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Half Of Advertisers Will Increase Investment To Achieve Precision Marketing
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Half Of Advertisers Will Increase Investment To Achieve Precision Marketing

Advertisers spend almost 60% of their marketing budget on improving their branding efforts
Almost all advertisers said they are most concerned of if their marketing campaigns successfully reached target audience

According to the latest report entitled “Creative Business Leaders Confidence Index” that jointly released by Nielsen and ROI Festival, optimizing branding effectiveness is top concern for advertisers, with the majority of companies’ total marketing budget are spent on achieving better advertising effects.

Precision is of utmost importance to marketers and significant investment is made in ensuring that marketing campaigns effectively focus on the right audience. According to the report, the surveyed advertisers spend almost 60% of their marketing budget on making greater branding effect, and this budget is expected to be maintained as the most important concern for advertisers in the upcoming year, as about half of them said that they will increase investment to make better advertising effect in the future.

“Advertising effectively is difficult in an increasingly fragmented environment,” said Yan Xuan, president of Nielsen Greater China. “It can be difficult for advertisers to identify the correct message delivered in the correct way to the right consumer. Therefore, how to clearly grasp the target audience becomes particularly important in this complex environment.”

Digital media becomes mainstream advertising platform, money spent on it takes up 60% of total marketing budget

Traditional (offline) channels are still important as they have high credibility among consumers, with advertisers reporting a willingness to spend 40% marketing budget on traditional media. However, compared to traditional media, digital media can deliver more immediate results with further reach. What’s more, with the help of big data, digital media enables advertisers to target audiences, timely adjustment and be more creative during the process.

Mobile has already become the primary portal of internet access today, thus making it a battlefield for competition. Mobile media accounts for the largest proportion of the surveyed advertisers’ investment in digital media. As social networks go mobile, especially those that use mobile terminals such as Wechat, mobile social media will undergo fierce marketing competition. In addition to mobile terminals, online television (OTV) is also growing rapidly. Advertisers said that investment in OTV had surpassed that in searches, making it the second most important digital media.

60% ADVERTISERS USE PROGRAMMATIC BUYING

Programmatic buying is becoming increasingly popular as an advertising method in recent years. It has two advantages. First, high efficiency: advertisers only need to roughly set down advertising requirements before purchase. Second, high targeting accuracy. It enables advertisers to reach the target audiences with great accuracy.

As programmatic buying matures, more than 60% of the surveyed advertisers said they were adopting programmatic buying. More than half of the surveyed media companies have already built programmatic platforms.

However, programmatic buying also has problems. Apart from some advertisers who are unwilling to try programmatic buying, even those who have tried this new way have spent little on this, with the average expenditure on programmatic buying only accounting for 25% of the total media budget. Data credibility, transparency, technology and privacy protection are all major concerns of advertisers.

What’s more, advertising effect evaluation has become a pain point of programmatic buying, particularly with regards to multi-platform advertisements. Media companies believe that the biggest challenge now is how to evaluate return on investment, especially the ROI evaluation of digital media, which is also a headache for programmatic buying.

Another challenge is the integration of different platforms: How to integrate online platforms such as PC, mobile, and online TV with offline channels, such as print, LED and cinema is an urgent problem to solve.

Generally speaking, although the wait and-see attitude is still prevailing in the market, media companies are willing to adopt programmatic buying and recommend it to customers because of its accuracy and high efficiency. As mobile programmatic buying multi-platform programmatic buying and outdoor programmatic buying matures, we can predict that advertisers are more willing to spend money on it.

ADVERTISERS PAY MORE ATTENTION TO ACCURATE MARKETING

Advertisers care a lot about the efficacy of their advertisements. More than half of the surveyed advertisers said that they monitor and evaluate most of their advertisements. With the help of big data, advertisers are paying more attention to accurate marketing and have higher requirements. Their main concern is whether the ads have reached their target audience. Almost all of them said that it was an important aspect of advertisement monitoring. “Big data should be used to dig out consumers’ preferences, personalities and consumer behaviors, categorize and specify all the information, so as to figure out consumers’ real needs rather than simply monitor internet behaviors. It is crucial to transform from ‘be relevant’ to ‘meet the needs’ and target the consumer, so as to integrate big data with advertisement launching in the future,” said Yan Xuan.

87% OF THE SURVEYED MEDIA COMPANIES ARE OPTIMISTIC ABOUT THEIR FUTURE PROSPECTS

More than half of the surveyed media companies said that their performance in 2015 surpassed their expectation and are thus optimistic about the development of the industry. About 80% of the media companies are confident they will grow over the next one to two years. Their current clients are in the fast moving consumer goods (FMCG) industry (77%), followed by clients from automobile (61%) and IT digital industry (29%). They think that the major industries for their business are still FMCG and auto, but have an eye on the internet industry for the future.

Though industrial design companies’ performance didn’t surpass expectations last year, with the government’s promotion of intelligence and the Internet of Things, industrial design companies are still optimistic about their future prospects, expecting growth in the following one to two years.

Currently, most of surveyed companies (70%) focus on industrial design. But the companies surveyed reported that they were searching for future business opportunities through the integration and expansion of existing resources to develop new business. Non-industrial- design work will increase from 30% of the business to about 40%, according to Nielsen estimates. 67% of them believe that the future of industrial design lies in other kinds of design such as communication, visual and interactive experience etc.