Lotame CRO Talks Bots, GDPR, and Second Party Data in 2018

The following is a guest contributed post from Eric Marterella, CRO at Lotame, the largest independent DMP in the world We need to fix the bot problem. “2017 was all about transparency in digital. Most of the conversation focused on the murky programmatic supply chain....

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The following is a guest contributed post from Eric Marterella, CRO at Lotame, the largest independent DMP in the world

We need to fix the bot problem.

“2017 was all about transparency in digital. Most of the conversation focused on the murky programmatic supply chain. But bots remain, in my opinion, one of the biggest ongoing threats to campaign and audience clarity.

Distil Networks, for instance, has found that bots accounted for roughly 40 percent of internet traffic and that 94 percent of websites were hit with bad bots that skew marketing analytics. Bot traffic creates negative outcomes across the digital ecosystem. For publishers, bots pick up and inflate first-party audience data, resulting in wasted bandwidth, content piracy, fake traffic and skewed site analytics. Bots damage marketers and agencies by frequently clicking and engaging with digital advertising and ultimately decreasing campaign effectiveness.

In 2018, we need to refocus efforts on solving the bot problem. It’s too prevalent to ignore and needs to be fixed at the vendor-level. Next year, more ad tech and marketing platforms will embrace third-party bot-detection and quality measurement partners to audit the inventory and data they share. This is the only way to deliver true transparency to advertisers and publishers alike.”

GDPR is coming — and that’s OK.

“In May, GDPR will go into effect. And with it comes new rules surrounding digital data collection. Now, EU audiences will have more control over how their personal information is indexed and used.

In the ad industry, reception to this new regulation has generally been negative. Brands and agencies rely on consumer data to develop personal — and ultimately successful — advertising experiences. GDPR, however, will treat anonymous and personal data identically, which could have a major impact on ad experiences for consumers in the EU. What’s more, there are significant compliance costs that come with GDPR. Those who don’t obey will face fines, which could amount to as much as 4 percent of global revenue.

Now, while these new guidelines could cause early problems for advertisers, GDPR will also brings with it key long-term advertising benefits. For example, GDPR raises the bar for opt-in data collection. While this will reduce the scale of data collected, it will dramatically raise the quality. This means better ad experiences for consumers and stronger ROI. More marketers will realize this in the New Year, as we get closer to the launch date.”

Second-party data is king.

“Second-party data was all the rage in 2017 and that will continue in the New Year. Second-party data is essentially someone else’s first-party data that you access directly from them. There is no data aggregator or other “middleman” in the exchange of second-party data. Through a direct relationship with the owner of the first-party data, you can define exactly what data is being bought or sold, the price of the data and any other commercial terms.

The possibilities with second-party data are endless. Advertisers can choose the data sources they feel are most relevant to their campaign optimization, filtering out all the unnecessary stuff. This is where you can take data-driven marketing to a place that is not only unique, but extremely efficient. And what second-party data may lack in “scale,” it makes up for with precision.

In 2018, second-party data will explode in demand, driven by advertiser calls for transparency and clarity in the data they use. By cutting out the middle-man, marketers can go directly to companies that they know will have the most important or high-quality data. The data is unique and a direct relationship is in place, so quality is never an issue.”

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