Following are the understandings based on Matt Frattaroli’s article from Digiday.
Many media professionals assert to be data-driven in their planning and buying processes, but audience decisions are frequently overlooked. In fact, in certain audience-first approaches, specific data selection is tied to a media buy at the last minute, controlled by a buyer seeking to ensure campaign delivery. That is, the media buyer regards data as nothing more than a commodity.
However, some strategic brands see data as the foundation of their campaigns to ensure successful campaign execution.
For years, advertisers have advocated for greater supply chain transparency. Buyers would be able to make well-informed decisions in this environment because the key elements influencing data purchase decisions would be visible. As a result, advertisers are demanding greater market transparency to make decisions that align with their marketing objectives.
The most common method for brands to acquire third-party audience data is through media buying platforms, which eliminates the ad buyer from the data selection process.
While many data providers can offer direct deals, custom audience builds, or agency-wide integrations, they are also compelled to package their product as a commodity, providing off-the-shelf components that are believed to satisfy the needs and requirements of marketers.
On the other hand, to provide credible audience data, providers need to invest in forms of quality assurance. It, in turn, reflects in the cost of the end product, which impacts the buyer’s decision.
However, buyers can meet campaign objectives with less inventory when expensive, high-quality audience data is used.