Innovation in digital media has fast emerged as a top priority for advertisers who wish to improve marketing performance and reduce waste. One country where this is most certainly the case is Australia, where marketers had the highest digital ad spend per Internet user in the world in 2015.
One thing Australian marketers have in common with the rest of the world is the struggle to actually engage consumers and use their budgets efficiently. According to recent studies, 81% of Australians now use ad blocking software and nearly one in five will not see any digital ads in a 30-day time period. So how can marketers who are keen on prioritizing digital media succeed at investing their ad dollars where they actually count? As it turns out, the answer is people-based advertising.
At Signal, we hear that agency media buyers are being directed to shift as much as 50% of their budgets to fully addressable media options over the next year or two. To better understand this trend on a broader scale, Signal and Econsultancy surveyed 358 senior Australian brand marketers and media buyers to understand the impact and future of addressable media within their organizations.
We discovered that advertisers – frustrated with traditional digital media – are turning to first-party data to tie digital ads to real customers and foster one-to-one engagement, addressability, and relevancy across devices and channels. Through this research, Signal uncovered four key takeaways surrounding the importance of people-based advertising to Australian marketers today:
1. People-Based Advertising is a Strategic Priority
Advertisers and media buyers know that in order to succeed with hyper-connected Australian consumers, they must utilize the highest quality data to deliver more effective advertising. In fact, 92% of media buyers said they and their clients are increasing their spend on people-based media buys, and 48% are doing so rapidly.
2. Addressable Media Drives Impressive Performance Results
Marketers are catching on to the power of addressable media for targeting real people in a cross-device world where cookies are increasingly ineffective for tracking and measuring. As the study revealed, 86% of Australian advertisers who have used people-based advertising report this method has outperformed traditional media campaigns.
3. Marketers Want More from their Customer Data
Australian advertisers recognize the importance of first-party data if they hope to execute addressable media strategies – 87% say the ability to onboard their own data for targeting is either vital or very important.
4. The Word is Out: People-Based Advertising is the New Paradigm
As marketers realize the massive potential for greater one-to-one engagement with consumers across channels and, consequentially, more efficient ad spending, people-based advertising is assuming a role as the new norm. In fact, two-in-three advertisers agree traditional display will be replaced by relevant, data-driven advertising in the future.
The success of platforms such as Facebook Custom Audiences and Google AdWords Customer Match sheds light on the opportunity people-based advertising creates for marketers. And now, advertisers want more. They are ready to extend the precise targeting of people-based, addressable media to new channels and across the Internet.
To learn more, read the full study.