Personalization has long been touted as the key to advertising nirvana, but what does the data show?
Last month, we surveyed 194 marketing leaders to discover how ad personalization impacts your bottom line, what top-performing marketers do differently, and how to overcome top implementation obstacles. Today, we’re excited to release our findings in our new research report: The 2021 State of Ad Personalization report.
Here’s a sneak peek at what’s inside:
Personalization is key to achieving business objectives
Over the last 15 years, social media platforms have trained customer audiences to expect highly personalized online experiences. As a result, digital advertisers must now deliver equally relevant experiences. They’re up against not only direct and indirect competitors but also reams of free, often user-generated, content. With online channels saturated, digital advertisements must cut through the noise and make a connection to be effective.
Ad personalization is the strongest opportunity to make this a reality. The more relevant your advertising campaign, the more conversions you win. Recognizing this fact, a whopping 97.42% of digital advertisers acknowledge that personalization is important to meeting their business objectives.
Ad personalization is still uncharted territory
Despite knowing that personalization is key to achieving business objectives, half of marketers (50.12%) do not currently invest in ad personalization.
Mass marketing is an outdated approach that’s known to cost more and pay less—an inefficient way to grow your business. So, why are people still doing it? Without the aid of automation and emerging technologies, marketers may feel it’s impossible to achieve personalization at scale. After all, crafting personalized ads and landing pages for every unique audience takes a lot of time and money. Some may question whether it’s worth the effort.
Of the businesses that do personalize their ad campaigns, 42.27% are pursuing an entry-level form of segmentation using geographic, demographic, or firmographic data. These marketers have graduated from theory to action, but may not have the data or tools required for more advanced personalization.
Marketers worry about the effort required to implement personalization
When asked, 84.02% of marketers agreed they are concerned about the challenge of implementing ad personalization. It’s no wonder why: Personalizing your ads and landing pages to every unique audience can be both difficult and resource-intensive.
Marketers with the strongest focus on personalization exhibited the most fear. Specifically, those pursuing 1:1 personalization were significantly more likely to say they’re very concerned about the challenge of implementing personalization across their ad campaigns.
A majority of marketers feel the key obstacle preventing them from personalizing their ad campaigns is a lack of technology integration. Indeed, many tools exist today, each with their own set of customer data. It’s tying these tools together to create a single source of truth that’s the challenge for most.
Marketers’ top obstacle differed by the degree of personalization they pursued. Those pursuing basic personalization identified difficulty securing internal resources as their top obstacle. In contrast, those pursuing advanced personalization identified a lack of technology or tools as their biggest barrier to success.
To learn more and gain access to all the data, download the report now.