BKK Web: The Future of Marketing Measurement
On December 14, 2022, Seven Peaks hosted a BKK WEB meet-up to discuss the future of marketing measurements. The meetup was designed to provide valuable insights into the current state of digital marketing measurement. As well as dive into the trends that are expected to shape the field in the near future.
Additionally, the meetup aimed to examine the underlying causes of these changes and provide a framework for marketers to navigate the rapidly evolving industry. Overall, it can help marketers navigate the knowledge and tools they need to stay ahead of the curve in an increasingly competitive and dynamic field.
Our speaker, Ronen Mense, President, and Managing Director of APAC at AppsFlyer, argued that the future of marketing measurement has already begun. This is partly due to the impact of the pandemic. If you have only recently become aware of this shift, it may have set your business back financially.
The Shift in the Pandemic Era
During the pandemic, the digital ad industry has experienced significant growth. The advertising revenue increased from 20 billion dollars to 31 billion dollars as Ronen mentioned in the speaks. This growth has been driven by the take-off of various tech sectors, such as FinTech, GameTech, and Software Companies, as well as the rise of e-commerce platforms.
Many companies have also invested in Digital Transformation in order to take advantage of these opportunities. This is also, in order to reduce risk moving forward and stay relevant in the growing market.
However, upon closer examination, it becomes clear that the biggest tech companies, such as Apple, Facebook, and Google, are the ones gaining the majority of the benefits. These companies have a huge presence in the digital ad market. Their size and resources allow them to dominate the industry and capture a large share of the profits. This has led to concerns about the level of competition and diversity in the digital ad market. Alongside the impacts that may have on smaller players and advertisers.
Big tech companies are facing a dilemma in their efforts to win customers’ trust. They position themselves as privacy-centric companies, while also trying to maintain their position as leaders in the digital ad market. Alongside redesigning their privacy terms to benefit their own “wall gardens,” they also position themselves as privacy-focused operating ecosystem companies.
This has led to a shift in the landscape of digital marketing as companies must navigate the evolving landscape of privacy regulations and customer expectations. Making the requirement of marketing efforts to adapt to these changing privacy standards, can be challenging. Small companies and advertisers face difficulty navigating privacy issues due to limited resources.
As a result, the status quo in the digital ad market is being reshaped by these efforts to balance post-consumer privacy concerns with the desire to maintain profitability and market dominance.
Changes in Digital Marketing Measurement
The ability of marketers and advertisers to collect data directly from customers and track their journey has undergone a significant change. Now, companies are much more protective of their customers’ data, adding more restrictions to third-party data. The increase in restrictions forces marketers to carefully consider their distribution strategy in order target the right customers.
“Apple’s IDFA change/ATT introduction has triggered 15% to 20% revenue drop for iOS developers” – VentureBeat, July 2021
It is estimated that only 20% of apple users agreed “Yes” to the Apple Transparency Restriction. This means that advertisers will only have access to a limited pool of user data. On top of being unable to track and personalize ads for the majority of Apple users.
This trend has had a domino effect, with more and more companies choosing to keep their data in-house. As a result, some companies have had to alter their strategies in order to survive in the face of their competitors’ decisions.
The Rise in Competition
An increase in competition is one effect of businesses embracing digital transformation. As more businesses invest in digital capabilities, the market becomes more saturated. Moreover, the cost of standing out and competing with other companies becomes higher. It consequently leads to an increase in competition as companies try to differentiate themselves and attract customers to establish a strong presence in the digital market.
As competition intensifies, marketers are forced to refocus their attribution strategy to stand out in the crowd. It becomes more crucial for companies to have a clear attribution plan. This plan enables them to assess the success of their marketing initiatives. Equally important, determining where to focus their resources for the most impact.
Rapid Change in Customer Demand
On top of the trackability restriction and the rise of competition, customer demand is more volatile than ever before, making it challenging for marketers to properly target them. The strategies for doing so are still being developed, and marketers are constantly having to adapt to changes in the field in order to stay competitive.
Regulations in the marketplace continue to be a source of uncertainty, with no clear direction on the right approach for the market. Businesses still need to learn how to navigate the market and make informed decisions on how to operate.
Customers expect brands to reach them on a personal level in order to build a connection with their products and services. This creates a dilemma for businesses as they try to balance these expectations with their own goals and limitations.
The question is “What does the Future Look Like for Marketers?”
What does the future look like?
“The best way to predict the future is to create it.” – Peter Drucker
One way for businesses to address the challenges they face is to adopt a customer-centric thinking framework. This involves listening to the needs and preferences of clients, partners, and the market and treating them as the primary focus of the business. The operating principle of this framework is that the customer is at the center of everything we do.
Adopting this strategy, businesses can gain a deeper understanding of their customers. On top of developing strategies that effectively meet their needs and expectations. It is important to look at the bigger picture rather than dissect just a small portion of the framework.
Ultimately, it is the responsibility of the business to help its customers overcome the challenges they face. Doing so can secure the company’s own success as well.
Facing the Problem
The first step in addressing the challenges faced by businesses is to recognize that they exist. One major challenge is the transition into a cookieless future. Whereas a required in shifting away from a cookie-based, deterministic model to a user-centric model. This means treating third-party data as if it were first-party data and finding new ways to understand and engage with customers.
In the evolving digital market, it is crucial for businesses to stay agile with all the constant changes that are happening in the industry. It is also important for businesses to recognize the potential threats posed by industry changes and take action to effectively address them.
As a marketer, one of the biggest pain points is when privacy changes are in need of an infrastructure upgrade. Rather than viewing this as a burden, businesses should be seeing it as an opportunity to invest in new and innovative technologies that can aid future changes.
By embracing change and investing in forward-looking technologies, businesses can stay ahead of the curve and meet the evolving needs of their customers.
Double Down Trust
In order to build and maintain consumer trust, it is important for marketers to ensure that they are using consumer data responsibly and ethically. This means conducting thorough due diligence on third-party platforms and partners. Coupled with making sure that they are in compliance with all relevant privacy laws and regulations. By taking the time to ensure that their data practices are transparent and trustworthy, marketers can protect their reputations and build stronger relationships with their customers.
As the digital industry continues to evolve at a rapid pace, it is important for all parties involved to work together to meet the changing needs and expectations of customers. Rather than focusing solely on a small portion of the problem, it is important to take a wide view and consider the bigger picture.
As Ronan mentioned, we are only 1% done with the process of adapting to these changes, and there is still much work to be done. As marketers, it is our responsibility to embrace the challenges we face and work to maintain the trust of our customers. By doing so, we can help drive the industry forward and create a better experience for all.
It is important to think ahead to better understand the challenges and opportunities that are in place. The expertise of professionals can greatly aid this process by providing valuable insights and guidance. Together, proper planning and professional support can greatly simplify the digital transformation journey and increase the chances of success.