October 25, 2018
Data has become one of the most valuable resources among companies within every industry. Eighty percent of the most innovative companies leverage data to drive advantages for their business. However, knowing how to mine it, how to sort through it and how to glean actionable insights from it is difficult for many businesses today. In fact, many companies are just sitting on a treasure-trove of data―or even worse, throwing it out―when this information can be strategically used within several key areas to create significant business value.
Marketers, in particular, require accurate, reliable and hyper-granular data to ensure that they’re meaningfully engaging digital audiences with relevant content, messages and promotions―that are delivered at the right places and the right times. The Digital Data Exhaust Survey, commissioned through a partnership between Digital Element and the Location Based Marketing Association, examined how digital marketers could amplify business data by discovering whether or not their companies were throwing away valuable information that could, ultimately, help them generate additional revenues.
The term “data exhaust” has been bandied about for several years now and is used to describe data that companies toss out because they feel it provides little or no value to their core business. However, data has become increasingly more important in today’s business world, and marketers have become very aware of the value it presents in terms of generating additional revenues for their companies. Having quality location data with wide coverage is one example of an opportunity to enhance insights into a user base for advertising, personalization, and analytics.
Results from the study indicate that digital marketers are concerned with data exhaust, and that they recognize the revenue-generating opportunities that useable, non-invasive, quality data can bring to their organizations.
Among the report’s key findings:
- Recognizing Data Exhaust as an Issue. Data exhaust was a recognized issue for digital marketers in the survey. The majority of respondents were either very (39 percent) or somewhat (29 percent) concerned with data exhaust, and this was true for most all the company types surveyed.
- Acknowledging the Revenue Potential from More Data. The digital marketing professionals certainly acknowledged the revenue potential related to the data their company was potentially throwing away. When asked how it would impact revenue if they used just an extra 25 percent of the data currently being tossed, 60 percent said it would result in a moderate or significant revenue boost.
- Tapping the Potential of IP Data. While almost 40 percent of respondents said they were fully leveraging the types of IP data that were available or that they needed, 61 percent of digital marketers left plenty of room for improvement because they were not utilizing all the different data points available to them or were not aware of the different types of data associated with an IP address.
- The Value of Location Continues to Grow. When questioned about the value of location data—the most common type of IP data used—to their organizations’ and clients’ marketing efforts, 71 percent of respondents found it very important. Responses showed that the value of location data is only getting stronger, and there are opportunities for marketers to take advantage of this data and use it in ways that allows them to contextually interface with consumers in a non-invasive, socially responsible and respectful way.
As you read through the full Digital Data Exhaust report, please note how your company might compare with those organizations that participated in the survey in terms of what you may (or may not) be doing with all the data that comes into (and goes out of) your four walls. We hope you find the study results helpful as you look to build and maintain a competitive edge in today’s digital marketplace.
Let us know if your company is losing valuable digital marketing intelligence through data exhaust.