Traditional media players can become data-centric. here’s how
“Data-driven thinkingis written by members of the media community and contains fresh ideas about the digital revolution in media.
Today’s column is written by Madan Sundararaju, Vice President of M&E at Capgemini Americas.
You’ve heard it before: the pandemic has accelerated massive changes in the marketing industry. budgets tear down from 10.2% of total revenue in 2014 to 6.4% in 2021, Again digital spending grew by an average of 11.5%. In fact, this year advertising through all digital channels will exceed 60% of global ad spend for the first time and reach 65.1% by 2024.
The reason for all this digital growth? Personalization, coupled with effective measurement, allowed marketers to see and understand results, which in turn encouraged them to spend more.
So how can traditional media platforms adapt to these trends and increase their ad revenue share?
If personalization is the currency these days, then media platforms should start offering ‘cloud marketing as a service’ and ‘cleanroom as a service’. These options will allow businesses to provide personalization at scale by giving ad buyers the ability to direct their ad spend to specific segments and properties at desired times. The result will be increased accuracy in geography, demographics, income and more.
Consider the example of a streaming platform looking to increase the relevance of its ads to a new age demographic. By implementing these additional services, the media company will be able to provide said streaming client with a much more personalized and desirable advertising strategy.
The increased accuracy brought about by cloud marketing and cleanroom services will force ad buyers to turn to more programmatic and technology-driven interactions. This removes agency disintermediation and price friction in the end-to-end ad sales process. And it’s a win-win situation for the entire ad sales ecosystem: ad sellers, ad buyers, and consumers who end up with a better, more personalized experience.
Transition from media platform identity to technology provider
With cleanrooms and marketing as a service, media companies can transition from content providers to technology service providers. And once a company can be categorized as a technology provider, it opens the door to secondary revenue streams, such as the cost of consumption on the platform.
There is a caveat, however: most technology companies are often forced to offer technology services at a loss for long periods of time to drive interest and adoption. Media companies will need the stamina to offer similar avenues of integration if they hope to succeed.
Learn from cloud natives
Traditional media companies can use born-in-the-cloud companies as role models. Cloud-focused organizations have become experts at accelerating their technology roadmaps and innovation rates to easily adopt and improve their monetized platforms.
While this may be a new area of learning for media companies, it is an opportunity to foster deeper experience. Combining complex second-party data with first- and third-party data to create more valuable granular segments is just one example of how traditional media companies can adopt more sophisticated technology practices to increase revenue. advertisers. The resulting customer interaction will produce greater clarity and speed and can significantly alter the content experience.
Disruption is an opportunity
In the past, disruptions happened slowly. This traditional notion has been turned upside down following a global pandemic, which has forced nearly every industry to respond and adapt to massive disruptions in real time. However, the disruption will continue until outdated practices and technologies are improved through innovation.
In the media industry, disruption is widely understood as a threat to linearity. However, this need not be the case. Content is still king; it will always be. But customer-driven, data-driven ad sales will separate the winners who offer mass personalization from those who are left behind.
By embracing new cloud technologies, media companies can realize higher revenues while giving consumers the more personalized experience they want.