<p>,The Data-CentricOrganization 2018,AWinterberryGroup Research Report &nbsp;| &nbsp;February 2018,Acknowledgements &amp; Notice,Thisresearchwouldnot have beenpossiblewithoutthesignificant contributionsof dozens ofU.S.advertising,marketing,media,information andtechnologyindustryleaderswhogenerously offeredtheirtime,insightsandfeedbackin supportof thiseffort. In particular,we wouldlike torecognizeourpartners,theData&amp;MarketingAssociation andInteractiveAdvertisingBureausDataCenterofExcellence,aswellas ourprojectsponsors:Additionally,we extendour deepestappreciationtothe,more than110panelists whocontributedthoughtfulinsights on theirorganizationsuse of datathroughouronline survey.Thoughtheirindividualnames arenotrecognizedin thisreport,theyrepresentsome ofthe mostrespectedandinnovativebrandsandserviceprovidersinmarketingandtheirrespectiveindustries.,NOTICEThisreportcontainsbrief,selectedinformationandanalysispertainingtotheadvertising,marketing,media,informationandtechnologyindustriesandhasbeen preparedbyWinterberryGroupLLCinpartnershipwiththeData&amp;MarketingAssociation(DMA)andtheInteractive AdvertisingBureaus(IAB)DataCenter ofExcellence. It doesnot purporttobe all-inclusiveortocontainalloftheinformationthataprospectivemanager,investor orlendermayrequire.Projectionsandopinionsin thisreporthavebeenpreparedbasedoninformationprovidedbythirdparties.NeitherWinterberryGroup,DMA,IABnortheir,respective sponsorsmakeanyrepresentationsorassurancesthatthisinformationiscompleteorcompletelyaccurate,asit reliesonself-reporteddatafromindustryleadersincludingadvertisers,marketingservice providers,dataprovidersandtechnologydevelopers.Norshallany oftheforgoing(ortheirrespective officersorcontrollingpersons)haveany liabilityresultingfromtheuseoftheinformationcontainedhereinorotherwisesupplied.Copyright2018 WinterberryGroupLLC.All rightsreserved.2,PremierSponsors,SupportingSponsor,data analyticsis the competencytheir organizationneedsmost to advance theiruse of data.3,ExecutiveSummary: U.S. Firms Remain Intensely Focused on Leveraging DataAcross Marketing,Media andCommerce FunctionsBut SeeObstacles toAchievingTrue “DataCentricity”Marketersandpublishersremain intenselyfocusedonachieving“datacentricity”acrosstheir,“The Stateof Data2017”(publishedinDecember2017byWinterberryGroupin partnershipwith DMAandIABs Data CenterofExcellence)revealedthat U.S.-basedmarketers,publishersandotherdatausersinvested$20.19BBon third-partyaudiencedataand relatedservicesand solutionsin 2017.This researchis aimedat showinghow those organizationsareapplyingthose investmentstocapitalizeon the valueinherentindataasa potentialdriver ofdecisioning,messagingandsuperiorcustomerexperiencesacrossalladvertisingandmarketingfunctions.Amongother conclusions,it willshow:,organizations,with 90.1%of surveyrespondentssaying theyeitherhave orareplanningtodevelopanenterprisestrategy to supportthe use of audience data.The samerespondentssaid they expectthosestrategieswilldrive significantnear-termadvancesin how theirorganizationsengagewithdataasaninputto theiradvertisingandmarketingefforts.While only9.8% of respondentsdescribed theirorganizationsas “extremely”data-driventoday,morethan 44%said theyexpect to achievethat levelof sophistication by 2019.Amidst that optimism, though, the samedata users appearto be growinglessconfidentthattheirefforts todateconstituterealmaturitygiventhegrowingcomplexityassociatedwithdeployingdataacrossalladdressableadvertisingandmarketingefforts. Fewersurveyrespondentsdescribedtheir organizationsasatleast“fairlydata-centric”in2017(40.3%)thandid thepreviousyear (54.3%).The mostsignificantobstacleassociatedwithachievingdatacentricityappearstobe anindustry-widetalentgap,particularlywithrespecttotheanalyticsskillsassociatedwithdatamodeling,segmentationandattribution.Just 1.3%of panelistssaidthey were“extremelyconfident”their organizationshavethe rightexpertise,skills andexperienceneededto derivevaluefromdata (downfrom5.2%in 2016)andmorethan87% of panelistssaid that,The Data-CentricOrganization:,HowU.SpaniesAre Evolving toSupportAudience DataUsageAcrossTheirAdvertising,MarketingandAudience Engagement Efforts,Background: The Evolving Data-CentricOrganizationIn 2016,WinterberryGroupinpartnership with DMA and IABs DataCenter ofExcellencepublished an inaugural research report on “data-centric”organizations, exploring the waysU.Spanies are evolving their businessprocesses and organizational structuresto betterleverage data acrosstheiradvertising, marketing and other audience engagement efforts.,This effort refreshes thatresearch in order to:,Enhance understanding ofhow data and data-driven solutions aretransforming the way advertising and