A recent report by Lotame, a global technology company focused on optimising customer data for digital marketers, has highlighted significant challenges faced by marketers and agencies regarding data collaboration. The findings, part of ‘The State of Data Collaboration: A Global Perspective,’ indicate a widespread struggle with data orchestration and utilisation, alongside a clear trend towards increased investment in marketing technology.
The report, which surveyed over 1,200 marketing and agency professionals from the UK, Australia, Brazil, Mexico, Singapore, and North America between June and July 2024, reveals that 97% of respondents encounter barriers in effectively using data. The key issues include difficulties in finding quality data sources and partners, as well as limitations of first-party data, which often fails to provide comprehensive insights.
Notably, the report emphasises the urgency surrounding first-party data, with 68% of marketers and agencies recognising its importance. However, many struggle with the nature of their first-party data, which primarily relies on unstable identifiers such as email addresses and mobile IDs. This has led to a growing consideration of data collaboration as a viable solution.
Interestingly, reliance on third-party cookies remains prevalent. The report found that 36% of marketers and 22% of agencies are fully dependent on these cookies. In contrast, a portfolio approach to identity solutions is emerging, with respondents using an average of 2.8 options to enhance reach, albeit without a clear leader among these solutions.
The report also indicates a decline in programmatic spending, with 55% of marketers and 39% of agencies anticipating cuts. Spending forecasts show a near-even split between walled gardens and the open web, despite the former being perceived as more effective at capturing attention.
As the industry faces these challenges, technology investment is on the rise, with 99% of respondents planning to adopt new marketing technologies and 96% looking to invest in new data technologies. However, the report highlights concerns regarding clean rooms, with agencies expressing dissatisfaction due to technical challenges, particularly in data and analytics expertise and the ability to scale with authenticated IDs.
Despite these hurdles, data collaboration platforms are gaining traction. These platforms, while still relatively new to the market, are being embraced by marketers and agencies, offering tangible benefits such as enhanced audience targeting and expanded reach.
Andy Monfried, CEO of Lotame, commented on the report, stating, “Orchestrating and activating data remains a major struggle for marketers and agencies, both inside and outside their organisations. However, they are finally overcoming this barrier through a combination of technology and a shift in mindset. Rather than becoming mini walled gardens, marketers and agencies are realising that a rising tide lifts all boats and are embracing a collaborative approach to data — enabled by data collaboration platforms.”
Laura Manning, SVP of Measurement at Cint, echoed these sentiments, stating, “The findings reveal a range of strategies being adopted, from addressing limitations in first-party data to exploring new technologies like data collaboration platforms. As the industry evolves, we see a growing emphasis on innovative solutions to enhance audience targeting, personalisation, and overall data orchestration and activation, which ultimately benefits the end consumer.”
