In recent years, there has been a significant change in the advertising industry due to the elimination gradual third party cookies and progress in digital content innovation. This change poses a great future challenge for advertisers, who will have to redesign their strategies audience measurement, which will change the way you relate to it.
According to a study of Accenture conducted in the United States and United Kingdom, the reduction of legacy third-party identifiers could cause the effectiveness marketing decrease between 10% and 30%. However, 45% of advertisers in the US and UK have been using the same advertising approach for the last 5 years and 71% of this group have no plans to change their strategy in the next year. This means that there is a 32% advertisers that they will continue to use outdated advertising methods.
Lack of understanding, fear of change and reduced budgets
The aforementioned Accenture study was conducted to provide advertisers with valuable information on how to optimize their advertising strategies today and reduce the risks of their advertising spend in the future. The research is based on performance data from real advertisers, in surveys made to more than 500 people involved in advertising decision making, and in interviews with leaders in advertising, data privacy and marketing measurement.
Between the main conclusionswe highlight:
only 17% of advertising decision makers feel able to measure and demonstrate return on investment (ROI) effectively. Additionally, there is a widespread lack of data-related skills and resources, limiting the ability of advertisers to experiment with data-driven strategies. Although more than 80% of advertisers in the US, UK and Brazil are aware of important privacy changes, only 8% says that really understands what most of these changes mean. In fact, 73% would implement solutions if they understood them better or had proof that they are effective. There was 74% reduction in advertising budgets, and rising campaign costs have become the biggest challenge for advertisers. Approximately the 60% of advertisers in the US and UK not ready to deal with the loss of third-party identifiers. Also, 1 in 4 does not recognize shortcomings in their current strategies.
Fear of change: 1 in 3 US and UK advertisers are concerned about their job security if they try a new channel/platform or targeting strategy that doesn’t deliver results.
Based on the results, Accenture provides some advice to navigate these new legal changes in the best possible way:
Centralize and strengthen internal customer and audience data: advertisers must unify and develop their customer data across marketing, sales, and products.
Try flexible segmentation solutions: To mitigate the impacts of privacy changes, advertisers should experiment with new audience targeting solutions and strategies that do not rely on third-party identifiers.
Using revenue-based ROI as the primary metric: It’s important to define success in terms of actual revenue rather than just reach.
Improve resilient measurement and attribution capabilities: Instead of relying on last-click attribution, advertisers need to align their measurement strategies toward incrementality.
Diversify content development and activation strategies with AI and creators: advertisers can improve their content strategies using generative AI and collaborating with content creators.
Invest in identity resolution capabilities: To accurately measure impact, advertisers need complete visibility of the buyer journey across different channels.
Redesign the organization to promote shared responsibility: advertisers must reassess their operating models and work in connected teams that provide a holistic view of customer and business value.
Photo: Depositphotos.
Stay informed of the most relevant news on our Telegram channel
![Consumer spending on shopping apps increased 37% during Q4 2022 [AppsFlyer]](https://www.logitechgamingsoftware.co/wp-content/uploads/2023/07/imagen-2023-07-20T122224.702-336x220.jpg)
