- The majority (86%) of advertisers agree that having a data standards practice is critical to keeping pace with their competitors. However, fewer than half feel “very confident” in their very own such practices, in accordance with a report from Advertiser Perceptions and Claravine.
- Advertisers consider they’ll or will see a median 33% return on investment (ROI) increase by implementing data standards strategies in areas including privacy compliance, brand safety, marketing campaign ROI and ad creative development.
- An inability to reveal greater ROI, ensure privacy compliance and maintain brand safety weighs upon advertisers’ minds; 84% of agency executives and 71% of marketers said they feared they might lose their jobs if they can not reveal ROI or Return on Ad Spend (ROAS).
The “State of Marketing Data Standards in 2024” report is a bunch of excellent news/bad news revelations. Nearly all of the advertisers surveyed agreed that putting a data standards practice in place is a must for achievement. However, fewer than half (46%) of the advertisers which have implemented such practices feel “very confident.” That percentage is virtually unchanged from the outcomes found when the firms conducted similar research in July 2023.
Similarly, advertisers estimate that data standards strategies can increase ROI by 33%, and are more bullish this 12 months versus last on returns for areas like privacy compliance and brand safety, each of which saw increases in estimated ROI levels of 5 percentage points or more. Still, there was a rise in Excel usage in tracking data, “which ultimately opens firms as much as greater difficulties in managing data standards, brand safety and privacy,” said Lauren Fisher, general manager of Business Intelligence at Advertiser Perceptions, in a press release.
The report suggests one reason for the upper ROI estimates is that advertisers could have a greater handle on how they’re benchmarking their data standards practices’ initial values. The length of time respondents said it took to see results from implementing a data standards strategy was also down significantly. Still, 79% of advertisers said showing ROI/ROAS on their campaigns was getting harder as they must work with more platforms and have fewer identifiers and signals, like mobile ad IDs.
That increasing complexity — combined with the increasing use of generative artificial intelligence (AI) within the creation of ad campaigns — underscores the necessity to have cohesive data standards practices for each marketers and agencies. Two-fifths of advertisers report using generative AI for ad creative, while one-in-two are considering it. Still, only a couple of quarter (26%) feel confident of their ability to properly tag and track their AI-generated assets, resulting in a risk of not knowing where creative is running across channels and serving the mistaken ads to the mistaken consumers.
The report suggests one in every of the biggest disconnects for realizing greater ROI, privacy compliance and brand safety is that agencies are usually not as sophisticated or involved in data standards practices as marketers. Agency respondents were significantly more fearful than marketers (84% versus 71%, respectively) that they could lose their jobs in the event that they can’t show ROI/ROAS on ad campaigns.
Agencies were also significantly more more likely to mix data in Excel spreadsheets to form audience segments and track creative asset information. They then share these spreadsheets with media partners.
The result’s a “daisy chain of data sharing that opens organizations as much as the potential of data leakage, privacy concerns and lack of proper tracking on those data assets throughout the campaign,” in accordance with the report. The suggested solution is to develop a shared taxonomy for data tagging and formatting and choose permissions for agency access.
“Streamlining data share and connectivity between brands and agencies gives each parties greater confidence of their partnership and results in stronger performance and satisfaction,” in accordance with the report. “As for ROI, having an aligned approach to data standards from the media placement and inventive level all the best way as much as the chief level gives marketers and their agencies the clearest picture of value, no matter the way it’s calculated.”
For the “State of Marketing Data Standards in 2024” report, Advertiser Perceptions and Claravine queried 141 U.S. marketing and agency executives in August. Agency respondents made up 30% of respondents and marketers accounted for 70%.
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