81 per cent of advertisers fail to reach new audiences despite rising budgets: Taboola study

MUMBAI: It seems advertisers are spending more to find new audiences, only to keep running into the same old ones. A new study from Taboola has found that 81 per cent of advertisers are failing to reach new audiences, despite increasing their budgets in pursuit of them.

The findings come from Taboola’s latest report, The Data Advantage, which examines how brands and agencies are adapting to an increasingly fragmented consumer journey and the challenges this creates for audience targeting and measurement.

According to the study, advertiser budgets aimed at reaching new audiences are rising by nearly 10 per cent, with 30 per cent of respondents identifying new audiences as a top priority for additional budget allocation.

Yet, the increased spending is not necessarily translating into broader reach. The report found that 81 per cent of advertisers continue to target the same audience segments repeatedly, limiting their ability to discover and engage with new potential customers.

A major reason is the growing fragmentation of the consumer journey. Purchase decisions now span multiple devices and channels, with consumers moving between email, news, search, price comparison sites and increasingly, large language model-based platforms.

The study found that 75 per cent of advertisers struggle to recognise the same non-converting customer across multiple touchpoints. This fragmented identity picture makes it harder for marketers to understand where potential customers are in their journey and identify audiences that have not yet converted.

For advertisers, the problem extends beyond simply finding people online. Without a consistent view of users across pre-conversion touchpoints, brands risk repeatedly reaching familiar audience pools rather than identifying consumers who may be showing purchase intent elsewhere.

The report also points to growing interest in moving advertising budgets beyond walled gardens. As many as 81 per cent of advertisers said they would consider increasing spending across channels such as publishers and news sites if identity challenges were addressed.

The appetite is even stronger when measurement is brought into the equation, with 92 per cent of advertisers saying they would reallocate ad spend to the open web to reach untapped audiences if identity and measurement challenges were solved.

“Outside closed ecosystems, advertisers face a significant identity blind spot. By relying on recycled audiences on walled gardens, they miss vast opportunities,” said Taboola CEO Adam Singolda.

“As AI search overviews and shifting habits fragment how consumers discover content, brands and agencies must understand true purchase intent at the crucial moment of decision,” he added.

Singolda said stronger identity and measurement capabilities on the open web could help brands move beyond repetitive targeting and connect with audiences that remain largely untapped.

The report comes as consumers spend increasing amounts of time moving between media platforms before making a purchase decision. Taboola noted that US adults spend nearly 13 hours a day with media, highlighting the sheer number of potential touchpoints that can shape consumer behaviour.

The Data Advantage is based on a survey of more than 300 senior marketing and advertising leaders. Respondents worked for companies with more than 1,000 employees and monthly marketing budgets of at least $300,000.

The findings underline a growing tension in digital advertising: brands are prepared to spend more to find fresh audiences, but fragmented identities and measurement gaps are making it difficult to know who they have already reached and, more importantly, who they are still missing.