Without a quick understanding of AI and data management, it’s very difficult to talk about the present or future of your media advertising business, or any business for that matter. What are the best sources for the data you need to run your business? How can you properly analyze the data you collect? Make sure it gets into the hands of the internal and external executives who request it What should I do?
Two industry reports from last week portrayed the media advertising business’ response to these increasingly complex challenges as a “tale of two cities.”On the other hand, the Interactive Advertising Bureau Current state of data in 2024 It paints a picture of a market that increasingly embraces as well as implements the need for future success in digital advertising data. Meanwhile, 4As, the voice of the advertising agency world, released a report declaring that the world of next-generation TV data measurement is “not ready for prime time.” I am reminded of President Harry S. Truman’s famous words. “Give me a one-handed economist!”
Ad buyers and sellers alike have different opinions about the advertising environment and the need for change. For the digital advertising business, it’s the nearing end of the cookies that have facilitated online audience tracking for two decades and related calls for stronger privacy regulations from state, federal, and international governments. . For the traditional TV business, it’s about moving beyond the perceived vise of proprietary Nielsen ratings to a world of richer data that more accurately calculates the size and value of TV audiences. Of course, for marketers from PepsiCoPEP to GM, media publishers from Disney to the Wall Street Journal, and every agency you can think of, yes, folks, to work together more effectively both traditional silos and digital he silos. is required.
The IAB report is based on surveys and interviews with “more than 500 advertising and data decision makers” across the advertising ecosystem, and provides an optimistic framework for industry attitudes and actions. The IAB acknowledged a recent past in which the industry was “unprepared” when it came to data privacy and next-generation audience measurement, but now believes the industry is “well aware that these challenges will persist”. , we believe that we are taking steps to address them.
The IAB presents a range of responses that suggest changes in attitude and practice underway in business. The study found that with upcoming legislation and the expected obsolescence of cookies, nearly three-quarters of industry executives surveyed expect access to browser history and personally identifiable information to decrease. I am. But interestingly, while 94% currently expect cookies to be phased out eventually, only 42% think they will be phased out in 2024. So if Google follows the announced schedule, you could be in for a rude awakening.
More than 80% of IAB respondents acknowledge that current and pressing challenges in the data market are impacting the composition and structure of their organizations. As a result, 71% of brand, agency, and publisher executives are increasing their data sets in response to the changing landscape, compared to just 41% two years ago. Almost 90% of ad buyers report that they are redesigning their personalization strategies, ad investment costs, and data mix across first, second, and third-party sources. Finally, more than two-thirds of ad buyers intend to spend more on contextual behavioral targeting rather than privacy-related behavioral targeting (good news for quality publishers).
Thus, the alarm bells were finally sounded for change in most media advertising businesses. Meanwhile, I’m sorry Harry, but the 4As report suggests there may be more masonry work ahead on the yellow brick road to the future. Although the 4As report focuses on the transition to next-generation measurement in TV rather than digital advertising, it is important for marketers, their agencies, and most media publishers to effectively innovate on both sides of the media equation. is needed. However, according to the 4As analysis, “proponents paint a picture of the industry being ready to move on to the next set of solutions, with big data solutions promising increased accuracy, flexibility, and measurability. While hinting that the transition is only a few months away, we believe that the hurdles are high and will take longer to overcome.”
The 4As list of “short-term concerns” for data innovation timelines includes a series of practical considerations. This includes a timeline for providing independent certification of Nielsen’s myriad alternatives, with conclusions potentially “years away.” Agencies that are under pressure from publisher ad pricing and financial burdens from beleaguered marketers may lack the resources to perform “multi-currency metric evaluation.” there is. Additionally, contractual obligations may limit or prohibit the employment of multiple currency providers.
In the longer term, the 4A points to concerns such as the lack of flexibility today to “plug and play” multiple currencies and enable more dynamic decision-making for customers. Agencies are (as you might expect) taking note of the increased costs associated with multiple currencies that will undoubtedly be passed on to advertisers, but are they willing to pay? And if multiple currencies produce multiple outcomes (again, as you might have guessed), how are they all reconciled?
Clearly, the transition to a new media future requires much more discussion and much more action, a period that IAB CEO David Cohen calls the “interim period.” Reading these two near-simultaneous reports together, perhaps the biggest question is not what the future of data will be, but how long it will take to get there. The industry doesn’t seem to have much time to figure it out.
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