The State of

Data-Driven
Advertising
Marketing strategies for the
future with first-party data
 Marketing strategies for the future with first-party data
It’s a time of transition for marketers who handle advertising. From evolving
regional privacy regulations to heightened consumer expectations, many of
the challenges marketing teams now face were barely on the horizon a mere
decade ago. It’s causing many to rethink what it means to get the right ads in
front of the right people.

And yet…

In the midst of this rapidly-changing landscape are the standouts —

marketers who are using data to crush goals and maximize their return on
ad spend, all while preserving peoples’ privacy and building trust.

The question is: What are they doing differently? We surveyed 1,262 global
marketing professionals to find out. Our research uncovered:

• The current state of data-driven advertising

• The growing importance of first-party data

• Proven tools for long-term success

If you’re looking for ways to drive accelerated growth,

this is the report for you.

The State of Data-Driven Advertising 2

 Table of Introduction: The power of first-party data
There’s a way to drive accelerated growth no matter how the landscape changes —

contents
and it starts with first-party data............................................................................................................................................... 04

Executive summary: Key insights to inform your strategy

Overview of key findings you can apply to your own marketing strategies right now.......................................07

The shifting landscape: The many benefits of first-party data

First-party data offers unparalleled opportunities to understand customers, increase trust,
and enhance personalization......................................................................................................................................................... 12

Current state: The hunt for high-quality data

Many marketers are yet to unleash the full potential of their data in advertising — here’s why................... 19

Looking ahead: How marketers plan to adapt

Adjusting to the changing advertising landscape is a top priority — and first-party
data is the cornerstone.....................................................................................................................................................................24

Unlocking potential: Harnessing first-party data

Unleashing the full power of first-party data requires tools that are easy, fast, and unified......................... 27

HubSpot and Google Ads: Accelerating first-party data success

Marketers who use the HubSpot integration for Google Ads see results quickly.................................................. 32

Next steps: Takeaways and action items

Checklist for starting your first-party data journey today..............................................................................................34

The State of Data-Driven Advertising 3

 INTRODUCTION

The power of first-party data

It’s no secret that data-driven advertising results in greater
ROI. Seventy-seven percent of marketers say audience data
is important — it helps teams reach the right audiences, see
what’s working, and create more effective campaigns.

But what kind of data should you use?

Our findings are conclusive:

First-party data is your ticket to improving return on ad

spend, personalizing campaigns, and building trust — all
while honoring customer expectations for privacy by using
the information they choose to share with you.
In fact, marketers who have high-quality audience data
are 225% more likely to outperform goals than those
who don’t. However, success doesn’t happen by chance.
The most effective marketers are highly intentional about
harnessing their first-party data.

The State of Data-Driven Advertising 4

 First-party data But critical Many are eager The right tools
drives results. challenges remain. to adapt. are essential.

Marketers who use first- However, many marketers In response to the Harnessing first-party data
party data are 93% more are still figuring out rapidly-changing requires the right tools —
likely to say their team how best to collect and landscape, many are ones that are simple to
is outperforming goals harness first-party data looking for new ways to integrate, provide fast time
than those who don’t. in adver­tising. get (and stay) ahead. to value, and make it
easy to:
They use it to: They face critical Top goals include:
challenges including: • A
 nalyze customer
• B
 etter understand • Improving data quality behaviors
customers • Finding
 the right
audience data • G
 athering more • U
 nderstand the customer
• S
 egment audiences consented audience data journey
for personalization • E
 nsuring first-party data
quality and accuracy • D
 eveloping data-driven • D
 eliver personalized
• M
 ap campaigns to strategies campaigns
journey stages • I ntegrating first-party
data with marketing tools

Go to section Go to section Go to section Go to section

The State of Data-Driven Advertising 5

 Drive stronger advertising with
HubSpot and Google Ads
Marketers are far more successful at harnessing first-party data
when they have an all-in-one tool to do the heavy lifting. Many use
HubSpot’s integration with Google Ads for this very reason.

