In today’s competitive digital landscape, every dollar invested in marketing needs to be strategically allocated. As online competition continues to grow, the risk of overspending on underperforming campaigns increases. To stay ahead, marketers must ensure that highly targeted ads are delivered through the right channels—at the right time and to the right audience.
The Shift Brought by 2020
The year 2020 marked a major turning point for digital marketing. With the explosion of online retail and e-commerce brought on by the pandemic, marketing professionals were forced to rethink their strategies and shift a significant portion of their budget toward digital channels. According to industry reports:
- 76% of marketers planned to increase spending on online video ads.
- 70% aimed to invest more in social media stories.
- 68% focused on boosting feed-based advertising across social platforms.
However, this rapid shift also brought challenges. With more brands competing for visibility online, the risk of inefficient spending has never been higher. That’s why it’s critical to take steps that ensure your marketing efforts are both data-driven and ROI-focused.
Understanding the Problem
A global marketing study from 2018 found that an average of 26% of marketing budgets is spent on ineffective channels and strategies. One of the key reasons behind this inefficiency is the lack of actionable insights that can guide decision-making.
Most marketing teams don’t have full visibility into product margins or return rates, while retailers often don’t know the advertising spend per product. This fragmented view means strategies are often based on assumptions rather than real performance data.
How Product Performance Data Can Help
One of the most effective ways to eliminate guesswork and improve campaign efficiency is by leveraging product performance data to guide advertising strategies. By syncing product-level performance across all digital channels, marketers can unlock powerful insights that lead to smarter promotional planning.
For example, identifying best-selling products based on revenue or transaction volume allows brands to double down on what works—and avoid promoting low-performing or low-margin items.
The Role of Product Marketing Platforms (PMPs)
The simplest and most logical way to harness this performance data is through a Product Marketing Platform (PMP). Unlike Customer Data Platforms (CDPs), which focus on user-level data, PMPs specialize in collecting and integrating product-level metrics such as:
- Profit margins
- Revenue generated
- Ad spend across channels
- Number of transactions per product
This creates a single source of truth that gives marketers clarity and control.
Advanced PMPs even allow integration of business data like inventory levels or return rates. With this holistic view, marketers can create highly dynamic product sets tailored to specific campaign goals. PMPs also streamline campaign execution with built-in tools like:
- Photoshop-style template editors
- Product image-to-video converters
- Automated ad scaling features
Staying Ahead of the Competition
As new data privacy regulations continue to limit the use of customer data, marketers must rely on smarter, more targeted strategies. The key? Product performance data.
Without it, brands risk overspending on the wrong items and underinvesting in products with high potential. PMPs empower digital marketers to run more effective, profitable, and scalable ad campaigns, ultimately driving higher ROI and smarter budget allocation.
Ready to Take Control of Your Ad Spend?
If you’re struggling with inefficient ad campaigns and wasted budget, our digital marketing agency can help. Contact us today for a free budget assessment and a custom-tailored marketing strategy built to drive results.