​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 newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

How can a brand remain human in a digital world?

Some commentators estimate that by 2020, 85 per cent of buyer-seller interactions will happen online through social media and video*. That’s only two years away, and pertinent for any marketer.

James Kyd

Global head of brand strategy and marketing, Xero

https://bit.ly/2qLgzmR Transform your life a proven digital blueprint

Okitoi Steven

How this banking group tackled a digital marketing transformation

Read more

Its great to hear that companies including JCDecaux, oOh!media, Omnicom and Posterscope Australia have all partnered with Seedooh inorder...

Blue Mushroom Infozone Pvt Ltd

Out of home advertising companies strive for greater metrics and transparency

Read more

Much ado about nothingAnother fluff piece around what it could possibly do rather than what it is doing

gve

How AMP is using AI to create effortless ‘experiences’

Read more

is it true that Consumer expectations are also changing as a result. If we trust someone with our data there is also an expectation that ...

Sunita Madan

Society will decide where digital marketing takes us next: Oracle

Read more

This Blog is Very interesting to read and thank you for sharing the valuable information about Machine Learning. The information you prov...

johny blaze

What machine learning has done for the Virgin Velocity program

Read more

Latest Podcast

More podcasts

Sign in