Together, these platforms:

Make it easy to Deliver fast time to Unify data

build up a first-party value by enriching for simpler
data database and campaigns with marketing and
put it to work first-party data advertising

Go to section

State of Data Driven Advertising 6

 EXECUTIVE SUMMARY

Key insights to inform

your strategy
Today’s customers expect both personalization and
privacy. And unfortunately, many marketers lack the
high-quality data they need to satisfy both needs.
But based on our findings, there’s a fast and easy
solution. The answer lies in finding the right tools to
harness first-party data.

First-party data offers undeniable

value for marketing.
Marketers who leverage first-party data have higher-
quality insights, understand their customers better,
and are able to personalize more. As a result:
• Marketers who use first-party data are 93% more
likely to say their team is outperforming goals
than those who don’t
• 62% of marketers say leveraging first-party
data is now essential for a successful
marketing strategy

State of Data Driven Advertising 7

 EXECUTIVE SUMMARY

Yet many marketers still lack this high-quality data.

Marketers with high-quality data on their target audiences are 225% more
likely to say their team is outperforming goals. The only problem? Just 56%
actually have it.

As a result, most still know surprisingly little about their intended audiences:
• Only 51% know what products their target audience is interested in buying
• Only 43% know where their target audience shops and consumes content
• Only 33% know their target audience’s interests and hobbies

Not surprisingly, 44% of marketers say improving data quality is a top goal.
In addition, 75% are actively adapting their strategies in response to data
privacy changes, and 69% believe those who don’t adapt will struggle.

The State of Data-Driven Advertising 8

 48%
of marketers say data privacy
changes and regulations are top
challenges

When it comes to roadblocks,

regulations are just the start.
When asked about their biggest challenges,
48% of marketers named data privacy
changes and regulations — and 47% pointed
to the fact that consumers are less trusting
with their personal data.

More importantly:
• 42% struggle to ensure first-party data
34%
quality and accuracy say integrating
first-party data
• 1 in 3 say integrating first-party data with marketing
with their marketing tools and CRM is tools is a top
a top challenge challenge

The State of Data-Driven Advertising 9

 To unleash the power of first-party
data, teams need the right tools.
Marketers who use all-in-one, integrated tools are
180%+ more likely to say their teams are
outperforming goals compared to those who don’t.

More specifically:
• Marketers with a single tool for creating, managing,
and running campaigns are 185% more likely to
say their team is outperforming goals
• Marketers with a single source of truth for all
marketing data are 94% more likely to say their
team is outperforming goals
• Marketers with full visibility into the customer
journey are 200% more likely to say their team
is outperforming goals

185%
Marketers with a single tool
for campaigns are 185% more
likely to outperform goals

The State of Data-Driven Advertising 10

 HubSpot and Google Ads stand out
for ease and fast time-to-value.
Marketers who use HubSpot and Google Ads say these
tools make it easier to not only build up their first-party
data but also put it to work.
• Seven in ten marketers using HubSpot and Google
Ads say they have an all-in-one tool that allows
them to create, manage and run campaigns
• More than 60% of marketers using HubSpot and
Google Ads say they have a single source of truth
for their data
• Marketers who use HubSpot and Google Ads
average 31% more leads within 90 days of setting
up the integration.

In the remaining sections of this report, we

examine each of these findings in more detail.

The State of Data-Driven Advertising 11

 75%
THE SHIFTING LANDSCAPE

The many benefits of

first-party data of consumers say data privacy is
a human right
Why are marketers embracing
Source: HubSpot 2024 Consumer Trends
first-party data? To better understand Report
customers, increase trust, enhance
personalization, and more — all while
prioritizing privacy.

While first-party data has been part of the marketing

landscape for years, it’s recently started to take
center stage — for good reason. It’s reliable. It’s
high quality. And it helps position you for success no
matter how the landscape changes.

But what, exactly, is first-party data?

Put simply: First party data is all the information
people willingly share with you through your website,
online forms, and mobile apps. It’s the data your
business collects directly from customers with their
consent — everything from email addresses and
phone numbers to personal interests and purchase
histories — which means you’re prioritizing their privacy.

