Research Finds Nearly 70% Of Agencies Still Rely On Demo Targeting

A study from Videology conducted by Advertiser Perceptions finds that 67% of agency media buyers polled rely on demographic targeting (primarily age and gender) to reach consumers via cross-screen video advertising campaigns.

Videology, a provider of software for converged TV and video advertising, believes it’s important to offer marketers a wide variety of data options on which to target against, in addition to demographic data.

When asked which methods of targeting are regularly employed to reach consumers on digital video advertising campaigns, 67% of agency executives said they used behavioral-based targeting (lifestyles, preferences); 42% used sales-based targeting (purchase history); and 55% used contextual-based targeting (sports, financial, etc.)

By contrast, 55% of brand marketers participating in the study said they used demographic targeting; 59% said they used behavioral-based targeting; 46% sales-based targeting; and 46% used contextual-based targeting.

When asked about the following statement, 67% of agency media executives and 73% of brand marketers agreed: “As more TV content is viewed on digital channels, demographic targeting (age/gender) and delivery will remain a key metric for evaluating cross-screen campaigns over the next three to five years.”

For digital video campaigns, 63% of agency buyers feel behavioral-based targeting is effective in driving business results such as online conversions, store-visits, or offline sales; 51% believe that combining demographic targeting with other targeting methods (such as behavioral or sales-based) is effective in driving these conversions. In response to the same question, the study found that 51% of brand marketers said they feel behavioral-based targeting is effective in driving business results such as online conversions, store-visits or offline sales, while 39% said combining demographic targeting with other targeting methods (such as behavioral or sales-based) is effective in driving these conversions. 

In addition, nearly half of all survey respondents (45%) said they would consider the ability for ad technology to more accurately target audience-specific age/gender demographics for online video campaigns a “valuable advancement.” 

The results show that while focusing on specific audience segments or behaviors is effective for some advertisers, reaching audiences based on age and gender targeting remains important to many others, according to Scott Ferber, Founder and CEO, Videology.

“Some agencies or brands see more success in using very specific targeting methods, such as whether or not someone has made a past purchase or looks at a certain kind of content,” Ferber explained to Real-Time Daily.  He cited the automotive category. “A company like Mercedes is going to want hit a wider swath of people, knowing that it takes a lot of brand-building, over a period of time, before someone will actually choose Mercedes as their preferred luxury automobile.”

Ferber said in that example, focusing on a demographic such as men ages 18-34 is a good strategy for an ad campaign. However, an auto dealership is most interested in getting people into the showroom or car lot at the time when they’re most likely to buy a new vehicle. “For those advertisers, it likely makes more sense to use data from a vendor like Autobytel, which shows that someone is currently in-market. Whether using behavioral targeting or demo targeting, what’s most important is that advertisers focus on their results and hone in on a strategy that affects their bottom line,” Ferber said.

The survey polled 308 respondents—60% were from agencies, and 40% were brand marketers.  The respondents were drawn from the Advertiser Perceptions media decision-maker database and third-party databases.

 

 

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