The effect of customer data analytics on targeted advertising: A study of an online service provider in Kano
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Background of the study
Customer data analytics plays a crucial role in enabling targeted advertising by providing insights into consumer behavior and preferences. Online service providers in Kano are increasingly leveraging data analytics to create personalized advertising campaigns that enhance customer engagement and drive conversion (Uche, 2023). This study investigates how the use of customer data analytics informs targeted advertising strategies, focusing on the methods employed to segment audiences and tailor marketing messages. By analyzing user demographics, browsing patterns, and purchase history, service providers can develop highly targeted campaigns that resonate with individual consumers (Ibrahim, 2024). The integration of advanced analytics tools has enabled the extraction of actionable insights, leading to more efficient allocation of advertising budgets and improved campaign performance. However, challenges related to data privacy, accuracy, and integration across platforms persist (Adebayo, 2023). This study employs a mixed-methods approach, combining statistical analysis of campaign performance with qualitative interviews with marketing professionals, to evaluate the impact of customer data analytics on targeted advertising effectiveness. The findings aim to provide practical recommendations for optimizing data-driven advertising strategies in competitive digital markets.
Statement of the problem
Online service providers in Kano face difficulties in harnessing customer data analytics to achieve effective targeted advertising. Despite access to extensive consumer data, challenges such as data privacy concerns, integration issues, and inaccurate segmentation can lead to suboptimal ad performance (Chinwe, 2023). The lack of standardized methods for leveraging analytics in campaign design further complicates efforts to deliver personalized advertising that translates into higher conversion rates (Okeke, 2024). This study aims to address these gaps by investigating how customer data analytics can be optimally utilized to enhance targeted advertising and drive measurable business outcomes.
Objectives of the study:
To evaluate the role of customer data analytics in enhancing targeted advertising.
To identify challenges and opportunities in using data analytics for ad segmentation.
To recommend strategies for optimizing data-driven advertising campaigns.
Research questions:
How does customer data analytics influence targeted advertising effectiveness?
What are the key challenges in using data for precise audience segmentation?
How can online service providers improve the integration of analytics into advertising strategies?
Significance of the study
This study offers important insights for digital marketers and online service providers by demonstrating how customer data analytics can enhance targeted advertising strategies. Its findings will guide the optimization of ad campaigns to increase personalization, engagement, and conversion rates. The research contributes to the academic literature on data-driven marketing and provides practical recommendations for overcoming challenges related to data integration and privacy, ultimately supporting improved advertising outcomes in competitive digital environments.
Scope and limitations of the study:
This study is limited to examining the role of customer data analytics in targeted advertising for an online service provider in Kano, Nigeria. It does not consider other industries or offline advertising channels.
Definitions of terms:
Customer Data Analytics: The process of analyzing consumer data to derive insights for marketing purposes.
Targeted Advertising: Advertising aimed at specific consumer segments based on data insights.
Segmentation: Dividing a market into distinct groups based on various criteria.
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