Marketers report significant sales increases from personalized advertising placement
The dominance of mass-market advertising may be coming to an end as one-size-fits-all advertising isn’t as effective as it used to be. The fragmentation of digital audiences across a growing number of platforms has placed an increasing emphasis on personalized content. Studies show 80% of online consumers say they are more likely to buy from brands offering personalized experiences and marketers report an average 20% sales increase from personalized advertising placement.
- In a recent interview with Street Fight, Hamza Kourimate, the global head of sales marketing and data solutions at the Paris-based video-sharing platform Dailymotion, explained how attention metrics are the ‘next frontier’ in measuring advertising performance.
- Kourimate said the growth in the number of new digital media platforms, coupled with the rapid rise in the amount of time audiences spend online, has ‘amplified’ consumer expectations of ads served. He believes it is crucial for marketers and advertisers to look to personalization for campaign success.
- However, creating personalized advertising experiences requires an understanding of ads being served currently. Kourimate described most advertising experiences as interactive video ads that possibly have additional features ‘stapled on’.
At Dailymotion, we create these ad experiences by leveraging existing video assets from a client, then applying a layer of interactive content – whether it be a carousel or advergame.
- Kourimate told Street Fight that creative personalization through interactive ads has a ‘huge impact’ on key performance indicators including brand awareness, ad memorization and purchase intent.
- He said research conducted by Dailymotion showed contextual segmentation and rich media pre-rolls improved ad perception by 24 points, user comprehension by 15 points, attention by 11 points and attribution by 37 points.
- The average online consumer in the US is exposed to as many as 10,000 ads every day. This means the competition for audience attention has never been more intense. Kourimate said:
To attract target consumers, brands must provide what their audience is calling for: personalized ad experiences.
- In this environment, Kourimate said legacy performance metrics like viewability and view through rate are not a ‘convincing’ measure of advertising effectiveness.
- Also, in a period of tightening advertising budgets with increased focus on ROI and more selective approaches to media buying, metrics need to be as accurate as possible.
- It is only with deeper insight into ad performance that brands can get better at understanding what elements contribute to improving success. Kourimate said:
An ad’s performance largely depends on how it’s targeted: but it also equally depends on that ad’s creative and placement.
He uses the example of advertising targeted at runners. Relying on third-party cookies, anyone in a runners audience segment would be targeted with running shoe brands that they had recently engaged with.
In contrast, targeting based on analysis of consumer behavior might find part of the segment looking for long distance running shoes, while others might be looking at sprinting shoes. With this knowledge, Kourimate said:
The advertiser could then create separate ad campaigns for both slices of the audience segment, adapting ad components like the copy and assets, to further personalize each cohort’s ad experience.
This piece was originally published in Spiny Trends and is re-published with permission. Spiny Trends is a division of Spiny.ai, a content analytics and revenue generation platform for digital publishers. For weekly updates and analysis on the industry news you need as a media and publishing business, subscribe to Spiny’s Trends weekly email roundup here.