​Report: People-based digital advertising is on the rise

A new study from Signal and eConsultancy reveals data-driven, people-based advertising is fast gaining popularity over traditional digital display

Data-driven, people-based display advertising is quickly increasing in popularity as an alternative to legacy, cookie-based models of traditional digital display, a new report has found.

The People-Based Advertising report released by Econsultancy, in partnership with data management technology vendor, Signal, found 75 per cent of advertisers surveyed were familiar with people-based marketing. The report, based on an online survey of 358 senior Australian marketers and media buyers with moderate to high online ad budgets, was fielded in the first weeks of 2016, with the vast majority of media buyers polled saying they and their clients were increasing their people-based media buys.

According to the report, advertisers are putting more budget towards addressable media because it removes the guesswork from digital advertising, delivering higher performance and return on ad spend. In addition, 86 per cent of advertisers who have deployed people-based campaigns reported they had outperformed standard campaigns on similar channels.

On top of this, one quarter of respondents noted people-based advertising comprises more than half of their digital ad spend, with an average of 32 per cent.

Two in three Australian advertisers surveyed also agreed with the statement that “the current model for display advertising is broken”. At the same time, two-thirds of advertisers and media buyers agreed that “…display will be replaced by relevant, data-driven advertising”, while most see promise in using data to improve the ad experience for consumers and yield for businesses.

The report stressed that by tying their first-party data together with enduring digital identities, brands can have a much deeper understanding of their customers and prospects. This allows them to have more successful interactions wherever their audiences congregate, the report stated. Study responses further suggested this approach works to reduce waste, increase conversion and improve efficiency.

Importantly, the report revealed companies’ need to cultivate and protect their first-party data is well-established, with 90 per cent stating their effectiveness when using it to target people in their database is either excellent or good. The temptation is to now use one of the high-profile data providers in this space, namely Facebook’s Custom Audiences, Google’s AdWords Customer Match or Twitter’s Tailored Audiences.

Despite this trend, 86 per cent of respondents said they were concerned with data governance when working within these “walled gardens” and 80 per cent said they were troubled by the customer data handled over in the process.

The report follows Signal's recent launch of its independent people-based advertising solution that aims to help brands extend their one-to-one engagement strategy into the digital media realm.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Behaviour change, by design

​We’re living in an age of unprecedented change. We experience with Oculus Rift, invest with Acorns, consume video through Hyper, tune into Pandora and navigate with Waze.

Glen Jeffreys

Head of UX, Deepend Group

Chat bots: How to use them commercially right now

I’m sure that many of you out there have heard a lot about chat bots (aka messaging bots) recently, and the fact that they are here to stay is pretty evident by now.

Deniz Nalbantoglu

Managing director, Webling-Interactive

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

There is a new digital capture tool called QuickTrials app (www.quicktrials.com) that allows people who conduct Field Trials to collect t...

Quick Trials

How a new digital and data strategy for agriculture is helping farmers innovate

Read more

Recommendation engine is a great example of AI / ML.

Francis Kim

Chat bots: How to use them commercially right now - Big data delivery - CMO Australia

Read more

This new logo is offensively bad! And stop flashing it at us in between points on the television coverage. Trying to subliminally program...

Simon

Tennis Australia unwraps new brand identity for Australian Open

Read more

Thanks, Nadia. It was so interesting blog for me because it helps me able to understand well on the basics of business and marketing conc...

MichaelBGreen

3 ways marketers can raise their executive influence

Read more

Having been to the AO on Wednesday for the first time in a number of years I was very impressed with the new branding. The event has evol...

Naomi

Tennis Australia unwraps new brand identity for Australian Open

Read more

Latest Podcast

More podcasts

Sign in