STUDY: Engagement and Attention KPIs are Most Likely to be Protected from the Negative Effects of ID Loss

Survey of 400 U.S. marketers examines the performance risks of KPIs as device identifiers disappear

San Mateo, CA, Dec. 1, 2022 — Today, Emodo, the intelligent exchange creating more memorable connections through personal, relevant, and rewarding advertising experiences, released brand new data findings from its Voice of the Marketer Research Series, which sourced marketers’ perspectives on Key Performance Indicator (KPI) metrics as cookies and IDs disappear.

These findings are part of a three-part study, which has focused on how a loss of addressable scale alters campaign outcomes, the role creative can play in mitigating the impact of ID loss and now the effect on individual KPIs due to the decline in advertising IDs. The study, conducted by Emodo’s research arm, Emodo Institute, polled 400 pre-qualified programmatic marketers across the U.S.

This particular report highlights brand categories at the highest risk of having their KPI priorities severely impacted, the types of creative formats marketers are utilizing to achieve each KPI, the effect of ID changes on agencies vs. in-house agencies, the at-risk KPIs marketers have already seen affected by ID loss and more.

“Many marketers are starting to grasp the significance of ID loss, but much of the focus tends to be on targeting,” said Megan Saunders, SVP of Global Marketing and Growth at Emodo. “The impact on measurement is potentially even more severe, but that element is not as widely understood. Advertisers need to rethink the way they evaluate the success of their campaigns.”

Key findings include:

  • Brand Safety is a big target for impact due to ID loss

Marketers prioritizing brand safety are extremely likely to be experiencing the impacts of ID changes in terms of campaign effectiveness, despite brand safety itself not being dependent on IDs. Marketers are 7x more likely to say they are experiencing reduced campaign effectiveness due to ID loss when a primary KPI is brand safety. In particular, 88% of brand direct marketers with in-house agencies who rely on brand safety say they are experiencing ID-related changes in the effectiveness of their campaigns.

The research found Retail, Financial Services, Healthcare and Pharmaceutical marketers are the most likely to depend on Brand Safety as a KPI.

  • Marketers that rely on upper-funnel KPIs like reach report that their campaigns are affected less by ID loss 

Less than a third (32%) of marketers measuring performance by reach say they are experiencing a change in campaign effectiveness due to ID loss. In particular, the vast majority (71%) of agency marketers who rely on reach say they are not experiencing changes in effectiveness. That said, ID loss does have a significant impact on reach, and the report goes into detail on how marketers may not realize how reach may be losing its accuracy as a KPI metric. B2B, Consumer Electronics and CPG marketers are most likely to depend on reach as a KPI.

  • Engagement and Attention KPIs may be protected from ID loss 

Engagement and attention don’t require an ID to measure, so marketers depending on these two KPIs are at an advantage. Over 60% of agency marketers who rely on either engagement or attention, or both, say they are not experiencing any ID-related changes in the effectiveness of campaigns. Engagement is a core KPI for CPG, Healthcare and Pharmaceutical and B2B marketers. Brand categories focused on attention as a core KPI include Telecom, Entertainment and QSR/Restaurant. The top creative formats of advertisers using Engagement and Attention as KPIs include Immersive Ads and Video.

  • Brand Lift and Online Conversions – both at risk due to ID loss

Nearly 80% of brand marketers who rely on Brand Lift say they are experiencing ID-related changes in the effectiveness of their campaigns. As surveys require recontacting exposed users, which can only be accomplished through double opt-in, marketers who rely on this KPI are highly likely to lose measurability and trustworthiness of data. Online Conversions have the same issue, as the conversion needs to be matched back to the ad exposure. Retail marketers are especially prone, followed by QSR/Restaurant and Financial Services marketers.

“As IDs continue to wane, ID-based measurement will become even less accurate, and thus less actionable, or even worse, more misleading,” Saunders said. “Our research series has shown that marketers are wise to adopt emerging creative formats like augmented reality and dynamic native ads, such as Emodo Adapt, which work at multiple stages of the marketing funnel. These memorable ads grab attention and engage the consumer, driving improvement in future-proofed KPIs.”

For full report, visit the link here.

 

About Emodo 

Emodo helps advertisers and publishers create memorable connections with consumers through more relevant, rewarding and impactful advertising. Its intelligent exchange puts creative first, enabling advertisers to build brand love through rich, dynamic advertising experiences informed by the latest AI and a deep understanding of consumer sentiment. Emodo Adapt, an exclusive advanced native ad format, outperforms alternative programmatic solutions through a better approach to contextual relevance, creative personalization and KPI optimization. As an Ericsson company, Emodo benefits from a wide range of research, innovation, and access to mobile operators that helps it deliver better outcomes to clients and make the unimaginable possible.

Emodo is a wholly owned subsidiary of Ericsson, which enables communications service providers and enterprises to capture the full value of connectivity. It is designed to help customers go digital, increase efficiency and find new revenue streams. Ericsson’s innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. To learn more, visit www.emodoinc.com

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