Personalization Delivers 3X Consumer Engagement With Digital Advertising, Says New Jivox Study

2016 Jivox Benchmark Report quantifies – for first time ever – tremendous power of personalization to supercharge performance of online ad campaigns

SAN MATEO, Calif. – Digital marketing platform leader Jivox released findings from its 2016 Jivox Benchmark Report, the first study to quantifiably measure the impact of personalization on digital advertising performance. The study’s findings proved, without a doubt, that consumer engagement skyrockets when ads are personalized, yielding on average 3X the performance of standard display ads.

“Personalization has fundamentally changed how marketers engage with customers, and is shifting the very foundation of the digital advertising market”

Personalized online marketing, or one-to-one marketing, draws from vast amounts of available data and enables brands to communicate directly to individual consumers in more relevant, meaningful and engaging interactions. Viewed as the future of marketing, personalization has become the number-one priority for CMOs seeking to drive significant business growth through marketing.

“Personalization has fundamentally changed how marketers engage with customers, and is shifting the very foundation of the digital advertising market,” said Diaz Nesamoney, CEO of Jivox. “By replacing the industry’s traditional cost-per-thousand insertion model with an ‘always on’ paradigm, personalized ads offer brands significantly higher – and more predictable – revenue streams. This is a game-changing innovation for the industry with immense power to drive a business at scale.”

The 2016 Jivox Benchmark Report examined more than one billion personalized ad impressions from 24 real-world ad campaigns, conducted by brands across six industries and delivered within 10 major global markets. Specifically, the study sought to quantitatively measure the impact on performance of ad campaigns delivered using real-time data signals, or triggers, in combination with first-party, audience and contextual data.

Campaign performance was measured against three Key Performance Indicators (KPIs) – Click Through Rate (CTR), Interaction Rate (IR) and Average Dwell Time (ADT) – and compared to Google’s display ad benchmark for rich media, the industry standard for measuring online ad performance.

Key Findings

The study revealed enormous growth in consumer engagement when ads were personalized, yielding on average 3X performance gains over standard display ads:

  • Click Through Rate. A commonly used measurement of ad performance, Click Through Rate (CTR) determines how often individuals who see an ad end up actually clicking on it. On average, the personalized digital ads from Jivox’s study delivered a CTR that was 230% higher than (or 3.3X) the Google display ad benchmark for rich media creative.
  • Interaction Rate. Also known as Engagement Rate, the Interaction Rate (IR) measures the level of interaction while users are viewing an ad impression. The personalized ads from Jivox’s study achieved an IR that is 84% higher than (or 1.8X) the Google display ad benchmark for rich media creative.
  • Average Dwell Time. By calculating the length of time individuals engage with an ad, Average Dwell Time (ADT) measures how successfully that ad captured user attention. A significant measurement, ADT directly correlates with an ad’s conversion rate, or its ability to achieve a desired user action. On average, the personalized digital ads from Jivox’s study achieved an ADT that is 28% higher than (or 1.3X) the Google display ad benchmark for rich media creative.

“The numbers are staggering, and offer hard evidence of what up to now has been conventional wisdom among marketers: personalization drives massive performance gains in digital advertising,” said Nesamoney. “Personalized marketing certainly isn’t a new idea. But we believe brands are just on the cusp of realizing its promise with the recent emergence of modern data-driven ad technology platforms and the unprecedented availability of data to power campaigns. This is truly a new paradigm in marketing.”

The Jivox report also examined six popular data “triggers” used for personalizing digital ads – Weather, Demographics, Retargeting, Geography, Language and Time – and analyzed their impact on overall ad performance. Additionally, the study revealed how data triggers impacted ad performance differently within specific vertical industries.

To download the complete 2016 Jivox Benchmark Report, please visit http://bit.ly/2aBTh8V. Member of the Interactive Advertising Bureau (IAB) can also download this study at http://bit.ly/2aGtrGU.

About Jivox

Jivox enables the world’s top brands to deliver highly personalized digital marketing experiences. The company’s flagship Jivox IQ™ is the industry’s first platform designed to deliver dynamic ads at scale for programmatic media across all formats and screens.

With its unique ability to integrate first-party, audience and contextual data, the Jivox IQ platform creates personalized digital ads in real time – customized to the individual – by dynamically generating thousands of creative and messaging variations at scale.

Several hundred leading companies today use Jivox, including Bayer, Bose, Condé Nast, Toyota, Johnson & Johnson, REI, Sony, Starcom Mediavest, Time Warner Cable and Universal McCann.