Is Your Ad Spend Really Hitting The Mark? Salesforce Report

Is Your Ad Spend Really Hitting The Mark? Salesforce Report
SHARE
THIS



Globally around $200 billion will be spent on digital advertising in 2016; What are we buying? Who are we buying it from? And does it have a strong return? Salesforce’s latest research report, The Future of Advertising, examines how marketers can utilise Customer Relationship Management (CRM) data to get substantial engagement from digital advertising spend.

While businesses are investing heavily into digital, the tactics of digital marketers haven’t fundamentally changed. Segment-based marketing means consumers are grouped together by age, gender or location without an understanding of the nuances of an individual. Traditional digital ad spend is causing unnecessary ad spends, more importantly it’s becoming less effective.

The growth of ad blockers and incredibly low click-through rates (CTR) on digital platforms and social media companies (1 per cent on Facebook and 0.11 per cent on Instagram) would suggest it is becoming harder, not easier, to engage consumers through digital advertising.

Digital advertising spend- what are we buying?

what are we buying

The majority of digital advertising spend in the US went to Google and Facebook (76 per cent).

Look at the advertising global revenue at Google and Facebook:

where is the money going

Digital advertising spend- what are we getting in return?

what are we getting

The Future of Advertising report highlights that digital advertising is still a high-volume numbers game, meaning there is still plenty of businesses not using data to better target and engage interested and motivated consumers. The challenge for marketers is to create ad campaigns in which audiences welcome the information and are almost certain to act on a specific deal or a particular offer. But this is no easy task.

But what if marketers could present specific campaign materials to people who actually welcomed the information and were virtually guaranteed to act on a specific deal or a particular offer. Sounds like a pipe-dream right? Wrong, the best marketers are using all the data at their fingertips (e-mail engagement data, past sales, sentiment data) and building lookalike profiles to inform their ad strategy.

The report advises, “As hot as it might have been 18 months ago, re-targeting using only cookies for target management (rather than customer records and email, which inform the advertiser whether a specific purchase was made or not) is now old school.”

For example, travel company Outrigger Resorts did just that earlier in the year in order to acquire new e-mail subscribers via sweeps on Facebook. By doing so, they beat their cost per acquisition (CPA) target by 89 per cent (which surpassed their search advertising goals) and the people were also twice as likely to opt in for promotional e-mail- a key tool for travel marketers.

For a more detailed case study and look into the power of CRM, download the full Future of Advertising Report.

Please login with linkedin to comment

Latest News

Fraud & Faulty Programmatic Will Force Brands To Take Media In-House
  • Media

Fraud & Faulty Programmatic Will Force Brands To Take Media In-House

A growing number of marketers are taking back control of their digital marketing campaigns as more cases of fraudulent and waste in programmatic spending emerge across the world. Mr Jay Shah, CEO of artificial intelligence group, OpenDNA, marketers were taking back control of critically important processes like customer targeting, as many digital and programmatic advertising, […]

Cricket Australia Unveils Ashes Fan Campaign #BeatEngland
  • Campaigns

Cricket Australia Unveils Ashes Fan Campaign #BeatEngland

With an Ashes summer rapidly approaching, Cricket Australia has put out a rallying cry to fans around the country to get behind our Australian women’s and men’s cricket teams under the banner #BeatEngland. The #BeatEngland campaign is built upon a simple truth – nothing brings Australia together like the prospect of seeing our cricketers beat […]

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]

Patrick Delany (CEO, Fox Sports), Hugh Marks (CEO, Nine Entertainment Co), Miranda Devine (Columnist, News Corp), Michael Miller (Executive Chairman, News Corp Australasia), Grant Blackley (CEO & Managing Director, Southern Cross Austereo) at Radio Alive 2017
  • Media

Media Bosses Weigh In On Ten-CBS Deal

Do you enjoy articles featuring industry big-wigs? Well, it doesn't come much bigger and wiggier than this, we say.

by B&T Magazine

B&T Magazine
Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy
  • Marketing

Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy

Melbourne-based market research consulting agency T Garage has announced the appointment of Ali Dexter as its director of insights and strategy. Dexter joins T Garage from Kantar TNS, where she was the director of its Qualitative division. Prior to that, Dexter held a number of senior roles at Kantar TNS in the US and Vietnam.  “After […]

XXXX on Tuesday, March 21, 2017, in Las Vegas. (Jeff Bottari/AP Images for Adobe)
  • Advertising

Adobe Releases Advertising Cloud App

Not one, but two Adobe announcements. The tech elves have been busy this week, not that we're inferring Adobe is Santa.

Facebook Updates Its VR Offering
  • Technology

Facebook Updates Its VR Offering

Do you loathe Facebook for nicking all the ad cash? Well, why not scream "A pox upon you Zuckerberg" while reading this.

InterContinental Perth City Centre Chooses Bonfire To Build Digital Strategy
  • Marketing

InterContinental Perth City Centre Chooses Bonfire To Build Digital Strategy

Luxury hotel InterContinental Perth City Centre is officially set to open this Sunday, and has already taken strides towards developing a comprehensive online search strategy with digital agency Bonfire. The investment reinforces the desire of the hotel to promote its luxury business facilities, which include corporate and bespoke event spaces designed for local, national and […]

Datalabs Announces New Hire And Promotion
  • Marketing

Datalabs Announces New Hire And Promotion

Aussie data visualisation and content marketing analytics agency Datalabs has announced the appointment of Marc de Chellis to run its business development, as well as the promotion of Cass Lilley to accounts and project manager. De Chellis (pictured above, second from the left) joins Datalabs from Launchpad App Development, where he held the role of […]