Constant dollars

9 martech predictions for 2022

2021 has been another year of massive change for martech.

Apple restricted the use of IDFA, its mobile ID, for tracking purposes in the spring, changing mobile targeting and measurement on iOS devices. Google, on the other hand, has pushed back the phase-out date for third-party cookies in Chrome to 2023 so the industry can have more time to prepare, but the writing is on the wall. Meanwhile, Congress has started to make real plans to improve privacy laws and crack down on violators.

As the martech industry faces new restrictions and more barriers to targeted advertising, marketers are rushing to capture consumers’ first-party data directly. According to the Wall Street Journal, brands like Avocados of Mexico, Miller High Life and Molson Coors use loyalty programs, sweepstakes, newsletters, quizzes, surveys and QR codes to entice users to volunteer their data so that they can use it for marketing purposes.

But all hope of targeted advertising is not lost. Google, Facebook, and other martech players are working on cohort-based targeting solutions, and brands and publishers are both exploring cleanrooms as a mechanism for sharing data that respects privacy.

Despite all the upheavals, 2021 was the year ad tech and martech finally started to grow. 2021 was a banner year for consolidation across the space (see: Magnite buying SpotX, IAS buying Publica and even Publicis Group taking ad tech company CitrusAd.) And IPOs were plentiful: Innovid, Integral Ad Science, Taboola, and AcuityAds are just a few companies that have gone public this year.

One thing is certain: in martech, change will be constant. Find out below what experts are predicting for space as 2022 approaches.

Vidhya Srinivasan, VP of Purchasing, Analytics and Measurement, Google predicted: Modeling, a secular solution in the industry, will become a table issue.

As we move towards a more privacy-friendly Internet, with less information, modeling is going to be paramount for successful strategies. If marketers and advertisers don’t embrace modeling in 2022, they risk understanding the effectiveness of their marketing solutions in the future. Around the same time next year, we can expect modeling to be deeply entrenched in the vernacular of all advertisers and marketers as they continue to prioritize, activate, and understand the solutions of confidentiality-oriented measure.

Iván Markman, commercial director of Yahoo, predicts: Google will not grant another extension on alternatives to cookies and third-party identifiers.

Those who delay will be threatened with both loss of income and irrelevance to consumers. You literally can’t afford to wait. This time crisis, however, will lead to more direct conversations with the industry as we develop innovative approaches to audience building, engagement and measurement beyond cookies and advertising identifiers. applications. 2022 will elevate the discussion on the exchange of value; more specifically, the strength of a brand’s offering to encourage consumers to connect.

Seb Tomich, SVP and Global Head of Advertising, The New York Times predicted: All eyes will be on the economy.

First party [data] has taken center stage this year with the impending death of the third-party cookie. While we are still waiting for a resolution, The Times has built [data] products and set our own deadline of 2021 to eliminate third-party targeting. It is so important that there are more solutions to help mitigate this change. But at The Times, we are strictly proprietary and leverage our expanding readership to fuel our platform. The more our readership grows, the more impressive our machine learning becomes.

By 2022, all eyes will be on the economy. A healthy economy is a healthy advertising business.

Chris Kelly, CEO, Upwave predicted: Agencies centered on CTV will emerge.

For years TV and digital agencies have fought for emerging brands’ CTV budgets. TV agencies argued that it was still TV, usually even with the same creation. Digital agencies argued that the process of buying, targeting, and measuring was like digital, so CTV was their territory. Industry watchers have wondered for years who would end up making those dollars. The answer: maybe neither.

It takes the best of both disciplines – the granular targeting of digital with full-screen narration of TV – to do CTV well. Thus, a new generation of experts begins to emerge – the CTV agencies – a specialization that combines the two sets of skills to realize the true potential of CTV.

John Hamilton, CEO, TVDataNow predicted: Cleanrooms will be used to provide information balanced with security and privacy in 2022.

Large publishers, platforms and DSPs want greater control over privacy and security while being able to measure the effectiveness of advertising. Cleanrooms, software that allows businesses to match information at the user level without sharing raw data, has been a huge topic of discussion in digital media.

Many companies are emerging to serve this area, such as Habu, InfoSum and Snowflake. They will become huge partners of CTV, especially as evolving privacy and security issues require an adjustment of control over time, based on best practices.

Abhay Singhal, Co-Founder and CEO, InMobi Marketing Solutions predicted: Gen Z will have more influence, faster on the economy and the media landscape than many might have expected.

As digital and social media natives, [Gen Z] is in its formative years with brand loyalty. Over the next four to seven years, this generation will begin to realize their full earning and spending potential. Generation Z goes to different places to consume information; I doubt the New York Times ever thought it should use TikTok to share the news. The same will soon be true for retail and politics.

[Gen Z] will determine how we think about products and ad formats and how we build Web 3.0. Advertisers and publishers will really have to work to deliver compelling content that delivers value to audiences beyond just advertising. Content development will be bigger and more important than before; brands will need to invest in creating sticky content to keep pace.

Eric Wheeler, CEO and Co-Founder, 33Across predicted: It will take some effort for the industry to revamp cookie-dependent systems to be agnostic, but in the long run this will improve operating margins.

Almost everything we know and love about today’s programmatic advertising infrastructure is cookie-related: measuring, tracking, retargeting, limiting exposure, and more. Many of these activities have costs that impact publisher margins. It will take serious industry effort to redesign cookie-dependent systems to be agnostic. But in the long term, applying our learnings will improve operating margins.

In addition to tackling the cookie-less infrastructure, we also need to automate processes to serve customers and automate workflows to free up human capital in a way that doesn’t add additional tax to the equation. Inventory without cookies is already cheaper and under-sold.

Doug Huntington, CEO and Co-Founder, FatTail predicted: There will be imminent competition on social and e-commerce platforms.

Social networks continue to grow and multiply. As an increasing percentage of purchasing decisions are made on social platforms, their business capabilities are strengthened. Consumers who cut their teeth by buying from Amazon now expect to be able to buy anything, anywhere, anytime.

Suppliers looking for less congested distribution channels are drawn to social commerce and its corollary benefits: increased engagement and precise targeting. Ecommerce platforms, seeing the writing on the wall, will begin to spark competitive responses, including increased merger and acquisition activity.

Chad Engelgau, CEO, Acxiom predicted: Cloud acceleration will heat up.

The cost of deploying cloud solutions is falling, and the massive scalability of data processing in the cloud is beneficial for marketers deploying complex solutions. Cloud platforms also offer sets of tools and core technologies that are native to the platforms, such as analytics capabilities, and accelerate the development of custom solutions.

As brands flock to the cloud to upgrade their legacy solutions, it fuels the ‘everyone’s doing it’ mentality. The cloud ecosystem is booming, making it difficult to make the right choice. Big brands with complex use cases are likely to use multiple clouds, but that means the loads can add up quickly. Talent is another challenge, as most companies lack the skills to create new solutions or migrate existing ones. Concerns about data leakage and lockdown in a single cloud platform are also likely to persist.

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