The State of Data-Driven Advertising 12

 This data provides the insights you need to meet
customers where they are, allowing you to create
more personalized experiences based on actual
preferences. And because you use the information
they choose to share with you, first-party data

62%
puts your customers’ privacy at the center of
your advertising strategies. This is key — while
many consumers are willing to exchange their
information for convenience and personalization,
75% expect you to preserve their privacy.
of marketers say leveraging
First-party data is now essential.
Using first-party data isn’t just great for
consumers. It benefits businesses, too.
Marketers who use first-party data are 93%
more likely to say their team is outperforming
goals than those who don’t. What’s more, 62%
say leveraging first-party data is now essential
to a successful marketing strategy. It helps
you understand your most valuable customers,
tailor your messaging, increase trust, and Marketers who use first-party data are

93%
improve return on ad spend.

more likely to outperform goals.

The State of Data-Driven Advertising 13

 Marketers who leverage first-party
data say the top benefits are:
60%

51%
50% 48%
44%
42%
40%

34%

30%

20%

10%

Higher Better Increased Enhanced Improved

quality understanding customer personalization targeting/
data of customers trust fewer wasted
impressions

The State of Data-Driven Advertising 14

 of marketers use first-party data to gain a
52% better understanding of their target audience 87% say it’s effective

of marketers use first-party data to analyze

48% customer behaviors. 83% say it’s effective

of marketers use first-party data to create

46% personalized content 90% say it’s effective

of marketers use first-party data to create ads

42% based on actions taken by a contact 86% say it’s effective

of marketers use first-party data to optimize

41% the customer journey 85% say it’s effective

of marketers use first-party data to create ads based

38% on where the contact is in the customer journey 85% say it’s effective

of marketers use first-party data to create

34% a unified view of customers 84% say it’s effective

The State of Data-Driven Advertising 15

 So, how do you collect first-party data?
You could create a loyalty program to offer exclusive rewards and benefits to your
customers in exchange for their consented information or promote giveaways on social
media. Some companies collect first-party data during account registrations or online
purchases, while others focus on customer support interactions.

While there’s no one right way to fill your database with valuable first-party data, some
of the highest-quality sources involve sign ups, transactions, and interactions on social
media or support channels.

Regardless of what method you choose to use, the time to start is now. First-party data
success doesn’t just happen. It’s achieved over time, molded to match your unique
business needs and strategies. The sooner you start harnessing first-party data in your
advertising, the better positioned you’ll be to experience the benefits no matter what
changes come your way.

The State of Data-Driven Advertising 16

 The highest quality sources Marketers say the most effective
of first-party data are: ways to incentivize customers to
share data are:
36%
Customers registering/
16% creating accounts 12% 40%
with your company
Direct engagement Creating an email Offering discounts/
(signing up for content,
on social media newsletter promotions/loyalty
discounts, etc)
programs

20% 18%
Customer Creating blogs
interactions and other
with customer content on your
support channels website

28% 28%
Information gathered during Creating content on social media
the purchasing process (posts, videos, giveaways)

The State of Data-Driven Advertising 17

 What about Compared to other sources, marketers
third-party data? who utilize first-party data say it:
More than 80% of marketers still 90%

use third-party data that they get

from external sources. But unlike the 80%
77% 77%
information you collect directly from 74%
customers, marketers don’t own 70%
67%
third-party data. This makes
first-party data a critical element 60%

for any advertising strategy.

50%

40%

30%

20%

10%

Results in Offers similar Offers similar Is easier

more or higher or higher to use
personalized quality insights ROI
marketing
content
The State of Data-Driven Advertising 18
 CURRENT STATE

The hunt for Finding the right audience data is hard

for more than half of surveyed marketers.
high-quality data
A mountain of first-party data
opportunity is yet to be unleashed —
many marketers still lack the critical
data they need to effectively reach
and re-engage customers.
If you’re struggling to find the right audience
62%
are missing data
data — or you’ve yet to harness the power of they need to
first-party data — you’re not alone. While marketers reach their target
with high-quality data are far more likely to audience.
outperform their goals, our research shows a lack
of quality data on target audiences is currently
the #1 challenge for many teams.

