Your audience data is as good as gold (probably better) when it comes to the returns you can earn from it. We call it Return On Audience Data (ROAD). You’re probably familiar with Return On Ad Spend (ROAS), a key performance metric in advertising. ROAS and ROAD are related, so let’s start by clarifying the relationship between Ad Spend and Audience Data.

ROAS = Revenue ÷ Ad Spend (there are variations, but we’ll use this one)

How do you calculate Ad Spend?

A partially true statement:  Ad Spend = Cost of Media

A truer statement:  Ad Spend = Cost of Media + Audience Data

In fact, 2nd and 3rd party audience data is often more expensive than the cost of media for digital display advertising, sometimes much more expensive.

1st party audience data is the data you already own. It wasn’t necessarily free to acquire it, but now you own it. Your audience data includes the visitors to your website that you cookie, your email lists and CRM data, your app users, and more. When you use your own audience data for digital display advertising, we call it retargeting or remarketing. With retargeting you eliminate a major expense in your advertising, data, and you amplify your revenue. Retargeting is one example of how we build Return On Audience Data (ROAD).

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