The marketing industry is facing a number of challenges that makes it obvious that change is needed. In fact a wave of transformation is already on it's way. This opens up for new types of solutions to help marketers reaching their goals in the years to come. Here we list five important areas.
Third Party Cookies
The third-party cookie has been the bedrock of the technology dominating the online advertisement industry. This technology is now being phased out by the large industry actors due to the growing mistrust by internet users having their personal data collected by thousands of companies in the advertising ecosystem. The current solutions for measuring online campaigns will therefore lose its relevancy by 2024 creating a strong market demand for a new advertising measurement standard.
As both consumers and legislation has reacted to the marketing communities collection of private data, GDPR and CCPA has been implemented by legislators in Europe and the US to stop personal data usage for targeting campaigns. This legislation has made the possibility to track users behavior online even more limited, implicating both attribution modelling and reach.
Weak Measurement Standards
As clicks and impressions has been the dominating KPIs for digital marketing, both has been proven to poorly determine the value of purchased media. The optimization on clicks has led to an extreme short-term focus for marketing results, pushing away potential clients as well as damaging long-term brand building efforts. Impressions has been the currency publishers have used to sell their inventory. With weak systems only proving viewability of purchased ads, it has been difficult for advertisers to measure online advertisements real value.
Measurement of creative assets has mainly been done through surveys in which online users having visited a particular site have been asked questions about the ad experience a few days to a few weeks after the experience, making it extremely vulnerable to memory bias.
Google, Facebook and Amazon controls 70% of the worlds digital marketing creating their own closed ecosystems, so called “Walled Gardens”. These offer limited personalization opportunities and measurement transparency for advertisers. With the removal of the third part cookie, it will be even harder for advertisers to fully understand the impact of their marketing investments.
It is estimated that the global ad fraud will reach $100 billion by 2023. This is equivalent to almost 12,5% of the total digital ad spend. APAC is the most affected region. While it takes different forms the most common practice is fraudulent publishers who utilizes automated bot traffic to repeatedly drive click on ads.