One of the benefits of the big data era is that marketers can engage in more audience targeting. Marketers, agencies and ad networks are sorting out the main types of audience data and learning which formats work best with specific kinds of campaigns. In 2013, marketers are planning to up their spending on the use of data for audience targeting.
Digiday and eXelate came together to publish their State of the Industry Study which points out that the vast majority of marketers, 80%, are now using audience targeting. The study focused on 3 types of marketing groups – enterprises, agencies and networks/exchanges. These groups are using audience targeting at the following rates. Not that the use of audience targeting in digital campaigns appears in parentheses.
- Agencies 89% (60%)
- Networks 88% (67%)
- Marketers 80% (57%)
The study also categorized the types of data used by marketers:
- Third party data — This is information collected from several publishers and may be segmented into audience types
- Custom data – This information may be based partly on past performance or modeled to suit a campaign
- Validated data – This information has been optimized by removing “inefficiencies” and contains “audience clusters”
In using outside data, enterprises have varying goals. For example, agencies are primarily concerned with increases in online sales. For networks/exchanges, the goal is achieving brand lift. Advertisers want to see more CTRs to their sites. But, all three of these groups noted that custom data is tops for direct campaigns.
In 2013, all sectors of the audience targeting market will pay more for data next year, at least 26% more. Citing concerns over key performance indicators (KPIs), agencies believe audience targeting helps them spend more efficiently while marketers say the strategy will lead them to find additional ‘best customers.’[Source: Audience Targeting Big, getting Bigger. Digiday.com. 25 Oct. 2012. Web. 14 Nov. 2012]