Let’s start with a fun fact: according to IBM, “everyday, we create 2.5 quintillion bytes of data – so much that 90 percent of the data in the world today has been created in the last two years alone.”
Frequent readers of this blog will have noticed that we are constantly mentioning data - with a special emphasis this week. It really is vital to today’s competitive digital advertising landscape. Data offers companies a huge competitive advantage, if analysed and used correctly.
It is so rich a source of information that it can inform advertisers what customers need and want and how or why they buy. Data drives programmatic buying so that advertisers can target the people they want with absolute precision, making their advertising more efficient.
Sanjay Mirchandani, chief information officer at EMC, claims that “the onus [...] is to leverage data.” Data gives decision makers more authority, as it is difficult to argue with facts. By leveraging data, you are able to understand your customers and their preferences better, and therefore able to create better, personalised ads for them. The more your business grows, the more data you acquire which is beneficial to you for reasons mentioned above.
We have also mentioned that due to huge advances in technology, it has become more affordable and easier to gather information. This is fantastic for businesses and governments alike, argues McKinsey. Big Data (vast amounts of data) has created new growth opportunities and entirely new categories of companies, such as those that aggregate and analyse industry data. We talked about these yesterday - Data Management Platforms (DMPs).
While this is all well and good for businesses and their strategies, the issue is just how much data is out there. So much so that in order to gather, analyse and store it, technology and machine-based systems have to step in. There’s also the cost of storing data - the greatest cost to those who benefit from it most.
Big Data, Big Complexity
With people owning several devices at once, companies now have different ‘touchpoints’ on everyone. That is to say that they now can collect more data on individuals and connect it all together. Consumers are becoming more and more careful about how much data they give to companies, perhaps without even realising the value of their data. Consumers are also entitled to know how much data a company may have about them and how they are using it. The Sony hacking scandal demonstrated that anyone can be targeted, and can have their dated leaked: the issue is not a new one. Confidential data about employees and their families as well as employee’s salaries were leaked, consumers became skeptical as a result and have started educating themselves about handing over data.
With these growing concerns, some good news has arisen in that there is now standardisation on the cloud (internet) of safe storage for data. Companies such as Rackspace are ensuring greater safety standards when storing their customer’s data on their cloud. They want to ensure the same level of security when it comes to protecting virtual assets as companies would protect their physical assets. They break down their security process and look at Cloud Threat Protection, assess vulnerability and protect their customer’s most sensitive data. Furthermore, advertisers can use a White-label registry (e.g Bluekai), providing consumers with complete transparency on their data that has been collected, as well as giving them the choice to ‘opt out’.
The change of the adtech industry on the concern of ad fraud has prioritised the best practice of the market. According to Media Math, it is through education, clear standards & policies, and industry-wide data-sharing that the industry can improve itself, ensuring safety for consumers.
Here’s the main take away: the combination of incredibly smart technology, data safety and transparency are vital for digital ad success.
Here at the Media Trader, we take transparency and data safety very seriously because we fully understand its value, not only to us, but to our clients. We don’t sell data, we simply analyse it using Skylads software giving you better insights into effectively serving adverts to the most relevant people.
19 days until The Web Summit in Dublin. See you there!