Adoption of people-based advertising in Australia is rising quickly as advertisers experience superior performance and return on ad spend from addressable media campaigns.
This is among the key findings in the first-ever survey of Australian advertisers and media agencies on the topic of addressable media. The results of the survey were released today in the report ‘People-Based Advertising: Evaluating the impact and future of addressable media’ by Econsultancy and people-based marketing company Signal.
The report found that people-based advertising, a strategic discipline that targets ads at real people rather than cookies across devices and channels, is gaining popularity among Australian advertisers and media buyers.
A large majority – 75 per cent – of advertiser respondents reported that they are familiar with people-based marketing, and nearly two-in-three have used Facebook Custom Audiences. A significant and growing portion of ad spend is being allocated to people-based advertising, the report also found. One-quarter of Australian advertisers report spending more than half of their budget on people-based advertising. At the same time, two-thirds of respondents believe that the traditional model for display advertising is broken.
According to the report, early adopters of a people-based approach are reaping competitive advantages versus traditional digital media:
- 86 per cent of advertisers who have deployed people-based campaigns report that they have outperformed standard campaigns on similar channels.
- 75 per cent of advertisers report improved click-through rates with people-based marketing.
- Nearly 60 per cent experienced higher conversion rates from people-based efforts.
“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,” said Michael Twomey, senior vice president and managing director of People-Based Marketing, Signal. “As advertisers realise these benefits, it’s not surprising that they’re increasing addressable media efforts.”
Advertisers and media agencies in Australia are planning to increase spend this year on people-based advertising, the report states. Nearly all of the media buyers polled (92 per cent) said that they and their clients are increasing their people-based media buys.
The research confirmed that advertisers may be looking for new addressable media solutions outside closed platforms. For instance, 87 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.