How to be a global player in the technology game
American writer and futurist Alvin Toffler said that “change is the way in which future invades our lives” and it is especially true when we are talking about technology.
The ad market is going through a complete revolution and here in Spain we have woken up in the middle of the storm. Large media agencies are trying to import European work models and publishers are also reacting – but both parties are fighting with no conditions. So let´s delve into what is happening and why, and maybe we can discover the roots of this war.
The first problem comes from publishers perceiving each technology as part of very different universes: RTB is seen as the global manager of bulk inventory, data is then seen as another independent activity, and so on.
But it’s not true: all of it is part of one global technology and this technology is evolving into programmatic and if we know how to work with it, we can create new, high value actions. Publishers must develop and think about programmatic as a new tool available to help them in the new era.
The second problem is that money makes the world go around , but Spain is living through a financial crisis. In order to survive, publishers need to support their normal activity with 50% more income than five years ago. For them, this has created a climate of fear which is influencing all their commercial actions. They know new strategies must be created to increase incomes and preserve all high -cost agreements.
Data must be easy, simple and profitable
And then on the other side, media agencies are living the same financial crisis and they are also looking at new tools and strategies to support new income.
So we have two parties, both needing more money and both trying to maintain their respective positions – media agencies as the global drivers of RTB solutions and publishers as owners of audiences and profiles.
And now the third problem: data has arrived to sit in the middle of battlefield – promising a new paradise, the end of all troubles, new frontiers, where all parts enjoy the money, honey and milk, but….nobody has arrived at this new promised land yet.
But why are parties fighting over it? Where is the problem? We should never refuse technological advances. Yes, data will be a new income source, but only one more source – not the only and not the last.
Today all players are looking at data forgetting one basic premise: data must be easy, simple and profitable. If we forget simplicity and try to develop a very complete profile, maybe the investment returns will fail. We need market volume and a big population to bring brands enough numbers of consumers. Sometimes, less is more, and this is the occasion to show it. Choose the profile, negotiate good conditions and select the best brand to test it – nothing new in the history of advertising, but exciting again.
Infact if you look at the history of advertising, you’ll see the footprints are always owned by the same: Publishers and Advertisers. Around these two players, time and time again there is change. But the important end-goal each time is that brands reach the consumers, and consumers enjoy the brands.
Brands are permanently in search of the best technology to reach their audience. And this is of course where we at Improve Digital can help. But part by part no one technology provides a satisfactory solution. We must consider the advantages of AUTOMATISATION, REAL TIME and DATA working together in full-speed connected systems. And if we take this global approach, we will start to be a global player in the new technology game. But both publishers and agencies need to play this global game together, as ultimately they need the same thing: brands to play with them.