From GDPR to viewability, ID Graph to walled gardens—Eric Roza, SVP & GM of Oracle Data Cloud, breaks down key industry trends to watch in the New Year.
Eric Roza: There is no question that walled gardens have continued their growth and become some of the most valuable companies in the world.
However, we also see the broader adtech and marketing tech space focused on programmatic media continuing to be quite vibrant.
There are a tremendous number of companies in that sector, and it’s important for them to differentiate.
Continued consolidation is expected—I think what we’ll see is a number of companies merging with each other this year and perhaps a few of the bigger ones getting acquired, and even one or two going public.
Roza: Geolocation is a really interesting sector to look at in 2018. It’s an important space, but it’s extremely crowded, with over 30 geolocation companies receiving venture funding in the past few years.
Compounding this problem is that it is difficult to differentiate and discern quality in many cases.
Geolocation data is growing in importance for both audiences and analytics as a complement to sales data and online behavioral data.
But because of the dynamic of having such a crowded space with most of the companies selling media, it will be interesting to see how this evolves.
I do expect we will see a small number of companies—five or fewer—that pull away from the field in 2018.
I also think there’s a big opportunity for geolocation outside the U.S., given the more limited views of purchase-based information in other countries.
Roza: You really can’t talk about 2018 themes without focusing on GDPR.
While this is an EU regulation that codifies a number of preexisting privacy requirements with a few new twists, the reality is that it has implications for almost every marketer and tech platform operating in any country.
One of the big changes is that the definition of personal information now specifically includes online identifiers like IP address and MAIDs.
If you’re showing ads to someone with a European IP address, even if it’s a US or Asian ad campaign, you need to comply with GDPR.
So, it’s a very complex issue and very expensive to understand and ensure that organizational practices are aligned with those requirements.
And many companies aren’t making that investment right now to understand what they need to do.
This may cause some to be more reticent to play and to be less aggressive in the EU space, which will result in a few things.
One, the EU may develop more slowly in some cases. Two, marketers need to be very careful about picking their partners in the EU and really kick the tires on how folks are understanding and complying with GDPR.
The great news is that GDPR is making adtech develop a closer relationship with the end user. Ultimately, this is a good thing for the industry.
Learn more about GDPR from our recent conversation with Bird & Bird’s Gabriel Voisin.
Roza: Areas around viewability and attention analytics, more broadly, are near and dear to our hearts given our recent acquisition of Moat.
In essence, what you’re really trying to do is reach the right audience and then get their attention in the right context.
The most sophisticated brands and agencies are going to find a lot of arbitrage in terms of bidding and creative strategies.
What I mean is that we’re going to move the conversation from “waste and no waste,” to, “I’ve figured out the best strategy to use long-view impressions and the best strategy to use short-view impressions.”
Beginning in 2018, companies will start to gain a competitive advantage by getting the right length impression and the right amount of viewability for their specific goals.
It’s an incredibly complex problem that we’re excited about helping to tackle.
About Eric Roza
Eric Roza leads the Oracle Data Cloud, the trusted, independent provider of Audiences and Analytics for virtually every leading digital publisher, 100% of the AdAge Top 100 Advertisers, and thousands of other marketers and platforms in more than 100 countries.
Oracle Data Cloud products, fueled by the acquisitions of AddThis, BlueKai, Crosswise, Datalogix, and Moat, enhance more than $10B in media annually. Roza served as CEO of Datalogix prior to its acquisition by Oracle in 2015.