can be served up directly on a computer or device at the address being targeted. Today’s technology has streamlined this tactic and created greater efficiency and accuracy, which means you get more for your money. But buyer beware, not all IP-targeted services are the same! Be careful what you sign up for.

The proof is in the results.

You can scour the internet for examples of the lift seen when IP targeted ads are paired with direct mail campaigns or other targeted campaigns. Outrageous lift can be seen in conversion rates – some sites brag up to 200% lift was seen. In my own experience, we’ve seen a wide range of success, from six to sixty times the result of direct mail alone.

Of course not all IP targeted campaigns can be treated equal. As technology has evolved over time and processes have been improved, there are things to watch out for and things to ensure you do. If your vendor is not up-to-date with the current technology, your results may not be as great as they could be. Here are some key items to watch for.

Match rates matter.

Most databases used today can match around 50 to 75 percent of your list to an IP address. But, what happens after that is the differentiator in programs. A strong IP targeted program will be able to guarantee 95 percent or greater accuracy that it’s the right household being targeted, which is a pretty important piece of the puzzle.

Cookies are old school.

In the early days of targeted ads, cookies were used to track people around the internet. These worked ok when people only used one browser and one device. In today’s multi-device world, targeting with cookies is just going to give you a reporting headache. Ultimately, you won’t be tracking people you’ll be tracking devices and inflating your engagement numbers, leaving it hard for you to prove results. Alternatively, IP-based targeting allows engagement to be counted at the household level, regardless of how many different devices are being used. Another positive for IP-based targeting is that your ads won’t disappear when someone clears their cookies.

Match direct targets whenever possible.

Why spend extra money when you don’t have to? IP-targeted ads are one of the most cost-effective means of advertising online because there is so little waste. Response rates will be higher because your message is being put in front of the right people. Some vendors still utilize and promote something called “cluster targeting.” With cluster targeting, your ad is displayed to a geo-location or area, not a specific 1:1 address. In some scenarios this may make sense to do, for instance if you’re having a grand opening and want to alert the community. But, if you have a specific mailing list to target, IP targeted ads can and should be delivered directly to the IP address you are targeting. That is all that is needed for success.

Report the truth.

Today’s technology should be able to clearly identify for marketers who was matched and who was not. Knowing this helps with reporting, ROI calculations and allows you an opportunity to market to the unmatched in a different way. This is an essential piece needed to know the effectiveness of your campaign and be able to match back to sales. The next time you’re looking to boost results of a current marketing campaign, consider going hyper-digital with it. It’s a cost effective, 1:1 match that will be sure to gain your audience’s attention.

About the author:
With over 30 years of Marketing and Technology experience, Keith develops programs and provides business leadership for data marketing, insights, analytics and strategy for B2E clients. Over his career, he has served in the U.S. Army Reserves, been an Applications Developer, Systems Analyst and Marketing Database Director before starting B2E Data Marketing in 2003.

02/28/2019 4:30 PM |Add a comment
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