Integrating primary data and identity solutions at scale is critical for marketers that want to better connect with today’s multi-screen consumers, argues Xandr’s Sam Tan.
Marketing and advertising professionals around the world have long been working to find more assertive solutions that offer greater transparency and efficiency at lower costs. In a highly disruptive environment – inclusive of rapidly evolving technology, regulations and consumption habits – it is not always possible to visualise the future of advertising clearly.
What we do know is that today’s multi-screen consumers appreciate advertising when it is truly relevant, meaning it meets their needs or it makes sense based on the content they’re watching, reading or listening to.
Xandr’s latest Relevance Report, which surveyed advertisers around the world to provide a global roadmap for delivering relevant and effective video advertising today, found that 80% of U.S. advertising and agency executives believe that creating a relevant campaign starts with reaching the right audience, but just 21% said they’re doing this effectively. According to the research, this trend is apparent around the world. At the same time, three-in-five advertisers globally report being only moderately satisfied with their targeting precision.
When we look to the future of video advertising, the research ultimately found data is essential to understanding when, where, and how to reach consumers amid shifting media habits and endless availability of content.
Reaching the right audience
To reach the right audience, data sources in relation to the consumer purchase journey and audience activation must be improved, especially in a culturally diverse market like Asia. Integrating primary data and identity solutions at scale to find the right audience is critical.
According to the report, advertisers realise this is only achievable through partnerships aimed at integrating data effectively and compliantly across content and media types – a large factor in their decision across markets to partner with open ecosystems that offer flexibility, rather than the turnkey solutions of a walled garden.
Prioritising consumer privacy
Advertisers across the globe recognise that applying data can help them deliver relevant campaigns, but the changing privacy landscape proves more complex. This is particularly a challenge in Asia where there are 13 different markets to contend with.
The real challenge is leveraging data in an effective and compliant way. This will likely accelerate the shift toward contextual targeting solutions and sentiment analysis, which don’t require the use of third-party cookies or robust consumer data as a means of reaching desired audiences.
Optimising campaign performance
Today’s marketplace demands speed and agility. In fact, Xandr’s research found that advertisers select their video platform partners based on reporting of audience insights and automated campaign optimisation.
However, few feel very satisfied with their ability to optimise campaigns successfully, and they consider the data sources presently available for in-flight execution to be less than excellent. Realising that advertisers depend on accurate, compliant, reliable insights to succeed, such partners must ensure they’re providing high-quality data sources to support this growing need.
With increasing pressure to justify return on ad spend paired with rigid reporting metrics and a convoluted supply chain, it is difficult for advertisers to prove marketing impact on business outcomes.
Research shows two-thirds of U.S. advertisers agree that the development of in-house proprietary data solutions is less important than industry-wide standards that can support the convergence of television and digital video. This will be even more critical as advertisers look for data that ties to lower-funnel metrics and trusted consumer identity data to draw deeper insights across screens.
When it comes to creating a more relevant consumer experience, today’s advertisers are learning that there are many different factors to consider. At the core, however, is taking a data-driven approach.
While there are various challenges that come with it, advertisers need access to brand-safe, premium inventory and contextual placements that make sense. Increased visibility and transparency into the inventory path are invaluable for advertisers, and they understand the overall value and efficiency of finding automated solutions to these big issues.
By creating strategic partnerships and making smart investments in data, advertising can be more effective for brands, media owners and consumers.