The Salesforce Digital Advertising 2020 Report finds the industry going through substantial transformation driven by consumers demanding personalised experiences from every brand they interact with, according to Salesforce director of ad tech Kevin Doyle.
“Leading companies like L’Oreal, Fanatics and Cravable Brands are using data to drive personalised experiences that drive real business outcomes,” Doyle says in the report.
“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.
“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.
“Across APAC we’re seeing a growing recognition of consumers switching off from non-personalised communication. Marketers and advertisers are leveraging interests-based data, with an anticipated 36 per cent growth over the next two years.
“If data is advertising’s North Star, then data management platforms (DMP) are their compass. We’re seeing tremendous growth, to the point where use of DMPs will be almost ubiquitous within two years. This growth is also backed by the anticipated 25% two-year growth in the use of second-party data by APAC marketers and advertisers.
“We are truly in the midst of a data revolution – 94% of marketers plan on using their first party CRM data to target advertising in 2018.”
“If data is advertising’s North Star, then data management platforms (DMP) are their compass.”
Report highlights – Global and APAC
With 900 full-time advertisers, media buyers, and marketers with titles of manager and above surveyed, including 300 across ANZ and Japan, this report shows major trends that are impacting the broader marketing landscape.
- Digital advertising and marketing continue to converge: In Asia-Pacific, the majority or advertisers (60%) already share brand and/or creative teams, while 56% share common budgets and a similar percentage are reporting to a single departmental head responsible for sending email campaigns and purchasing media. Interestingly, in the era of connected shoppers and innovative technologies, a majority of advertisers (59%) said they collaborate with marketing teams on the evaluation and purchase of technology
- Brands turn to trusted data sources to personalise advertising for consumers: The number of consumer data sources that brands use to inform their digital advertising strategies continues to grow. With more opportunities to capture and leverage consumer data, brands have never been closer to reaching the single objective of targeting the right audience, with the right message, at the right time.
- In order to capture and make sense of all of the data available from different sources, the adoption of DMPs has reached a tipping point. It’s no longer a question of if a company will implement a DMP, but when. Globally, a staggering 90% of advertisers have adopted, or plan to adopt, a Data Management Platform (DMP) to manage this incredible amount of data.
- In the APAC region only, second-party online data is expected to grow in use at a rate of 25% over the course of 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%
- Also, 71% of marketers in Asia-Pacific expect to increase the CRM-based data (excluding email addresses and phone numbers) they are using in 2018. This represents a 22% increase over two years
- Facebook and Google dominate digital advertising as video ads rise in popularity.
- Facebook and Google appeal to advertisers because of their massive audiences and ability to interact with consumers based on real identities. Driven by their strengths in mobile and programmatic video advertising it’s no surprise that Facebook and Google will continue to grow as digital advertising powerhouses
- Next year, we expect 66% of digital advertising spend will go to Google Search, YouTube, Facebook and Instagram, with these channels representing 67% of total spend in APAC.
- Advertising metrics become more sophisticated
- More data at advertisers’ fingertips means more opportunities for them to measure the effectiveness of engagement. But first, companies need to align on how they measure success, which is currently in a state of evolution. While brands continue to measure success against legacy KPI metrics like impressions, they’re moving to more complex metrics such as the lifetime value of a customer.
- Globally, more teams are now using DMPs (55%) and web analytics (50%) than spreadsheets (42%), indicating a critical turning point for advertisers’ sophistication in assessing performance, measurement, and attribution.
- B2B brands are also 1.4x more likely than B2C brands to use CRM reports or marketing automation platforms to measure the effectiveness of their advertising spend.
Download the report here
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