Targeting is a touchy topic.
Marketers, of course, are fans. Grounded in big data, targeting--and its sometimes creepy cousin, retargeting--enables brands to take “advantage of the massive torrent of data that the digital age has turned on to get better results from digital marketing. When it comes to targeting, there’s a lot of room for companies to get smarter,” according to an article on CMO.com by Ray Velez, global CTO of Razorfish.
What’s more, a recent survey by Razorfish and Adobe (CMO.com’s parent company), “revealed a big gap between where marketers are and where they should be on targeting. Besides using old segmentation approaches and looking only at the top of the purchase funnel, brands aren’t always sure which digital channels they control, and internal barriers that slow or even stop the development of targeting capabilities are common.”
However, not all consumers are thrilled about the necessary data collection; some are skeptical and, perhaps, fearful about how brands might use their information for other purposes. Meanwhile, other consumers have accepted the practice and are perfectly comfortable with being targeted.
This week's stats take into account all sides of the targeting story.
1. Asked whether they would rather see online ads for random products and services or ads directed toward their interests, 40.5 percent of respondents to a new survey chose the latter (targeted ads), while another 27.6 percent were content to see both.
2. Less than half (47 percent) of consumers opposed a law that restricted how data is used for online advertising, but also potentially reduced the availability of free content such as blogs and video sites.
3. About two-thirds (68 percent) of Internet users said they disapprove of search engines and Web sites tracking their online behavior in order to aim targeted ads at them.
4. A recent study that looked at consumer awareness of the Digital Ad Alliance's AdChoices privacy icon--the little blue triangle seen primarily in targeted display advertising--found that just 6 percent of consumers are aware of this opt-out program.
5. Three-quarters of mobile users believe their privacy is invaded by targeted advertising, according to a study that covered 1,500 respondents from U.K., U.S., Brazil, and China.
6. In May, Twitter revealed a TV ad targeting product, the first fruit of its February acquisition of Bluefin Labs. The company has set a $100,000 minimum for marketers interested in taking it for a spin.
7. U.S. mobile ad spend is projected to grow from $7.2 billion last year to $30.3 billion in 2018, with a slight majority (52 percent_–or $15.7 billion–of that eventual figure going to location targeting.
8. Targeted advertisements are, on average, almost twice as effective as nontargeted ads.
9. A retargeted display ad will encourage 1,000 percent more people to search for a product.
10. Two-thirds of marketers spend up to 25 percent of their media budget on multiscreen advertising--targeting ads to specific devices and operating systems.
11. Three-quarters of mobile users see targeted ads as invasion of privacy.
12. A whopping 87 percent of consumers want a "Do Not Track" option in their browser to avoid marketers.
13. Despite these strong feelings, consumers are willing to trade their data for deals, points, or discounts. Younger people are more willing to do so than older consumers: 60 percent of Millennials would willingly share their data for coupons or promotions.
14. In a study that evaluated various strategies impacting the average lift in search activity for an advertised brand, retargeting represented the highest lift in trademark search behavior, at 1,046 percent.
15. One in five marketers now has a dedicated budget for retargeting.