60%
say gathering and

54%
say it’s difficult
tracking visitor data
is becoming more
difficult.
to get the data
they need on their
target audience.

The State of Data-Driven Advertising 19

 CURRENT STATE

Only 56% of surveyed marketers say the data they

have on their target audience is high quality, and just
16% have all the information they need to reach them.
As a result, most still know surprisingly little about
their intended audiences. Two in three have basic
demographic information, roughly half know which
products people are interested in, and even fewer
know about customers’ interests and hobbies — let
alone where they shop and consume content. As a
result, less than one-third of marketers are able to
say their content is very personalized.

• 51% know what products their target audience

is interested in buying
• 43% know where their target audience
consumes content
• 43% know where their target audience shops
• 33% know their target audience’s interests
and hobbies

Those who have obtained the right data are reaping

the benefits. Marketers with high-quality audience
data are 225% more likely to say their marketing team
is outperforming goals than those without it.

The State of Data-Driven Advertising 20

 High-quality audience When asked to name the
data is the key to exceeding biggest challenges they
marketing goals. face in understanding
High-quality data has the power to fuel their target audience:
growth and create compelling customer
experiences. Why? Because it’s accurate, Regional privacy regulations and
complete, reliable, relevant, and timely. reduced consumer trust are the
highest hurdles to overcome.

225% Marketers with high quality data

on their target audience are
225% more likely to say their
team is outperforming goals than
47% of marketers said consumers are less
trusting with their personal data

those with low-quality data.

107% Marketers who say their content is

personalized are 107% more likely
48% of marketers named increased data
privacy changes and regulations

to say their team is outperforming

goals than those whose content is
not personalized.

Clearly, leveraging high-quality data is the key to successful

strategies. So why aren’t more marketers doing it? What’s
standing in their way?

The State of Data-Driven Advertising 21

 66%
of Singaporean marketers
Consumers are say the Personal Data Protection
Commission (PDPA) is impacting
less trusting their strategy

52%
Three in four marketers say consumers have
become more concerned with data privacy, of Canadian marketers say the
a sentiment confirmed by HubSpot’s latest Personal Information Protection and
consumer trends research. Seventy-six Electronic Documents Act (PIPEDA)
percent of customers are concerned with is impacting their strategy
how companies use their personal data,

55%
and 3 in 4 want complete control over how
of Australian marketers say the
organizations use it.
Privacy Act is impacting their strategy
Many teams are also navigating country-

50%
specific data privacy laws that increasingly
impact how they collect and use data. of EU marketers say the General
Data Protection Regulation (GPDR)
is impacting their strategy

45% of Mexican marketers say the Federal

Law on the Protection of Personal Data
Held by Private Parties (LFPDPPP) is
impacting their strategy

42% of Japanese marketers say the

Act on the Protection of Personal
Information (AAPI) is impacting
their strategy
The State of Data-Driven Advertising 22
 While some marketers are turning to first-party data to address
these concerns head on, many face additional hurdles. More than

42%
40% say they struggle to ensure quality and accuracy, and 34%
say integrating with marketing tools and CRMs is a top challenge.

of marketers say ensuring

first-party data quality and
accuracy is a top challenge.

34%
of marketers say integrating
first-party data with their
marketing tools and CRM is
a top challenge.

In addition, 4 in 10 marketers say iOS privacy protection — features designed to prevent companies from tracking consumers on Apple devices — is impacting overall strategy.

The State of Data-Driven Advertising 23

 68%
LOOKING AHEAD

How marketers
plan to adapt of marketers say adapting to
data privacy changes is one
Adapting to data privacy of their top goals.
changes is a top priority —
and first-party data

67%
is the cornerstone.
Now more than ever, high-quality
data is vital to reaching and
re-engaging the right people.
Seventy-five percent of marketers
are actively adapting their strategies
in response to data privacy changes, of marketers believe if they
and 69% believe those who don’t don’t adapt, their marketing
adapt will struggle. More importantly,
activities will be less effective.
teams are making data quality a high
priority. Top goals include gathering
more data on target audiences,
improving data quality, and
developing a data-driven
marketing strategy.

