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:
A Snapshot Into the Evolving Role of Audience Insight
Research from the IAB Data Center of Excellence
January 2018
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
The Outlook for Data 2018: A Snapshot Into the Evolving Role of Audience Insight - Research from the IAB Data Center of Excellence January 2018
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]
The Outlook for Data 2018: A Snapshot Into the Evolving Role of Audience Insight - Research from the IAB Data Center of Excellence January 2018
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.
The Outlook for Data 2018: A Snapshot Into the Evolving Role of Audience Insight - Research from the IAB Data Center of Excellence January 2018
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

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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

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