OPINION: What won't happen in 2014, part 2

Matt Von der Muhll
By Matt Von der Muhll | 18 December 2013

What won't happen in 2014? Matt Von der Muhll, managing director SpotXchange APAC, reckons publishers will hold onto their data, mobile advertising will remain a clouded picture and advertisers will take time to get comfortable with cross-channel DSPs.

The surging demand for first-party data won’t be reached

Yet, despite the ever-increasing demand for first-party data, the reality is that many premium publishers are still tightly holding onto this information.

No one can blame publishers and content providers for being concerned about how their customer data is being used. Publishers have realised the value that can be gained from first-party data it collects from customers, whether it’s data from behaviours, actions or interests demonstrated across on their websites. With the heightened focus on privacy, many premium publishers are reluctant to sell this information onto an advertiser or third-party data provider.

Another perceived barrier to the widespread use of publisher first-party data is technical limitations. By its very nature, first-party data is specific to the owner which means publishers will have their own unique way of tracking, storing and analysing data

However, there is a simple solution to tackle these issues and this is where a Data Management Platform (DMP) – a central hub to collect, integrate and manage large volumes of data – can help. An effective DMP enables publishers and advertisers to gain a holistic view of their customers across various data sources.

There’s no doubt that there are real opportunities for publishers to monetise data collected to create new revenue streams. However, apart from embracing innovative technology, publishers need to better understand data regulations across the world, as well as well as work out how they are going to manage, price and bundle data with their existing digital options.

While data will remain a hot topic in 2014, we are still a few years away from seeing its real coming of age in Australia.

Mobile advertising will continue to soar, but its effectiveness will be questioned

Earlier this year, the Interactive Adverting Bureau (IAB) stated that mobile ad spending exploded to $86.2 million in 2012, which represents a whopping 220 per cent year on year growth. With the emergence of new mobile screens that are bigger and more interactive, mobile advertising is expected to continue to soar next year, but this growth will be tempered.

The biggest challenge of mobile advertising is finding sophisticated tools to measure the effectiveness of ad campaigns in a way that meets the expectations of advertisers. While industry groups such as the IAB are leading the way in developing guidelines to measure the performance of mobile advertising, these standards are still evolving, and not everyone plays by the same rules. It will be some time before the standards mature and companies agree with what gets measured.

For mobile to capture its fair share of advertising spend, it will also need to offer more sophisticated targeting. Currently, mobile campaigns can target people based on device, operating system and location. While mobile has the biggest potential in terms of relevance, personalisation and location, there is quite a way to go before we can really celebrate the full potential of mobile.

It will be some time before cross-channel Demand Side Platforms really take off

Finally, there’s been a lot of discussion around the consolidation of Demand-Side Platforms (DSP) given the pace at which advertisers want to tap into video, social, display and mobile. This year, we’ve no doubt witnessed the emergence of integrated media solutions which provide advertisers with the ability to manage their cross-channel ad campaign from a single resource. These new players are also forcing many established vendors to adapt and expand their services.

While there are great benefits to be gained for advertisers that partner with a cross-channel media provider, the reality is that it will be some time before advertisers are truly comfortable in working with a cross-channel DSP over a media buyer that specialises in the placement of a single channel, whether it’s video, social, mobile or display.

Matt Von der Muhll
Managing Director
SpotXchange APAC


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