Advertisers have access to more sophisticated tools to help them optimize their campaigns, amid challenges such as privacy regulations and the loss of online tracking methods like third-party cookies. Measuring the effectiveness of advertising includes more key performance indicators (KPIs) like customer lifetime value, conversions and return on investment.
“We’re looking more at first-party data to ensure we’re prepared as we can be, as it relates to this cookieless future that is on the horizon,” Jennifer Kohl, senior vice president and executive director of integrated media at WPP’s VMLY&R, said in this interview with Beet.TV. “We’re chasing quality engagements for our clients to the best extent possible.”
AI Tools for Targeting
Marketers and their agencies are adopting more advanced technologies like artificial intelligence (AI) to analyze vast amounts of data and automate some decisions about media placements more quickly. Those adjustments are possible while ad campaigns are in flight.
“AI can help in real-time optimization and predictive models, helping to drive positive outcomes that we’re working for,” Kohl said. “We have had success with partners like a LoopMe that specialize in AI real-time optimization, and we continue to explore other AI partners.”
Streaming Video’s Growing Role
As consumers spend more time with connected TV (CTV) and over-the-top (OTT) video services, advertisers are shifting media budgets to reach them on a wider variety of devices including smart TVs and mobile phones. Awareness campaigns aimed at the top of the purchase funnel have an effect on lower-funnel activity like conversions and sales.
“When we incorporate things like CTV or OTT into our media plans, the role is very similar to linear. It’s higher-level, awareness-generating role,” Kohl said. “What we know directionally, though, is when we put these higher-funnel media channels into the mix that are a little bit more awareness-focused, we do see a good, positive impact on lower-funnel tactics.”
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