A: One common challenge is targeting too broad of an audience. If your reach is too broad, like people ages 18-49, you may not do as good a job meeting your KPIs as you would when targeting a more granular audience. You may hit the goal of reaching a lot of people, which may work for a branding campaign. But if you want to actually reach people that are going to convert and buy your product or service, then you want to lower your reach by targeting a smaller audience segment of users that are more likely to convert. Something like people ages 18-49, who are female and who have a specific interest that's relative to your product.
Serving too many ads to your target audience is another challenge. If you start serving ads to people you know from previous tests are already interested in your product, it’s easy to overtarget them with too many ads. This creates a frustrating experience for the customer and also can be a waste of money for you. Finding the right frequency of ads is important.
Brands have better at personalising content and ads, but they also need to apply those same ideas as they use in pre-purchase personalisation efforts and also apply them to communications and campaigns for after the sale. They need to really look at the data across all of the different touchpoints, whether it’s before, during or after the purchase.
Companies may also lack the tools or resources they need for understanding and targeting their customer audiences. They may not be correctly collecting or analysing data. They may not have a database that can build unified customer profiles — stitching together data from a variety of sources. They also may not have access to AI for more sophisticated modelling or to be able to personalise content at scale.
Finally, customer data needs to be updated in real time so that you are always aware of where your customers are in the sales cycle and can ensure that they are categorised into the right segments at any point in time. Because a customer could fall into different categories at different times, you need to stay on top of where your customers stand and what changes have happened in their lives that could affect your targeting strategy. It takes a lot of time to build your customer profiles and audience segments. Being able to act in real time is so important, but in reality, a lot of companies struggle with this capability or they haven’t budgeted the money to invest in solutions that update data in real time.