Digiday Research: European marketers see GDPR hurting audience targeting
At the Digiday Programmatic Marketing Summit Europe last month in Portugal, we sat down with 52 brand and agency marketers to learn how satisfied they are with their audience-targeting capabilities. Check out our earlier research on the use of artificial intelligence in marketing here. Learn more about our upcoming events here.
- Only 37 percent of marketers in Digiday’s survey from the event are satisfied with their ability to target audiences at scale.
- Marketers’ most common fear about the General Data Protection Regulation is a decreased ability to target consumers.
Marketers in the U.S. and in Europe aren’t thrilled with their ability to target audiences at scale. Just 37 percent of European marketers surveyed at the Digiday Programmatic Marketing Summit Europe said they are satisfied with their audience-targeting abilities, while Digiday’s previous research found that 40 percent of U.S. marketers are satisfied.
Outside of Google and Facebook, European marketers lack options for places they can reliably reach consumers at scale. Amassing scalable audiences is difficult in a multilingual continent like Europe. According to a 2012 report requested by the European Commission (the most recent data available), just 38 percent of people in Europe speak English, the most common language spoken in the European Union.
In an effort to compete with the duopoly and improve marketers’ targeting abilities, publishers and broadcasters are forming alliances. By pooling inventory for marketers, companies hope to solve the issue of scale, while making it easier for marketers to target consumers. Such alliances have struggled in the past, however, so marketers are justified in their doubts.
Outside of coalitions, individual publishers are also working to improve their ad-targeting capabilities for advertisers. Forbes introduced geolocation and audience-targeting services to its branded content offerings. The New York Times, meanwhile, says it’s experimenting with new ways to use its audience data to enhance ad targeting. While these efforts might address the issue of reliably targeting users, publishers still offer a mere fraction of the scale offered by Facebook and Google.
Media transparency also plays a role in marketers’ lack of satisfaction with audience targeting. As marketers become more nuanced in the analytics behind their digital campaigns, the lack of reliable metrics is making them question whether the money they spend on ads reaches their target audiences.
And the General Data Protection Regulation, which takes effect May 25, will likely hinder audience targeting. Forty-two percent of marketers surveyed by Digiday said their biggest GDPR worry is a decreased ability to target consumers.
Research from PageFair found that over half of consumers would reject all online tracking unless it’s necessary for services they request, and 81 percent would reject tracking from third parties. That would significantly reduce the data marketers can use to target consumers and further exacerbate marketers’ existing problem.
GDPR will also harm Facebook’s ability to serve users targeted ads based on their interests. Facebook already surprised marketers by shutting down its Partner Categories program that let marketers use third-party data on consumers to better target users on Facebook’s platform. The increasing restrictions on user data imposed by GDPR will likely cause marketers to become less satisfied with their ability to target consumers at scale in the coming months.
Foot Locker is showcasing staffers, popular musicians through social media and digital out-of-home to appeal to Gen Z
The shoe store chain is doing so in order to strengthen the relationship between the company, its employees and its consumers, all while celebrating and driving sneaker culture globally.
Member ExclusiveDigiday+ Research check-in: Brands know recession is ahead, but are hopeful it will be shallow
Brands are showing a mix of pessimism and optimism when it comes to a recession -- most believe a recession is coming, but they also think it will be shallow, according to a Digiday+ Research survey.
Why the World Cup adds to, rather than eases, all that ails Twitter
User conversations might be on the up, but the platform is still an advertising ghost town, despite the fact that the biggest sporting event in the world is happening now.
SponsoredWhy cookie deprecation is deflating performance and inflating costs for advertisers
With the full deprecation of third-party cookies on the horizon, advertisers and publishers are navigating a challenging and quickly evolving landscape. The sunset of the third-party cookie continues as usage and lifetimes fall. Their deprecation is preventing brands from effectively measuring the effectiveness of media campaigns in real-time at highly granular levels. As the industry […]
Arm & Hammer enlists TikTok influencers to help millennials, Gen Z with holiday laundry
Arm & Hammer is looking to stand out on TikTok during the holidays by creating content in collaboration with actor, cook and dad David Burtka and other influencers.
Why Shutterstock is betting on generative AI for the future of stock images
Shutterstock has begun experimenting with using generative AI, an emerging innovation that lets people enter text-based “prompts” to generate unique computer-made digital images.