Originally published on Found Remote.
With advertisers continuing to leverage first party data to execute media buys, Videology, a leading advanced TV and video advertising company, recently released data from its own platform showing just how much this trend has accelerated in the last two years.
The percentage of Videology campaigns leveraging first party data segments has increased from 5% in 2015 to 11% year to date. Videology also worked with Advertiser Perceptions to survey advertisers and marketers on how they work with first-party data: while 69% of digital advertisers currently use first party data for media planning and buying, 30% say that is difficult to execute on this data. Additional first party data findings were released as part of Videology’s “Knowledge Lab” series.
For more on how first party data will impact advertising, we spoke with Aleck Schleider, SVP, Client & Data Strategy, Videology:
Found Remote: How do you anticipate the use of first-party data impacting TV buys within the next few years?
Schleider: We expect to see a significant increase in the number of TV campaigns that utilize first-party data over the next few years – in fact, it’s a trend we’re already seeing. As one of our recent research reports found, so far in 2017, impressions on the Videology platform using first-party data have grown 50% since 2016, and more than tripled when compared to 2015. For Advanced TV in particular, 25% of campaigns have utilized advertisers’ own first-party data over the past six months. Additionally, the tools and technology have advanced to the point where it is easier for advertisers to leverage their own first-party data; giving them flexibility and more streamlined capabilities for them to apply it to TV – whether it be linear indexing or addressable targeting.
If marketers know the value of first-party data, what’s holding back nearly a third of all advertisers from leveraging it?
Schleider: While leveraging first-party data can be a valuable tool for marketers, what could be a set-back is that reach is still a factor in driving certain levels of marketing. First-party data drives extra value as part of a marketing strategy, but it can’t be the only strategy. There’s a place for it but it shouldn’t overtake traditional marketing needs like demographic, reach and frequency, or even cross-channel needs – these are all necessary components, as they are all applicable. Also, there’s a cost associated with implementing your company’s own first-party data. It requires someone to lean into the data (whether that’s working with a DMP or cleaning CRM lists, etc.), so there is an initial investment that has to take place and that’s holding people back as well.
FR: What’s an example of a successful advertiser using first-party data for a TV buy?
Schleider: We worked with a major insurance company on leveraging their first-party data for a TV buy. Our objective was to improve targeting and track the conversion rate on the company’s website of those exposed to their TV ads. We found that leveraging the company’s first-party data drove greater efficiency in targeting existing customers with their TV ads, and it increased the overall conversion rates on the company’s website as compared to just a regular TV demographic buy.