Advertisers are increasing budgets by nearly 10% as they seek to reach new audiences, but many are struggling to expand beyond existing audience segments, according to a new study by Taboola.

The Data Advantage report found that 30% of respondents identified reaching new audiences as a top priority for additional budget allocation, while 81% said they were failing to reach them and instead repeatedly targeting the same audience segments.

The study found that fragmented consumer journeys were contributing to the problem, with purchasing decisions increasingly spanning multiple devices and channels, including mail, news, search, price comparison sites and large language models.

Non-converting customers

Three-quarters of advertisers said they have difficulty recognising the same non-converting customer across multiple touchpoints, which Taboola said can push advertisers back towards recycled audience pools.

The findings also point to growing interest in spending beyond walled gardens. 81% of advertisers said they would consider increasing spending across channels such as publishers and news sites if identity challenges could be addressed.

Adam Singolda, CEO of Taboola, said changing consumer behaviour was making it more difficult for brands and agencies to identify purchase intent.

“Outside closed ecosystems, advertisers face a significant identity blind spot,” he said. “By relying on recycled audiences on walled gardens, they miss vast opportunities. Unlocking identity and measurement on the open web allows brands to break free from targeting ruts and connect with valuable, untapped audiences.”

The report also noted that US adults spend nearly 13 hours a day with media, highlighting the number of potential touchpoints advertisers must navigate before a purchase decision is made.

The study surveyed more than 300 senior marketing and advertising leaders at companies with more than 1,000 employees and monthly marketing expenditure of at least $300,000 (£227,038).