Survey of 290 corporate advertising managers on the current state of usage of user behavior analysis using cookies, etc., 2020 edition

The number of people who feel that user behavior analysis using cookies etc. is insufficient has more than doubled since 2018

XICA Corporation (Headquarters: Chiyoda-ku, Tokyo; CEO: Yoshiaki Hirao; hereinafter, XICA) has conducted the 24th installment of its original advertising survey and research report, the "2020 Survey on the Actual Usage of User Behavior Analysis Using Cookies, etc." and is pleased to announce the results.

This report is the 2018 edition of the survey, which we have been conducting regularly since 2020, and summarizes the changes occurring in the marketing field for companies by comparing it with the results of past surveys.

* Please refer to the following URL for the survey results up to last year.

• 2018 Year Edition
  https://xica.net/magellan/column/website-visitor-tracking/
• 2019 Year Edition
  https://xica.net/magellan/column/website-visitor-tracking-2019/

Background of this survey

Since its inception in 1996, internet advertising(*1) has spread rapidly, and when comparing 1998 with 2018, the proportion of internet advertising in domestic advertising expenditures has grown from 20% to 0.3% over the past 39.4 years.

As the Internet advertising market expands, the variety of advertising media has increased dramatically, and as companies' advertising strategies become more complex, technology for measuring the effectiveness of placed advertisements has also advanced.

Among these, the method of identifying and tracking individuals using online identifiers such as cookies has become particularly widespread and developed as a method of measuring the effectiveness of Internet advertising.However, in recent years, the environment surrounding effectiveness measurement methods using online identifiers such as cookies has been changing significantly, due to the growing need for integrated analysis including offline advertising(*2)(*3) and the global trend toward strengthening regulations on personal information protection.

In light of this situation, we conducted a survey of 290 advertising and promotion personnel in Japan to find out what changes have occurred in the actual use of and issues with advertising effectiveness measurement methods using cookies and other methods in corporate marketing.

Survey results summary

• The percentage of advertising and promotion professionals who regularly analyze user behavior using cookies and other methods remained almost unchanged from the previous year in the 2019 survey, but this year's survey showed a 2019% decrease from 10.5.
• The number of people who feel a strong lack of user behavior analysis using cookies, etc. has more than doubled since the start of the survey in 2018.
• As for the reason why they felt there was a shortage, the most common answer was "Because the scope in which the effects can be measured is limited, there are some measures whose effects cannot be measured," just like in last year's survey.

Summary of survey results

1. The number of people who regularly analyze user behavior using cookies, etc. is decreasing

We surveyed 290 advertising managers to find out to what extent they use user behavior analysis using cookies and other methods to measure the effectiveness of their advertising, with the following results.

The percentage of people who regularly conduct user behavior analysis using cookies or other methods to measure advertising effectiveness, including those who answered that they "always" or "often" conducted such analysis, remained almost unchanged from the previous year in 2019 (down 0.7%), but this year's survey showed a decrease of 2019% compared to 10.5.

2018. The number of people who feel that user behavior analysis using cookies etc. is insufficient has more than doubled since 2

We surveyed 237 advertising and promotion managers who answered in the previous question that they conduct user behavior analysis using cookies, etc. to find out to what extent they are able to measure advertising effectiveness using user behavior analysis using cookies, etc., and obtained the following results.

The percentage of people who feel that there is a strong lack of user behavior analysis using cookies etc., including those who "cannot measure at all" and "cannot say that it is being measured very well", has increased for three consecutive years since the survey began in 2018, more than doubling from 3% in 2018 to 11.4% in this year's survey.

The increase in the proportion of people feeling a shortage is likely due to the revised Personal Information Protection Act being promulgated in June 2020, which has led to growing efforts both domestically and internationally to strengthen regulations regarding personal information protection.

3. As in the previous year, the largest number of respondents felt that the "scope of effect measurement is limited" was lacking

We surveyed the 167 advertising and promotion personnel who answered in the previous question that they felt that their user behavior analysis using cookies and other methods was lacking in their analysis, and found the following reasons why they felt this way.

As in last year, the top answer given regarding user behavior analysis using cookies etc. was "the scope in which the effectiveness can be measured is limited, so there are some measures whose effectiveness cannot be measured"

It is believed that this is due to the growing need in recent years for methods to comprehensively analyze the effectiveness of online and offline advertising and to optimize marketing strategies overall.

The results of this survey, including responses from 4th place and below, are as follows.

Survey overview

*The names and logos of XICA and XICA ADVA are registered trademarks or trademarks of XICA Corporation in Japan and other countries.
*Other company names and product names mentioned are trademarks or registered trademarks of each company.

About XICA Corporation　https://xica.net/

Since its founding in 2012, XICA has been growing rapidly in the field of planning, developing, and providing statistical analysis systems, with the mission of "democratizing data analysis and marketing due diligence." Since its founding, the company has targeted business people who are "professionals in the field" rather than "analysis professionals," and has been highly regarded as a company that possesses "analysis technology applicable to business" honed through practical application in the business world.

About XICA ADVA　https://xica-adva.net/

XICA provides marketing optimization solutions based on data science. XICA ADVA's service lineup includes "ADVA MAGELLAN," Japan's No. 1 integrated online/offline advertising analysis tool, and "ADVA PLANNER" and "ADVA BUYER," which have realized Japan's first "performance-based" TV commercial advertising. The name ADVA has two meanings: "AD Valuate," which properly evaluates advertising using advanced analytical technology, and "Add Value," which provides added value to improve business results such as sales during the advertising process.

About ADVA MAGELLAN

Launched in September 2016 as "XICA Magellan." An advertising effectiveness analysis tool that comprehensively analyzes the effectiveness of a wide variety of advertising, including internet advertising, TV commercials, and transportation advertising, and helps companies optimize their marketing investments. As the No. 9 MMM tool in Japan, it has been introduced to over 1 companies, mainly major domestic companies that advertise on TV commercials, and has earned high praise, with more than 120% of the top 100 companies in Japan using Magellan for advertising analysis. In September 10, with the release of "XICA ADVA," it was integrated into ADVA's service lineup and renamed "ADVA MAGELLAN."

(*1) Internet advertising refers to advertising placed on the Internet, and includes listing ads, video ads, email ads, and SNS ads.

(*2) Offline advertising refers to advertising that does not involve the Internet, and includes television commercials, radio, newspapers, magazines, flyers, etc.

(*3) Please refer to the following URL for past survey results regarding analysis methods for advertising effectiveness.
"212 Survey of 2020 Corporate Advertising Managers on Advertising Effectiveness Measurement Methods"
https://xica.net/magellan/column/advertising-effectiveness-2020/
Toyo Keizai Online | September 2017, 09 (http://toyokeizai.net/articles/-/187757）

(*4) Survey period: October 2019-10, 16

• Survey overview: Image survey of 10 marketing mix modeling tools and on-off integrated analysis tools
• Survey method: Internet survey
• Survey participants: 22-69 years old, male and female, nationwide, marketing occupation, employees of listed companies, employees of companies that advertise on TV commercials
• Survey commissioned by: Shoppers Eye Co., Ltd.