MARKETERS SURVEY RESULTS 2018 An Insiders Look at Data, Walled Gardens, and Collaboration Sizmek Research© 2018 Sizmek Inc. All rights reserved. 2 Contents Executive Summary 3 Marketers and Data: What the Survey Reveals 4 The importance of data self-sufficiency 5 Tools to unlock data 7 How partnerships factor into data use 8 Insight as a strategy 9 A need for collaborative analysis 12 Data and Walled Gardens: United States vs. Europe 13 Conclusion 14 Appendix: Survey Demographics 15© 2018 Sizmek Inc. All rights reserved. 3 Key findings include: 84% of marketers are prioritizing “being data self-sufficient/work toward becoming data self-sufficient” in the next 12 months. 88% of marketers agree “we want to own the data created from our campaigns.” 66% of marketers agree “walled gardens” are a major barrier to building out and improving first-party data. 88% of marketers agree that “insights from campaign analysis are vital in helping us understand our audience.” 88% of marketers are prioritizing “using digital campaign analysis to inform other (traditional) media channels” in the next 12 months. 83% of marketers are prioritizing “working with partners that deliver superior campaign analysis” in the next 12 months. Executive Summary For many if not most organizations, data fuels business. It is what powers progress and decision-making, andmuch like the worlds literal energy resourcesits a valuable strategic commodity. For ad tech vendors in particular, data can be the entire business proposition. But some of the most well-known players restrict access to data within what is known as “walled gardens,” a closed system with little room for free data movement. With limited-to-no access to data generated from campaigns, marketers (and agencies) are prevented from conducting the analytics, verification, and attribution (and much more) that make campaigns run effectively and generate findings to ensure future campaign effectiveness. An organizations first-party data is one of its most valuable assets. Having a full view of your customers is vital to building loyalty and generating value from themand key to acquiring new audiences with similar behavior and characteristics. So perhaps the greatest drawback in not gaining full access to campaign data is the lack of ability for marketers to build out a robust and complete picture of who, where, when, and how their customers interact with their brand, preferably all housed in a data management platform with an open approach to integration and transparent reporting. Not only is it important that marketers are given the power and control of their own data, a real game-changer is when partners providing this data are able to provide a superior level of analysis and insights to help marketers see their campaignsand customersin a whole new way. Achieving this gives marketers the edge in a world where regulation and competition are forcing brands to get creative with their data like never before. In this research, we take a deep dive into the data challenges digital advertisers face and what they want from their data resources and marketing partners going forward.© 2018 Sizmek Inc. All rights reserved. 4 Marketers and Data: What the Survey Reveals Sizmek surveyed 522 brand marketers about their current marketing activities, priorities, challenges, and views across the spectrum of digital display marketing. The professionals surveyed ranged from vice president to managerial level across the United States and Europe. The group has a combined annual digital advertising spend of more than $500 million. Sizmek partnered with third-party market research organization Qualtrics to achieve anonymous and impartial results. (For a full breakdown of the survey sample, please see the Appendix.) The survey revealed that marketers face significant barriers to getting the value they need from data assets and that technology and partnerships are seen as vital to progress.© 2018 Sizmek Inc. All rights reserved. 5 The importance of data self-sufficiency Data self-sufficiency is difficult to achieve, but 85% of professionals surveyed stated that either being or working toward it is a high or critical priority in the coming 12 months. No organization wants to rely too heavily on other organizations, particularly when it comes to information and insight around a brands most valuable asset: customers. For brands, having unique, proprietary insights into their customers and a clear understanding of customer behaviors are competitive advantages that must be protected. Maximizing data self-sufficiency gives a brand more control over analysis, and 78% of those surveyed are planning to increase their use of their first-party data in the next 12 months. Specifically, marketers want to use their first-party data not only to communicate with their existing customers, but also to reach new audiences. In fact, 85% of marketers plan to use their first-party date for media buying. Another factor driving the pursuit of data ownership is regulation. Marketers surveyed believe that data privacy legislation such as Europes GDPR will have an impact on media buying, with 77% expecting their audience targeting to be constrained as a result. In the quest for data self-sufficiency, marketers need partners who allow them to own the data created from their campaigns. Close to 90% of respondents agree.