Experian received top ranks for hashed emails (HEMs) and demographic data from Truthset Data Collective
Advertisers, technology partners, and agencies are all chasing accurate data to power their marketing strategies. Turns out, not all data is created equal and unless you’re working with the right partner, high-quality data can be hard to find. That’s because accuracy can vary widely across the industry and the partner you choose is important. A recent study conducted by data validation company Truthset showed that 51% of the data used for ad targeting and audience measurement is wrong, with average accuracy rates ranging between 32%-69% across data providers.
The data quality challenge
The lack of high-quality data poses multiple challenges in the advertising world:
- Wasted ad spend: without accurate data at the start, marketers can’t reach the right audiences, resulting in wasted impressions.
- Privacy and compliance: in an increasingly privacy-centric world, advertisers need to be especially mindful of accurate targeting to avoid putting their brand reputation at risk.
- Poor campaign performance: low-quality data skews metrics and attribution models, making it difficult to measure campaign success and optimize spend.
Low-quality data can come in different forms like inconsistent or outdated information – think demographics (age, gender) and interests (dog versus cat lover) or simply the wrong relationship can be made between datasets. Data records can be incomplete or duplicative and data segments could be misclassified or inaccurate. For example, a kids snack food company may think they’re targeting a 35-year old man, who lives in the suburbs with his young family when in fact it’s a 65-year-old woman who moved to the city after her kids went to college. It’s wasted dollars!
Build the data foundation
Data quality needs to be addressed if advertisers and advertising technology partners want to fulfill consumers’ demand for personalized marketing. Per eMarketer, more than 75% of internet users worldwide said they were willing to share their email address, brand interest, and name in exchange for personalized experiences. Without accurate data, marketers won’t be able to provide the level of personalization that consumers desire.
Validation can help advertisers evaluate third party data and help build trust across the ecosystem. Companies like Truthset review and provide an unbiased evaluation of data fidelity and quality on a regular basis.
“As cookies and mobile ad identifiers continue to phase out, consented, durable identifiers (hashed email, postal addresses) are going to serve as the foundation for identity solutions of the future,” said Chip Russo, President at Truthset. “And the only way to ensure you are transacting on the highest quality identity and demography data is to actively validate the data you rely on with a third party.”
Not all data is created equal: Experian leads the way
In Q3 2023 Truthset reviewed Experian’s marketing data – as well as several other large data providers – and found:
- Experian is the #1 data provider in terms of largest volume of high-accuracy hashed e-mails (HEMs) with demographic data
- Experian ranks #1 in accuracy for 15 marketing data attributes, including but not limited to Age, Gender, Home Owner/Renter, Geography, Education, Presence of Children, and Pet Owner
- Experian consistently has the largest number of HEMs with demographic data that are 90% or more likely to be accurate
“As a member of the Truthset Data Collective, Experian received top ranks across a variety of categories for its data,” continued Russo. “The entire digital advertising world runs on data, but focusing on data accuracy is going to drive the next phase of innovation for the industry, enhancing ROI for advertisers, CPMs for publishers, and relevant experiences for consumers.”
As Truthset’s recent study highlights, the data matched between hashed e-mails and postal addresses is crucial, underpinning everything from targeted ads to TV audience measurement. Highly accurate HEMs linked to high-quality demographic data should be the foundation of any marketing plan. Advertisers are able to overcome the complexities of identity resolution by tying online and offline touchpoints together to deliver a consistent message across channels.
Companies are striving to eliminate marketing waste and provide consumers with personalized marketing and the advertising industry can have confidence that Experian’s marketing data has been externally validated as being highly accurate. The accuracy of our data will power smarter marketing initiatives, like insights, targeting, identity, and measurement.
Let’s start a conversation about how we can fully realize the potential of data-driven advertising together.
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The popularity of flash sale websites with limited time & inventory offerings have grown exponentially over the two years. Online shoppers’ love for the thrill of snagging designer clothing, home décor, travel and even wine have caused visits to the category to increase 368% in July 2011 as compared to the same month two years ago and 109% one year ago. So far in 2011, Nordstrom acquired HauteLook, Amazon entered the fray with MyHabit and recently Saks Fifth Avenue announced the launch of a dedicated flash sale website after offering sale events per week on Saks’ main website. In July 2011, Zulily.com, a website offering sales targeted for women and babies/kids, captured the highest market share of visits at 16%, followed by Ideeli and LivingSocial Escapes. Amazon’s MyHabit ranked 11th, out of the 87 websites in the custom category after only 2 months in operation. Several of the major players over the past six months, the total visits to Ideeli increased 42%, Gilt.com up 14% and Nordstrom’s Hautelook up 8% for July 2011 as compared to February 2011. Total visits for MyHabit jumped 128% for July 2011 as compared to May 2011 when the website launched. The audience for Flash Sales continues to be attractive, and willing to shop – over-indexing against the online population for household incomes over $100k and creditworthy VantageScores of A and B.
