The modern shopping experience has evolved so much over the past ten years (even the past five years) that in this multi-device, multi-sensory, high noise environment, reaching consumers is becoming more science than art. It certainly isn’t like it was in the days of Don Draper and his Mad Men.
Digital advertising continues to grow. As media spend is pulled away from traditional media because consumers are demanding more personalization. Today 80%* of online shoppers want the ads they see to be tailored to their interests. Engagement with digital ads increases when the creative messaging is relevant to the consumer. This holds true for trusted brands as well as new unknown brands. As relevancy increases, so does consumer trust. In a recent survey, 44%** of consumers said they are more willing to provide additional personal information to a brand if the content is personalized. This can help brands deepen their relationship with the consumer.
Is the digital advertising ecosystem creating a more relevant connection between brands and consumers? According to an eMarketer study of consumers, the answer is – Yes. Across all demographic segments, except for 72+, they responded that ads have become more relevant.
The ability to target consumers on platforms like Facebook and Google are a big reason why consumers feel the experience has become more relevant. These platforms allow advertisers to personalize beyond basic demographic information like age/gender and move into interests, groups, geography, effective retargeting and so much more.
Over the past couple of years, we have had the pleasure of working with many digital advertising companies. Personalization is always a topic of discussion. These conversations have allowed us to better understand some of the other challenges that affect the digital ad space.
Two challenges we hear most often are campaign set up and campaign attribution. The issue they are trying to solve for is how to apply clients spend across a broader set of products and more accurately attribute the spend across the increased product set; for a complete ROI analysis.
As an example, if your client was Procter & Gamble (P&G), knowing all the brands and sub-brands associated with P&G would provide a complete brand picture; allowing you to increase the products you retarget with.
This example is not just theoretical. Indix is working with a well known digital ad platform that has licensed our brand dictionary. By incorporating this metadata asset, this customer now has visibility into these parent/child brand relationships. They have also identified additional brands and were able to increase their overall brand coverage by 6%, which has been useful in new customer acquisition and better ad campaign management.
By improving visibility into brand relationships and attribution of products to the right brands, our partner is confident they will see an increase in ad spend from their clients and consequently uplift in their top-line revenue!