• by Laurie Sullivan  @lauriesullivan, April 23, 2013

Advertisers prefer to use third-party online data along with first-party CRM data to target ads since they receive a higher response rate when targeting specific audiences.

In fact, more than 60% of advertisers use third-party online data as the preferred data source for audience targeting, and more than 80% find audience targeting an effective marketing strategy, according to a study released Wednesday.

The eXelate study also found an increase among advertisers using audience targeting on smartphones and tablets. While the PC remains the preferred platform, 51% of advertisers say they use the smartphone, compared with 62% of agencies and 60% of networks, exchanges and demand-side platforms (DSP).

Some may believe the eXelate findings show a bias. The third-party data provider supports audience targeting -- but experts admit that the results rely on methods to confirm and maintain authenticity in data segments, no matter what the vendor. The results are drawn from 650 digital industry advertisers, agencies and networks between March and April 2012. The online survey examines audience targeting strategies and how eXelate can improve audience targeting.

This year, 69% of advertisers said they plan to increase their ad targeting budgets by 43%, compared with 68% of agencies who plan to increase budgets by 30% and 89% of networks, exchanges and DSPs, by 40%.

The study also shows that only 29% of advertisers and 40% of agencies have implemented a campaign rating solution. About 30% of advertisers said they would implement one this year, versus 46% of agencies.

Brands may find third-party outsourced data more appealing in targeting ads, but not all vendors secure consumer data correctly. An Experian Data Breach Resolution commissioned survey conducted by the research center Poneman Institute polled 748 people in organizations who transfer or share consumer data with vendors.

The most common mistakes outlined in the Securing Outsourced Customer Data include organizations that fail to hold vendors to the same security standards as they do for their own in-house security practices; do not know how frequently the vendor is losing their consumer data; do not take action following a breach, such as requiring the vendor to fix any known problem causing the data breach, and do not require the vendor to conduct an audit and detailed assessment to understand the source and cause of the incident.

The study, released earlier this year, estimates that in the past 24 months, 65% of participants admit their organization had a breach involving the loss or theft of their organization’s information when it was outsourced to a third party. Some 64% report it happening more than once.