The advertising universe will have to make do with less personal data in the future. This development is becoming increasingly apparent. Legislation and consumer awareness of data protection, as well as technical changes in the provider landscape, ensure that user data is becoming more scarce. Instead, the advertising industry is looking at other databases to display personalized advertising messages to the right target groups and measure the success of their campaigns. The end of the year is traditionally used to look ahead to what is to come and to prepare for significant changes. ADZINE asked six data experts what trends they could identify on the horizon that should appear on screen in 2023 in the advertising universe.
More data sources require more understanding
The first thing to do is find out where your marketing campaign data is coming from. In recent years, it’s become clear that CMOs want and need access to more and more data, says Harriet Durnford Smith, chief marketing officer at Adverity. Data from other areas of business such as logistics, sales and finance will play an increasingly important role – and this will not change in 2023 either. The challenge will be to use the data in a meaningful way. “This meaningful use of data can be broken down into several levels of maturity,” Durnford-Smith explains.
“The first step is being able to look for something tailored: How well are my cross-channel campaigns doing? Where do I have the potential? Where should I stop investing?” says the data expert. Answering these questions requires a clean, consistent database that can be used by everyone in the company. Secondly, these questions must be able to be answered continuously without having to query the database each time. This step builds directly on the first step and requires dashboards or other means of data access or visualization. Final Step: Using Data to Influence Campaigns Success – Target Keyword Collection and Profile Activation: For this, companies must fully understand their data and the impacts of its use. “
The new contextual heading creates significance
With your keyword target group activated, you inevitably end up with the ongoing theme “Cookiecalypse.” The search for the optimal way to compensate for the soon-to-be-deleted third-party cookies will continue in 2023, says François Roloff, CEO of Madvertise. The managing director of Berlin adtech is convinced that a new form of contextually relevant advertising has a good chance of taking over the job. – “Easy to use and compliant with data protection”.
In his opinion, “a combination of use case, semantics, environment, and real-time analysis” would win the race. According to Roloff, context is provided through metadata and various parameters such as weather data or location. It will be refined through expanded local and multi-type advertising channels such as out-of-home digital channels. The linchpin is always the connection between online and offline. “Insights on the structure of customers around points of interest make it possible to take strategic measures targeting relevant groups of users at the right time and making them visit new stores in their area,” says Roloff. “In short: By choosing the right data sources and environments, accurate campaign results can be achieved – through content targeting, which is often more relevant than personal retargeting.”
Target movement patterns
When it comes to keyword context, mobile data specialist Kevin Moritz of Adsquare, also based in DC, is ringing his ears. He believes omnichannel strategies will finally replace the monochannel approach in the next year. Of course, targeting must be planned and implemented across all channels. “Efforts based solely on cookie logic, for example, will not bear fruit,” Moritz says.
His solution to this is also content targeting. However, Adsquare’s head of DACH sees a slightly different, albeit similar, approach: “In particular, by correlating target group based on ‘board’ and motion data, motion patterns can be predicted at a spatial level using statistical computations and without the use of online identifiers for purposes Targeting – insights that advertisers can benefit from, particularly in the area of automated DOOH and mobile campaigns.”
In light of the general economic situation, at least several advertisers are facing business challenges. Measuring the success of campaigns and optimizing them will help them “use their advertising budgets as efficiently as possible”.
Machines x Classical Statistics
The right measurement of success, in turn, requires the right referral model. This is where TD Reply’s Anja Kielmann comes into play. “In 2023, algorithmic attribution will become even more important, also supported by the end of third-party cookies,” predicts senior director of the innovation and marketing consultancy, founded in the Head of Marketing at TU Berlin. Kellman explains why: “The foundation of algorithmic referral is well-established statistical methods, such as marketing mix modeling (MMM), which have lost some of their relevance with the advent of cookie-based digital referral models such as multi-touch attribution (MTA).” However, it would be Here’s an exciting development: computational attribution combines advanced, classical statistics with machine learning (ML).
“In our practice, this works like this: real-time numerical metrics are enriched with statistical regression models to enable daily sales forecasts, which are becoming more and more accurate with the help of ML algorithms. In this way, algorithmic referral levels are a major weakness of the MTA, because here the clicks are not , which is somewhat unhelpful, is what determines the referral, but the actual sales impact,” Kellman explains. Thus, Algorithmic Referral enables well-established strategic media planning like MMM, and at the same time allows operational touch point optimization like MTA, but based on actual sales impact.
Data alliances between publishers
Infosum’s Dennie Trost takes a look at the future market structure: “Next year will be crucial for what is needed for data alliances to operate and for a real shot at open internet against walled gardens. It is already becoming clear that we can only do this together,” says Sales Director for Europe Central from the British company Infosum, which specializes in data. The foundations for this have already been laid in the relevant associations and organizations such as the BVDW or OVK. “First party data will be legally safe and, above all, technically safe to use, and the publisher world will come together in 2023 and, above all, will work together,” Trost said. Advertisers and publishers alike benefit from this. He expects “more free internet spending and better advertiser performance and efficiency.”
Direction for the coming year: “More data protection, more customer focus, more collaboration. This means that in 2023 there will be no company that does not have its own data strategy ready – be it FMGCler or a streaming service.”
Consolidation among technology vendors
Sourcepoint’s Daniel Bolkman also expects to collaborate. Elsewhere, however: “Even in 2023, lawyers, developers and product managers will work closely together. Responsible handling of user data requires a high level of competence in the mentioned areas and a mutually good understanding of the different needs,” says Managing Director DACH, Eastern Europe For US provider of consent management platform.
According to him, pure contextual marketing is not enough to optimally monetize media stocks. Therefore, it requires careful use of customer data, in compliance with the provisions of the General Data Protection Regulation (GDPR). “The number of technologies that publishers use and the supply chain will merge as this happens. Publishers will increasingly take responsibility for themselves and keep a close eye on the technologies used,” Polkman is sure. It is also exciting to see what role IAB will play in the future and how global identity solutions will evolve.