Why advertisers demanding higher-quality data and transparency will transform media buying

Higher-quality data and transparency will transform media buying

Matt Frattaroli, vice president, digital platform and agency partnerships, Alliant

In a year of economic uncertainty and the rapid evolution of advanced technologies, data’s position, value and pricing remain top of mind across the advertising supply chain.

The way digital ecosystems operate is disincentivizing brands and agencies from working to understand data quality and value. Quality data requires investment from both providers and buyers. And in this critical year, the value of audience data needs greater understanding and support.

Successful brands treat data as foundational — and not as a commodity

Many media professionals claim their planning and buying processes are data-driven, yet audience decisions are often considered an afterthought. Even in some audience-first approaches, specific data selection is attached to a media buy at the last second, handled by a buyer looking to ensure campaign delivery. This treats data as a commodity — a raw material thrown into the media machine to ensure maximum spend for a brand.

However, treating data as a commodity is neither effective nor accurate. An actual commodity can be sourced from anywhere, with providers chosen almost exclusively based on price and availability. This may work for plywood but not audience data. To ensure successful execution, strategic brands see data as the foundational piece of their campaigns — not a supplemental afterthought.

Greater transparency in media buying is helping brands procure high-quality data

Advertisers have been pushing for greater supply path transparency for years. In this environment, the core elements influencing data purchase decisions would be visible to buyers, enabling them to make well-informed decisions. So, advertisers are getting as close to data sources as possible and demand more transparency in the market to enable decisions that align with their campaign goals, budget and strategic data choices. This includes a focus on compliance and limiting their dependency on third-party cookies.

Successful providers and buyers are investing in data-quality insights

To stand out, credible audience providers are investing heavily in human and tech resources, independent accreditations, compliance and other forms of quality assurance. This adds cost to the end product, impacting the buyer’s decision. On the other hand, agency buyers have a remit: hit the brand goals within a specific budget, and cost often wins out. The market wants quality data, but investment in this endeavor cannot be one-sided.

Buyers are finding it possible to hit campaign goals using less inventory with more expensive audience data. However, this is raising more questions among brands that still value scale.

One way they’re solving this issue is by including third-party quality and compliance information within the metadata of each bid so that buying algorithms aren’t basing essential decisions on price as the critical factor. Fortunately, this is on the docket for IAB as part of ReArc and Seller Defined Audiences to push the industry forward.