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Reasons to consider in-housing your programmatic data

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As brands begin to take more ownership of their data and better understand consumer journeys, arguably, media agencies still have a better view of the overall media landscape. At The Drum Programmatic Punch last month, industry experts from Ctrl Shift, Infectious Media and Beamly debated the pros and cons of taking programmatic data in-house.

In-housing is nothing new. Smaller and local advertisers have been doing it for some time, explained Andy Cooker, chief operating officer and co-founder of international programmatic agency, Infectious Media. However, he explained, what’s changed over the past decade is the increase of new, bigger Fortune 500 companies who are starting to look at which parts of the advertising process they can take control off.

“It's such a fascinating subject area, it transcends programmatic itself,” he insisted. “There are these disruptive changes that are taking place across all industry sectors and it's not just what's happening within our own.

“Look at everything else. It's all about digital transformation and technology driven disruption. It's forcing advertisers and businesses across the globe to organise in new ways and focus around data more.”

Anthony Rhind, chief operating officer of digital agency, Beamly was surprised there hasn’t been more in-housing. Due to the amount that companies have spent on costs that "have been media over the years", he was startled that they haven't built media in-house capabilities to manage that.

He pointed at the sophisticated media negotiating rules of engagement that exist at the likes of Proctor and Gamble. “Given how the focus on digital has changed, it's not unexpected that so much emphasis is given to marketing companies that understand what that investment structure and process looks like.”

What is in-housing?

Where once it may have been a binary decision to hire an agency or work in-house, it's really not like that anymore, suggested Cooker.

“There are infinite shades of grey in between. The shade that works for your business, if some form of in-housing is right for you, is going to be based on your unique circumstances that can be based on how you are organised internally. How do you allocate and set marketing budgets centrally or do you have local marketing teams, do you have digital marketing teams? Are you a digitally native business, are you a more traditional business that's going through a digital transformation and reorganising?

“With any of those things, you might need support on certain aspects. Or you might do it all yourself if you are a digitally native.”

Are brands starting to understand value of programmatic?

Rhind said that while brands are aware of programmatic, they still believe that it’s a type of media. “The pendulum of programmatic has insistently been overly weighted towards audience, the sense of audience buying and the reality is that we as an industry have ignored environment too much. No intelligent marketer ignores environment.”

Rhind further explained that brands are looking at brand safety because of the brand risk of appearing adjacent many to YouTube video content and not wasted money.

“Brand safety is on the agenda because Mr Murdoch has an agenda against the walled gardens. This means that his news companies cover the risk of brands advertising on inappropriate YouTube content.

“That at an industrial level is why we are not relevant, because we don't have enough control. We make stupid mistakes and we don't talk commercial outcomes. We haven’t helped ourselves by the jargon loaded communications and the viable failures of governance.”

Understanding the delivery costs

Brands are increasingly demanding for low commission/lower costs on their ad placements, said Dominic Powers, chief executive officer of Ctrl Shift. Yet the resources to deliver on this demand are scarce, quick to burn out and increasingly becoming more expensive. He asked: “Do brands understand what it costs to deliver what they want?”

Cooker answered that some do, and some don’t. And then there are some that don't want to acknowledge the cost of a transparent operating model. “That's a problem we face a lot in competing against the businesses where it’s apparent that they do have a less transparent operating model than we do,” he said.

“Transparency comes at a price. There is starting to be a distinction between different pricing models for different types of services.”

Will big agency networks cope as more brands continue to in-house?

Most holding groups are heavily involved in media buying, suggested Rhind. In programmatic they've benefited from the alignment of technology contracts with media buying. “That's led to a very global approach of organisations to consolidate those biggest contracts to have leverage on buy side. Then to be able to price lowly on the selling of those services into the pitch side.”

Concluding, Powers said that there isn't a black and white model for in-housing or out-housing. “We won't all lose our jobs instantly,” he insisted “but we have a short amount of time left.”

Cooker, Rhind and Powers were all on the 'In-House Programmatic Pros & Cons' panel at The Drum Programmatic Punch 2018. Register your interest for 2019.

Ctrl Shift were a sponsor of the event.

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10 questions with… Anna Watkins, UK managing director of Verizon Media

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In an attempt to showcase the personalities of the people behind the media and marketing sector, The Drum speaks to individuals who are bringing something a little different to the industry and talks to them about what insights and life experience they can offer the rest of us. This week's 10 Questions are put to Verizon Media's UK managing director Anna Watkins.

What was your first ever job?
It would have been washing my dad's car to earn my £1 pocket money each week. Smart man.

Which industry buzzword annoys you most?
Relatable.

Who do you find most interesting to follow on social media?
@POTUS is truly mind-boggling.

what is the highlight of your career (so far?)
Working with such a creative, inspiring and intelligent bunch of people every step of the way.

What piece of tech can you not live without?
It's baffling that I was born in London yet still seem to use Citymapper every day.

Who or what did you have posters of on your bedroom wall as a teenager?
Adam Ant and Count Dracula (aged 7). I'm not quite sure what that says about me.

In advertising, what needs to change soon?
We need a truly diverse workforce.

If you could change anything about a social media platform you use, which one and what would you choose to do?
It’s more a question of changing myself – I need to flex my creative muscles if I’m ever to make more than one friend on Tumblr…

What is (in your opinion) the greatest film/album/book of your life?
Scarface / Sign of the Times / War and Peace – delusions of grandeur, mine and theirs.

Which industry event can you not afford to miss each year and why?
The big awards bashes – it's like going to a series of weddings where you know half the guests.

The Drum's 10 Questions With… runs each week with previous entries available to view here.

