The Outlook for Data 2018: A Snapshot Into the Evolving Role of Audience Insight - Research from the IAB Data Center of Excellence January 2018
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The Outlook for Data 2018: A Snapshot Into the Evolving Role of Audience Insight Research from the IAB Data Center of Excellence January 2018
The Outlook for Data 2018: Research Objectives and Methodology What is this report? The third annual benchmarking study exploring how digital marketing and media practitioners are using audience data, and how they intend to advance their data-centric use cases in the year ahead What is this research Help practitioners benchmark their own practices and provide perspective on rapidly evolving industry priorities and intended to do? developments, helping stakeholders plan their future initiatives How were these Through an online survey of IAB special-interest council members*, including some of the most senior stakeholders in the findings compiled? digital media and marketing community. The survey was fielded in December 2017 and January 2018 Professional Focus: Years of Experience: Marketing service providers, More than 16 years 35.4% 17.2% Marketers, Between 11 and 15 years 24.2% 5.1% Between 6 and 10 years 26.3% Survey Panel Other, 6.1% Technology Profile (N=99) Between 1 and 5 years 13.1% developers, Publishers or 41.4% media providers, Less than 1 year 0.0% 30.3% *Including the IAB Data and Programmatic councils; survey respondents were not required to [2] answer every question
Key Findings • Spending on Data and Related Solutions Continues to Rise: Marketers, publishers and technology developers continue to grow their spending on audience data and related solutions; 60.3% of survey respondents reported that their organizations spent more on data and related services in 2017 than they did the year before, and an even larger majority (80.8%) expect to grow their investments further in 2018. According to State of Data 2017—published in December 2017 by DMA, IAB’s Data Center of Excellence and Winterberry Group—U.S. organizations spent $20.2BB on data and related activation solutions in support of their advertising, marketing and audience engagement efforts in 2017 Marketers, • Practitioners are Prioritizing Cross-Device Use Cases for 2018: More than any other individual use case, data users anticipate that they will prioritize richer cross-channel Publishers and marketing engagement in 2018—particularly addressing the improved measurement and attribution of these efforts. Just over half of panelists (52.3%) said they expect to focus on Tech Developers improving their cross-device audience recognition capabilities, supporting their ability to serve Are Ramping Data more relevant content to their customers and prospects across all touchpoints Investments; • Technology… Help or Hindrance? Though roughly one-third (32.4%) of panelists said technology will play a fundamental role in driving their data initiatives in 2018—and many cited Focusing on artificial intelligence (AI) and blockchain technology as foremost among the innovations Cross-Channel likely to capture a greater share of their time and attention this year—even more (50%) highlighted “insufficient supporting technology” as a fundamental obstacle impeding their Use Cases ability to derive value from their data initiatives, underscoring the complexity inherent in sourcing, onboarding and managing tools to support an increasingly diverse array of use cases [3]
Data Spending 60.3% Invested More 80.8% Invested About 30.1% Most Practitioners the Same 12.3% “Did your organization spend Grew their Data more, less or about the same on audience data and related Investments in activation solutions in 2017 1.4% 2017; Even More Invested Less compared to 2016? How do you 1.4% expect your equivalent spending (80%) Expect to change in 2018?” Their Spending to Increase Further 8.2% Not at All Sure 2017 Data Spending Relative to 2016 this Year 5.5% Anticipated 2018 Data Spending Relative to 2017 Note: Data activation solutions include: data management/processing, analytics, DMP [4] solutions, onboarding, matching, etc.
