Beyond the Episode: Identity Resolution
The first episode of our new season of The Marketing Insider | A Claritas Podcast went live on January 31st. Listen to Identity Resolution: The Multibillion Dollar Industry, here. During the recording, I spoke with frequent guest of the podcast, Al Gadbut, CTO of Claritas.
From the continued evolution of identity graphs, to how they fit into your marketing structure, and how their intelligence helps marketers optimize campaigns in-flight and measure success along the way, Al solidifies why this technology has found itself at the epicenter of the multibillion dollar industry of identity resolution. But, while you’ll hear all about this and more when you listen to the podcast, our newly shortened 20-minute episodes just aren’t enough time to discuss everything. Because of this, we took some of the conversation offline and put it in this blog.
How accuracy and scalability impact marketing personalization efforts
How accuracy and scalability impact marketing personalization efforts boils down to two things, in Al’s mind. The first is having the right consumer insights. That’s accuracy, in a nutshell. When you know what consumers respond to, you can make relevant, engaging, and valuable offers to them.
The second key point is being able to get those insights driven messages to the right consumer. That’s what we call scale. The fact of the matter is, there are a lot of players in the identity resolution space. Many operate with the belief that if they achieve those two things even 30% of the time, that’s fantastic. In a world where there is no “gold standard” model for identity graphs, maybe that is fantastic. For Claritas though, it’s not enough. We’re constantly working to improve ourselves. That way, we can show proof points of having the most actionable data on consumers and households (accuracy) and being able to reach them and others like them (scale) with that right message 90%, 95%, even 100% of the time. Doing so makes ad spend more effective, results in higher conversion rates, and overall marketing spend decreases.
Al cautions that a provider may have the largest scale for targeting in the marketplace, but the accuracy or quality of data for reaching that right household may be low. It’s important to find someone who has strength in both and doesn’t rely on just one to get them by. Claritas has found a balance with the two, but does tend to place more value on accuracy. Ultimately, we aim to pair you with in-market consumers ready to buy your products or services.
Improve your data, improve your delivery
A unique trend is beginning to emerge in the marketplace. Brands don’t feel as though they can depend upon the accuracy some providers are offering with their identity graphs, so they’re exploring building out their own. Al understands why. The speed and immediacy of being able to control your brand and your engagement with your customers is a very attractive notion. While that may seem like a negative for data providers, this shift actually creates an opening in the marketplace for them.
Those newly emerging graphs need to be filled with data. From segmentation to other linkages, brands will seek out partners who have the data they need to go-to-market in real or near real time. Understanding when consumers are visiting websites, being able to get banners and other advertisement in front of them wherever they are online, and having the capability to retarget them through various channels is not something all brands can or want to do in-house.
Identity graphs make the digital world more representative of the physical world
Even in 2022, a limited number of companies are operating on a purely online basis. Most have some type of physical presence. Consumers, however, are spending more time online. They’re researching brands, they’re shopping for products, and they’re leaving reviews. In real time. To understand these digital behaviors, in addition to how consumers interact in the “real” world, Al says we can look to examples from the auto industry. They excel at this connection. Yes, you can buy a car online, and since the start of the pandemic the number of people doing this has risen, but most consumers are still going to the actual dealership to complete their transaction and pick up their new vehicle. That’s after they’ve done their research online beforehand.
What makes this use case stand out is that auto manufacturers have had to increase their consumer insights investment so they know who their shoppers are and can “sell” the product to them before they’ve even stepped foot in the dealership. Once they’re at the dealership, their decision has basically already been solidified. This method of shopping also makes for a more informed consumer, since they are taking the time to understand what’s out there, how it works with their lifestyle and determine what they really want. Besides, it’s a lot easier to send a t-shirt back via Amazon returns than it is to change your mind on a $30,000 SUV.
Having an online presence is critical, but what becomes more important is understanding who is interacting with your online media. How do those interactions translate into what’s going on in your stores, or how people are buying your products? It all comes back to an identity graph.
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We hope you are as excited as we are about the new season of The Marketing Insider. If January’s episode on the multibillion dollar industry of identity resolution resonated with you, then share with a friend or college. If you want to meet better prospects, market more precisely and improve your ROI, contact us by visiting www.claritas.com/contact/.