The Rise of 2nd-Party Data; Europeans Hooked on Email
by Hugh Williams on 6th Oct 2016 in News
ExchangeWire Research’s weekly roundup brings you up-to-date research findings from around the world, with additional insight provided by Rebecca Muir, head of research and analysis, ExchangeWire. In this week’s edition: The rise of second-party data; Europeans hooked on email; The power of placement; Disparities in digital.
The rise of second-party data
Nearly 85% of retailers and brands will have second-party data integrated into their overall marketing strategy within 12 months, finds new research by Forrester and OwnerIQ. Of those who already use second-party data, almost all (96%) say the tactic is either "valuable" or "very valuable" to their overall marketing strategy.
The use of second party-data within programmatic will rise over the next five years. At present, second-party data stands at 24% of the data market, behind first-party data (41%) but ahead of third-party data (22%). As the amount of second-party data usage increases, the need for third-party data is expected to decrease accordingly. Over the next five years, third-party data is expected to fall to 19%, and second-party data is predicted to grow to 29%.
However, challenges around data transparency, data security, audience duplication, and incompatible platforms will limit adoption, the study finds. The industry will need to find ways to regulate partnerships to overcome these barriers.
The research suggests over two-thirds (69%) of marketers will adopt a second-party data strategy because they want better consumer insights. Almost the same proportion (68%) believe this will give them a competitive advantage, while 35% think third-party data lacks transparency.
Europeans hooked on email
Some Europeans spend almost 100 days every year using email, according to a new study by Adobe. While the French lead the way on 99 days, Brits are not far behind on 90 days, with Germans on 62.
However, despite this trend, marketers need to be careful when engaging with consumers by email. Nearly half (46%) of respondents cite the frequency of emails from brands as the biggest turn-off, followed by poorly-written messages (29%) and offers based on clearly inaccurate profile data (22%).
While emojis are now commonplace in consumers’ communications – 73% use them in personal emails, and 33% in the workplace – brands however, should exercise caution. Nearly three-quarters (72%) of office workers find emojis to be ineffective or only slightly effective in getting them to read an email offer.
Although email is the preferred contact method available to marketers – with 58% of Europeans naming it their preferred way to hear from brands – its popularity is declining (from 63% last year to 58% this year). The best time to to email consumers is in the evening. Two-thirds of respondents check emails when watching TV, while 53% read them in bed.
The power of placement
Ad placement, not ad size, is the key to increased visibility, according to Integral Ad Science’s Media Quality Report. Skyscraper ads (160x600px) were found to be the format with highest viewability (67% in view). Followed by double MPUs (300x600px) (61.2% in view). Billboard ads (970x250px), one of the IAB’s Rising Star formats, is third, with exactly 60% in view. This data shows viewability rates do not rise in correlation with ad size.
Display ad impressions bought through programmatic channels have viewability rates of 57%, while those directly purchased from a publisher had 62%. Ad fraud risk came in at 3% for programmatic and 3% for direct. Brand safety risk came in at 8% for programmatic and 7% for direct (H1 2016).
The research finds global viewability of video advertising is more than double when trading direct with publishers (65%), compared to trading programmatically (32%).
Workplace disparities in digital
The average woman working in digital marketing earns £5,000 less than a man in the industry, according to Greenlight Digital’s The 41 Hour Report. This equates to a 10% divide, with men taking home £48,025 per annum, compared to a woman’s average annual salary of £43,864. Bonuses were not split evenly either. Of the 47% who received bonuses, 54% were men and 35% women.
The study also finds 89% of digital marketers work full-time, with the average digital marketer working 41 hours per week, despite being contracted to work just 33. Despite this, 84% of marketers enjoy their role, with 31% feeling recognised for their role within the wider company.
There are, however, common negatives surrounding working in the industry. Over half (56%) say they find it difficult to secure the budget they need, and 32% struggle to prove ROI to their bosses. Nearly a third (30%) of those feeling negative about their role, blame the lack of tools available to them for their dissatisfaction.
Follow ExchangeWire