Digital advertising predictions 2018
Programmatic ad spend is surging in APAC. As a result, publishers have begun developing consortiums to capitalize on...
Publisher consortiums have arrived
Programmatic ad spend is surging in APAC. As a result, publishers have begun developing consortiums to capitalize on the trend. They are increasingly partnering with other media companies to bring their digital inventory into one, unified marketplace. Doing this helps them get the scale they need for a private programmatic exchange. KPEX in New Zealand is a good example. They’ve brought together four of the most popular publishers in that market. CntrlShift’s “AMP” in Malaysia is another one.
Publisher consortiums offer benefits for both sellers and buyers. For participating publishers, a consortium allows them to compete more effectively for growing digital ad budgets. They can win dollars from buyers who are attracted to programmatic’s efficiency and targeting capabilities. On the buy-side, advertisers can transact in these environments knowing that they are placing ads next to quality, brand-safe content. This delivers trust in buys.
In 2018, publisher consortiums will grow even more popular as programmatic-buying becomes further entrenched. Advertisers will want brand-safe environments at scale, and that enable automated transactions. Publisher consortiums will fill that need.
GDPR is coming, and that’s OK
Next May, GDPR will go into effect. And with it comes new rules surrounding digital data collection. Now, EU audiences will have more control over how their personal information is indexed and used. GDPR applies to any entity that collects or uses data from EU citizens – even if the company itself does not have a European presence. This means marketers in APAC will also be affected.
In the ad industry, reception to this new regulation has generally been negative. Brands and agencies rely on consumer data to develop personal -- and ultimately successful -- advertising experiences. GDPR, however, will treat anonymous and personal data identically, which could have a major impact on ad experiences for consumers in the EU. What’s more, there are significant compliance costs that come with GDPR. Those who don’t obey will face fines, which could amount to as much as 4 percent of global revenue.
Now, while these new guidelines could cause early problems for advertisers, GDPR will also brings with it key long-term advertising benefits. For example, GDPR raises the bar for opt-in data collection. While this will reduce the scale of data collected, it will dramatically raise the quality. This means better ad experiences for consumers and stronger ROI. More marketers will realize this in the New Year, as we get closer to the launch date.
Second-party data is king
Second-party data was all the rage in 2017 and that will continue in the New Year. Second-party data is essentially someone else’s first-party data that you access directly from them. There is no data aggregator or other “middleman” in the exchange of second-party data. Through a direct relationship with the owner of the first-party data, you can define exactly what data is being bought or sold, the price of the data and any other commercial terms.
The possibilities with second-party data are endless. Advertisers can choose the data sources they feel are most relevant to their campaign optimization, filtering out all the unnecessary stuff. This is where you can take data-driven marketing to a place that is not only unique, but extremely efficient. And what second-party data may lack in “scale,” it makes up for with precision.
In 2018, second-party data will explode in demand, driven by advertiser calls for transparency and clarity in the data they use. By cutting out the middle-man, marketers can go directly to companies that they know will have the most important or high-quality data. The data is unique and a direct relationship is in place, so quality is never an issue.
Alex Sibois, Managing Director, APAC, Lotame
SAS: Improving the British Army’s decision making with data
SAS’ long-standing relationship with the British Army is built on mutual respect and grounded by a reciprocal understanding of each others’ capabilities, strengths, and weaknesses. Roderick Crawford, VP and Country GM for SAS UKI, states that the company’s thorough grasp of the defence sector makes it an ideal partner for the Army as it undergoes its own digital transformation.
“Major General Jon Cole told us that he wanted to enable better, faster decision-making in order to improve operational efficiency,” he explains. Therefore, SAS’ task was to help the British Army realise the “significant potential” of data through the use of artificial intelligence (AI) to automate tasks and conduct complex analysis.
In 2020, the Army invested in the SAS ‘Viya platform’ as an overture to embarking on its new digital roadmap. The goal was to deliver a new way of working that enabled agility, flexibility, faster deployment, and reduced risk and cost: “SAS put a commercial framework in place to free the Army of limits in terms of their access to our tech capabilities.”
Doing so was important not just in terms of facilitating faster innovation but also, in Crawford’s words, to “connect the unconnected.” This means structuring data in a simultaneously secure and accessible manner for all skill levels, from analysts to data engineers and military commanders. The result is that analytics and decision-making that drives innovation and increases collaboration.
Crawford also highlights the importance of the SAS platform’s open nature, “General Cole was very clear that the Army wanted a way to work with other data and analytics tools such as Python. We allow them to do that, but with improved governance and faster delivery capabilities.”
SAS realises that collaboration is at the heart of a strong partnership and has been closely developing a long-term roadmap with the Army. “Although we're separate organisations, we come together to work effectively as one,” says Crawford. “Companies usually find it very easy to partner with SAS because we're a very open, honest, and people-based business by nature.”
With digital technology itself changing with great regularity, it’s safe to imagine that SAS’ own relationship with the Army will become even closer and more diverse. As SAS assists it in enhancing its operational readiness and providing its commanders with a secure view of key data points, Crawford is certain that the company will have a continually valuable role to play.
“As warfare moves into what we might call ‘the grey-zone’, the need to understand, decide, and act on complex information streams and diverse sources has never been more important. AI, computer vision and natural language processing are technologies that we hope to exploit over the next three to five years in conjunction with the Army.”
Fundamentally, data analytics is a tool for gaining valuable insights and expediting the delivery of outcomes. The goal of the two parties’ partnership, concludes Crawford, will be to reach the point where both access to data and decision-making can be performed qualitatively and in real-time.
“SAS is absolutely delighted to have this relationship with the British Army, and across the MOD. It’s a great privilege to be part of the armed forces covenant.”