Marketers globally are facing a dilemma. Despite the continued growth of digital advertising, the increasing sophistication of programmatic technology and more customer insight than they have ever had, the effectiveness of their digital campaigns has stagnated.
Although the Advertising Expenditure Forecasts from Zenith Global predicted that digital ad investment would grow 13% in 2017, taking it over US$205 billion (and beyond TV's US$192 billion), click-through rates have remained consistently poor at around 0.15% over the past five years or more, according to Google's DoubleClick.
So how can marketers kick-start ad response and conversion to deliver more value for brands from their digital adspend?
The logjam is driven by a number of factors. These include the current siloed approach to customer data, a lack of transparency, duplication of data, the latency between collection and activation, and, finally, the methodology of who dictates which user falls into which segments – something that is failing to give marketers the data required to engage efficiently and effectively with consumers at the point when they have an interest or intent to buy.