Member blog – The ADEX / BVDW – Future of Data for Programmatic – key to smart buying and selling

The future of data for programmatic advertising is bright but is not without its challenges. brands, agencies and publishers have made their steps in developing their programmatic strategy in the last few years and some even more strategic steps. However, more and more recognise that Programmatic without data is very linear and its getting more difficult to reach the goals with every additional buyer. So data is the key to being a smarter buyer and seller. If you want to get your customer journey or attribution model straight you have to get all your own data together, if you want to leverage your bidding on programmatic platforms you need third or second Party data to be the smartest buyer out there, because with every additional buyer it becomes harder to get the right impression at the best CPM.

Unfortunately getting data is still not that easy. For third party data, the markets need quality, transparency and reach for the buyers across multiple markets and countries. Second party data requires platforms and technologies directly at the data owners and if they have a data technology in place, it must be compatible to the technology of the partners or must be connected with an API (application programming interface – a direct connection between two different systems).  And for first party data you need technology in place to start with and then questions, like “inhouse data privacy questions” or “how do we deal with opt in and opt outs of our users and customers” have to be addressed

If you are global brand with 50 countries and regions, 20 different brands and units and different regulations across markets or unexpected challenges like “UK leaving the EU” it is very challenging, takes time, resource and the right technology partners to accomplish a programmatic data strategy. But in the end, no one has a choice. Businesses will automate what can be automated, they will do digital advertising where possible and in the future trade all advertising programmatically.

However, reaching the target audience using data and programmatic is not the end, the message needs to be relevant and with the rise of ad blocking this is more important than ever. Data provides the possibilities to reach those audiences with relevant ads and content they want to look at.

So programmatic is here already, now it’s the right time to get the strategy for data right.

IAB Europe and its members is currently working on producing a white paper outlining how to use data in programmatic trading effectively, watch out for this publication in September.  The Road to Programmatic white paper provides guidance on key considerations for developing a programmatic strategy.


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