Only 29% of marketers surveyed by data solutions company Lotame rely on data for overall ROI and monetization opportunities. 58% marketers said they rely on data for brand loyalty while 49% aim for increase in ad performance through data. Increase in conversions/purchases is the objective of 43% marketers through data while 26% rely on data for decreased ad waste/more effective ad spend.
âThereâs a lot of talk about waste in advertising right now,â said Jason Downie, Chief Strategy Officer at Lotame. âBut brand loyalty continues to be the focus for marketers. Itâs how they judge the success of their data by a large margin.â
As more publishers and marketers invest in audience data collection and activation, the Lotame report titled âData Activation & Success Reportâ examines how these organizations use audience data, manage it and evaluate its success. For the study, more than 300 senior decision-makers in digital media and marketing were polled between October 26 and November 5.
Almost 70% (69%) of respondents said that their organization collects audience data. When asked to describe how valuable audience datawas to their organization, nearly two-thirds (64%) said it was âvery valuable.â Together, 96% said collected data was either âvery valuableâ or âsomewhat valuable.â
For the 31% that do not collect data, a lack of resources and education were the biggest hurdles. One-third (33%) said that they did not âhave the internal resources in place to do so,â while 31% said âI donât know where to even begin.â Another 21% said âI donât have the tools or technology needed.â
âResearch finds that audience data is still underleveraged by publishers and marketers,â said Downie, Chief Strategy Officer at Lotame. âFor all these organizations, data strategy development, management and execution require sizable investments in talent and technology â and many simply donât have the in-house capabilities or infrastructure.â
Relatedly, among respondents that do collect data, when asked if they could have data strategy, management and activation as a managed service versus in-house, 78% said âyes.â Thirty percent said they would switch to a managed service because âwe need help executing the tactics,â while 22% said they âdonât know how to optimize data to the full extent.â
When asked how they benchmark data strategy success, more than half (56%) of publishers said an âincrease in returning visitors, uniques and pageviewsâ was key. It was followed by âoptimization of ad inventoryâ (49%); âincrease in advertising spendâ (46%); âoverall ROI and monetization opportunitiesâ (38%); and âincrease in winning non-endemic advertisersâ (33%).
âPublishers are focused on driving traffic and growing audience,â said Downie. âThis has a cascade effect on their ad success and the value they can claim for partners. So, itâs no surprise that data is being evaluated by traffic volume and pageviews.â