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eXelate-Most-Effective-Audience-Targeting-Data-Sources-Apr2013More than 80% of advertisers find audience targeting to be very (29%) or somewhat (55%) effective, and the vast majority of agencies agree, per results from an eXelate survey. Both groups point to 3rd party online data as their preferred data source for audience targeting, also ranking this source as their most effective for both direct response and branding campaigns, ahead of 1st-party CRM data.

Agencies report using 3rd party data in 54% of their digital advertising campaigns, with advertisers and networks/exchanges/DSPs reporting lower usage (each at 39%).

Interestingly, a recent report from the IAB and the Winterberry Group found senior marketers and publishers valuing 1st party data as more critical to their marketing efforts than 3rd party data.

Returning to the eXelate study, the results show that advertisers, agencies, and networks/exchanges/DSPs are all seeing audience targeting utilization rates above 80%, with those figures up from last year. PCs remain the most commonly used platform for targeting, although smartphones and tablets are growing rapidly, with more than 50% utilization.

With audience targeting proving so effective, respondents say they’ll be increasing their budgets: 69% of advertisers will boost funding by an average of 43%; 68% of agencies will increase their budgets by an average of 30%; and 89% of networks/exchanges/DSPs will hike their spending by an average of 40%.

Other Findings:

  • Behavioral and demographic approaches are most commonly used by agencies and advertisers.
  • Agencies are more likely than advertisers to have implemented a campaign ratings solution (40% vs. 29%), and more likely to plan to implement one.

About the Data: The data is based on an online survey conducted in March and April among 650+ digital industry respondents.

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