Google and Ipsos conducted a study together to understand how businesses can better personalise ads according to consumer interest.
Demographics have always been a crucial element in digital advertising. But, the study found creating video ads based on customer intent have a significantly higher impact than advertising based on demographics. Moreover, creating advertisements that directly appeal to a shopper’s interest and intent drives brand lift and sales.
YouTube ads served in alignment with shopper intent created a 32% higher lift in ad recall and 100% higher lift in purchase intent, as opposed to ads served using demographics only. Interestingly, the addition of demographics to intent did not create a significant incremental lift compared to using intent alone.
Similarly, viewers skipped less when YouTube ads were served based on their intent. Intent-based ads were also watched longer than ads based on demographics.
[3 minute read]