How do CRM and programmatic work together, and what are the challenges for advertisers that haven’t yet achieved such integration?

Econsultancy and Sociomantic Labs have published a new report, The Role of CRM in Data-Driven Marketing, so I thought I’d give an overview of where these disciplines meet.

The benefits of using CRM in programmatic

Programmatic advertising shows a particular banner or a video ad to a particular consumer.

That’s essentially its power.

The consumer is recognised by a cookie which gives away their demographic, past behaviour, geography or device, and then the advertiser can serve whatever content they feel best suits.

However, CRM or first-party data is often not integrated with programmatic media spend.

This seems counterintuitive to the advertising layman (like me) because spend appears to be wasted.

As consultant Mark Patron puts it:Currently, if you’re a big brand and you have 25% of the UK as customers, a quarter of the time you are talking to your customers and three-quarters of the time you’re not.It would make a big difference to be able to differentiate between the two, from a display advertising point of view.So, say I’m a customer of a broadband internet provider – it doesn’t make much sense for that provider to show me ads that extol the virtues of its contracts.

Yes, these ads might contribute to my renewal, but without the advertiser knowing who I am, it can’t tailor the ad to my specific circumstances.Even if I do click through the ad, if CRM data isn’t integrated with the campaign, I will be sent to a sales page, rather than a ‘welcome back’ message.

In fact, CRM data is often used in ad campaigns in the telco industry – check out this example from O2 (the photo below shows examples of some O2 creative on Facebook).The personalised ads achieved 49% lower cost per order (CPO). In the early upgrade segment the CPO reduced by a whopping 61%.CRM data isn’t just about online activity either. That’s one of the advantages of using first-party data – you may be targeting customers that have never used your website.

Read all Why use CRM data in programmatic media campaigns? | Econsultancy

Author: Ben Davis is a senior writer at Econsultancy. He lives in Manchester. You can contact him at ben.davis@econsultancy.com or follow at @herrhuld.

My point of view: in a world of online and offline channels, cookies should address not only website visit. This is an easy say and hard work. But as stated in the texts,  customer experience and your profits will benefit from such an approach.