Hey, Lawmaker: Marketing Moves Today's Commerce, and Data Moves Today's Marketing
I'll start this blog off with a disclosure: I'm a member of the Direct Marketing Association, serve and have served on various DMA committees, and I count the Digital Advertising Alliance and other data-driven marketing firms among my clients. In short, my livelihood depends on data-driven marketing.
Members of Congress, and even the White House, in good measure, seem to forget or ignore that their very own elections to office depended on the flow of information about citizens and individuals and population segments to inform their campaigns. Their respective elections prove that data and marketing in concert are very effective, especially for incumbents.
Yet listen to a few among our leaders, and you'd think data-driven marketing is a consumer privacy problem begging for a government solution. How they (some of them) ignore 40+ years of self-regulation success in data-driven marketing; U.S. leadership in information technology and its data-driven marketing application (they are not coincidental); and the economic powerhouse of jobs, sales and tax revenue that is created by data exchange for marketing purposes.
Research Proves Our Case ... Again
In November, DMA and its Data-Driven Marketing Institute announced "The Value of Data" Study (opens as a pdf), which documented the economic impact: The data-driven marketing economy added $156 billion in revenue to the U.S. economy that fueled more than 675,000 jobs in 2012 alone. (Importantly, the study also provides state-by-state economic impact.) The full study is available here.
This past week, DAA announced results of its own commissioned research which focused on the value of digital advertising derived from data exchange—and its comparison to general ads online. The study reported that availability of cookies to facilitate information transfer increases the average impression price paid by advertisers by 60 percent to 200 percent. Additionally, ads for which cookie-related information was available sold for three-to-seven times higher than ads without cookies. Thus, the invisible hand of the market, once again, proves data's value. The full study is available at http://www.aboutads.info/resource/fullvalueinfostudy.pdf.