marketing is practicedUpdate our perspective onthe roles that people, technology platforms,supply chain partners and organizational processes play in supporting“data-centric” business transformation; andProvide industry intelligence so that business leaders may build and/or,enhance theirown frameworks tobetter utilize their audience data assetsinsupport oftheir marketing, advertising and/or media sales efforts5,Picture ofLast years,white paper,Conclusionsin this report are based on an online surveycompleted by 113 advertisers, marketers, publishers,technology developers and marketing service,providers primarily based in NorthAmerica,The survey was fielded tospecial interest panelsconsisting of DMA and IAB members betweenSeptember and November 2017,Howwould youclassify your organization?,6,49.1%,50.9%,1.8%,1.8%,17.0%,37.5%,42.0%,1Not atallknowledgeable,2,3Somewhatknowledgeable,4,5Extremelyknowledgeable,Howmany years of experiencedo you have,working in a marketing, advertising or media role?,Howknowledgeable areyou with respectto data and its variousmarketing, advertising and/or media applications?,Methodology: Panel IncludedExperienced Marketers, Publishers andService Providers,Developer of,Technology orService Provider(including Agency),Marketer,Advertiser orMedia Provider/Publisher,Years of Experience,Percent of Panel,Less than 1 year1 to 5 years6 to 10 years,5.4%11.6%17.0%,11 to 15 years,19.8%,16 to 25 years25 years or more,22.3%21.4%,What is“DataCentricity”? How Is It Evaluated?,Forthepurposesof thisreport, “datacentricity”willreflect theextenttowhichanorganizationisculturallyand operationalpreparedtoapply audiencedata asasourceof actionableinsightinsupportof advertising,marketingandaudienceengagement.Ourevaluation focusesontheextenttowhich industryparticipantsaremanagingdataandassociatedresourcesacross eachoffour operational pillars:7, &nbsp; &nbsp;How dotalent,training,compensationplansandteamtenureimpact how theorganizationuses andderivesvalue fromdata? &nbsp; &nbsp;Doesthe organizationleveragethe righttools to support audiencebuilding,insightdevelopment,analyticsand measurement? &nbsp; &nbsp;How wellintegratedarethese systems with each other?Otherorganizationalprocesses? &nbsp; &nbsp;To whatextentareagencies,datasuppliersandother serviceprovidersintegratedin the organizationssupplychain? &nbsp; &nbsp;Doesthe organizationhaveprotocols in place to encouragecooperationamongthesepartners? &nbsp; &nbsp;Is the organizationsoverarchingorganizationalstructureengineeredto support datacompilation,management,sharingand goodgovernance?,PeoplePlatformsPartnersProcesses,but relatively,few say theyvegenerated results,Data-DrivenTransformation Remains aCommonOrganizational Priority,Though PractitionersOftenStruggle to RealizeTangible ResultsTowhat extent would you sayyour organization has an overarching strategy to govern itsuseof audience data foradvertising and/or marketing purposes?,Majorityof marketers are rolling out strategies to,support data-centricity,0.0%,38.6%28.6%,4.9%,4.3% &nbsp;4.9%,17.1% 17.3%,49.4%,11.4% 11.1%,12.3%,Not sure,plan todevelop,Nostrategyandno &nbsp; &nbsp;Nostrategy todaybut,Strategyisbeing,planningto develop &nbsp; developedbutnot yetimplemented,Strategy hasbeen,developedandimplemented but isnot yetdeliving,results8,Strategyhasbeen,developed,implemented and isdelivingresults,20162017,25.7%,30.0%,24.3%,41.5%,30.5%,20.0%17.1%9.8%1.2%0.0%,Not atall data-centric,Not verydata-centric,Somewhatdata-centric,Fairlydata-centric,Extremely data-centric,2016,2017,9,As DataGrows inVolume andVelocityAddingComplexity to anAlreadyComplicated EndeavorDataUsersSayTheyreGrowing LessConfident inTheirOwn “DataCentrism”Towhat extent is your organization “data-centric” today?,0.0%,0.0%,Not atall data-centric,Not verydata-centric,Somewhatdata-centric,Fairlydata-centric,Extremely data-centric,10, But Looking Into the Future, Most ExpectTheirOrganizationWill MakeSignificantAdvances inSophistication Inthe Months toComeHowdata-centric do you expect your organization will be two years from now?Expected by 201944.4%34.6%21.0%,Deep Dive:A More NuancedTake on theSurvey Data,Experience=Awareness: Through success (as well as trialand error), practitioners are growing increasingly aware ofthe rigors associated with cross-channel data integration,management and activationespecially within complexenterprises that may be otherwise slow to innovate. Lesslikely to see previous successes as indicative of “datacentricity” within an enterprise otherwise advancing at arapid paceThreatof Regulation Looming Larger: Imminent newregulatory guidelinessuch as the EUs General DataProtection Regulation (GDPR)posing a significant