Commerce data unlocks rich insights into consumer behavior, preferences, and purchase patterns, meaning brands can now craft programmatic strategies with more precision than ever before. The integration of commerce data with programmatic represents a new inflection point for digital advertising, arming brands with a competitive advantage that drives more personalized campaigns and better results. For media companies, this means partnering with the right DSP so that you can access and leverage these data signals to help your advertising partners reach their goals.
Why traditional data providers are falling behind
The first question you might be asking is: Why does the industry need commerce data at all? Don’t we already have plenty of data providers in market right now?
In short, yes. But not all data is created equal.
Traditional data providers have historically faced significant challenges which, over time, have undermined the quality and effectiveness of their insights.
Here are a few examples of areas where current data models fall short [FH1] [GI2] from the demand-side perspective:
Data quality and accuracy
- Incomplete data. Modeled data often leans on partial information, leading to inaccurate insights.
- Outdated data. In fast-changing markets, stale data can lead to ineffective targeting.
- Data silos. Data often lives in silos, making it hard to create a cohesive model that works across platforms.
Algorithmic bias and transparency
- Biases in data. If the data used to build models is biased, it can lead to skewed targeting that reinforces biases.
- Discrimination. There’s a risk of unintentionally excluding or targeting specific groups, leading to unfair practices.
- Transparency. A lack of transparency around how models operate can erode trust from consumers and regulators.
Introducing commerce data—a new approach to data-drive marketing
In today’s digital world, commerce is everywhere.
Shoppers generate a wealth of information at every touchpoint, from their first product search to their final purchase. This rich data reveals not just what people buy but how and why they make decisions.
Commerce data combines consented purchase and intent signals, built on real-world consumer behaviors. It covers everything from demographics and location to product views, last purchases, offline sales, and ad clicks. Layer in some AI, and patterns begin to emerge which can supercharge audience targeting and ad strategies.
In the context of programmatic, commerce data is made up of various events and signals based on consumer behavior, including:
- Product views and cart additions
- Purchases and ad clicks
- Contextual data like URLs, categories, and keywords
- Product details like categories, SKUs, prices, and descriptions
- Identifiers like hashed emails and visitor IDs
- Offline sales
Putting commerce data to work
When combined with commerce-focused AI, commerce data powers some of the most effective advertising strategies for today’s modern marketer. That includes:
- Identifying in-market consumers: Knowing who’s ready to buy and the best time and place to reach them.
- Product recommendations: Suggesting products and bidding based on the value-to-cost ratio of each impression.
- Audience building: Creating lookalike audiences to find new prospects and zero in on people actively shopping for specific products.
How to get the most out of commerce data
When you’re evaluating a commerce data provider, asking the right questions is essential to getting the best results. You’ll want to dig into a few key areas to make sure you’re making the right choice.
First, consider data collection and sources. It’s important to understand where the provider’s data comes from and how it’s gathered. Is it collected directly, such as onsite, or inferred through modeling? Knowing this helps gauge the reliability of the data you’re working with.
Next, think about data quality and accuracy. You’ll want to ask how they ensure their data is accurate and complete. Are they refreshing it in real-time, daily, or on another schedule? Consistency here can make or break the effectiveness of your campaigns.
Then, there’s data segmentation and customization. How is the data broken down, and what criteria are used for segmentation? Can the provider integrate data across multiple devices and channels? Flexibility here can be a big win when you’re targeting your audience across platforms.
Of course, data privacy and security is the cornerstone of any digital activation. You need to know how your provider protects the data they handle. Is personal data anonymized or pseudonymized, and can they offer you transparency into how they’re collecting and processing that data?
Time to leverage the commerce data opportunity
There’s no doubt that commerce data presents a huge opportunity for brands to enhance targeting, personalize messages, and drive better results. By working with the right DSP, you can quickly and effectively leverage these new data signals in order to help your advertising partners more effectively achieve their objectives.