Data Cooperatives: collaboration at the heart of innovation
The premise is for advertisers to associate and pool their data to benefit their marketing. Are marketers using the right data for their business? How do advertisers benefit from cooperative data?
Within the contexte of the HUBFORUM Paris that will take place on October 5th and 6th, Romain Gauthier, Commercial Director of MediaMath France, tells us the advantages that cooperative data presents for companies.
1 – Information sharing, between cooperation and technology
According to a 2015 Forrester study on cooperative data, 38% of marketers currently use data sharing in their strategies. A number that continues to grow but remains low when we know that the use of data generated directly by an advertiser’s business is insufficient to fine-tune a marketing strategy. On the contrary, it produces an imprecise targeting and creates internal silos.The advantage of cooperation is the sharing and pooling of data, which allows companies to identify segments with infinite possibilities. Advertisers will be able to adjust their ad targeting based on their expectations. Technology is also a key pillar of cooperative data as it helps resolve data compartmentalisation and anonymisation issues, establishing a framework agreed upon by both parties. Indeed, data sharing feeds the algorithms in order to optimize campaigns. The data itself remains anonymous and confidential: advertisers only have access to their own data and do not have all the information about their customers.
2 - « Coopetition »: when competitors become partnersStrange as it may seem, cooperative data enables two direct competitors to come together to boost their respective marketing strategies. We then talk of “coopetition,” a way of working that integrates the notion of cooperation. Cooperative data thus opens the door to new possibilities – and challenges – for advertisers. Imagine the flow of information that an advertiser can obtain thanks to its competitor’s data: cooperative data is a great way to reorient one’s strategy, set more ambitious goals and deliver an outstanding experience to customers, more precisely in line with what they expect. Nevertheless, trust is crucial – it is the key success factor when two companies share their data. MediaMath symbolises this trust through the establishment of data cooperatives, as a guarantor of equity between corporate partners by offering win-win solutions. The key is to choose the right competitors a company wants to work with.
3 - Programmatic offers advertisers multiple opportunitiesOmni-channel experiences, consumer ultra-connectivity and device multiplicity increasingly complicate the degree of knowledge that advertisers have about their customers. Faced with these obstacles, cooperative data provides insights to better understand customers’ purchase path and to invest on the most frequent touchpoints. Customer understanding is reinforced by a mutual access to data and gives rise to the possibility of creating a unique shopper experience. Finally, the improvement in ROI is a major advantage of programmatic and, thus, cooperative data. Real-time adjustment of advertising purchase prices according to the behaviour of the identified segments is a significant winning strategy for advertisers. In short, cooperative data offers advertisers a stronger customer engagement and increased profitability. Thus, cooperative data can lead to the success of marketing strategies if it is implemented correctly, between trusted partners and with the right business model. Despite the fears related to data privacy, cooperative data is starting to become a common practice thanks to the many benefits it entails. A better ROI, increased customer knowledge and the creation of a purchase experience in line with consumer expectations make this strategy a potential gold mine for advertisers. Cooperative data could very well be the solution to reduce the gap between campaign targeting and ROI measurement. More than ever, "smart data" makes sense!
Join MediaMath at the HUBFORUM Paris on October 5th and 6th to find out more about the key success factors of cooperative data and programmatic.[column width="three" position="first"] [/column] [column width="seven" position="last"]