IAB: Tough To Prove ROI With Data-Driven Campaigns

About 45% of marketers participating in a study published Monday by the Interactive Advertising Bureau said they had difficulty proving a return on investment for their data-driven campaigns. That percentage rose from a mere 26% in 2016.

Proving ROI remains one challenge in a long list of obstacles cited by marketers in the study compiled by the Winterberry Group. Lack of internal experience for functions and operations at 45% in 2017 vs. 35% in 2016. Insufficient supporting technology was cited at 39% vs. 45%.

Siloed organizational structures and poor data sharing protocols at 36% vs. 25%, and lack of volume and quality of first-party data sources at 25% vs. 33%, respectively, round out the top five.

Results from the Outlook for Data 2017: A Snapshot into the Evolving Role of Audience Insight report were based on an online survey of members of the IAB Data and Programmatic Councils. A total of 108 members responded to the survey, which remained open during parts of December 2016 and January 2017.

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Lack of guidance from agency partners and service providers was included in the list of challenges to overcome in 2017. Some 16% of marketers rate the lack of guidance as being an issue, up from 7.6% in 2016. The lack of direction and resources from my organization’s leadership improved with 20% of marketers saying it's a challenge in 2017 vs. nearly 22% in 2016.

When asked what factors will drive data-driven marketing and media initiatives in 2017, nearly 62% of marketers cited demand and interest from customers, up from 60% in 2016. The growing volume and quality of the brand's first-party data sources at 53% vs. 47%, and growing emphasis on investments in measurability at 50% vs. 48%, respectively, round out the top three.

Improving availability and functions of supporting technology at 46% vs. 33%, and competitive pressures at 37% vs. 41%, respectively, round out the top five.

With technology becoming more complex, cross-channel measurement and audience engagement remain the top priorities in the coming year at 57%, followed by programmatic media buying at 48%, cross-channel audiences at 43%, advertising content and optimization at 41%, and general audience analytics at 41%.

Nearly 71% brands said they will spend more this year to get attribution on track, up from 67% in 2016. Some 23% said they will spend the same, down from 36%. Some 5% not sure if they will spend more or less, and 1.2% said they will spend less.

The study was released at the 2017 IAB Annual Leadership Meeting.

2 comments about "IAB: Tough To Prove ROI With Data-Driven Campaigns".
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  1. Ed Papazian from Media Dynamics Inc, January 30, 2017 at 9:06 p.m.

    Odd? I was led to believe that "data- driven" digital media buys were the answer to just about everything. Now they are telling us that it's becoming more difficult to determine ROI for such campaigns----not easier.

  2. Laurie Sullivan from lauriesullivan, January 30, 2017 at 9:28 p.m.

    I think it's about having many more types of media and tons of channels.

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