The advertising, media and entertainment industries rely on vast amounts of consumer data to understand how to better personalize each consumer’s experience. However, this information is spread over the various devices, tools and technologies used by these companies. And businesses are reluctant to share data with each other due to increasing consumer privacy concerns and regulations. Organizations lack the infrastructure for new technologies that help them better share and collaborate on their data with other departments and partners. As a result, media companies and publishers are unable to maximize ad revenue and their advertisers are unable to maximize ad spend or track attribution.
However, there are four key trends that are changing advertising, media and entertainment today to meet these challenges. Let’s look at each trend to see how companies can adapt to these trends to provide better customer experiences and increase sales.
1. Data collaboration is a key business requirement as organizations increasingly move towards clean data spaces.
Intense competition, market pressures and consumers’ desire for privacy are forcing media and entertainment companies to more effectively collaborate and analyze data from different sources. The goal: to create a 360-degree overview of subscribers, improve advertising effectiveness and improve business decisions. To achieve this, industry leaders are collaborating securely on their data in real time in the cloud, integrating data sources from websites, CRM systems, online sales, advertising, social media and more. These organizations are turning to data clearinghouses where strict privacy, governance and query control is required. We can expect wide adoption of data clean room technology in the industry.
2. More acceptance of information technologies
Consumer behavior continues to evolve in response to and motivated by new technological innovations. These innovations generate large amounts of fast-moving data that increase business efficiency and improve customer experiences. Here are some examples of information-based technologies:
● Data cleaning units It enables two or more organizations to securely analyze and collaborate on data across clouds and regions without exposing raw data to each other. It will be a useful tool for customer analytics, allowing custom rules to visit data and maintain the highest level of data control.
● Artificial Intelligence (AI) It uses different types of data. Organizations are using AI to inform content, personalization, subscriptions, channels, pricing and marketing strategies with new capabilities.
● Cloud-native applications It enables advertising, media and entertainment companies to deliver new and improved subscriber experiences, data rate analytics and more. Flexible, scalable, cost-effective and easy to manage cloud applications make them the best choice for this highly competitive and rapidly changing industry.
● Cloud play fueled by increasing 5G adoption; It supports the power, speed and connectivity across all devices to enhance customer experiences and transform data into real-time insights and actionable information. A recent Forbes article has many predicting that “cloud gaming will be the killer app for 5G as video streaming was for 4G.”
And a recent study by Ericsson revealed that 5G, with a penetration rate of over 15%, is now well on its way to mainstream adoption.
3. More attention to privacy and data management
Trust is important to consumers. They still want more privacy and have their data protected by strict government standards. The volume and speed of data generated by advertising, media and entertainment companies requires a more efficient and holistic approach to data management. Here are some priority areas:
● data security; Customers are increasingly threatened by identity theft and unauthorized use of their data, making security a priority for the businesses they manage.
● Omit third-party cookies and other common identifiers: A traditionally important source of customer data, regulatory pressures and changes in the way media and technology companies do business have made third-party cookies and other common identifiers such as e.g. For example, mobile advertising. IDs and IP addresses.
Implementing strong governance, privacy and security measures while ensuring the ability to continuously share information and collaborate is critical to the success of advertising, media and entertainment companies. Therefore, companies in the industry need to invest in infrastructure and tools that allow them to share information and collaborate safely and efficiently.
4. Advertisers use advanced analytics, data science and third-party data
Advertising spending in the United States is falling. In the year November 2022 was the seventh consecutive month of contraction due to inflation, budget cuts and changes in business strategy. To thrive in this market, companies must demonstrate the value of their investment and gain an informed understanding of where to spend for the best return on ad spend (ROAS).
As a result, we see companies looking to gain deeper insights through advanced analytics such as AI and machine learning that can be applied to data and lead to smarter advertising decisions. They use data science to gather vast amounts of data to optimize customer engagement and identify opportunities to increase customer lifetime value.
To further enhance customer insights and experiences, advertisers seek to enrich their customer profiles with third-party data such as weather, geospatial and demographic data to create enhanced 360-degree views of their customers and improve decision-making. According to the 2021 McKinsey Next Personalization report, “76% of consumers are more likely to buy from brands that have personalized it.”
To learn how to harness the power of data and deliver highly personalized content and experiences to your customers, visit Snowflake for Advertising, Media and Entertainment.