© 2018 Sizmek Inc. All rights reserved. 6 2 out of 3 marketers state that walled gardens are a major block to building out and improving their first-party data. BLOCKED BY WALLED GARDENS 9 out of 10 marketers need partners who allow them to own the data created from their campaigns. Challenge Solution OWN YOUR CAMPAIGN DATA Escape walled gardens with first-party data© 2018 Sizmek Inc. All rights reserved. 7 Tools to unlock data To take advantage of owned first-party data, the most effective solution in terms of implementation and cost is an integrated data management platform (DMP) and demand-side platform (DSP). About 75% of marketers list integrated technology as either a critical or high priority in the next 12 months. 75% prioritize “using an integrated DSP and DMP.” 88% agree “we want to own the data created from our campaigns.”© 2018 Sizmek Inc. All rights reserved. 8 How partnerships factor into data use In addition to seeking data openness and transparency from their partners, marketers want support in monetizing their data. Among surveyed marketers, 88% agree that they find it valuable for a partner to take a consultative approach and help the advertiser understand and gain insights from data. Examples of this might be things like helping a brand understand the customer path to purchase within an owned website and how that journey might play out on the open web. Regulatory advice is also something advertisers crave, with 83% stating they want their agencies to advise them on data privacy regulations such as GDPR.© 2018 Sizmek Inc. All rights reserved. 9 Insight as a strategy Despite the vital nature of insights to marketing, there are large variances in the depth, accuracy, and relevance of insights available to brands. Marketers clearly want more and better insight into their data by improving campaign analysis, with 83% of marketers listing this as a critical or high priority over the next 12 months. Moreover, 88% agree that “insights from campaign analysis are vital in helping us understand our audience.” Due to the rich, granular data that digital campaigns generate, marketers are eager to use that data to inform their broader media plans. Approximately 88% are prioritizing the use of digital campaign analysis to inform other (traditional) media channels.© 2018 Sizmek Inc. All rights reserved. 10 When marketers are asked which insights they find the most valuable, “understanding audience behavior” comes out top. However, a brands insights are only as good as the platforms they use to execute media campaigns. If brands are restricted from access to certain data, they are restricted in the insights they can glean. This is likely why 68% agree that walled gardens do not provide enough data to effectively analyze and measure campaigns. In addition, in order to measure campaigns accurately, insights must permit comparisons of performance and individual KPIs such as viewability and reach. Again, walled gardens come up short, with 65% of marketers agreeing that they do not provide enough insight to make comparisons with other channels or partners. In order to get the insight they want and need, brands need something more than standard dashboard metrics. This is why 84% of marketers state that they find custom campaign insights to be valuable, and 78% agree that data only becomes valuable when unlocked by effective analysis. Which campaign insights do you find most valuable from your media buying partners? 59% 33% 49% 39% 51% 36% 53% 44% 50% 36% 39% 46% 40% 46% 38% 47% 38% 44% 36% 44% Understand audience behavior Inform overall strategy Viewability Accurate campaign measurement Understand audience demographic Produce action points and recommendations Cross-channel impact (e.g., TV and digital) Relationship with other campaigns Deliver key takeaways Standardized metrics Very valuable Valuable© 2018 Sizmek Inc. All rights reserved. 11 agree that data only becomes valuable when unlocked by effective analysis. 78% agree that walled gardens do not provide enough data to effectively analyze and measure campaigns. 68% INSUFFICIENT DATA Challenge Solution EFFECTIVE ANALYSIS Open access to data is key to effective analysis© 2018 Sizmek Inc. All rights reserved. 