October 2016

A new deal for advertisers and consumers

There’s a new deal between advertisers and consumers. It’s like a contract. Consumers hand over their behaviour data to advertisers and in turn they provide a consistent and compelling experience full of rich and relevant content marketing campaigns. It’s the beginning of a beautiful new relationship! But if advertisers fail to live up to their side of the bargain - fail to use that data to deliver a compelling and relevant customer experience - they will be punished.

The rise of customer expectations

This is the conclusion of the 2016 edition of the Salesforce Marketing Cloud “Future of Advertising” Report. Put simply:

The scattergun approach to digital advertising is dead. In its place, customers who provide a glut of data to marketers expect personalised experiences, and reward them with higher click-throughs, increased ROI, lower CPM and reduced cost per checkout.”

It’s less of a tall order than it sounds. In what at Salesforce we call “CRM-Powered Advertising”, the axis between solid CRM data and Advertising Studio technology that serves up advertising content based on sophisticated algorithms of data analysis can mean that every customer can have a personal relationship with your brand. Better still, based on what that customer has in common with other customers - intelligence derived from social media statistics - can further inform the journey to create a better experience.

In short, by using sophisticated marketing automation technology, marketers can today develop an intimate understanding of each individual customer using predictive analytics and then provide information and content that is welcome and well received. In turn these efforts will be rewarded by click-throughs, engagement, ROI and sales that make the marketers’ role so much more essential to the business than ever before.

Revealing the return on digital advertising spend

The “Future of Advertising” report finds that as many as 83 per cent of high performing advertisers are powering their ads with CRM data, double that of their low performing equivalents. The results are compelling - CRM-powered ads on Facebook have a 47 per cent higher click-through rate (CTR) than those delivered via traditional targeting.

In fact, here in Australia the opportunities available for those who get this right are huge. The report found that Australia has an extremely high CTR, second only to Germany in fact at 1.57 per cent, and ahead of the the UK, the US and France. This is significant when you consider that in 2016 as much as 76 per cent of all digital advertising spend is going to either Facebook/Instagram (USD$23 billion) or Google (USD$57 billion).

The report actually details more specifically where that spend is going. A staggering 50 per cent is invested into search - mainly with Google of course. A further 15 per cent goes to social media. The remainder is spent mainly with open web display ads with a small amount - three per cent - with video. But it is increasingly clear that the Future of Advertising, and the key to developing an ongoing relationship with today’s customer, is in mobile app marketing.

The report found that last year there was a 27 per cent increase in mobile shopping searches and that 82 per cent of shoppers consult their mobile device while in-store. So for retailers in particular the importance of mobile marketing software is huge. Here in Australia, the report finds that half of all digital ad spend went to mobile marketing in 2016. This is on a par with elsewhere in the world - 51 per cent in the UK, 54 per cent in Japan and a huge 64 per cent in the US.

More importantly - when it comes to how your customers spend time on mobile - 90 per cent of it is in apps and only 10 per cent on the mobile web.

To find out how you need to adapt to the rapidly changing face of digital advertising and mobile marketing strategies in 2017 and beyond download the Future of Advertising Report now and start to unlock your customer data to drive more effective digital marketing campaigns.


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