ADOTAS — With 2013 in our rear-view mirror, it is interesting to reflect on how much technology and customer behavior has shifted over the year and how these changes will further accelerate industry transformation in 2014.
Running in tandem with technology and customer behavior are the practices that define marketing. Being a tech-savvy CMO in 2014 simply won’t be enough to keep up with the times. More and more advertising dollars are being dispersed beyond traditional reach mechanisms, like television, to drive conversions and reach audiences on a one to one basis. Without technology to manage the complexities that come with billions of data points flowing in and out of a marketing campaign, dollars are simply being left on the table. Data management platforms will move out of early adoption and the industry will continue consolidating this year. Here are three predictions I see propelling the industry forward in 2014.
- Data Management Platform (DMP) Use Will Triple in 2014. According to recent Forrester Research, data management platform (DMP) use was only at 10% at the end of 2012. I believe that based on the evolution of the traditional DMP, into an integrated platform that spans data, analytics, and attribution, the rate of adoption will triple in 2014 (from 2012). Why? Because CMO’s need to demonstrate that marketing budgets are delivering results and that because of this added pressure to not only maintain their budgets, but also to improve reach and sales, they must have a tangible and precise way to validate and measure a return. This is a significant driving factor for top 100 advertisers looking for ways to connect their siloed data and take action on data-driven insights that keep them at the top of their game.
- Digital Killed the TV Star. The time for experimentation in digital marketing is over. Marketers will no longer question the effectiveness of their marketing efforts in the year ahead, as they will have the long-awaited answers to those queries at their fingertips. As marketers develop a better understanding of the consumer, they will also be able to provide them with personalized content and offers that other advertising mediums (like print or television) can’t provide. Due to these developments and what we’ve seen from our own internal data, (300%+ conversion lift across key verticals), online budgets will skyrocket, taking a significant amount of spend from television and print along with it.
- With Agile Marketing Comes Third-Party Accountability. As companies create true end-to-end, centralized marketing platforms, marketers will be granted access to the tools necessary to develop holistic online marketing campaigns (for brand awareness, acquisition, etc.). More importantly, they will also be able to activate both media and audience data to see what works in their marketing efforts and what doesn’t, offering them the ability to take a more agile approach to their marketing efforts. With this newfound precision comes greater accountability for third-party data providers. Marketers will more frequently validate the quality of third-party data to ensure they are only paying for what was delivered and drove a conversion versus spending needlessly to purchase the same users across multiple channels who never convert.
Brands are faced with a huge opportunity to reach customers in a meaningful way by combining the customer intelligence and the media intelligence available from technology this year. I see more advertising agencies, brands and advertisers complementing each other in 2014 supplemented by technology, rather than replacing each other, to build brands, engage audiences, increase reach, and drive sales for a more successful, measureable digital marketing strategy.