What Is Data-Driven Marketing? (+Benefits)

What Is Data-Driven Marketing? (+Benefits)

Digital marketing is quite crucial since we live in a digital world today. Almost all businesses are online and therefore their marketing efforts as well. There are billions of people using internet services hence there is a significant amount of data on these people’s interactions. How do businesses deal with it? Data-Driven Marketing. So what is Data-Driven Marketing?

Nowadays, Data-Driven Marketing is essential for advertising and business purposes. It is a strategy of optimizing user data for better media buying and brand communication. This data is gathered from consumers’ interactions and engagements.

Implementing this data into actionable marketing strategies is possible because of the development of technology and automation. With these developments, ad-technologies and data processing are accelerated. Companies and brands can understand and answer the questions of; what, who, where, when, and why, regarding their customers and create optimized media and communication strategies.

Data-Driven Marketing Journey

It all started with customer relations management (CRM). Companies and brands began to track customers and their patterns individually. After that, direct mailing came along. Marketers used group mailing via CRM started segmenting customers. Later on, digital marketing emerged with salesforce and changed the game, thus starting automation. With the combination of digital marketing and CRM, new marketing automation software started to pop-up. They pioneered the individual marketing profiles with customer interaction tracking on websites and email. Then, automated emails and segmentations arose, such as campaign emails, alerts for forgotten products on the basket, and many more.

Besides this customer segmentation, there was another part of marketing automation: paid media where ads were running. Paid media with customer interests are on the rise. People can find what they are interested in with a search query. Companies and brands started to invest in these fields as well. And nowadays, with big data and better gathering options, programmatic advertising made its debut. Today, marketers spend billions on data management platforms (DMPs) and demand-side platforms (DSPs) for their digital advertising. Every growing technology pave the way for different innovations and here some examples;

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  • Artificial Intelligence (AI): AI can use large amounts of data to create personalized campaigns for different segments and even for individual consumers. 
  • Individual Marketing: Thanks to ever-improving technology, marketers can now target and create content for individual consumers and increase their click-through rates (CTR) return on investment (ROI), and therefore their profitability. 
  • Prediction Analysis: Due to Data-Driven marketing capabilities, it is possible to use the data to predict consumer intentions and that would make better strategies and more accurate campaigns.
Dara-Driven Marketing Benefits

Benefits of Data-Driven Marketing

There are many benefits of Data-Driven Marketing and it made significant changes in marketing.

  • Personalized Targeting: Marketing communications and ads are optimized to be delivered to the right audience at the right time. Understanding and segmenting the consumers helped marketers to reach a more relevant audience with the right message, instead of one message to all audience.
  • More Efficient Media Buying: Thanks to programmatic buying, marketers and media agencies can rely on the right and efficient media planning and buying by using algorithms and machine learning. There is no need for one to one meetings between agencies, advertisers, and buyers. All process is now automated.
  • Better Customer Experience: With Data-Driven Marketing, companies, advertisers, and agencies are now able to see what customers needs and want. They can use different surveys for better understanding, can check the bounce rate, make necessary improvements, and so on.
  • Multi-Channel Interaction: Data-Driven Marketing can provide useful insights about where your services have better interactions and where did the consumers came from. So, you can create better and more efficient campaigns for different channels.

Challenges of Data-Driven Marketing

Implementing and using Data-Driven Marketing can be complicated and challenging. Some of the common challenges are;

  • Gathering Data: For marketers, gathering data seems to be a complicated process. Different departments would have data that contradicted each other. On the other hand, the data should be usable and high quality. 
  • Combining Data: A brand or company can have different data sources such as e-commerce, social media, stores, and many more. All this data coming from different sources needs to combined and used efficiently. There can be the same consumers’ data from different sources. Besides, these data should be new. 
  • The Team: Processing and giving meaning to data is a job which requires a lot of skill. Different expertise can be needed such as data scientists with the right guidelines and documentations. 
Data-Driven Marketing Examples

Examples of Data-Driven Marketing

There are thousands of different Data-Driven marketing approaches for different business strategies. Most of the brand communications we get exposed from daily is Data-Driven marketing. If we have to mention some of them;

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  • Email Campaigns: With email marketing, you can determine a certain customer segment and create your strategy along. If you are already using email campaigns, you may want to segment some customers according to the way they interact with the emails. Then you can target the desired audience and start the automation process for the campaigns. 
  • Retargeting: If someone interacted with your website, you would want them to complete an action such as a purchase. Retargeting allows you to reach that consumer again with a specific message.
  • Optimized Paid Advertising: If you advertise on paid media related to your business and competition, then you may have leveraged data on your disposal and valuable traffic for your business.


Why is Data-Driven Marketing important?

Because Data-Driven Marketing makes it possible for businesses’ to collect, analyze and use the behaviors of their consumers, which then they can use for better-optimized marketing strategies to help increase profitability.

What are the data metrics?

Well, there are different data metrics for different strategies. A video view, a click, a purchase, and many more can be a metric. First of all, you need to be sure which data metric is useful for you.

How to obtain marketing data?

There are different sources of marketing data, such as an email campaign or a social media interaction. The important question here is, how and for what you are going to use this data for.


We have explained and given some examples of Data-Driven Marketing. However, Data-Driven Marketing keeps growing every day with new technologies, software, tools, platforms, data sources and improving the marketing performance. We hope this article was helpful and answered some of your questions regarding Data-Driven Marketing.

If you want to learn more, then you can check our other articles on this topic.

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Born in February 1993, Dennis is a social media blogger. Originally started working as a car salesman, he was always a social media and internet enthusiast. So, he began optimizing websites and e-commerce sites for car dealerships. Later, it was found out that social media is a perfect area for ma...

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