the state of advertising measurement - amazon s3 · the state of advertising measurement . the...

What Advertisers Think™

The More You KnowThe Stronger Your BrandThe More You’ll Sell™

The State of Advertising Measurement

THE STATE OF ADVERTISING

MEASUREMENT

Methodology and Respondent Profile

FieldedJan/Feb2019

49%Agency

51%Marketer

51% 35% 14%

Sample: Marketer and Agency contacts from The Advertiser Perceptions Media Decision Maker Database

Qualification: • Used advertising measurement/analytics or ad effectiveness research in

past 6 months• Involved in at least one of the following about measurement:

• Make strategic/high-level decisions• Determine overall budget allocations• Evaluate/recommend/approve providers• Implement measurement tools and/or research• Evaluate campaign performance based on measurement

• Minimum $5 Million Total Ad Spend in Next 12 Months

153interviews conducted

JOB TITLES/LEVELS:

Only Advertiser Perceptions talks to people who are actively making decisions about media brand selection

EXPRESSING OPINIONS FROM:ANNUAL TOTAL AD SPEND:

Average $28.9M

$5 to less than $20M 40%

$20 to less than $30M 27%

$30M+ 33%Senior (VP+) Mid-Level

(Director/Supervisor)Junior

(Mgr, Buyer, Planner)

Measurement Matters


MEASUREMENT

2% 20% 42% 35%

Measurement offerings impact media partner selection

Q45. How much of an impact does the availability of high quality, actionable measurement have on which media partners you use for advertising purposes? Base: Total Respondents

4

Some impactNo impact Slight impact Strong impact

77% Some/Strong Impact

Impact of measurement on media partner selection(percent respondents)


MEASUREMENT

Most Advertisers Utilize Benchmarks when Measuring their Media Spend but what Publishers Offer Don’t Always Match Needs

Q17a. Media companies that you advertise with may measure certain KPIs in relation to your campaigns. How often do the KPIs measured by your media partners align with the KPIs you need? Base: Total Respondents

5

How often do the KPIs measured by your media partners align with the KPIs you need?

18%

40%

40%

3%

Rarely/Never

Some of the time

Most of the time

Always

Use of benchmarks in order to compare and measure the success of ad campaigns

78%

16% 7%

YES

I DON’T KNOW

NO


MEASUREMENT

Data Now Impacts all Phases of the Media Buying Process

Q16a. Thinking about a typical ad campaign, how many different data sources are typically used when planning, buying, optimizing or evaluating? Sources could be from the advertiser, the agency, the ad seller or other 3rd party data provider.Base: Total Respondents

6

Planning

Buying Optimizing

Evaluation

Advertisers use 2-3 data sources across all stages of an ad campaign


MEASUREMENT

The majority of digital campaigns use fee-based data, including 3rd and 2nd party sources, for targeting

Source: Lucid Custom Research StudyWhat percent of your 2018 digital advertising used each data type for audience targeting?Base: Total Respondents

First party data31%

Third party data26%

Second party data22%

Contextual data21%

Average Percent of Digital Advertising That Used Data Type for Targeting

69%

7


MEASUREMENT

About 70% have experienced conflicting advertising data –first party data is the most common solution to conflicts

Q16b. When making use of multiple types or sources of data on an ad campaign, have you ever had the different data sources provided conflicting data/information? Base: Total RespondentsQ16c. How do you typically solve for the issue of conflicting advertising data? Base: Experienced Conflicting Data

8

Percentage of respondents who have experienced different data sources providing conflicting data/information

69%

27%

4%

NO

Don’t use multiple data sources

We use our 1st party data when available 38%

We defer to the client's/agency's data 17%

We use the data with the highest numbers/percentages 15%

We use an average of the data 15%

We defer to the ad seller's data 7%

We use the data with the lowest numbers/percentages 6%

Solutions for the issue of conflicting advertising data

YES


MEASUREMENT

Whether they can measure it or not, advertisers assume that fraudand non-human traffic eat into budgets

Q15b. Do you feel your [company is/clients are] able to accurately measure the impact fraud/non-human traffic has on their advertising efforts? Q15c Approximately what percentage of ad budget do you think is being lost to fraud, bots, non-human traffic? Base: Total Respondents

9

35%NO

Ability to accurately measure the impact fraud/non-human traffic has on advertising efforts

< 5% 16%

5% to 10% 36%

10% to 25% 41%

25% to 50% 6%

50% + -

None 1%

Average 12.6%

48%YES

16%I DON’T KNOW

Approximate percentage of ad budget being lost to fraud, bots, non-human traffic


MEASUREMENT

Despite Wide Data Availability, 3-in-5 Advertisers Still Default to Last Click Attribution

Q13b. What are the three biggest obstacles or areas for improvement when it comes to better determining campaign attribution?Base: Respondents who used Multi-Touch Attribution in Past 6 Months and do not believe “Accuracy of Touchpoints is Completely Accurate”

10

1 Incorporating offline exposure data into multi-touch attribution models

2 Incorporating offline behavior data into attribution models

3 Multi-touch attribution

Percent of respondents that have defaulted to a “last click” attribution model

59% 35%

6%

YES

DON’T KNOW

NO


MEASUREMENT

About three-fourths believe real-time campaign measurement is important, but only one-fourth measure impact more than once a day

Q24. On average, how frequently do you measure a campaign’s KPIs once it’s launched? Q25a. How important is it to be able to measure campaigns in real-time?Q25b. Which statement best describes the impact real-time measurement has on your ability to optimize? Base: Total Respondents

11

Importance of the ability to measure campaigns in real-time

27%Very

Important

28%Slightly

Important

1% Not at all Important

44%Important

would optimize campaigns more frequently given the opportunity to measure in real-time.66%

Frequency that campaign KPIs are measured

5%

19%

16%

33%

20%

7%

Hourly

A few times a day

Once a day

A few times a week

Once a week

Less than once a week


MEASUREMENT

Programmatic's biggest measurement gaps are driven by complexity

Q19. Which three of the following are the biggest gaps between what you need and what is typically delivered for the measurement of your programmatic advertising?Base: Involved in Programmatic

12

Inability to measure cross-platform media buys holistically 37%

Conflicting results from different sources 31%

Complexity of integrating data sources 31%

Overestimation of performance metrics 29%

Too reliant on cookie-based technology 26%

Insufficient attribution for every media type 24%

16% 40%

Agency Marketer

Percent ranking as a top three programmatic measurement gaps

Begging the question:

of advertisers hold divergent perceptions personally vs. professionally of one or more of the media brands they use

of large ad platforms’ advertisers(who are also personal users of that brand)have either expressed misgivings about personal usage risks and/or decreased personal usage of those same brands

Are advertisers operating in a state of Cognitive Dissonance?

72%

57%*on average


MEASUREMENT

14

Another case in point: they are of 2 minds about mobile device tracking

of advertisers think that it is “extremely important”

to be able to track users via their mobile device ID

of advertisers are “very concerned”

about privacy issues related to tracking users via their mobile device IDs

Personally I want to protect my PII. Professionally, I want to use as much information for targeting as possible

- Agency Director

40%43%

the state of advertising measurement - amazon s3 · the state of advertising measurement . the...

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