In addition, 45% of marketers have

already started to leverage first-party
data – and 83% say it’s effective.

The State of Data-Driven Advertising 24

 What are your top goals when it comes to your
company’s marketing data?

44% Improving data

quality

34% Gathering more data

on our target audience

33% Developing a data-driven

marketing strategy

The State of Data-Driven Advertising 25

 Did you know?
Marketers who use HubSpot average 31% more
leads within 90 days of setting up the Google
Ads integration.
HubSpot has built a developer-free suite of tools that seamlessly
connect with Google Ads, making it easy and fast to leverage
your first-party data within Marketing Hub.
• Instantly sync new leads from Google Ads to your
HubSpot CRM
• Reach and re-engage customers with personalized Google
Ads tailored to customer journey stages
• Help Google Ads capture more conversion data in a
privacy-safe way for greater accuracy and deeper insights
on the customer lifecycle

Jump to section

The State of Data-Driven Advertising 26

 UNLOCKING FIRST-PARTY DATA POTENTIAL

Harnessing first-party data Marketers whose tools are integrated with

one another are

183%
Unleashing the full power of first-party data starts with the
right tools — advertisers who use connected tools perform
better than those who don’t.
The future of data-driven advertising is ultimately about meeting customers where
they are. And for that, you need the right tools. Marketers with connected tools —
ones that integrate with their data and allow them to personalize the customer more likely to say their marketing team is
journey — are positioned to perform best. outperforming goals.
They have greater visibility into the customer
journey and can more easily create, manage,
and run advertising campaigns mapped to the
appropriate stages. It means more personalized
experiences for customers and more accurate
analysis for the company.

Yet despite these findings, only 59% of

marketers have an all-in-one tool that allows
them to create, manage, and run campaigns.
Just 6 in 10 have a single source of truth for
all marketing data. And while marketers with
integrated tools are 183% more likely to say
their teams are outperforming goals than peers
using disjointed tools, the average marketer still
switches between 5 disconnected tools. Perhaps
most alarming, a mere 16% have full visibility
into the customer journey — an advantage
that makes their peers 200% more likely to say
they’re outperforming goals.

The State of Data-Driven Advertising 27

 Who is most likely to outperform marketing goals?

Marketers with a single tool for creating, managing, and

running campaigns are 185% more likely to say their
teams are outperforming goals.

(But only 59% have one)

Marketers who have a single source of truth for all Marketers with full visibility into the customer
marketing data are 94% more likely to say their journey are 200% more likely to say their team
teams are outperforming goals than those who don’t. is outperforming goals.

(But only 60% have it) (But only 16% have it)

The State of Data-Driven Advertising 28

 Given this disconnect, it’s little wonder 48% of marketers say they struggle to turn marketing data into
actionable insights. Many teams are still in need of a marketing tool that empowers them to analyze behavior,
optimize for the customer journey, and create highly personalized campaigns.

What are the most important features in a marketing tool?

31 % 29 % 27 % 27 % 26 % 25 %

The ability to The ability Creative tools Advanced The ability The ability to
create highly to analyze for designing analytics and to track integrate my
personalized customer marketing reporting and optimize marketing data
marketing behaviors content capabilities the customer with the tool
content journey

The State of Data-Driven Advertising 29

 Easy. Fast. Unified.
This is what marketers need to succeed in today’s fast-changing advertis-
ing landscape. Why? Because properly integrated tools do more than just
consolidate your data. They’re also easy to use, simple to integrate, and
let you see results fast — all while prioritizing privacy.

Two tools that stand out are — you guessed it — HubSpot and Google Ads.
Sixty-five percent of marketers who use HubSpot say it makes it easier to
gather first-party data, and 68% say they have an easier time leveraging
that data. Marketers who use Google Ads expressed similar sentiments:
64% say it makes first-party data easier
to collect and 66% can easily use it.