Use Cases ‘17 48.1% Yield optimization 28.6% 46.8% General audience analytics 52.4% “Which use cases most Programmatic media buying for established 45.5% 2017 formats 48.8% occupied your time, attention and resources 45.5% Predictive modeling and/or segmentation during the previous year?” 45.2% Media Ecosystem Cross-channel audience 41.6% Growing Focus identification/matching 33.3% Programmatic media buying for emerging 40.3% on Yield formats 29.8% Optimization in Cross-channel measurement and attribution 37.7% 33.3% an Effort to Drive 33.7% Practitioners are focused on advancing their media efforts, with cross-device Maximum Value Online retargeting 33.3% profile matching and programmatic from Data-Driven Advertising content/experience optimization 32.5% media buying for emerging formats 26.2% occupying a growing share of focus Ad Inventory Single-channel measurement and 32.5% attribution 25.0% 2017 2016 Note: Multiple responses allowed; not all [5] answer options are shown
Use Cases ‘18 Cross-channel measurement and attribution 64.9% Programmatic media buying for emerging formats 51.4% Predictive modeling and/or segmentation 51.4% 2018 Yield optimization 47.3% Programmatic media buying for established formats 44.6% Solving for Cross-channel audience identification/matching 43.2% “Which use cases do Cross-Channel you expect will most General audience analytics 33.8% occupy your time, Measurement attention and and Attribution Online retargeting 33.8% resources during 2018?” is Top Priority Advertising content/experience optimization 31.1% Online to offline (or offline to online) retargeting 28.4% Site content/experience optimization 25.7% Single-channel measurement and attribution 17.6% Note: Multiple responses allowed; not all [6] answer options are shown
Drivers of Data- 66.2% Demand/interest from our Related Efforts customers 61.8% 58.8% Growing emphasis on investment measureability/accountability 50.0% 51.5% Competitive pressures “Which factors do you Intense Focus on 36.8% expect will be most Improving important in driving your 39.7% data-driven marketing Customer Growing volume/quality of our first- party data resources and media initiatives in 52.6% Experience the year ahead?” Remains Most General desire to be more 33.8% Significant “customer-centric” 34.2% Impetus for Data 32.4% Initiatives Improving availability/functionality of supporting technology 46.1% 2018 2017 Note: Multiple responses allowed; not all [7] answer options are shown
Challenges to Data Insufficient Usage availability/functionality of 50.0% supporting technology 38.7% Lack of internal experience (at the 34.9% functional/operational level) 45.3% “What obstacles or Difficulty in proving ROI of our 33.3% challenges may impede data-driven programs 45.3% your ability to deploy or Proliferation of derive value from your 31.8% Data-Oriented Lack of volume/quality of our first- party data resources 25.3% data-driven marketing and media initiatives in Technology May the year ahead?” Siloed organizational 28.8% Be Introducing structure/poor data-sharing 36.0% protocols Practitioners may be growing Too Many more confident in their 27.3% Immature Lack of direction/resources from my organization’s leadership 20.0% abilities, both with respect to the data-related skills found Solutions to inside their organizations and in Lack of volume, accessibility or 21.2% their ability to prove value from Market; Users Say quality of third-party data 12.0% their data-driven investments Functionality is a 2018 2017 Challenge Note: Multiple responses allowed; not all [8] answer options are shown
Hot Topics Cross-device audience recognition 52.3% 51.3% Better reporting, measurement or 49.2% attribution 73.7% Artificial intelligence (AI) solutions for 40.0% “What general insight development* topics or industry 38.5% developments do Cross-Device Sophisticated analytics/modeling to target audience members 40.8% you anticipate will Recognition and command your 36.9% attention the most Improved Blockchain technology* in the year Measurement 33.9% ahead?” Concerns about data security, Remain Key governance and/or accessibility 19.7% Focus Areas; AI Programmatic media buying (across 29.2% and Blockchain channels, formats, etc.) 39.5% 2018 Also Factoring Linking online and offline data 27.7% 2017 Into Priorities 39.5% Note: Multiple responses allowed; not all answer options are shown; *indicates the [9] option was first asked about in 2018
About IAB’s Data Center of Excellence IAB Data Center of Excellence Board Member Companies Include The Interactive Advertising Bureau’s Data Center of Excellence is an independently funded and staffed unit within IAB. Founded to enhance existing IAB resources and to drive the “data agenda” for the digital media, marketing, and advertising industry, the Data Center’s mission is to define boundaries, reduce friction, and increase value along the data chain, for consumers, marketers, and the ecosystem that supports them. IAB Data is focused on: • Gathering industry thought leaders to set and drive the “data agenda“ • Funding industry research to provide benchmarks and actionable insights on data management across platforms including mobile, programmatic, and the internet of things • Developing industry best practices, guidelines, and standards for privacy, data security, and consumer data protection • Creating educational materials including certification, infographics, videos, webinars, and seminars to demystify data for marketers and advertisers • Hosting data focused events that feature industry luminaries to discuss data related topics For more information, please visit iab.com [ 10 ]
About Winterberry Group Winterberry Group is a unique management consultancy that supports the growth of advertising, marketing, media, information and technology organizations— helping clients create custom strategies, capitalize on emerging opportunities and grow their value. Our services include: • Business assessment DATA-DRIVEN • Data activation strategy CORPORATE • Strategic development • Marketing process and platform • M&A target identification and MARKETING architecture, design and RFP management STRATEGY qualification TRANSFORMATION • Marketing org. process engineering • Market landscaping M&A TRANSACTION • Target company assessment/ MARKET • Custom research SUPPORT customer due diligence INTELLIGENCE • Thought leadership • Strategic roadmapping Additionally, Winterberry Group is differentiated through its affiliation with Petsky Prunier LLC, the leading investment bank serving the technology, media, marketing, e-commerce and healthcare industries. Together, the two firms provide one of the largest and most experienced sources of strategic and transactional services in their addressable markets. For more information, please visit www.winterberrygroup.com [ 11 ]
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