12 84% agree “we find custom campaign insights hugely valuable.” A need for collaborative analysis Often, a marketing team may not have the analytical capacity or tools to extract actionable insight from data. More than 84% of marketers prioritize working with partners that deliver superior campaign analysis in the coming year. As marketers look to partners to help them understand their data, it will be vital for agencies to provide visibility, knowledge, and understanding of the full media plan, covering both on and offline channels. 83% prioritize “working with partners that deliver superior campaign analysis.” 84% agree “we look to our agency to help us understand our data.”© 2018 Sizmek Inc. All rights reserved. 13 Data and Walled Gardens: United States vs. Europe When it comes to issues around data, American and European marketers generally agree. Data self-sufficiency is vital, with a strong desire (nearly 9 out of 10) for ownership of their first-party data. Both regions agree that walled gardens are a major barrier toward improving first-party data, which will likely influence decisions toward choosing open, transparent partners. Even on the areas where results varied, attitudes and beliefs were still on par for the two regions. Marketers in the United States felt more strongly (85%) than European (75%) that increasing their use of first-party data was very important, and similarly, so was improving campaign analysis (90% of American v. 80% of European). European marketers felt the data pinch from walled gardens more keenly, with 72% saying that these closed systems do not provide enough data to effectively analyze and measure campaigns, as opposed to 60% of American marketers. Likewise, European marketers came out slightly more strongly against walled gardens, with 67% of them (versus 60% of American marketers) saying that walled gardens do not provide enough insight to make comparisons with other channels/partners. United States Europe 85% 75% 90% 80% 60% 72% 60% 67% Increasing our use of first-party data is a high or critical priority. Improving campaign analysis is a high or critical priority. Walled gardens do not provide enough data to effectively analyze and measure campaigns. Walled gardens do not provide enough insight to make comparisons with other channels or partners.© 2018 Sizmek Inc. All rights reserved. 14 Conclusion The marketers surveyed identified significant challenges to getting what they want and need from data and from their ad tech partners. The complexity of the digital ecosystem and the desire to reduce the number of partners they work with do not make the problem any simpler. As privacy regulations and data protectionism make third-party data access and use more difficult, marketers recognize they must get much more value and insight from their own data. To that end, they want partners that not only allow them to fully own and control their own campaign data, but that also provide guidance and expertise to analyze and understand the data and apply the resulting insights to the larger marketing strategy. Sizmeks open, transparent approach to data empowers agencies and brands to avoid the pitfalls of walled gardens, offering total visibility into how your media performs, where it works, and what it really costs. Sizmeks unified platform gives advertisers access to our acclaimed AI-powered DSP, DMP, creative/DCO, and ad server, offering a powerful alternative to the restrictions of walled gardens. You gain efficiency across the entire media plan and control of your data, media, and creative. With the freedom of unrestricted access to your data, you gain unparalleled access to insights that guide your campaigns to their very best outcomes. To learn more about how Sizmek can help your business, contact your account representative or a Sizmek pro. About Sizmek Sizmek is the largest independent buy-side advertising platform that creates impressions that inspire. Sizmek provides powerful, integrated solutions that enable data, creative, and media to work together for optimal campaign performance across the entire customer journey. Our AI- driven decisioning engine can identify robust insights within data across the five key dimensions of predictive marketingcampaigns, consumers, context, creative, and cost. We bring all the elements of our clients media plans together in one place to gain better understanding for more meaningful relationships, make every moment of interaction matter, and drive more value across the entire plan. Sizmek operates its platform in more than 70 countries, with local offices in many countries providing award-winning service throughout the Americas, EMEA, and APAC, and connecting more than 20,000 advertisers and 3,600 agencies to audiences around the world.© 2018 Sizmek Inc. All rights reserved. 15 Appendix: Survey Demographics© 2018 Sizmek Inc. All rights reserved. 16 Which best describes your position at your organization? Which country do you live in? Vice President (VP) C-level Head of a department Director Manager France Germany United Kingdom United States 79 12% 27% 21% 105 184 22% 18% 154