Some 77% of marketers agree that individualized messages and offers can be more effective than mass messages and offers, according to newly-released research [pdf] from Conversant (formerly ValueClick). The study delves into what marketers and agencies consider to be the top benefits and challenges of personalized media programs, finding some discrepancies between the two groups.
Among agency respondents, the top benefit indicated was an improved response rate, cited by 70% of respondents (versus 56% of marketers), with this benefit certainly appearing to be the case with email subject lines. Among marketers, though, the top benefit was increased repeat purchases/repeat rate (60%). In fact, marketers were almost twice as likely as agencies to see this as a benefit; they were also close to twice as likely to see increased average revenue per user as a benefit of personalization (48% vs. 28%).
For their part, agencies are more convinced of personalization’s power to drive increased sales (67% vs. 55%) and strengthen brand perceptions (63% vs. 56%). They may be on the right track: consumers themselves say that personalization does influence their retail choices.
There was more consensus when it came to the main challenges of a personalized program. Both agencies (64%) and marketers (54%) indicated that higher media costs represent the top challenge, closely followed by increased marketing management complexity (63% agencies; 50% marketers) and high creative development costs (60% agencies; 50% marketers).
Overall, about 3 in 4 marketers responding to the survey agree that personalized one-to-one marketing is the future. Their enthusiasm is backed by respondents to a recent Econsultancy study: in that report, global marketers were 50% more likely to see personalization as their single most exciting digital marketing area in five years’ time than they were to give it that status today.
About the Data: The results are based on an online survey conducted among a broad set of agency and marketing leaders between October 18 and November 4, 2013. Two hundred marketer and agency contacts from the Advertiser Perceptions Media Decision Maker Database and third-party databased were surveyed. The sample was designed to be reflective of a broad cross-section of the industry.
Contact qualifications were as follows:
- Significantly involved in digital/online media advertising selection decisions;
- Senior level marketer or agency decision-maker;
- $2 million past 12-month minimum spend.