How useful is demographic data for targeted advertising use?
Demographic data can be very useful for an advertiser to know who his target customer is. As an example, knowledge about a family’s household income can be used by a realtor when marketing a potential home to a client. Likewise, banks can use an individual’s income and occupation to properly target services and products such as credit cards to people who don’t have them. Having complete information about a person’s demographics can be valuable for businesses as it can help increase sales revenue and profit margins.
Some types of demographic information can be harder to obtain than others. For example, not everyone may be willing to reveal what their political or religious associations are. This would be useful information for political campaigns or religious organization trying to obtain contributions for their cause. This information can be used in tandem with a person’s income level to know who would be a likelier prospect for the greatest contributions.
Depending on your business and model, certain types of demographic information will be useful more than others. A problem arises when the information you’re looking for is not available or unknown. Businesses will then resort to third-party services to fill the gaps in their data or try to collect the information themselves with surveys or polls. Sometimes this process can be costly and time consuming or the information may not be accurate and up to date. Therefore, the question of data reliability plays an important factor in business decisions that are made. With global advertising spending amounting to over half a trillion dollars annually, it is important for advertisers to spend their money wisely so they can target consumers effectively.
Melissa’s Consumer Demographic Append Service will return kinds of data elements including household income, age, gender, presence of children, number of adults, marital status, home owner/renter, length of residence, dwelling type and credit card information. For more information, call 1-8000-MELISSA or visit melissadirect.com.