{"id":4941,"date":"2023-05-22T01:01:37","date_gmt":"2023-05-22T05:01:37","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2023\/05\/22\/why-advertisers-cant-reach-70-of-their-audiences\/"},"modified":"2023-05-22T01:01:37","modified_gmt":"2023-05-22T05:01:37","slug":"why-advertisers-cant-reach-70-of-their-audiences","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/why-advertisers-cant-reach-70-of-their-audiences\/4941\/","title":{"rendered":"Why Advertisers Can&#8217;t Reach 70% of Their Audiences"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Ned Jones, Head of Advertiser Customer Success at <a href=\"https:\/\/permutive.com\/\">Permutive<\/a><\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Consumers have more control over how they share their data than ever before. Privacy laws, browsing in cookie-blocked environments, hitting the \u201creject all&#8221; third-party cookies button, or disabling cookies at the browser level all signal that consumers have power over their data privacy. When given a choice, consumers say no to sharing data with third parties for advertising.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The result is that only <a href=\"https:\/\/www.exchangewire.com\/blog\/2022\/08\/12\/the-madtech-sketch-chromes-insane-addressability-problem\/\">30%<\/a> of the open web remains reachable to programmatic advertising today, creating a hidden web. The question arises: How can advertisers reach their total audiences while respecting the privacy choices of consumers?<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Uncovering hidden audiences<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">One of the largest sources of hidden audiences in the UK and US is Safari. In the UK, <a href=\"https:\/\/gs.statcounter.com\/browser-market-share\/all\/united-kingdom\/#monthly-202201-202212\">one-third of consumers<\/a> are browsing in Safari, and just <a href=\"https:\/\/gs.statcounter.com\/browser-market-share\/all\/united-states-of-america\/#monthly-202201-202212\">over a third<\/a> are doing so in the US. When consumers use Safari and other cookie-blocked platforms, advertisers lose the ability to target these audiences with advertising that relies on third-party cookies.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">However, publishers have access to robust first-party data that encompasses behavioural, contextual, and declared signals from their audiences, enabling them to address 100% of audiences within Safari \u2013 and beyond. These publishers are a rich data source for advertisers and can offer an alternative to only reaching 30% of audiences.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">A global beverage CPG brand, for example, course-corrected over-indexing in Chrome to reach double the audience that was previously hidden in Safari, helping solve their addressability problems. The campaign delivered 2.1x the number of impressions served in Safari vs Chrome, resulting in a 21% lower CPC and a 123% higher CTR compared to the benchmarks.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Platforms built on first-party, non-personally identifiable, consented data exist today, but it\u2019s up to advertisers to build direct relationships with publishers who own the audience data.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Publishers are guardians of consumer data <\/strong><\/h2>\n<p class=\"wp-block-paragraph\">The close proximity that publishers have to their audiences is transforming digital advertising. Premium publishers are in a strong position to gain consumer consent, and operate first-party data-rich environments.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Publishers are streamlining their supply chain to help boost opt-in rates and promote consumer safety by investing in adtech that is regulatory compliant and offers a privacy-led solution for when consumer consent isn\u2019t present. Publishers know the types of content their audiences engage with online, what consumers\u2019 interests are, and the behaviours displayed by visitors to their sites \u2013 all of which can\u2019t be found anywhere else.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">This is invaluable to advertisers, helping them to continue reaching consumers with relevant content, even as addressability shrinks. Importantly, publishers\u2019 rich audience data enables advertisers to reach high-value audiences with targeted messaging, without infringing on their privacy.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Advertisers working in a more direct manner with publishers see the benefits of first-party data. For example, Penske Media Corporation\u2019s first-party audience data allowed their advertisers to realise a 5x increase in performance (CTR) in campaigns that used only first-party data and drove 5X more efficient CPA for a clothing retailer when compared to using the brand\u2019s first-party data.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Building stronger relationships<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Advertisers can\u2019t rely solely on their own first-party data, but they can scale their efforts by combining that first-party data with the cohorts and deeper insights that publishers have available. Using a combination of these data points, in a fully privacy-compliant way, advertisers can serve the ads that people are interested in seeing, in the moment.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The shift toward respecting consumers\u2019 choice over how their data is used creates an ecosystem that acts responsibly to rebuild consumer trust, as it\u2019s no longer using third-party data to target people everywhere they go online. As a result, supply chain transparency increases, with publishers having 100% visibility on where their data is being used, and advertisers being able to see where their spend is going.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Consumers are rewriting the rules of digital advertising. It\u2019s not just about the deprecation of third-party cookies or regulatory pressure. The most important part of the next phase of digital advertising will be consumer choice. Finding a sustainable, cost-effective way of reaching consumers, combined with closer relationships between advertisers and publishers, is where it all begins.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finding a sustainable, cost-effective way of reaching consumers, combined with closer relationships between advertisers and publishers, is where it all begins.<\/p>\n","protected":false},"author":7,"featured_media":4942,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[3],"topics":[2],"class_list":["post-4941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-brands-marketers","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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