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The advertising, media, and entertainment industries rely on vast amounts of consumer data to understand how best to personalize each consumer’s experience. However, this data is spread across different tools, teams and technologies used by these companies. Businesses are reluctant to share data with each other due to growing consumer privacy concerns and regulations. Organizations also lack the infrastructure for new technologies that will help them better share and collaborate on their data with other departments and partner organizations. As a result, media companies and publishers cannot maximize their ad revenue, nor can their advertisers optimize their ad spend and track attribution.
Today, however, four major trends are transforming advertising, media and entertainment to meet these challenges. Let’s explore each one and see how organizations can prepare for and leverage these trends to deliver a better customer experience and increase revenue.
1. Data collaboration is a business necessity and organizations are increasingly adopting data cleanrooms
Intense competition, market pressures and consumer demands for personalization are forcing media and entertainment companies to more effectively collaborate and analyze data from a wide range of sources. Goal: Create a 360-degree view of your subscribers, improve advertising effectiveness and optimize business decisions. To achieve this goal, industry leaders are securely collaborating on their data in near real-time in the cloud, bringing together data sources from websites, CRM systems, online streaming, advertising, social media, and more. These organizations are also increasingly turning to data cleanrooms when strict privacy, governance and query controls are required. We can expect to see wider adoption of data clean room technology across the industry.
2. Increasing adoption of data-driven technologies
Consumer behavior is constantly evolving to respond to and drive innovation in new technologies. These innovations are creating massive amounts of fast-moving data, increasing business efficiency and improving customer experience. Examples of new data-driven technologies include:
● data clean room Enables two or more organizations to securely analyze and collaborate on data across clouds and regions without exposing raw data to each other. It is becoming an invaluable tool for customer analytics because it allows users to define rules for querying data and maintain the highest level of data governance.
● artificial intelligence (AI) Leveraging a wide range of data types, companies are increasingly using AI to better deliver new capabilities to content, personalization, subscriptions, channels, pricing and marketing strategies.
● cloud native application Allowing advertising, media and entertainment companies to deliver new and improved experiences to subscribers, enable data analytics faster and more. Cloud-native applications that are flexible, scalable, cost-effective, and easy to manage make them an excellent choice in this fast-paced, competitive industry.
● Growing 5G Adoption Boosts Cloud Gaming Enables increased power, speed and connectivity across devices, improving customer experience and allowing data to be transformed into near real-time insights and actionable intelligence. According to a recent Forbes article, many predict that “cloud gaming will be 5G’s ‘killer app,’ just as streaming video was 4G’s killer app.”
Also, a recent Ericsson Research It concluded that 5G is now heading towards mainstream adoption, with a penetration rate of over 15%.
3. Greater focus on data privacy and governance
Trust is key for consumers. They continue to want more privacy and want their data protected by strict governance standards. The sheer volume and velocity of data being created by advertising, media, and entertainment companies requires a more agile, holistic approach to managing it. The following are some priority areas:
● Data Privacy Regulations: Consumers and governments are becoming more aware of how personal data is being used and are therefore demanding more privacy over that data, for example, General Data Protection Regulation, CCPA and Institute of Certified Public Accountants Regulation. In response, lawmakers are imposing stricter rules on companies that handle consumer data, More regulations Scheduled for 2023.
● Data Security: Customers face increasing threats of identity theft and unauthorized use of their data, making security a top priority for companies dealing with these issues.
● Deprecation of third-party cookies and other common identifiers: Traditionally valuable sources of customer data, regulatory pressures, and changes in the way media and technology companies do business are threatening the existence of third-party cookies and other common identifiers such as mobile advertising IDs and IP addresses.
Integral to the success of advertising, media and entertainment companies is the application of strict governance, privacy and security measures while ensuring the ability to continuously share and collaborate on data. As such, companies across the industry need to invest in infrastructure and tools that will enable them to share and collaborate on data securely and efficiently.
4. Advertisers embrace advanced analytics, data science, and third-party data
Ad spending in the U.S. fell. November 2022 marks the seventh consecutive month Advertising spending in 2019 declined due to inflationary pressures, budget cuts and business strategy adjustments. To succeed in this market, companies must prove the value of their investments and gain data-driven insights into where to spend for the best return on ad spend (ROAS).
As a result, we will increasingly see companies looking to glean deeper insights and drive smarter advertising decisions through advanced analytics such as artificial intelligence and machine learning that can be applied to data. They will also leverage data science, bringing together vast amounts of data to optimize customer engagement and uncover opportunities to increase customer lifetime value.
To further improve insights and customer experience, advertisers will look to enrich their customer profiles with third-party data such as weather, geospatial and demographic data to create an enhanced 360-degree view of customers and drive better business decisions . According to McKinsey’s “What’s Next for Personalization 2021 Report,”76% of consumers More likely to consider buying from a personalized brand. “
To learn how to harness the power of data and provide consumers with highly personalized content and experiences, visit Snowflakes for advertising, media and entertainment.
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