Facebook and Google to gain most as precision marketing catches on, says Nielsen report

The duopoly of Facebook and Google are likely to claim a lion’s share of Asia-Pacific spends on precision marketing, according to a recent report from Nielsen.

Precision marketing currently accounts for around 14% of marketing budgets but is likely to go up to 19% over the next 12 months, the report which surveyed 81 marketing leaders across the Asia-Pacific region revealed.

Also known as one-to-one marketing, precision marketing involves creating personalised messaging for consumers at the most relevant times along their path to purchase.

When asked to pick five areas in the precision marketing space where companies were likely to invest heavily in the next 12 months, 60% of those surveyed picked Facebook and Instagram, with 43% choosing Google and YouTube and 42% choosing mobile.

Other social media, Amazon, OTT video platforms and voice languished at the bottom of the list, picked by only 11%, 9%, 7% and 2% of respondents.

To make precision marketing work, according to the Nielsen report, 65% of marketers wanted ‘better quality and reliability of data’ and 53% wanted ‘clearer and consistent ROI demonstration’. Significantly enough, nearly half the respondents at 48% wanted a ‘deeper understanding across constituents of what precision marketing can and and cannot do’.    

Nielsen pointed to data management platforms (DMPs) as being a great enabler for precision marketing. But this was also an area where a vast knowledge gap existed. The report said: “In the Asia Pacific region, the DMP opportunity still has a long way to go.

“Only in the last three to five years have some of the more progressive advertisers experimented with this technology, many in part due to their experiences in Western markets.

“While advertisers find the technology to be critical to the success of precision marketing in the region, only some acknowledge that they fully understand it, few believe DMPs work, and even fewer are currently invested in this space.”

Nielsen pointed to the “absence of a digital expert ecosystem, unreliable, inadequate, or expensive data and limited success stories” as reasons for poor adoption of DMPs.

The full report can be found here.


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