Digital Advertising 2020
Insights into a new era of advertising and media buying
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Introduction
Technology Unites Advertisers and Marketers in Creating Personalized Experiences
Consumers and business buyers receive more messages, through more channels, than ever before. Cutting through the noise requires advertisers to deliver hyperpersonalized messages that resonate at the individual level. Now, advertising is undergoing a transformation -- the biggest revolution since the launch of digital ads in the 1990s -- driven by data. To effectively reach audiences and interact with them in a smarter, 1-to-1 manner, advertisers must connect and make sense of a myriad of data sources. Of course, of achieving this requires a shift in dynamics; advertising and marketing can't live in vacuums. Technology can't be an afterthought. The winners in this new era will coalesce the right teams and technologies to harness data, more precisely track their efforts, and measure progress to evolve their strategies at the pace of the consumer. Dominant channels -- and thus budgets -- are shifting, too. Increasingly, advertisers will rely on major platforms under the Google and Facebook umbrellas to deliver their messages. And success isn't measured only by clicks and impressions, but also lifetime customer value. Based on a global survey of 900 advertising leaders across North America, Europe, and the Asia-Pacific region, this research illustrates new priorities, strategies, and tactics that signify the dawn of a new era in advertising. 01. 02. 03. 04. 05. 06. 07. Advertising and Marketing Are Converging Data Lots of Data Is Advertising's North Star Facebook and Google Dominate as Video Rises in Importance New Metrics Signal Success in a Data-Driven World Last Look: New Tech Means New Ad Space Appendix Methodology 3 5 10 12 14 15 18
Salesforce Research
Digital Advertising 2020 / 2 Digital Advertising 2020/
01. Advertising and Marketing Are Converging
Advertising is breaking free from its silo after being an autonomous part of companies for many years.
ADVERTISING AND MARKETING TEAMS' SHARED ACTIVITIES
Percentage of advertisers whose advertising and marketing teams do the following
Currently do Plan to do
the majority of advertising and marketing organizations now share common budgets and use the same team to send emails and to build ad campaigns.
North American teams lead the pack in this evolution, but advertisers across the globe are poised to catch up. Only a small minority of global advertising teams lack plans to integrate themselves within the broader marketing organization.
TOTAL
Share brand and/or creative teams Collaborate on the evaluation and purchase of technology 62% 31%
61%
32%
Share a common budget
59%
31%
Build budgets together in a single process Report to a single departmental head responsible for sending email campaigns and purchasing media
58%
35%
57%
34%
NORTH AMERICA
Share brand and/or creative teams 73% Collaborate on the evaluation and purchase of technology 21%
ASIA-PACIFIC
60% 34%
EUROPE
53% 38%
74%
20%
59%
37%
51%
40%
Share a common budget Build budgets together in a single process Report to a single departmental head responsible for sending email campaigns and purchasing media
65%
22%
56%
40%
55%
31%
66%
27%
54%
41%
52%
36%
66%
25%
56%
40%
51%
37%
Salesforce Research
Digital Advertising 2020 / 3
01. Advertising and Marketing Are Converging
Many advertisers are relying less on agencies to do the work; instead they're orchestrating their own creative design and campaign plans inhouse. This trend is possibly due to a desire among teams to gain control over their digital advertising, while also fostering alignment with the rest of their marketing. At least half of companies rely entirely on internal staff to optimize ad spend across any given digital channel.
Facebook and Instagram
DIGITAL AD CAMPAIGN MANAGEMENT
Distribution of responsibility for various types of advertising between internal employees and outside agencies
Employees of our company An outside agency Mix of company employees and outside agencies
TOTAL
59% 18% 21%
59% 57%
rely entirely on internal staff to optimize ad spend for Facebook and Instagram. rely entirely on internal staff to optimize ad spend for Google Search.
Google Search
57%
23%
20%
YouTube and other video
52%
19%
22%
Display
50%
23%
24%
Around one-fifth to one-quarter of companies choose to blend advertising efforts between employees and outside agencies. The appeal of greater control is clear enough, but cost and efficiency may factor in, too. While some companies may prefer to save money by orchestrating advertising in-house, others are highly resourced companies that choose to staff their own top-tier in-house team to foster better alignment with marketing.
NORTH AMERICA
Facebook and Instagram 56% 12% 28%
ASIA-PACIFIC
59% 22% 18%
EUROPE
62% 19% 16%
Google Search YouTube and other video
53%
21%
25%
62%
22%
16%
55%
25%
18%
46%
15%
31%
59%
20%
18%
53%
23%
18%
Display
49%
17%
29%
55%
27%
16%
46%
24%
25%
Salesforce Research
Digital Advertising 2020 / 4
02. Data -- Lots of Data -- Is Advertising's North Star
The number of data sources available to inform digital advertising continues to grow. Yet, each contributes to a single objective: targeting the right audience, with the right message, at the right time.
Last fiscal year Current fiscal year Planned or continued use next fiscal year
DATA TYPES USED FOR DIGITAL ADVERTISING
Percentage of advertisers using the following types of data
There are three primary categories of data available: customer relationship management (CRM) data, online data, and demographic data. The vast majority of advertisers use all three categories, and the number of individual data sources advertisers use is on the rise.
(email addresses, phone numbers, or other CRM-based data) 92% 94% 92%
CRM-BASED DATA
Last year, advertisers used an average of 5.4 data sources, and next year they're planning to use an average of 6.2.
(first-party anonymous, second-party, or third-party) 85% 90% 89%
ONLINE DATA
(personal, location info, or interests) 92% 95% 93%
DEMOGRAPHIC DATA
Salesforce Research
Digital Advertising 2020 / 5
02. Data -- Lots of Data -- Is Advertising's North Star
94% of advertisers now use CRM data -- such as email addresses, phone numbers, and other brand interactions -- to Target advertising.
As platforms -- including Google and Facebook -- have made it easier to use known customer data to target advertising, more companies are using CRM-based data beyond email addresses and phone numbers. The percentage of companies targeting based on CRM data such as purchase transactions, postal address, and customer service information will rise from 56% last year to an estimated 69% next year.
CRM DATA USAGE
Percentage of advertisers using or planning to use CRM-based data to target digital ads
Last fiscal year Current fiscal year Planned or continued use next fiscal year
ANTICIPATED TWO-YEAR GROWTH*
CRM-BASED DATA
(email addresses, phone numbers, or other CRM-based data) 92% 94% 92%
0% +2% +5% +23%
+27%
projected growth in the use of other CRM data beyond email addresses and phone numbers is particularly strong in North America.
Email addresses 75% 76% 76% Phone numbers 61% 66% 64% Other CRM-based data other than email addresses and phone numbers (transactions, postal address, customer service information, etc.) 56% 68% 69%
* Anticipated two-year growth is calculated using the difference of planned or continued use next