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Effective URL: https://medicxhealth.com/news/blog/deterministic-id-resolution-makes-measurement-meaningful-again?utm_medium=banner&utm_s...
Submission: On May 11 via manual from IE — Scanned from DE
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HOW DETERMINISTIC ID RESOLUTION MAKES MEASUREMENT MEANINGFUL AGAIN
If there’s one battle that life sciences marketers have to fight over and over,
it’s trying to make the most of a limited advertising budget with little
meaningful data. Unfortunately, that’s a challenge that many teams find
themselves unable to escape.
Despite tracking performance consistently – and making adjustments to their
strategy over time – brand marketing and advertising teams in healthcare and
pharmaceuticals often hit a wall. But why is this endless optimization loop so
common?
The answer? Poor audience quality.
OPAQUE MEASUREMENT LEADS TO POORLY PERFORMING LIFE SCIENCES BRANDS
You can always change your creative, refine your messaging, or redefine your
target audience. Without meaningful insights from your campaign analytics, how
can you confidently optimize your campaign for better performance?
That’s the challenge that many marketing teams are facing, unknowingly or not.
Virtually all marketers would acknowledge that measuring campaign results over
time is a must. Tracking performance gives you the ability to course-correct
when a campaign goes awry. But the reality is that most of the analytics digital
marketers generate are more data than insight.
Most campaigns result in audience match rates between 29% and 62%. The lower the
match rate, the more reluctance marketers should have to assign meaning to
changes in campaign performance.
If you’re not reaching your target audience consistently, how can you know what
to change? Was it the visuals, the messaging, or the channels? Or maybe it was
the wrong audience altogether? With poor audience quality, marketers are left to
rely more on guesswork than strategy, making it more difficult to pivot or
repeat past success with patient and healthcare provider (HCP) audiences.
3 DIGITAL MARKETING CHALLENGES FACING THE LIFE SCIENCES INDUSTRY
Life sciences marketers in particular can struggle to reach the audience they
need with the ad budgets they’re allotted. Commonly used metrics like
impressions, click-through rates, and even conversion rates provide little value
for life sciences marketers looking to improve ad performance.
To make every dollar count, life sciences brands need to:
* Reach brand-eligible audiences defined by highly specific patient and
provider profiles
* Follow and target brand-eligible audiences throughout the patient-provider
journey online
* Increase campaign exposure rates while remaining under budget and in
compliance with data privacy regulations
Without seeing how their ads perform when served to audiences with high match
rates, life sciences will be hard-pressed to make strategic changes that lead to
cumulative results.
HIGH AUDIENCE QUALITY LEADS TO ACTIONABLE CAMPAIGN INSIGHTS
Healthcare and pharmaceutical brands are operating multilayered campaigns on
incredibly complex products. When marketing a single drug brand, advertising
teams need to plan creative and messaging for a variety of formats, suited to
engaging both layman consumers and highly educated healthcare professionals
across a variety of channels.
Additionally, due to lengthy sales cycles and the numerous factors influencing
medical prescriptions and equipment purchases, being able to attribute sales to
specific tactics or campaigns is unlikely if not impossible. That’s why
confirming audience quality is especially important in this industry.
Life sciences organizations and the agencies they work with often have to fall
back on inconsistent audience identities created using disparate, sometimes even
conflicting data sets.
Resolving the discrepancies in these data sets requires a lot of resources
(e.g., employee bandwidth, hiring budgets, contracting and managing tech talent)
that brands don’t have to spare in an increasingly competitive market.
The consequence is low-fidelity matches and money spent on irrelevant
audiences.
These brands don’t need to reach a bigger audience as much as they need to make
sure they’ve gotten the attention of a very specific audience. Once life
sciences marketers know who they’re reaching, they can make informed conclusions
about how they’re reacting to ongoing campaigns and adjust their media planning
and execution accordingly.
COOKIE DEPRECATION IS AN OPPORTUNITY FOR BETTER MEASUREMENT
Traditionally, digital marketers have relied on third-party cookies as the
foundation of their targeting approach. As more browsers and consumers block the
use of third-party cookies, both brands and agencies need to evaluate and adopt
new solutions for audience building, targeting, and measurement.
Some brands and agencies believe that maintaining their own consumer databases –
a first-party data approach – is the way forward. However, the overhead,
complexity, and privacy concerns involved make this option implausible for most,
especially since first-party data-driven campaigns are difficult to scale and
still need to be combined with medical claims and consumer data from other
sources.
Others are going with the “wait and see” approach, but here’s why that would be
a mistake. Cookie deprecation isn’t just a technical roadblock in your marketing
strategy – it’s an opportunity to overhaul and future-proof your targeting and
measurement capabilities for the better.
Despite maintaining their position as the dominant tracking technology,
third-party cookies have left a lot to be desired in terms of precision,
scalability, and cost efficiency – all things that modern life sciences
marketers acutely need.
Instead of struggling to gain accurate insights, marketers that adopt more
precise, reliable targeting methods can be confident that their ads reached the
target audience. Relying on the guesswork of low-match campaigns undermines the
power of data-driven growth strategies in advertising and digital marketing.
Identity resolution – the process of connecting identifiers across digital
touchpoints into a single consumer identity – is being held up as a promising
solution to cookieless marketing… but not all ID resolution is equal.
Most ID resolution solutions rely on probabilistic modeling and lookalike
audiences, resulting in more poor audience quality and less actionable insight
from campaign measurement.
THE PROBLEM WITH PROBABILISTIC ID RESOLUTION
ID resolution isn’t new – in fact, many companies apply probabilistic analyses
to customer and prospect data to build profiles that are already used with
cookie-based targeting. But what’s a profile worth if it’s built on a shaky
foundation?
Instead of serving ads to users that are known to be in your target audience,
using lookalike audiences serves ads to people who match a modeling profile.
There’s an alternative: deterministic ID resolution.
Rather than relying on the probability of an audience match – the likelihood
that someone with a certain set or characteristics may fall into your target
patient or HCP segment – deterministic ID resolution uses known information or
evidence to create unified, consistent identities for targeting. Applying this
approach to life sciences, however, comes with obvious privacy concerns.
For this industry, using lookalike targeting was necessary in the past, as there
was no feasible way to directly target patients and HCPs using medical claims
data without risking patient reidentification. But that’s no longer the case.
MAKE YOUR INSIGHTS ACTIONABLE WITH MX# AND MULTI-PARTY DATA LINKING
Medicx has developed a privacy-safe approach to link medical data from our Safe
Harbor partners and our extensive consumer data warehouse to target life
sciences audiences at the hyperlocal level. The end result? With our solution
for advanced ID resolution, MX#, life sciences organizations can resolve 94% of
their audience across 85% of the digital ecosphere, making their campaign
analytics meaningful and actionable.
Out of all the aspects of media planning and execution, performance measurement
is perhaps the most essential to maximizing brand performance. To set themselves
up for success, life sciences brands need to run campaigns with optimization in
mind.
MX# offers a consistent Medicx ID to enable tokenized, regulation-compliant
linkage to patient data. This data can then be leveraged for media targeting,
consumer and HCP profiling of over 35 million hyperlocal areas through our
patented Micro-Neighborhood® targeting platform, as well as for campaign
analytics with AdLift.
With campaign exposure match rates at over double the rates of probabilistic
methods used, reporting results has never been less stressful or more meaningful
for life sciences marketers. Contact us to learn more about how MX# can
transform your measurement capabilities.
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