Only 26% of marketers are fully confident in their audience data

Marketers have spoken: Building brand awareness is their top priority for 2022. To help them achieve their goals amid media fragmentation, Fifth Annual Global Nielsen Marketing Report interviewed global marketers about new marketing channels and associated spend, the effectiveness of martech technology, the importance of brand promise, and more.

The 1,942 marketers surveyed by Nielsen between Dec. 2, 2021 and Jan. 12, 2022 were at the executive level or above, working with annual marketing budgets of $1 million or more in automotive, financial services, fast moving consumer goods, technology, healthcare and pharmaceuticals. categories.

First, it’s important to write down the most important marketer goals for the next year. From most important to least important, Nielsen found that they prioritized:

  1. Brand awareness
  2. Customer’s purchase
  3. Loyalty of the clientele
  4. Customer awareness
  5. competitor conqueror
  6. Churn reduction

Marketing accounts for 10-35% of a brand’s equity, according to Nielsen. As consumers shop less in-store, the online shelf grows, and supply chain disruptions drive shoppers to try new brands, the growing reach and usefulness of digital channels cannot be compromised. .

As many as 64% of marketers globally say social media is their most effective paid channel and many plan to increase their social media budgets more than any other channel over the next year. Twenty-two percent of North American marketers, 21% of Latin American marketers, and 20% of Asia-Pacific marketers said they plan to increase their social media spend 50% or more.

Despite planned spending on social media, marketers told Nielsen they aren’t prioritizing engagement with Gen Z as a key business priority, even though their top increases are focused on platforms. social networks like TikTok and Instagram.

Marketers also plan to increase their ad spend on linear TV and traditional radio much less than on social media, where the overall increase is 53% among global marketers.

Forty-seven percent of marketers said they were very or extremely confident in the effectiveness of linear TV and outdoor advertising (OOH), respectively. Meanwhile, 46% said they were extremely or very confident about direct mail, 43% said the same about print and film, respectively, and 41% about radio.

While 61% of marketers said they were confident in their ability to measure the impact of building a brand, their projected limited increases in ad spend on traditional mass media channels highlight a potential disconnect between key business objectives and marketing tactics. This also highlights marketers’ lower level of confidence in the effectiveness of traditional channels compared to digital channels.

After social media (64%), marketers said their most effective paid digital channels are:

  • Online/mobile video (58%)
  • Research (58%)
  • Online/mobile (58%)
  • Email (51%)
  • Streaming Audio (48%)
  • OTT TV/CTV (49%)
  • Native advertising (47%)
  • Podcasts (44%)

After brand awareness (66%), the most important marketing metrics for respondents are:

  • Mobilization (63%)
  • Visibility (61%)
  • Marketing mix modeling (61%)
  • Complete media ROI (61%)
  • Multi-touch sales/attribution (60%)
  • Unduplicated reach and frequency (57%)

In addition to relying on the massive reach capabilities of digital channels, marketers must ensure that their cross-platform measurement is not siloed. Among paid digital channels, global marketers surveyed are the most confident in their ability to measure return on investment (ROI) on social media (64% are extremely or very confident, which equates to their perceived channel effectiveness ).

Marketers said they were the most confident in measuring social media ROI, but overall confidence in the measurement is only 64%. Confidence in measuring social media ROI is much higher in Latin America (86%) and significantly lower in Asia-Pacific (55%), while North America hits 59% (behind research paid at 60%). Despite predicted increases on social media over the next year, global marketers’ confidence in measuring their return on investment, outside of Latin America, is low.

Lack of trust in these preferred channels to prove ROI gives martech vendors a chance to help brands improve execution and results. Perhaps most important, as Nielsen notes, is global marketers’ lack of confidence in measuring ROI on other paid and traditional channels.

As marketers lean into new channels, they have expressed low confidence in their ability to prove ROI. Nearly half (49%) of global marketers, for example, said they plan to increase their spending on podcasts over the next year, with 11% predicting increases of more than 50%. Yet their confidence in measuring the ROI of this investment is quite low: only 44% are extremely or very confident.

Still, marketers shouldn’t overlook this growing media channel. Nielsen’s Podcast Ad Effectiveness (PAE) solutions show that ads read by the host generate a 71% brand recall rate, which creates high levels of consumer interest, purchase intent and of recommendation.

Globally, 65% of marketers believe that new formats such as podcasts, brand integrations and sponsorships are extremely important for marketing strategies. This sentiment is lower in Asia Pacific (59%) and EMEA (58%), but higher in North America (71%) and Latin America (73%), Nielsen found.

CTV has become an increasingly important focus for global marketers, with 51% planning to increase their over-the-top/CTV spend in the coming year. In North America, the percentage is 61%, matching the more than 15 million years of video content Americans streamed last year.

Only 26% of global marketers are fully confident in their audience data. This data insecurity aside, marketers agree that data is critical. Sixty-nine percent believe first-party data is important to their strategies and campaigns, and 72% believe they have access to quality data to maximize the impact of their media budgets (61% in the region EMEA and 78% in North America).

Most of the marketers surveyed also struggle with pieces of audience data. Globally, 36% say accessing data, resolving identity, and extracting actionable insights from data is extremely or very difficult. Marketers from North America and Asia-Pacific claim to have the lowest difficulty levels. To deliver more personalized and relevant experiences, Nielsen suggests marketers combine contextual and behavioral data for targeting.

In addition to amplifying brand exposure and engagement with new audiences, influencer marketing ranks high among global consumers as a trusted marketing channel, as cited by 71%. More than influencers, consumers trust recommendations from people they know (89%), brand websites (84%), TV ads (78%) and TV program product placements (74%).

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