The digital transformation presents marketing with new challenges and will fundamentally change strategies, processes, and applications in the marketing area. In this article, we will show you where the journey will go in the next few years. Data Science is one of those buzzwords in the marketing of which everyone speaks but whose exact definition sometimes eludes us.
Data Science is a set of tools to extract valuable information from raw data. It is a field that covers multiple disciplines, such as statistics, mathematics or programming, as well as business knowledge in general and the sector to which it applies in particular. Therefore, we see that data science is a kind of “umbrella concept” where different utilities and processes are included. Data science Assignment Help also play an important role in the future of marketing.
Marketing Tech – what is it?
Marketing Tech can be the most diverse technologies that are used in companies to support and automate all kinds of marketing activities. This can be used to summarize a vast spectrum of different applications: from classic CRM platforms such as digital asset management or email marketing to AdTech solutions to tools for more accurate delivery of online advertising.
The Marketing Tech Monitor
The Marketing Tech Monitor analyzes the current status and future developments in the marketing technology area. As part of the study, 494 marketing managers and directors, as well as digital marketing managers were interviewed. This quantitative survey was supplemented by qualitative interviews with mainly marketing managers and CMOs from large and medium-sized companies. We have summarized the five most important topics of the Marketing Tech Monitor 2019 for you.
1. What can be controlled programmatically will also be in the future
The majority of companies use an average of 25 percent of their marketing budget digitally, and over 80 percent of companies expect this number to increase in the next three years. One reason for this is, from a company perspective, that the programmatic trend, i.e., the automated purchase of advertising space in real-time, will soon reaches all advertising channels – including television. At the moment, the proportion of programmatically targeted advertising is still below 20 percent, but 88 percent of the marketing managers expect further growth in programmatic applications. At the moment, companies mainly use programmatic advertising together with agencies. But here, too, changes are in the offing: the trend is towards “in sourcing,”
2. Marketing automation is picking up speed
While analytics applications such as website analytics are mainly used in marketing tech today, the picture is different for the future: companies plan to focus primarily on dynamic creative optimization (65 percent) and customer data platforms (60 percent) ) and marketing automation (60 percent). The long-term goal of the marketing decision-makers paves the way from the current operational process support through marketing technologies to comprehensive digitization and automation with a focus on automated and individual customer communication in real-time.
3. Individualized MarTech strategy instead of outsourcing
In marketing, the dependency on large providers such as Google (47 percent) is excellent today. But here, too, new trends are in the offing, because over 60 percent of companies want to pursue individualized strategies in the future and reduce their dependence on third-party providers. Marketing decision-makers consider extensive internal know-how, the development of their development plan, and the collection of technical requirements for the evaluation of available providers and platforms to be significant. This means that the points of contact between marketing departments and IT will continue to grow in the future. The aim is to achieve complete data and process transparency and to be able to adapt algorithms yourself in the future.
4. Development and expansion of know-how and cross-functional cooperation
Companies see one of the most significant challenges in marketing tech in the inadequate knowledge in their own company and a lack of genuinely independent consulting and implementation partners. However, new hires can only remedy this in the short term, because to solve a deficit of know-how in the company in the long run, the focus should also be on individual employee training, with the help of which employees receive further training tailored to their roles. In this context, cross-functional cooperation should also be promoted to create mutual understanding between different company areas such as marketing and IT and to shorten long decision-making processes.
5. Changed role profiles in a technological marketing world
With the digitalization of the marketing world, the demands on employees are also changing. Marketing technology experts (74 percent), data scientists (63 percent), and audience managers (54 percent) are particularly challenged to ensure that they can adapt to the changing marketing tech landscape. For example, the role profile of a marketing technology expert in the company develops from a “gatekeeper” function to an instructional coaching and moderation role that mediates between the marketing department and IT.
New technologies are turning the advertising industry upside down at an express pace. Ad Technology has developed into a multi-billion market: Already today, around 16 billion US dollars are being generated worldwide with the appropriate software. Besides, digital tools such as artificial intelligence will change the advertising industry rapidly. Classic business models are already coming under increasing pressure, and traditional actors are threatening to disappear. The critical question of the current Deloitte study “Future of Advertising” is how things will continue for the industry.
“Hardly any other industry is changing faster than the advertising industry,” says Alexander Mogg, partner in the Technology, Media and Telecommunications division at Deloitte. “Digitization has already hit the advertising market with full force. The changes in budgets, processes, and provider landscape are evident and enormous. In addition to the associated uncertainties, there are also opportunities for the actors involved, for example, in the area of target group-oriented advertising.”
What will the advertising world look like in 2030?
In addition to the advertisers, the most critical players in the industry are the media houses, agencies, and large digital platforms such as Google and Facebook, which play an essential role in the placement of advertisements. Their strategic steps depend on how the primary playing field of the advertising market develops – for example when it comes to regulation and consumer attitudes towards handling data.
“Conventional strategy analysis falls short of describing the development of industry in such a volatile environment. We deliberately worked with the scenario design, as this method enables us to go beyond the usual planning horizon of three to five years,” says Florian Klein, head of scenario planning at Deloitte Center for the Long View. “Of course, we cannot predict the future in every detail, but our method allows us to analyze the risks and opportunities of certain strategies. On this basis, we designed four extreme but plausible future scenarios for the advertising industry in 2030.”
These differ primarily based on different factors:
Scenario 1: The Transactional You
This scenario describes an advertising world in which direct transactions are the focus. Advertising is displayed to the consumer in the appropriate channel, and at the right time, so the advertised product is only a few mouse clicks away. Data is a critical factor in this scenario. They make it possible to target consumers with transactional advertising messages on the right channel at the optimal time.
Scenario 2: The Creative You
In this scenario, human creativity is the source of highly efficient campaigns that are optimally tailored to the individual wishes of consumers and create a strong relationship between consumers and brands. Advertising here is personalized entertainment.
Scenario 3: The Entertained Masses
In scenario number three, advertising is creative, entertaining, and, therefore, attractive to consumers. However, strict data protection regulations largely prevent personalized advertising. Reach is the key, and advertising is often placed in an environment suitable for the masses, for example, during major sporting events or blockbusters. Branding is more important than transactional marketing, which focuses on the number of sales.
Scenario 4: The Fragmented Masses
In the last scene, reach is created by aggregating specific niches. Here too, data protection regulations prevent personalized campaigns. However, data and artificial intelligence are critical functions in the creative process. The strength of brands is a critical factor in buying decisions.
Regardless of which side of the scale of creativity and reach the advertising world 2030 is in, alliances and aggregation are becoming increasingly crucial for the actors involved. Those who are not ready to enter into partnerships run the risk of disappearing from the market or being swallowed up by more significant players. It is also sure that technology, especially in the form of artificial intelligence and data analytics, will play a dominant role in the industry. This means that traditional creative tech skills have to be acquired – and here, co-operations with the primary providers of digital platforms offer promising prospects. At the same time, the large platform providers also need partners, especially in the area of creativity, since they will not be replaced by artificial intelligence in the future.