Musing from GroupM: Data Proliferation Will Force Agencies to Change Their Operations - Neeraj Kochhar - MediaBizBloggers

Digital media agencies today collect process analyze and utilize vast amounts of data Moreover the data originates from an evergrowing number of sources that include campaign management systems thirdparty adservers richmedia providers search engines data and research companies and financial management platformsAdd to this complicated digital media mix the need for holistic crosschannel analysis and weighted attribution models and you have a datadriven opportunity amp8211 or disaster amp8211 on your hands Regardless of the different potential individual outcomes the industry in general clearly has a data amp8220problemamp8221 that needs attentionStrategically from a big picture perspective proper data utilization is essential if we hope to deliver on the promise of digital advertising highlyrelevant targeted channelaware and compelling consumer experiences The fragmentation of the digital landscape and fluid nature of media consumption from one channel to another means agencies must enhance current capabilities to mobilize quickly and effectively to reach and engage target audiencesA consumer who is deemed to be inmarket for a product or service will be valued differently across different channels at each point during the consideration cycle These valuation decisions will be informed by a variety of data sources On the creative front we can expect an unprecedented level of dynamic message finetuningThis inevitable shift in approach is beyond the scope of manual amp8220after the factamp8221 paradigms of data management analysis and optimization Operationally it is extremely challenging given the requirement for the realtime and dynamic integration of multiple partners and platforms in the value chainUltimately technology and automation will have to coexist alongside planning and buying capabilities given the volume fragmentation and immediacy characteristics at play here And the applicability of such datadriven scenarios while clear for directresponse and reachbased campaign initiatives isnamp8217t limited to those approaches There are ample opportunities for the utilization of data for the enrichment of consumer experiences in the context of highly custom and integrated brand programsHowever to succeed on the strategic front we must first succeed on the operational front The explosive growth of digital media drove rapid innovation and forced adaptation at the cost of operational efficiency and standardization The current framework is not sustainableThe IAB EBusiness Interactive Standards and Impression Exchange initiative are muchneeded steps in the right direction They aim to establish a core framework that will introduce a shift towards technology and automation amp8211 vs manual processes amp8211 for the exchange of business information between publishers and agencies This is of vital importance The cost associated with conducting business in the digital media space relative to traditional media channels remains highThe future amp8211 if you will amp8211 is dressed in data As we partner to address a vast array of current datarelated problems we must brace ourselves for emerging and future challenges such as realtime bidbased media buying complex video costperengagement CPE pricing models ad verification services and complex data overlays However before we get ahead of ourselves it is critical that we focus on the basic operational building blocks that will be necessary for the efficient management of future data volume and complexityNeeraj Kochhar is the Director of Operations of GroupM Interaction in North America Neeraj can be reached at neerajkochharmindshareworldcom

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Musing from GroupM: Data Proliferation Will Force Agencies to Change Their Operations - Neeraj Kochhar - MediaBizBloggers

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