Unlocking the Power of Accurate Data: Truthset-CIMM Study Reveals Opportunities and Challenges
In the ever-evolving landscape of digital marketing and customer engagement, data is the linchpin that holds everything together. Marketers rely on accurate data to target their audience effectively, maximize ROI, and provide consumers with more personalized experiences.
However, a recent study conducted by Truthset in partnership with The Coalition for Innovative Media Measurement (CIMM) has shed light on the accuracy of data records that marketers depend on, highlighting both challenges and opportunities in the data and identity marketplace.
The Quest for Accurate Data
The groundbreaking study delves into the linkages between a staggering 3.9 billion anonymous (hashed) email records and 90% of known US postal addresses. The results provide invaluable insights into the accuracy of data records and underline the importance of addressing inaccuracies in the rapidly changing landscape of data-driven marketing.
Wide Variations in Data Accuracy
One of the study's most striking findings is the significant variation in data accuracy across different data providers. Match rates between email addresses and household postal addresses ranged from as low as 32% to as high as 69%. This variance underscores the different data capture processes and updates rules employed by various providers, revealing the challenges marketers face in relying on this data for their campaigns.
The Cost of Inaccurate Data
Inaccurate data comes at a high cost to marketers, wasting billions of dollars annually. The study demonstrates how eliminating inaccurate datasets and using intentional, accurate audience data can lead to substantial improvements in on-target percentages and return on investment. For instance, a typical consumer packaged goods (CPG) campaign could boost its returns from $1.08 to $1.54 per dollar invested by improving the quality of identity data and match rates.
A Pathway Forward
The report also outlines a roadmap for CIMM members and the industry as a whole to navigate the challenges posed by inaccurate data. The journey begins with organizations assessing their current identity and data management practices. Truthset is actively collaborating with members to diagnose and validate their first and third-party data for accuracy, providing the foundation to measure the impact of better data and begin implementing improvements across business segments.
The Power of Accurate Data
Scott McKinley, Founder & CEO at Truthset and former executive vice president at Nielsen, emphasizes the transformative potential of accurate data. He states, "At a time when advertising and marketing budgets are shifting, this study proves that more accurate data can help drive results – financially and otherwise. Big data is going to play an important role in the future of the advertising ecosystem, but right now, the industry is focused solely on scale. For the first time ever, we have a common tool that can be used by the industry to assess the accuracy of this data and to provide a path forward to deliver better audience targeting, increased CPMs for publishers, as well as more accurate measurement that can help elevate consumer experiences.”
A Brighter Future for the Industry
Jon Watts, Managing Director at CIMM, believes that this study is a turning point for the industry. He notes, "This groundbreaking study doesn't just size up the breadth of the issue; it also provides a pathway for moving towards a better, more accurate ecosystem that benefits all parties, especially the viewers."
Truthset is actively collaborating with a diverse range of companies, including CIMM members, to validate demographic and identity data. An update on this initiative will be presented at the 12th Annual CIMM Summit in New York on October 10th, 2023.
In a world where data-driven decision-making is king, this study serves as a beacon, illuminating the path toward more accurate and efficient data usage, ultimately benefiting marketers, publishers, and consumers alike. It's a reminder that in the quest for the perfect marketing strategy, accurate data is the North Star that guides us toward success.