Marketing automation and advertising are rapidly converging. Data ownership is becoming the key question and owning first party data, your data, is a powerful way to increase conversion efficiency in all channels.
As MarTech meets AdTech, why are so few Nordic media budgets keeping up?
1. The well-kept secret of transparency in the media industry
If you think about it, why would an actor living off the margin from advertising spend want you to spend less?
Media agency income is traditionally based on margin in buyers’ budgets. Moving media buying in-house is slowly killing off the classic agency model and, quite naturally, traditionalists are in no hurry to speed up this process. Few players in the Nordics have been willing or ready to engage in the topic. And while everyone is talking about data, few are looking at quality and ownership of first party data rather than just website visits.
Data availability is no longer the issue. As techniques evolve, the issue is quality and the trend is to move investments from traditional advertising campaigns, targeted on third party data, to first party audiences. At the end of the day, all targeted communication should have an effect on the recipient of the targeted message. First party data means your message is more likely to reach its target.
This is not new. In 2014, Neustar found that digital advertising campaigns targeted on own data are 39 times more effective than other campaigns.
2. The technical complexity of merging first, second and third party data in advertising
To take media buying in-house or simply buy smarter campaigns you need to make data actionable in all channels. This means collecting data sources in one place and building target groups on business-critical data.
While your competitors continue to show ads to target groups based on third party data, you can concentrate on individuals who’ve been identified as relevant for your business: existing customers or interesting prospects based on their online or offline behaviour. In order to identify targets in an efficient way, and pinpoint ads in a multi-channel environment, you’ll probably benefit from a data management platform (DMP). With a DMP you can automatically export target groups into programmatic media buying platforms, both display and social, and operationalize data for commercial purposes.
3. The benefits of change
Leading marketers are already moving investments from traditional advertising campaigns, based on third party data often owned by publishers, to first party audiences and in-house bought cross-screen campaigns.
In the Nordics this is an increasingly powerful trend as innovative marketers move towards continuous planning for the optimization of creatives, media and impact, and away from campaign-based planning and annual agency contracts. Instead of external agency purchases and traffic management, real-time media buys are being run from own ad accounts and DSP software. Reach is tracked and optimized in digital channels instead of direct buys in print, TV, radio, outdoor and online.
And to do all this? It is all about change in work processes. The whole organization needs to be adapted to new roles and capabilities, changing from campaign based thinking to a process like ongoing workflow where every single change brings its value on the ad visibly to the right target.
The result? Reduced ad waste and no unnecessary contacts may well have a significant positive impact on campaign results and your return on investment. And it’s not just about cost savings. The trend towards first party data ownership is about optimising processes, building modern marketing organisations and empowering employees to see the results of what they do.
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