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How data-driven ad agencies are providing value to an increasingly complex industry

The advertising industry is not as simple as it once was. While technology has created endless opportunities and ways to optimize and automate ad creatives and campaigns, there have also been considerable drawbacks, further complicating the landscape. However, data-driven ad agencies provide tremendous value to the ever-evolving advertising industry by leveraging data to create more targeted, personalized, and effective campaigns.

Diversifying Top Media Channels

Now, there are so many more platforms and channels to consider than there were five years ago. As such, traditional social media advertising has been dethroned given the rise of short-form videos. Perhaps the king of short-form videos, TikTok has changed the landscape drastically, causing other platforms such as Instagram and YouTube to adopt short-form videos. But that doesn’t mean you should focus solely on one channel; it’s essential to build a more holistic ad stack that includes multiple social platforms, networks, etc. And it is necessary to include any potential adjustments in order to promote across different devices and localization strategies for cross-regional promotion.

Localization can be daunting, as simple mistakes can make or break your success in a region. For example, TikTok is not the optimal platform for every country. Even if TikTok campaigns are managed in-house, various countries boast other popular platforms like Kwai, which, for the most part, isn’t typically managed in-house. Enter ad agencies, as they can help localize cross-regional campaigns, using resources that can produce data-driven decisions.

Typically this approach is employed when mobile games seek entry into new markets. Take Nativex’s partnership with Metal Revolution for example, as they’ve successfully selected the best platform and localized the marketing strategy to help break into the Brazillian market. Utilizing Kwai, Brazil’s top short-form video platform, Nativex created a localized hashtag challenge to promote the game. This strategy included a tailor-made hashtag, custom effects to encourage user-generated content (UGC), and a careful selection of local influencers. As a result, the Metal Revolution sticker reached the #2 spot on the weekly hashtag rankings, garnering 340 million impressions, 290 million video views, and 82,000 UGC videos.

Building an eCommerce Strategy

In addition, the recent growth of eCommerce and mCommerce has made the advertising industry more complex in a number of ways. There are many new ways for brands to reach consumers. For example, brands can now advertise directly to consumers through social media platforms like Instagram and TikTok. Reaching the consumer through social media better positions brands to attract consumers since it provides additional touchpoints, thus opening more opportunities for marketers. 

One mCommerce marketing strategy that has been growing in popularity is livestream, otherwise known as social shopping. Using livestreaming influencers in mCommerce is already a popular strategy in the eastern market and has been recently entering the western market. The success of livestreaming influencers stems from the trust that consumers get through authentic and human-centric content. As a result, livestreaming influencers have access to dedicated in-app eCommerce abilities that reduce churn and increase conversion.

With Apple’s ATT and the growing advancements in the advertising industry, it is more challenging for advertisers to decide where to allocate their advertising budget and how to reach their target audience most effectively. This can be a problem for many brands that need to quickly pivot towards new solutions to stay relevant, which is where ad agencies come in. Fortunately, ad agencies are well-equipped to deal with these complexities. 

Agencies with global influencer networks can help brands strive in new markets. When done correctly, influencer marketing can help hyper-target users for regional campaigns and help build trust and boost engagement. Using micro-influencers can be both highly engaging and cost-effective. With engagement rates well above 17%, it is a fantastic choice for tightly-budgeted campaigns run in specific regions or lower-funnel conversion events that are more valued.

For instance, brands are constantly looking to enter the APAC market. Marketing agencies that feature a global influencer network prove beneficial to brands as it helps them hone in on their desired audience. By selecting popular micro-influencers within the region that possess a strong following and align with brand interests, influencers can then create content promoting the brand and spreading awareness to their follower base.

The use of micro-influencers proves to be effective as their endorsement is perceived as more genuine and trustworthy. Their followers trust their opinions and recommendations, leading to high engagement rates and increased brand awareness. Additionally, the cost of partnering with micro-influencers is lower compared to larger influencers, making it a cost-effective option for a brand’s regional campaign. 

Gaining Deeper Ad Insights

It is essential to ensure that ad agencies have the technology to leverage data and inform their marketing strategies and tactics. By using data analytics tools, ad agencies can gain a deeper understanding of their target audience, track the effectiveness of their campaigns and optimize their ad spending in real time. This can help them cultivate more targeted and relevant ads that are more likely to engage and convert potential customers.

Data-driven ad agencies use a variety of techniques to continuously improve their marketing efforts and achieve their goals. One important aspect of this process is the use of creative insights and iteration. By testing different approaches and analyzing the results, ad agencies can identify what works and what doesn’t and adjust their strategy accordingly. For example, they might try different types of creatives (such as different ad copy or visuals) to see which ones are most effective at capturing the attention of the target audience. They might also experiment with different targeting strategies to find the best audience for their campaigns.

Automation can play a key role in this process by allowing ad agencies to streamline their workflows and free up time for more strategic and creative tasks. For example, they can use automated bidding tools to set the right bid price for each ad placement based on factors such as the target audience, the ad’s performance and the overall budget. Automation can also help ad agencies manage their campaigns more efficiently by allowing them to set up and schedule ads in advance, track their performance in real time, and make adjustments as needed.

The advertising industry has seen many changes over the past few years, making it challenging to keep up. To navigate this complexity and remain competitive, many brands have turned to data-driven ad agencies for help. These agencies use data and technology to create more targeted, personalized and effective campaigns while using creative insights, iteration and automation to continuously improve their marketing efforts. While the advertising landscape will continue to evolve, data-driven ad agencies are well-positioned to help brands succeed in this increasingly complex and fast-paced industry.

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