This blog post was originally published by VMBlog.
As we start the new year, the ad tech industry is focused on preparing for the fast-approaching cookieless future as well as other shifting trends. Below are some of the key trends marketers, advertisers, and publishers should keep top of mind as they look to 2022 from Quantcast’s CEO and co-founder, Konrad Feldman, and Chief Privacy Officer, Min-Jae Lee:
Konrad Feldman, CEO and co-founder, Quantcast:
Early adopters of ensemble cookieless solutions will reap significant benefits.
Marketers with a focus on future-proofing their digital marketing will begin testing new cookieless solutions in early 2022 in an effort to avoid the mad dash of Google’s 2023 third-party cookie deprecation deadline. We are already seeing that those who advertise in cookieless environments early can reap the competitive advantage of access to new audiences, more inventory, and more scaled advertising results. Furthermore, savvy marketers will focus on more than a single approach to replace the third-party cookie, because the truth is that the best cookieless solutions will build on first-party data, cohorts, contextual and more, using an AI-driven ensemble to understand audiences, value advertising, and measure results.
Marketers will become more intentional with their advertising budgets.
With brands like Patagonia doubling down on their decision to stop all paid advertising on Facebook (Meta), we will start to see more marketers taking a thoughtful and intentional approach to how and where they invest their marketing budgets. Recognizing that their spend supports and sustains the voices and viewpoints that directly impact billions of people around the world, we will see increased scrutiny of precisely what that spend is funding and who benefits from it, with an increased focus on investing in businesses that align with corporate values and societal issues. This will see more brands tapping into the open internet to reach the diverse audiences it enriches and being intentional in aligning with publishers that represent diverse backgrounds.
If marketers don’t adopt AI-driven adtech or martech solutions, they will be left behind.
AI may be one of the most hyped technologies in recent years, but from where I sit, it is one of the most effective technologies to determine future behavior. According to Forrester, brands will flock to AI-powered audience solutions, fueling 20% of media and advertising category growth in 2022. With AI and machine learning, marketers can gain insights in real time and at scale, providing them with the ability to better understand their audience, what they need and where they’re looking for it. This empowers them to create better online experiences, improve business performance and build brand trust through true relevance. If a marketer or advertiser is not using AI-driven solutions to enhance their campaigns, they are missing out on insights, new audiences, and productivity gains. Those that embrace AI and machine learning now will gain a long-term competitive advantage.
Min-Jae Lee, Chief Privacy Officer, Quantcast:
Well-intended state data privacy regulations will cause confusion.
California, Virginia, and Colorado have each passed their own comprehensive data privacy laws aimed at protecting consumers’ digital data. More states will soon follow, with a half dozen states having similar bills active in their legislatures in late 2021. While these efforts are a positive step forward, this approach will result in confusion. With each state passing its own privacy laws, rules and regulations will vary throughout the US. The complexity will make it difficult for businesses to comply. Ultimately, this will underscore the need for a single set of federal data privacy regulations in the US, similar to GDPR.
Companies put user privacy first.
Against the backdrop of growing data privacy concerns, next year enterprises will make a concerted effort to build greater trust with their customers by establishing strong data privacy policies. We’re seeing this unfold as more and more companies appoint Chief Privacy Officers. However, orgs don’t necessarily need a CPO to be successful as long as they recognize what their users want and put those preferences first. For this to be effective, companies must ensure their privacy policies are transparent, follow those policies at all times, and never surprise their users.
In 2022, organizations must meet these new market challenges to future-proof their businesses, while continuing to embrace innovative solutions. Those that do will reap unique benefits and competitive advantages, better preparing them for the future.
For more Quantcast predictions, you can also read 3 Ad Tech Trends for the APAC Media Landscape in 2022 and 5 New Year’s Resolutions for Digital Marketers.