Originally posted by LiveRamp on 12/08 here.
As 2020 draws to a close, we’re looking to the year ahead, especially with major industry changes going into effect in the coming year. We sat down with Antonio Tomarchio, Founder and CEO of Cuebiq, a leading consumer insights and measurement company, to talk about upcoming industry opportunities. Cuebiq provides brands and marketers with a trusted, high-quality, and transparent currency for offline visitation data to map and measure the consumer journey. Marketers can leverage Cuebiq’s available audiences spanning retail, automotive, and QSR to expand their campaigns.
Read more of the conversation between LiveRamp’s VP of Data Partnerships, Kaitie Coghlan, and Cuebiq’s Antonio Tomarchio below:
Kaitie Coghlan: We’ve faced quite a year in 2020, with incredible challenges, but we also see opportunities in the year ahead. What do you see as the biggest opportunity for data in the industry next year?
Antonio Tomarchio: In my opinion, the biggest opportunity is the ability to leverage and monetize first-party data. According to Forrester Research, a majority of businesses are focusing on this type of strategy. They are looking for new and innovative ways to develop their data so others can also benefit. Yet, in order to unleash the full potential of first-party data, it’s paramount to have strong investments in privacy-compliant technology. Marketers need easy access to safe, externally sourced data to build and enrich audiences, as well as build applications like attribution.
KC: We’ve also seen many of our partners realize the importance of leveraging and monetizing first-party data. What can media owners do in 2021 to get more use of their unique first-party data?
AT: Media owners can start using their unique first-party data to direct their ad dollars, build solutions, and ultimately monetize it. As the amount of first-party data increases, the industry will see the rise of the platform-as-a-service (PaaS) model. Advertisers are becoming more data-savvy and sophisticated, and they have more custom needs. A one-size-fits-all SaaS solution is not the way anymore. Advertisers need the flexibility to build solutions quickly and unleash the full potential of their data by building custom KPIs, analytics, and applications. The PaaS model enables media owners to build those solutions in a quick and cost-effective way.
KC: That’s a good call-out. Reframing software-as-a-service as platform-as-a-service is a helpful way to think about how a first-party strategy can guide existing data efforts. When it comes to audience data, we’ve seen that achieving accuracy can come at the expense of scale. How do you advise clients to think about this, and what are you doing to ensure accuracy?
AT: In order to ensure accuracy, clients have to be able to enrich audience data with their own first-party data. Then, they need to find the right external data sources that can guarantee high-quality additional enrichment without compromising on scale. Advertisers should invest in having data handlers inside the organization who can find the right data sources. Clients must make first-party data more available inside the enterprise organization so marketers can use it.
KC: Great point. Here at LiveRamp, we place a high importance on data privacy and security. Privacy by design is a framework we abide by and implement throughout all our teams at LiveRamp and it’s great to hear Cuebiq is also helping further that approach. As you look toward 2021, what do you think the key opportunities will be to make an impact with consumers?
AT: The combination of first-party data and the rise of the PaaS model can open endless opportunities for innovation in Mar Tech. According to an IDC report, there will be over 500 million enterprise applications in the cloud by 2023 that will leverage data to produce insights. With this in mind, the combination of taking advantage of one’s own first-party data, in addition to privacy-centric data sourcing for external data in PaaS environments, can really open the road to actionable customer insights.
KC: What new or existing challenges will there be in 2021 and how do you think advertisers should navigate them?
AT: There are challenges coming in 2021 from the demise of identifiers, specifically the Apple mobile identifier, IDFA. This could be a big problem for the ecosystem, and could be an impediment for innovation. We know LiveRamp’s ATS solution, which focuses on a value exchange in the ecosystem, was designed with these industry shifts in mind. Cuebiq also has been prepared for IDFA opt-in enforcement for months.
The lack of third-party cookies as an identifier also raises a challenge, especially with regard to identifiers. However, it is possible to adjust to a cookieless future and a change in advertising infrastructure through a privacy-conscious approach rooted in first-party data. There is an opportunity to create identifiers and ID graphs that can go beyond the IDs provided by the operating systems.
KC: Thank you for sharing your thoughts and insights with us, Antonio. If you were to summarize how you feel about the new year ahead in three words, what would they be?
AT: First-party data, PaaS, and privacy.
To learn more about our partnership with Cuebiq, visit the partner page on our website.