How On-target Percentage (OTP) Can Help Marketers Optimize Advertising Campaigns (Updated 2021)
What does OTP (On-Target Percentage) mean?
OTP, which stands for On-Target Percentage, is a benchmark for digital marketers to measure the percentage of impressions delivered within the target audience out of the total served during the entire campaign. For example, if the on-target percentage is 70% for “Gender–Male”, then that means that 70% of all impressions served to the campaign audience is Male. Typically, OTP segments refer to demographics only such as Gender and Age, and is a benchmark used by the Nielsen Digital Ad Ratings, one of the most common measurements in OTP Age and Gender.
How Media Buyers, OTP Sellers, and Marketers Use OTP for Advertising Campaigns
While 100% on-target rates–serving all ads to the defined audience–are incredibly difficult, it is possible for most marketers to achieve high on-target rates to target their intended audience effectively. OTP benchmarks can help marketers, media buyers, and sellers to evaluate campaign success, especially when marketers know marketplace averages, which is around 50% on average according to a Nielsen report in late 2016. Evaluating On-Target Percentages also helps you to:
- Quantify your campaign effectiveness
- Compare campaign performance between desktop vs. mobile and platforms vs. publishers
- Analyze ways to optimize your campaign
Why OTP (On-Target Percentage) Matters
For consumer brands, especially CPG and FMCG marketers, they often target mass audiences with brand building campaigns. If a $1 million campaign budget achieves only 50% On-Target Percentage of the intended age group 25-29, this implies that half a million dollars were wasted on off-target audiences. What is worse is that marketers do not know which exact half of the audience is on-target, and which half is off-target. This makes it difficult for marketers to optimize and plan future campaigns.
This is why measuring and evaluating OTP matters. To increase OTP and campaign effectiveness, we suggest marketers create a list of audiences with high OTP during the media planning stage BEFORE campaign kick-off.
How AlikeAudience Achieves up to 90%
AlikeAudience’s Age & Gender segments have an on-target percentage rate of up to 90%, tested and validated by Nielsen Digital Ad Ratings (DAR). By creating OTP demographic segments based on highly valuable user-declared information, accuracy is improved with our engineering team to include user behaviours in app and devices, location visits, past purchases, etc. Combining a mix of data sources allows AlikeAudience to offer OTP Age and Gender segments with high accuracy and scalability for media execution. Because of this, we have high confidence in helping brand marketers to reach out to precise audience demographics across desktop and mobile devices, reducing wasted dollars on advertising spend.
Execute High On-Target Age and Gender Campaigns with AlikeAudience
AlikeAudience’s OTP segments are divided into 11 age brackets, from 18 to 64, and for Male and Female. These segments are available in eight countries including the United States, Australia, Japan, Hong Kong, Taiwan, Singapore, Malaysia, Indonesia, Thailand, South Korea, Vietnam on major DSPs. Reach out to our Data Strategist today to discuss how OTP segments can help you execute high ROI campaigns!