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).

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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why defining brand strategy is vital to capitalising on quick wins

Big brands were once protected from small brands by high barriers to entry. Big brands had the resources to employ big agencies, to crack big ideas and to invest in big campaigns. They had the luxury of time to debate strategies and work on long-term innovation pipelines. Retailers used to partner with big brands.

Troy McKinnna

Co-founder, Agents of Spring, Calm & Stormy

3 ways to leverage the talents of your team to avoid disruption

​According to the World Economic Forum in its most recent The Future of Jobs report, the most important skills for the future are not technical, task-oriented skills, but higher-order skills such as creativity, social influence, active learning, and analytical thinking.

Gihan Perera

Futurist, leadership consultant

CMOs, it’s time to stop squandering customer attention

Businesses continue to highly value the attention they buy through paid media, yet at the same time, many continue to disregard and under-value opportunities to connect with customers using their owned media.

I thought this was what Salesforce Audience Studio (formerly Salesforce DMP) was supposed to do. How are a CDP and a DMP different? I'm c...

Tony Ahn

Salesforce announces customer data platform

Read more

Well written Vanessa!! Agreed with your view that human experience is marketing's next frontier. Those businesses who are focused on the ...

Clyde Griffith

Forget customer experience, human experience is marketing's next frontier

Read more

Great tips for tops skills need to develop and stay competitive

Nick

The top skills needed to stay competitive in a rapidly changing workforce

Read more

The popularity of loyalty programs is diminishing, though I'd say it is because customers are savvy enough to recognise when a loyalty pr...

Heather

It’s time for marketers to rethink their approach to ‘loyalty’

Read more

Thanks Nadia for sharing this blog. It has really useful and amazing information about Salesforce Commerce Cloud and digital engagement w...

Holly Smith

Adidas taps data and technology smarts to build personalised digital engagement with consumers

Read more

Latest Podcast

More podcasts

Sign in