Report: Data driving advertising and marketing revolution

​Data is driving a fundamental transformation within the marketing and advertising industries

Data is driving a fundamental transformation within the marketing and advertising industries as organisations increasingly seek to target and personalise their messaging, a newly released digital advertising report has found.

The Salesforce Digital Advertising 2020 Report found marketing and advertising is becoming increasingly integrated, companies are seeking more data to both personalise advertising and measure performance, and there has been a change in how campaign success is measured.

In APAC, for example, the majority of advertisers (60 per cent) already share brand and/or creative teams, while 56 per cent share common budgets. A similar percentage are reporting to a single departmental head responsible for sending email campaigns and purchasing media. A majority of advertisers (59 per cent) said they collaborate with marketing teams on the evaluation and purchase of technology.

The report also found advertisers use an average of 5.4 data sources, and this will grow to using an average of 6.2 in order to better personalise advertising for consumers globally. Ninety per cent of advertisers already use some kind of online data to target their ads.

First-party anonymous data is currently the most used type of online data (71 per cent); however, the use of second and third-party data is expected to grow by around 30 per cent over the next two years globally. In APAC, the use of second-party online data is expected to grow at a rate of 25 per cent over two years, and the percentage of advertisers using or planning to use interests-based data sources to target digital ads is set to increase by 36 per cent.

While 94 per cent of advertisers use CRM data to target advertising, the use of other CRM data (apart from email addresses and phone numbers) is expected to grow 23 per cent globally over the next two years. Plus, 71 per cent of marketers in APAC expect to increase the CRM-based data (excluding email addresses and phone numbers) they are using in 2018. This represents a 22 per cent increase over two years.

Salesforce director of advertising technology, Kevin Doyle, said leading marketers are using data to break down silos in their organisation, and focus their organisations on creating truly engaging experiences for their customers.

"At the core of the advertising industry's transformation is data. It's changing the way we work with our customers, within our business, and even how we interact with our direct teams,” Doyle said.

"Leading companies are using data to drive personalised experiences that drive real business outcomes," he said. “We are truly in the midst of a data revolution. Ninety-four per cent of marketers plan on using their first-party CRM data to target advertising in 2018.”

Doyle also noted marketers and advertisers are leveraging interests-based data, with an anticipated 36 per cent growth over the next two years.

In order to capture and make sense of all of the data available from different sources, the report found adoption of Data Management Platforms (DMP) has reached a tipping point. Globally, 91 per cent of advertisers have adopted, or plan to adopt, a DMP to manage data.

“We’re seeing tremendous growth, to the point where use of DMPs will be almost ubiquitous within two years," Doyle said. "This growth is also backed by the anticipated 25 per cent two year growth in the use of second-party data by APAC marketers and advertisers."

Unsurprisingly, Facebook and Google continue to dominate advertising spend. The report anticipates 66 per cent of digital advertising spend will go to Google Search, YouTube, Facebook, and Instagram, with these channels representing 67 per cent of total spend in APAC, due in part to 65 per cent of companies increasing their video advertising globally, and 64 per cent in APAC.

How advertisers measure the success of their campaigns is also evolving. The report found while brands continue to measure success against traditional KPI metrics like impressions, they’re moving to more complex metrics such as the lifetime value of a customer. Twenty-seven per cent of advertisers globally cite lifetime value of a customer as their top success metric, and 19 per cent cite impressions or web traffic as their next most important success metric.

"Customer relationships are no longer measured just by clicks or impressions, it's now focused on targeting customer values and connecting with them across their lifetime,” Doyle said.

Globally, more teams are now using DMPs (55 per cent) and Web analytics (50 per cent) rather than spreadsheets (42 per cent), indicating a turning point for advertisers’ sophistication in assessing performance, measurement, and attribution.

Salesforce surveyed 900 full-time advertisers, media buyers, and marketers with titles of manager and above, including 300 across A/NZ and Japan (APAC).

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