Data Cooperatives: collaboration at the heart of innovation

    The quantitative explosion of data is pushing companies to find solutions allowing them to exploit it intelligently. The big data phenomenon is thus becoming a smart data challenge for marketers. We estimate that, today, humanity produces as much data every two days as it did in two million years before (via Libération). In view of this observation, companies looking to better know their consumers, markets and competitive environment cannot limit themselves to using only the data generated by their own activities. Cooperative data is not a new concept, but it still remains underutilised. 

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 5^th and 6^th, 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 partners

Strange 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 opportunities

Omni-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 5^th and 6^th to find out more about the key success factors of cooperative data and programmatic.

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HUBFORUM Paris 2015 DISRUPT OR BE DISRUPTED !

Rendez-vous in Paris on October 5th & 6th 2015 for the essential conference on digital transformation, dedicated to the topic: Disrupt or be Disrupted! Reserve your seat now. [button href="http://www.hubforum.com/paris/billets/" target="" css_classes="tiny_button regular_text"]Buy your tickets now![/button][/column] [column width="three" position="first"] [/column] [column width="seven" position="last"]

FORRESTER STUDY Leverage A Data Cooperative For Deeper Customer Insights And Better Business

There’s no shortage of consumer data available to digital marketers today, from their own first-party data to third-party data sourced from data brokers. But are most marketers actually using the right data for their business? Are they leveraging data cooperatives, which offer audiences that are more complementary to the advertiser’s own, often in a more privacy-compliant way? [button href="http://learn.adroitdigital.com/leveraging-data-cooperative-for-marketing-customer-insights.html?utm_source=hub_form" target="" css_classes="tiny_button regular_text"]Download the study[/button][/column]