In a world where many rely on third-party data to add scale or enrich their…
2018 saw Lotame’s 2nd party data marketplace, now Lotame Private Data Exchange (PDX), double in the EMEA region, which many may say isn’t surprising post GDPR. However, it seems that brands and agencies aren’t jumping ship from 3rd party data or contextual buys. They’re just being smarter in understanding what works best for their client objectives and wanting broader choices. A brand trying to reach high-end properties in certain regions will undoubtedly benefit from reaching out to a publication which offers this niche data targeting. However, think of a large pet food company wanting to target ‘Dog Owners’. A marketer could buy data directly from a well-known, named pet publication, but it may only have a few thousand user profiles and will charge higher end CPMs. Lotame’s data exchange can provide a set of ‘declared’ dog owners reaching millions of users at a cost effective CPM through its 3rd party data offering.
To clarify the differences:
There are many ways to buy 2nd party data in market. Some publishers have this data available to the open market, however this doesn’t work for many publishers as they demand privacy so will only offer it closed on a 1:1 basis. In this case the process from publisher to buyer needs to be made easy to ensure both are in win : win positions where data sellers and buyers can easily exchange rich & transparent custom-built segments
For the publisher, deals on a 1:1 basis means the publisher speaks directly with the advertiser/agency to make sure the advertiser isn’t conflicting with their brand. They have the opportunity to upsell advertisers to potentially use their own inventory if desired. Also, cpms and types of audiences that are available aren’t shared with open market – limiting the risk of competitors hearing about the publishers offering
On the buy side, buyers need speed. The campaign plan requires to get sign off by the client and turnaround times on this are tight. Buyers need competitive rates as they will also need to factor in inventory etc, a clear understanding of what’s available and whether this matches the advertisers’ target audience.
Lotame works with some great publishers who’ve embraced this and are now offering this transparency on a 1:1 basis through Lotame’s 2nd party data offering. Publishers are reaching out now on a weekly basis to discuss new ways of monetizing their offering and brands and agencies are biting in return. 2019 perhaps could be the greatest yet for these partnerships.
by Alison Harding, VP Data Solutions, EMEA, Lotame