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Mobile carriers end data sharing with location aggregators; should marketers worry?

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The collection and use of real-time mobile-location data has emerged as a critical piece of the larger data-privacy debate. A recent run of negative stories have conveyed the impression that location data usage by marketers is tantamount to spying on consumers.

We’re also starting to see lawsuits, like one recently filed by the Los Angeles City Attorney against the Weather Company, for allegedly misleading consumers about how their location data would be used. More suits will likely follow.

Carriers cut off data sharing. The negative coverage and exposure of some high-profile abuses have motivated major U.S. mobile carriers to cut off location data sharing with third party “location aggregators.” The latest to do so is AT&T, following a story by Motherboard that indicated carrier data was getting into the hands of unauthorized third parties — bounty hunters, in this case — and being used for legally dubious purposes.

As a practical matter, these moves are unlikely to significantly impact use of location data by advertisers on major platforms or in the programmatic ecosystem. AT&T owns AppNexus; Verizon owns Verizon Media Group (the rebranded Oath). Location data will probably still be available to advertisers on these platforms — they’re not “third parties.” (We’ve asked Verizon for clarification on this point and will update the story if they respond.)

Calls for more regulation or legislation. Location data are so valuable and widely available that abuses are inevitable. Some of these increasingly frequent reports are adding momentum to calls for federal data privacy legislation. The carriers’ decision to cut off location aggregators is at least partly an effort to preempt investigations and potentially forestall regulation.

Some location data companies embrace the proposition of clear regulatory or legislative guidelines, however.

For example, PlaceIQ CEO Duncan McCall recently told me in email: “I think that the California Consumer Privacy Act and hopefully a similar federal law (as a state-by-state patchwork of different laws would be good for no one) will not only give consumers protection and confidence, but will finally give the digital data and location data ecosystem a well-thought out set of rules and guidelines to adhere to. This will bring stability and predictability to the industry, and help weed out some of the “wild west” players that have had no interest in investing for the long term good of the ecosystem.”

Most location-data companies also say they adhere to ethical data-collection practices and are scrupulous about being “good actors” in the ecosystem. Some are vocal about the responsible and/or socially beneficial use of location technology. And some organizations (e.g., NAI) are seeking to enforce transparent and ethical data collection standards. Foursquare told me in email that their apps and partners seek opt-in consent for use of location data.

Why you should care. Location data is available from a wide range of sources in the market, including app developers and the programmatic bid stream. The loss of carrier location is not a significant blow to the ecosystem.

However it is reflective of a trend toward the tightening of access to location information more generally. While it remains to be seen whether federal privacy legislation passes in 2019 (multiple bills have been proposed), California’s Consumer Privacy Act will go into effect January 1, 2020. Other states may enact similar or more strict laws, which would lend further impetus to comprehensive federal legislation.

The post Mobile carriers end data sharing with location aggregators; should marketers worry? appeared first on Marketing Land.

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Catalina adds first attribution tracking service

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Best known as a provider of retail marketing intelligence based around loyalty cards and in-store printed coupons, Catalina this week released its first attribution service.

Called Catalina Multi-touch AttributR, it traces a path from digital advertising — in various channels on various devices — to a purchase made in a store with a loyalty card. The company is able to track purchases down to the UPC bar code level.

At the level of the Diet Coke flavor. Coca-Cola, for instance, can now track how a web site ad shown on a computer affects the purchase of a Diet Coke, as well as whether the flavor chosen is Twisted Mango versus Ginger Lime. Additionally, the attribution service can report if it’s the first time this consumer bought Twisted Mango.

Previously, Catalina measured how its printed in-store coupons affected buyer behavior, but it didn’t track the impact of ads. The new attribution solution is the company’s first effort to link digital ads to buyer behavior, and it plans to add addressable TV ads to the system.

Catalina tags the digital ad with its own attribution pixel, which is called when the ad is shown and provides data on the specific campaign deployments.

But the connection between the ads shown, the various devices used by a single individual, and the in-store purchases are actually made by consumer data firm Experian on Catalina’s behalf, through such persistent identifiers as phone numbers or email addresses.

“Not in the business of knowing who you are.” In the new attribution service, the retailer sends the loyalty card ID to Experian, which matches it with the digital cross-device profile of a given individual and with the ads shown to the user on those devices. Experiam then returns a report to Catalina that uses an anonymized ID.

Catalina CMO Marta Cyhan told me the company deals only with anonymized IDs because “we’re not in the business of knowing who you are,” although Experian does have PII.

The data is updated daily to a self-service dashboard for brands (see below) and, since Experian tracks profiles, the attribution can also include the effect of ads on repeat purchases, new buyers of a product category and other consumer behaviors.

Difference from NCS. Catalina, which filed for bankruptcy protection last month, is also known as a partner in Nielsen Catalina Solutions (NCS), which employs data from the in-store coupons and loyalty cards. But, Cyhan said, Catalina’s new attribution measures individuals across multiple channels deterministically, since the actual people are known through the Experian matching, while NCS is focused on measuring single channels through probabilistic modeled data.

Additionally, she said, Catalina’s new solution is updated daily, includes buyer behavior changes and provides granularity down to the UPC level, while NCS provides post-campaign reports on overall sales lifts.

Why you should care. Catalina’s shopper data is used widely by marketers, and this first attribution service will help brands determine the impact of their paid media spend.

Additionally, Catalina is providing a very fine level of granularity, down to the individual product bar code, with a very high level of certainty. This approach could provide the kind of accurate, return-on-spending results that major consumer brands have clamored for.

The post Catalina adds first attribution tracking service appeared first on Marketing Land.

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