The State of Data-Driven Advertising 30

 Marketers who use HubSpot say it makes it easier to: Marketers who use Google Ads say it makes it easier to:

79% 77%
80% 77% 77% 80%
74% 73% 73%
70% 70% 71%
70%
69% 68% 70% 68%
65% 64% 66%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

Gather Integrate Centralize Leverage Integrate Understand Increase Personalize Gather Integrate Centralize Leverage Integrate Understand Increase Personalize
first-party first-party data in one first- first-party and optimize return on ad ads based first-party first-party data in one first- first-party and optimize return on ad ads based
data data place party data data the customer spend on journey data data place party data data the customer spend on journey
throughout journey stage throughout journey stage
marketing marketing
activities activities

The State of Data-Driven Advertising 31

 HubSpot and Google Ads

Accelerating first-party
data success
On their own, Google Ads and HubSpot help pave
the way for powerful data-driven advertising.
Seventy-one percent of marketers who use
HubSpot (and 70% of marketers who use Google
Ads) say they have an all-in-one tool that allows
them to create, manage, and run campaigns.
Similarly, six in ten say they have a single source
of truth for their data.

But what happens when you integrate the two?

Marketers who use HubSpot and

Google Ads average 31 % more leads
within 90 days of setting up the
integration. They also see 12 %
lower cost per lead.
Source: HubSpot Product, Nov 2022

The State of Data-Driven Advertising 32

 HubSpot’s developer-free suite of tools seamlessly connect with Google Ads and are accessible right within
Marketing Hub. They’re designed to be marketer-friendly — no developer needed — so you can get up and
running with ease. The integration makes sure leads generated from Google Ads appear in your HubSpot
Smart CRM while simultaneously enriching your Google Ads campaigns with CRM data stored in HubSpot.
And with Google Ads Data Manager, you can keep your data up to date even more. Our research shows the
integration works especially well for first-party data-driven advertising because it:

Is Easy to Use Offers Fast Time Unifies Your Data

to Value
Easily sync new leads, Use your first-party Ensure your data is
reach and re-engage data to reach customers always up-to-date and
customers, and capture with more relevant consistent, whether you’re
more accurate content and quickly making changes in
conversion data — improve your return HubSpot or Google Ads.
all while prioritizing on ad spend.
privacy.

The State of Data-Driven Advertising 33

 NEXT STEPS

Takeaways and
action items
1. Fill 2. Unify 3. Put your
Remember: Marketers your your first-party
who use first-party data
are 93% more likely to
say their team is
database data data to work
outperforming goals Leverage loyalty Adopt tools — like Use your first-party data to
than those who don’t. programs, promotions, HubSpot’s Google Ads personalize ads, reach the
Joining them starts and other strategies to fill integration and Google right audiences, and gain
with three simple steps: your CRM with valuable Ads Data Manager — a more accurate picture of
first-party data. that seamlessly integrate conversions to improve future
with one another to campaigns
consolidate your first-
party data for a single
source of truth.

The State of Data-Driven Advertising 34

 There’s no time to waste. Fill your database
The sooner you start Automatically import your Google Ads leads into your

harnessing high-quality HubSpot Smart CRM.

first-party data, the better.

With HubSpot’s integration Reach the right people
with Google Ads, it’s easy Connect your CRM data with Google Ads to customize
your audiences.
and fast to prepare for
the future of data-driven
advertising. Leverage your data
Get a more accurate picture of conversions to improve
future campaigns.

Get started

The State of Data-Driven Advertising 35

 Methodology
We conducted a survey in July
2024 with a total of 1,262 B2B
and B2C marketing professionals
across industries.

Regions surveyed: Industries represented

• Advertising or marketing • Consumer product • Financial services and
Australia Mexico • Retail eCommerce
• Agriculture, food, and manufacturing insurance
Canada Singapore beverage • Transportation and
• Defense or aeronautics • Government Healthcare or logistics
• Business or consumer public health
France United Kingdom • Education • Travel and hospitality
services • Information Technology
• Electronics • Waste management
Germany United States • Chemicals and metals • Manufacturing and materials
• Emergency services or water systems
• Communication services • Media and entertainment
Japan • Energy, utilities, and waste
• Construction management • Non-profit

The State of Data-Driven Advertising 36