Future-Proofing Your Digital Strategy
Key Learnings from Programmatic I/O 2020
While 2020 has been a challenging year in the marketing world and elsewhere, one silver lining is that major conferences and industry events that normally cost thousands of dollars per person have gone virtual, with their content available at a significantly reduced cost.
This change has allowed Flynn to extend the opportunity to attend conferences to folks throughout the agency — including Programmatic I/O. One of the industry’s top digital marketing conferences, this event touched on topics such as ad tech and platforms, cookie policies, performance optimization strategies, and measurement.
We wanted to share some key takeaways from our media team that can help you as you continue to plan for 2021.
The Industry Continues to Prepare for Life Without Third-Party Cookies
Everyone knows it: cookies are being pushed out over the next 18 months, and the industry is going to significantly change as a result. With Apple leading the way with Intelligent Tracking Prevention (ITP) and Firefox following suit with Enhanced Tracking Protection (ETP), the cookie is already about to crumble. Google’s introduction of opt-in ITP will be the death knell for the cookie as a reliable data source. For marketers, this means that roughly half of your data addressability will be lost over the next 18 months. Predictions from top consulting groups such as Prohaska Consulting show a 30%-50% erosion of digital revenue due to the breakage in planning, targeting, and measurement. Here are a few steps your agency can take now to ensure a smooth transition away from the cookie when the time comes:
- Start consulting with your brands on developing a first-party data approach. This data can come directly from the brand itself, from a data partner, or, ideally, both.
- Create more private programmatic deals. This can take the form of either programmatic direct or private inventory.
- Sign up with an ID Resolution Partner. There are several partners who are already leveraging “cookieless” technology, such as Liveramp, that can help segment and activate first-party data.
By taking these steps now, and having the right conversations with your brands, the loss of cookies will be less of a calamity and more of just a shift in tactics.
New & Emerging Tactics in A Cookie-less World
How can you fill the void left by the elimination of cookie-based targeting? Fortunately, there are already some great targeting tactics available now that don’t use cookies and are sure to increase in prominence over the next year. We recommend starting these tactics sooner rather than later so that you have time to optimize and analyze your campaign before cookie-less tactics are your only option.
One tactic that many marketers are already using to great effect is contextual targeting. Contextual targeting uses keywords in the text of a website to classify the context of a given webpage. Based on these classes or audiences, you can target site visitors knowing that they’re likely in the market for your product or service based on what they’re viewing. There are even AI-based tools, such as the one that StackAdapt is building, that will aid marketers in building effective contextual targeting campaigns. This shift to contextual targeting will place an even greater premium on producing relevant content and not just content aimed at very small audiences, since it will be harder to hit the right people compared to cookie-based targeting.
Once users are being driven to your website with contextual targeting, it’s more important than ever to capture their information via a “signup” or other method of data capture. Building out great first-party data systems now will pay big dividends later. Email addresses, phone numbers, and home addresses are all pieces of information that can be captured during a signup and later used for remarketing. Almost 90% of people prefer personalized ads and believe they have benefits. Brands must gain the trust of new users so that they opt in to releasing their data when given the choice. Become a trusted partner, and you’ll reap the rewards in retargeting.
Programmatic Audio & Video Opportunities on the Rise
Programmatic buying is changing at an extremely rapid pace thanks to advances in technology and COVID-19’s impact on consumer habits. Here are our top five related trends that you should be paying attention to in the coming months:
- Digital spending is continuing to increase over 2020 predictions. COVID-19 has accelerated the shift from buying in person to e-commerce and online shopping. Every brand must have a strong digital presence in addition to more traditional channels of marketing.
- Mobile and audio spending is growing as well, with the vast majority of these deals being programmatic. Podcasts represent a unique opportunity for brands to connect with users while they are away from a screen.
- Connected TV (CTV) is on the rise as cord cutting becomes the norm. App-based television has access to traditional TV-sized audiences while also offering the control and data depth of digital media.
- Social remains king in generating new users across all brands. Build a strong social presence using programmatic deals to attract new users.
- Cutting out the middlemen in programmatic deals. If possible, go directly to the source to buy. This leads to the most accurate data, the biggest bang for your buck, and the most flexibility should your marketing needs change due to unforeseen events, such as this year’s pandemic.
The COVID Impact
COVID-19 has been the main headline across the world for most of 2020 for a reason. Among other things, it’s changed every industry in the short term, and many will continue to see the effects of the pandemic even after a return to “normal.” Marketing is certainly in this latter group, as consumer shopping and purchasing preferences are likely to never return to where they were pre-COVID. Additionally, e-commerce dominance is here to stay, cable cutting is now the norm (resulting in CTV spending exploding), and consumers are more sensitive to the societal actions of the brands they support than ever before. Based on these developments, here are a few things that marketers need to keep in mind moving forward:
- Consumers will pay more for brands that they trust or that they perceive to be community-conscious, particularly in times of national or global struggle.
- CTV and social ads are the fastest way to reach the most people.
- A marketing strategy for a brand that sells both in-store and online must be consistent across all channels.
- In order to be successful during COVID and beyond, the relationship between brands and their consumers must be understood on a deep level.
Programmatic I/O was a unique and rewarding experience, and all of us on the Flynn team were thrilled to participate. As a result, we’re better prepared for 2021, and we hope the information we’ve shared will also help you and your company navigate the changes ahead.
