Marketers and advertisers not utilizing data in targeted ad campaigns
Posted on Apr 1, 2014 by YuMe
Audience targeting is a key strategy when it comes to both online video advertising and advertising on mobile devices. Most companies use metrics that track consumer behavior and use the data to deploy audience-specific campaigns, but according to Adweek, a large percentage of companies don't use this valuable information.
The website, citing Razorfish's "The State of Always-On Marketing" survey, polled 685 C-level business, marketing and technology executives and found that 76 percent of companies don't use data available to them that gives insight into the behavior patterns of consumers, information that is highly beneficial for ad targeting. Conversely, 58 percent of executives considered their companies to be strong when it comes to creating campaigns aimed at a specific type of consumer or audience.
"There's been a lot of talk and investment in the past few years on the importance of data and analytics," Pete Stein, CEO of Razorfish, told Adweek. "Many companies are struggling to translate this data, with technology and skills, into better data-led customer-facing experiences."
It's worth noting that a combination of higher consumer adoption of smartphones and tablets, combined with the use of laptops and desktop computers has created a market that is highly segmented when it comes to digital video advertising. But according to Razorfish's study, 13 percent of companies are specifically targeting these segmented audiences but unfortunately, they are not utilizing the available data to accurately measure the effectiveness of their campaigns.
According to Stein, advertisers and marketers are wasting money developing ads aimed at consumers who are unlikely to spend money on the product or service being offered. In addition, companies don't spend enough capital targeting those who will buy what is being advertised and in turn convince others to do the same.