Why Smart Data Buying is the Key to your Success in Programmatic

Hey there! If you’re in the digital advertising game, you know how crucial it is to have a solid audience strategy. One of the biggest pieces of that puzzle is understanding how to buy data the right way. By focusing on data transparency and knowing exactly where your data comes from, you can supercharge your campaigns and cut down on wasted spending.

Lessons from the Trenches

Over the years, I’ve seen just about everything in this industry. One story that stands out involved a supplier who sold US credit card data to a partner running Canadian ads. Yep, you read that right. When we told them what they had been buying from another supplier for 2 years we had to pull in a VP from the cc company to prove to them what we already knew. This is a valuable lesson: always be vigilant and insist on transparency in data buying and pick your partners well. Lastly, support Canadian suppliers for Canada!

Understanding the Data Landscape

The programmatic and digital media buying world is full of options for buying consumer data. At first glance, all those targeting choices might seem like a dream come true. But, if you don’t scrutinize the data, you could end up paying for nothing. Understand the source of the data and how the audience was created. If something doesn’t make sense, ask more questions. As they say, if it looks like a duck and quacks like a duck, it’s probably a duck.

Probabilistic vs. Deterministic Data

It’s also important to understand the difference between probabilistic and deterministic data.

Probabilistic data is like casting a wide net. It involves gathering data points from various sources and using data science to expand a small audience into a larger one. For example, you might start with a segment of 22,000 people and grow it to 1.5 million by finding similar profiles and using machine learning to identify other similar users.

On the other hand, deterministic data comes straight from the source and gives you exact user signals linked to specific actions. Think of it like intent data from search behaviors—people actively looking for what you offer, making them prime targets for your ads. Another good example is purchase data, which allows you to understand spending patterns at the level of your product.

Finding the Sweet Spot

Deterministic data is super precise but can be combined with probabilistic data to refine it into a more valuable audience.

For instance, blending deterministic transactional data with affinity or behavioral data (probabilistic) can create highly targeted audience segments. This mix helps you pinpoint the most valuable users within a larger group, ensuring your ads reach the right people for a great ROI while still being scalable.

Demand Transparency

Here’s a golden rule: always demand transparency about where your data comes from. If the data’s origin is murky or hard to understand, it’s probably not worth your investment. Quality data is the foundation of effective campaigns, allowing you to use AI tools and measurement techniques to optimize and continually improve your results.

Unlocking Programmatic Potential

Great audience data is your ticket to unlocking the full potential of programmatic advertising. By following smart data buying practices and insisting on transparency, you can drive growth, optimize your media spend, and achieve precise, large-scale targeting. This approach helps you avoid waste and maximize your ad spend return.

Thanks for reading! Stay tuned for more tips and insights on making your programmatic strategies even better.