Segments Of One – People-Based Advertising Brings The Marketers Wish Closer To Reality

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Australian marketers are increasingly shifting their ad spend to people based marketing according to research released by Signal.

People based marketing  is a discipline that targets ads at real people rather than using cookies across devices and channels. Those ads that pop up in our Facebook feed are a good example. First party data allows brands to be selective about who they serve their ads to, leading to greater relevance for consumers and eliminating wastage for advertisers.

The company says its survey found that  one-quarter of Australian advertisers  surveyed reported spending more than half of their budget on people-based advertising.

Part of the reason for the shift might be a general unhappiness with more traditional approaches. For instance  two-thirds of respondents told the researchers they believed that the traditional model for display advertising is broken.

Among the other findings of the research;

• 86% of advertisers who have deployed people-based campaigns report that they have outperformed standard campaigns on similar channels.
• 75% of advertisers report improved click-through rates with people-based marketing
• Nearly 60% experienced higher conversion rates from people-based efforts

According to Michael Twomey, SVP and Managing Director of People-Based Marketing, Signal,  “People-based marketing removes the guesswork from digital media. When advertisers achieve the power of knowing who they are targeting, they can reduce wasted ad spend, create better customer experiences, and ultimately improve return on ad investments.”

“As advertisers realize these benefits, it’s not surprising that they’re increasing addressable media efforts,” he said.

The research also suggests that advertisers may be looking for new addressable media solutions outside closed platforms.  Nearly 90 per cent of respondents are concerned with data governance when working within walled gardens, and 80 per cent are troubled by the customer data they’re handing over in the process.

“Digital media in Australia is at a turning point. Cookie-based targeting doesn’t work in a cross-device world, and has left advertisers waiting for a way to connect with real people. They see people-based advertising as a way forward to help improve digital media performance, and want flexible solutions to extend their addressable media buys to more channels and publisher sites beyond Facebook where their customers are engaged,” Twomey said