The annual back-to-school season is in high gear and Moms are preparing lists and sizing up their children’s clothing and school-related merchandise needs. It’s an important time of year for retailers, as apparel, shoes, electronics, furniture, computers, backpacks and school supplies will account for the bulk of consumer spending during the back-to-school shopping season. Many marketers have historically grouped the back-to-school audience into one collective segment of households with school-age children. This leaves money on the table because there are better ways to target Moms with kids when developing a back-to-school promotional strategy. Just like the inventory of new clothes and notebooks that retailers have neatly arranged on store shelves, families with school-age children come in an assortment of sizes, shapes and colors. What is the most effective way to segment the back to school audience? This begs the question “” Marketers can always turn to basic data elements for segmentation. These include age and gender of children, number of children in the household, parent’s age, household income, and the full spectrum of school classifications (preschool, elementary school, middle school, junior high school, high school, etc.). Though a more powerful approach would be to utilize a segmentation methodology that recognizes the lifestyle and behavioral differences among households that are most likely to contain school-age kids. Here are three snapshots of family-oriented, children-centric market segments that are highly likely to be responsive to a wide variety of back to school promotional offers. All three segments have been selected from Experian’s Mosaic lifestyle segmentation solution. Babies and Bliss Description: Babies and Bliss represent the premier lifestyle for large families in America. With a majority of households containing at least five people, this segment is a haven for large broods living in new suburban subdivisions. Parents in this segment tend to be in their 30s and 40s. There is a wide range of kids in these households, from preschoolers up to those in high school. There is also money in this segment, reflecting the high educations and low six-figure incomes that come from dual earners employed in professional and technical occupations. Some key traits of Babies and Bliss households include upscale tastes, large families, well-educated, conservative views, financially-savvy, convenience, and power shopping. Implications: Given their large families, it's not surprising that Moms from Babies and Bliss households are value-conscious shoppers who seek appealing deals for quality merchandise. They carry coupons, like to comparison shop when buying expensive items and head to the clearance rack first whenever they buy clothes, which tend to be conservative in style. In the mall, these Moms follow their children's lead but also remain very open to consider generic store brands rather than high-priced name brands. They like to shop (it's practically a sport) and are happy to open their wallets at department stores, specialty shops, catalogs and online sites. They especially pride themselves in being very Internet-literate. With their jobs, kids and errands, they appreciate the convenience of shopping online and are receptive to email ads, sponsored Websites and Web page links. Families Matter Most Description: A fast-growing segment, Families Matter Most consists of young, middle-class families in suburban locations leading active, family-focused lives. Nine out of ten households have kids (nearly two-thirds have multiple kids). These young, middle-class families have settled into a landscape of recently built subdivisions. Many adult household members are urban exiles who've sought a suburban setting with room for kids to grow. They are proud of their new homes, schools and shopping centers, where they can find everything they need just a short drive away. Families Matter Most distinguish themselves by having adopted attitudes and routines to help them effectively juggle the responsibilities of work and child-rearing. Some key traits of Families Matter Most households include sprawling families, family values, casual perspectives, price-sensitivity, credit revolvers, conformists and risk avoidance. Implications: Families Matter Most are casual in their attitude except when it comes to their children. They take their role as parents very seriously, which they describe in conservative terms. They avoid risks and feel little need to make a statement with their possessions. As shoppers, Moms from Families Matter Most households are price-sensitive consumers who look for discount stores that offer durable and comfortable fashion. They are worried about spending money impulsively and try to be informed consumers. Most are happy to wear last year's fashions and they tend to zero in on a few stores that carry the affordable brands they prefer. With their growing families they shop most often at discount and mid-market national chains including Target, Walmart, Kohl's, Toys R Us and Old Navy. Cul de Sac Diversity Description: Cul de Sac Diversity consists of ethnically diverse, middle-aged couples with school-aged children. This segment has an above-average concentration of Hispanic and Asian household members. Nearly one-third of Cul de Sac Diversity adult members are foreign-born. They are three times more likely to be bilingual compared to U.S. adults overall. These upper-middle-class households are well on their way to achieving the American dream. They believe in home and family, but also recognize the need to work to get ahead. They look at their work as a career, not a paycheck, and are willing to give up family time in exchange for the opportunity to advance in their careers. Some key traits of Cul de Sac Diversity households include ethnically diverse, bilingual, mainstream mindset, community-minded, tolerant and career-focused. Implications: Moms from Cul de Sac Diversity households like to shop with friends and family members in order to get everyone's opinions on potential purchases. As consumers, they often seek status and recognition through their possessions. They are attracted to designer labels and sometimes spend more on clothes than they can truly afford. They like going to mainstream retailers to shop for their children including Kohl's and Macy's as well as sporting goods chains such as Dick's Sporting Goods and Sports Authority. They are only moderately receptive to online advertising. Deploying a back to school marketing strategy that treats all households with school-age children as one undifferentiated market is like creating a basic lesson plan and applying it to all grade levels of a one-room schoolhouse. Instead, marketers are encouraged to study their target audience more closely. With key insights in hand, they will have acquired the necessary prerequisites for graduating to a strategy that acknowledges the shopping characteristics and needs of a diverse and potentially lucrative audience of back-to-school Moms and their children.
Segmentation Layering For many marketers, segmentation is like breathing – it comes naturally and is a part of everything they do. To better connect with your target audience, use a good segmentation system with multiple layers that provides a breakdown of essential information while tying in lifestyle and transactional data. Consider marketing to parents. The most basic information includes demographics such as age, income, presence of children, etc. Add to that lifestyle information – the family has two working parents who rely heavily on the Internet for research and purchase convenience. The transactional data can really set apart where a parent falls on the parenting lifecycle. For example, is the parent still purchasing diapers and feeding supplies for their infant or bedding, towels and a coffee maker that might indicate their “baby” is headed to college? Both parents may look similar when comparing demographic and lifestyle information but the transactional data differentiates their needs. According to Experian Marketing Services: Parents use the Internet far more than the average American Moms are 34% more likely to buy products online and 33% more likely to participate in a blog than the average adult. "Marketers are targeting more carefully based on both the parents' life stage and consumer behavior,” says Jan Jindra, senior product market manager at Experian Marketing Services. “Younger parents, and those of smaller children, have different information needs than parents of older or college-age children. It's not only the life stage they're in, but the lifestyle," Jindra says. Read the full article and check out the latest in marketing to parents in DMNews: http://www.dmnews.com/household-brands-observe-parents-needs-in-defining-segmentation-tactics/article/205902/.