near-term concern for organizations that maintain a significantconsumer-facing digital presence, redirecting resourcesfrom data-centric organizational transformation in somecases (and de-emphasizing the role of data amongorganizational priorities, at least for the short term, inothers), &nbsp; &nbsp;Fewer survey respondents (just12.3%) reported in 2017 that theirorganizationshave developed andimplemented data strategies thatare delivering positiveresults thansaid the same in 2016 (28.6%) &nbsp; &nbsp;And fewer described theirorganizationsas atleast “fairlydata-centric” in 2017than did soin2016 (40.3% versus 54.3%)These results may seem counter-intuitive given thesignificant investmentsmany organizations are making in dataand associated activation solutions. Butthought leader feedback suggests thereare potential explanations11,PeopleHow do talent, training, compensation plans and team tenure impact how theorganization uses and derives value from data?,One year since we last benchmarked data users access to the right talent andexpertise, it appears they have not made significant progress towards acquiring theresources they need to drive their efforts around data centricityAs reported in 2016, practitioners consider data analytics the most critical skill tosupport the future of their data-driven marketing efforts; however, emphasis on datamanagement and processing has increased, and technology/IT has declined in priorityData users have also significantly increased their focus on data governance trainingover the past yearpossibly in response to looming regulatory concerns like GDPR,13,5.2%,21.3%,5.2%,6.4%,25.6%,27.7% &nbsp; &nbsp;28.2%,1.3%,1Not atall,Confident,2,3Somewhat,Confident,4,5ExtremelyConfident,2016,2017,TalentGapContinues to Represent aSignificantChallenge forOrganizations SeekingDataCentricityTowhat extent areyou confident that the people in your organization have the right expertise,skills and experienceto support your efforts to derivevalue from the use of data?,39.4% &nbsp; &nbsp;38.5%Average:,2016:3.072017: 2.92,81.0%,31.6%,87.3%88.4%,69.0%,34.2%38.7%,19.0%17.4%19.0%21.9%,8.9%9.0%8.9%4.5%7.6%0.0%,Dataanalytics,Datamanagement, processingGeneralmarketing/management,Technology/ITProcessengineeringLegal/datagovernanceFinance/budgetarymanagementSuppliermanagementSomethingElse,45.2%20172016,What specific skillsets or functionalcompetencies do you think will be themost important for your organization topossessin support of its future data-driven marketing, advertising and/ormedia efforts?,14,Analytics Remains MostSought-After Skillset,Though Practitioners IndicateGrowingNeed for Improved Data Management,15,High-Profile Data Breaches and RegulatoryConcerns andChanges (IncludingGDPR),Are Placing Renewed Focus on the Importance of DataGovernance,33.3%,62.8%63.9%59.0%60.6%,46.2%49.7%38.5%39.4%,20.0%24.4%25.8%23.1%23.2%20.5%14.8%9.0%13.5%,Developmentof adata-drivenorganizationalcultureDataanalytics/modelingtrainingCross-organization trainingondata-drivenmarketing/media applicationsClosercollaborationwithmarketingserviceandtechnologyproviders,TrainingonbestpracticesindatagovernanceTrainingonuse/managementofrelatedtechnologyDevelopmentof careerpathsfocusedonthemanagementanduseofdataTrainingon internalsystems,departmentsandresourcesRevisionofcompensation modelstiedmorecloselytodatamanagementanduse,20172016What training and staff developmentinitiatives do you think would bestsupport the development of thoseneeded skillsets/functionalcompetencies?,PlatformsDoes the organization leverage the right tools to support audience building, insightdevelopment, analytics and measurement? How well integrated are these systems witheach other? Other organizational processes?,Overall, practitioners are only moderately confident in their existing marketingtechnologiesand the level to which those technologies are suited to support optimaluse of audience datarepresenting little change from the sentiment echoed in 2016In terms of functionality, data users are increasingly seeking tools that supportmarketing measurement and attribution, as well as data processing and hygieneMarketers and publishers plan to leverage third-party agencies, consultancies andothers in order to help their organizations optimize use of data technologies,17,8.3%,21.7%,26.7%,31.7%,4.2%,25.4%,21.1%,1Notatall,Confident,2,3Somewhat,Confident,4,5Extremely Confident,2016,201746.5%,On theWhole,Confidence in MarketingTechnology RemainsUnchanged asUsersAre“Split Down the Middle”When itComes toSeeingValue inTheir DataToolsetsTowhat extent areyou confident that your currentmarketing technologies are well suited to support the optimal useof audience data?,</p>