data-driven personas and programmatic advertising

Programmatic advertising is an automated method of buying and selling advertising space in real time. Instead of manual ad placement, software controls the entire process: artificial intelligence and algorithms determine within milliseconds where, when and how an ad is displayed online. This saves time, helps to reach suitable target groups and optimizes companies' advertising expenditure.

To place an ad, advertisers define a budget and a target group. The algorithm then decides where the ad will appear on the web based on content, but above all on the usage behavior of a target group. Although the software successfully delivers ads to specific target groups, it is important to define and select these correctly in advance. Otherwise, there is a risk of high wastage - and despite automated ad placement, a loss of advertising budget.

Challenges in programmatic advertising

Third-party cookies are increasingly restricted for data protection reasons, and the tracking of surfing behavior across multiple websites is limited. For digital marketing and programmatic advertising in particular, this means the loss of valuable information that is needed for personalized advertisements and detailed user profiles. Companies must rely on their own data for advertising purposes in order to continue to address existing target groups and tap into new ones. The challenge: due to a lack of mapping options for the target group, advertisements are often not displayed where they actually reach existing and potential customers. This is where data-driven personas come into play: they close the gap of missing data and define in advance who exactly companies want to reach with their ads, which targeting options and strategies are suitable for this. The prerequisite: the personas are based on extensive, valid and industry-specific data sets.

Strategies in programmatic advertising: retargeting, prospecting, custom audiences

In programmatic advertising, there are different strategies for delivering advertising to the desired target group. As part of a digital marketing campaign, it is advantageous to weigh up the relevant strategies in advance and optimize them to suit the target group. data-driven personas also provide a solid basis for decision-making in this step.

1. retargeting

A user searched for hiking boots on the website of an online store but did not complete the purchase. As a result, he receives ads for similar hiking boots on other websites and on social media. The online store relies on retargeting. This strategy appeals to users who have already shown interest in a particular product or service. Companies use retargeting to remind users of their previous interest through advertisements with the aim of triggering further interaction or a purchase. In retargeting, data-driven personas provide valuable information on what type of ads, in what format and with what content companies can use to convince target groups of a product or service more quickly. In short: data-based personas can be used to make retargeting campaigns even more precise and relevant. For example, if we assume that the persona of the above-mentioned target group values sustainability, high-quality materials and a minimalist look, the company could optimize the retargeting ad specifically for these aspects: Monochrome hiking boots made from eco-friendly materials, from a brand that is known for high quality, will be more likely to convince the user than ads of models that do not meet these criteria.

2. prospecting

A vegan food supplement company wants to reach potential customers and automatically places ads on websites with content on plant-based nutrition, yoga and Pilates to reach this target group. The example shows: In contrast to retargeting campaigns, prospecting is used to reach new target groups and therefore potential customers. This means that companies automatically display ads on websites and social media platforms that representatives of the relevant target groups are most likely to use. data-driven personas help to identify additional touchpoints with potential customers and tailor advertising campaigns more specifically to the search and media usage behavior of the desired target group. For example, if the persona profile shows that representatives of this target group are interested in biohacking as well as fitness, the company is given further specific points of contact to reach this target group online.

3. custom audiences and lookalike audiences

An online store for interiors identifies two personas among existing customers that are to be targeted via programmatic advertising. The first persona corresponds to the "environmentally conscious aesthete", the second persona to the "sustainable family man". The first custom audience, i.e. customers who correspond to the "environmentally conscious aesthete", receive personalized emails and ads on social media that are tailored to their interests in sustainable interior design and fair trade. The store primarily advertises high-quality products, exclusive offers and design collaborations. The second custom audience - customers that the company classifies as "sustainable family fathers" - receive ads tailored to the needs of young families. The company therefore advertises practical and ecological products for children and the household, as well as discounts for families. The examples show that custom audiences enable companies to use curated data segments and their own customer data to target advertising to existing or similar customer groups. For example, advertisers can take certain interests, personality profiles and other characteristics into account in order to target a campaign to specific groups. This data comes from various sources, such as CRM systems, email lists or website visits by users. Lookalike audiences, on the other hand, are statistical twins that have similar characteristics and behaviors to the core target group. Lookalike audiences therefore extend the reach of existing campaigns to target groups with similar interests. data-driven personas support companies by providing a variety of relevant data points for the creation of custom and lookalike audiences.

How does programmatic advertising work
with data-based personas?

By using data-driven personas in programmatic advertising, advertisers can tailor ads more precisely to the interests and needs of target groups. Specifically, companies use data-driven personas to design personalized customer journeys that are tailored to the individual needs and interests of individual users. This leads to a higher click-through rate, a better conversion rate and a higher ROI. Another advantage: data-driven personas change with the target group, making them a valuable basis for decision-making - both for existing and future sales and marketing campaigns.

But what does programmatic advertising with data-based personas look like in practice? And how do companies benefit in the various phases? We show the most important steps below.

1. create data-driven personas

In order to realistically depict target groups in a persona, you need one thing above all: a large amount of high-quality data that paints a detailed picture of existing and potential customers. This includes demographic data, psychographic characteristics, interests, behavior and data on the target group's purchasing history. Incomplete data sets or missing data on important criteria can have a negative impact on targeting. Get support here. Market research organizations such as the Persona Institute have a variety of industry-specific data sets and can help you complete, update or develop your persona from scratch.

2. create personalized ads and campaigns

Data-driven personas can be used to create customized marketing campaigns and ads that take into account the visual and content preferences of a specific target group. From the appropriate format and personalized messages to the selection of (moving) images, data-driven personas provide a detailed insight into the reading and media usage behavior of specific target groups. Using other parameters, such as data on character, interests and consumer behavior, companies can identify the most important touchpoints on the customer journey in advance.

3. Use data-driven personas for targeting options

Targeting options in programmatic advertising describe the criteria according to which algorithms and AI play the ad on certain ad spaces and suitable websites. The task of advertisers is to select targeting options in advance and combine them sensibly. The right choice depends on the specific goals and, in particular, the target group of a company. The combination of different targeting options is essential for successful advertising campaigns. Personas from the Persona Institute cover targeting options precisely and, above all, based on data. In short, each data-driven persona provides companies with detailed targeting options that can be combined as required: For an advertising campaign that leaves nothing to chance.

• Demographic targeting: Demographic data in the persona profile can be used to target ads to specific age groups, genders, income brackets or job profiles. With demographic targeting alone, companies address a broad target group - for example: all users between the ages of 25 and 30 in Hamburg. To narrow this down further, it is also important to optimize ads based on the interests and behaviour of potential customers.
• Behavioral targeting: An analysis of surfing behavior, purchase histories and interactions on websites shows how users and therefore potential customers behave. data-driven personas play a central role here, as they enrich these profiles with specific characteristics and behaviors. In addition, data-driven personas contain information about how target groups act online and offline.
• Interest-based targeting makes it possible to target users in programmatic advertising based on their interests. Detailed user profiles are created by analyzing online behaviour, such as websites visited, search queries or interactions with social media. In contrast to behavioural targeting, which asks "what?", interest-based targeting is about "why" a user does something and deduces certain interests from this. data-driven personas name and visualize these interests. By understanding what interests their target group, companies can place ads that significantly increase the likelihood of a click and a conversion.

Comparison of targeting options and persona profiles

The following table shows possible targeting options and information contained in the profile of a data-based persona.