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1www.clicksco.com
With the majority of ad spending shifting towards digital,
internet based ad efforts are increasingly under the
microscope, and subsequently has put data & privacy firmly
in the spotlight. On 25th May 2018 the EU’s General Data
Protection Regulation (GDPR) will become law - a privacy
policy that will increase privacy for individuals and give
regulatory authorities powers to punish those that breach
the new laws. The policy underlines the pressures that exist
for marketers across sectors, but instead of perceiving it
as a problem to solve, brands should see the responsible
approach to data management as an opportunity to build
trust with their customers.
DATA
OPPORTUNITIES
JULY 2017
www.clicksco.com2
ata policy will have to become
part of CSR strategies
whereby data privacy is at the
top of the agenda;
but equally
providing value to
customers willing
to share data –
whether for utility,
convenience
or just pleasure
– is critical to
garnering trust.
The incoming GDPR will put control over
personal data back in the hands of the
individual, extending their fundamental
rights to privacy further i.e. the right to
be forgotten, the right to access their
data, the right to restrict processing,
the right to data portability and the right
to object to profiling, or tracking. When
done right with consent of the user in
return for incentives (i.e. personalized
promotions,
discounts, or
content) there’s
an opportunity
to strengthen
the relationship
between brands
& consumers
through garnering
trust and using
data more efficiently and responsibly.
A combination of ad fraud, brand safety and viewability concerns, as well as new policies - such
as GDPR – have created a perfect storm in the marketing world where there’s now a collective
responsibility to serve content to the right people, at the right time, in a brand safe environment.
Whilst data may not be the solution to all these issues, it can certainly contribute to a safer and
more efficient online ecosystem through better use of data, and a supportive system of analytics &
control infrastructure.
Executive Summary
D
“By 2020, companies that are digitally
trustworthy will generate 20% more
online profit than those that are not”
– Penny Gillespie, Research VP @ Gartner
3www.clicksco.com
1. What are the main areas where you think Big
Data could generate value for my company?​
In most cases data can, and should, be applied across the
customer journey to make every engagement as relevant as
possible to each individual. We collect data to improve content
serving from improving acquisition, conversions, and further
engagements beyond the conversion to increase revenue &
reduce costs. Equally there’s an opportunity to garner trust
& value in the marketer-consumer relationship by using data
responsibly to the preferences and benefit of the consumer.
2. How can you help me get the most out
of my data?
Whilst improving your customer experience is the primary
objective of data collection – ensuring ads & content is relevant
- you can also sell anonymized data on data marketplaces to
maximize the value of that data.
3. What data does your technology generate
that can help my company become more
efficient?
Our technology generates insights, using the data that
customers generate using your services, that can be used for
targeting and personalized engagements – algorithms can
then be applied for more efficient optimization of bids and
content serving.
4. How will your technology handle information
scalability in the future?​
To be successful martech systems need a quality (& quantity)
feed of data, which requires the means to store, manage &
leverage those levels of data. Clicksco have many years of
experience in scaling up as we’ve collected more & more data -
we now collect 400 data points per second.
5. What level of security do you offer for the
information that your technology generates?
How do you ensure that level of security?​
Some brands get concerned about the prospect of a martech
vendor placing tags on their sites and given the threat of GDPR
non-compliance fines these concerns may well intensify.
Our strong dedication to security includes a commitment
to keep up to date with ISO (International Organisation for
Standardisation) standards, commitment to adapt to new
data regulations, and being completely transparent in all data
activities.
Using 5 key questions to ask data tech vendors, we aim to uncover the key challenges
& opportunities ahead related to using data in your marketing (e.g. GDPR,
personalisation, Ad Blocking, Brand Safety, etc), and specifically how we can help.
Key Challenges & Opportunities
Thriving in a data-fueled and increasingly regulated marketing ecosystem will be a balancing act between
gaining consumer trust & consent, having enough data for programmatic ad serving, and keeping
regulators happy. Working with marketing tech vendors could be an added concern for many brands already
worried about the incoming GDPR, but actually they should bring calm & stability. Clicksco’s extensive
experience and skills in data analytics as well as its transparent & comprehensive approach to data
protection – internally & externally – places us & our partners in a strong position to benefit.
www.clicksco.com4
DATA
CONCERNS
Driven by Concumer Power and Legislation
The incoming GDPR is the biggest nod to consumer power against marketing ever from
legislators, and when combined with consumers’ & brands’ data concerns make for a potent
mix of challenges and opportunities in the coming years.
Morethan2/3ofconsumersdon’ttrustbrands
withtheirpersonalinformation
UNCONCERNED
NEITHER
CONCERNED
11%
21%
What is GDPR?
The EU’s General Data Protection Regulation represents
a new standard in data processing where all the power is
placed with consumers. Coming into law on the 25t​h​May
2018, the core components of GDPR include:
- Unify data privacy laws across the EU​whereby users will
have better control over their personal data and dictate how
organizations may use it.
- Applies to any company that processes personal data
of EU citizens.​
- Explicit consent will be required to collect, analyse & leverage
such data with the option to opt-out at any time.
- Violations of the consent or privacy-by-design aspects of the
GDPR will be subject to penalties of up to €20m or 4% of revenue​
– whichever is biggest.
- Must notify Data Protection Authorities & individuals
affected in case of a data breach.
Top of the agenda must be that marketers must look at
all identifiers as personal data, and processing such data
requires explicit consent & the option to opt out at any
point, a clear value proposition for using and/or selling that
data, and a stringent set of processes to ensure privacy &
protection of the consumer.
Consumer Power fueled by Data Concern
Brands risk endangering reputation and consumer trust
if they fail to adopt strong methods to protect consumer
identities, as two-thirds of UK and US consumers are
concerned about how brands use their personal data,
according to Gigya. In another study; [24]7 recently found
that 42% of consumers thought retailers had put personal
data to good use versus 48% that thought they’d hadn’t;
showing room for improvement.
Ad blocking is another growth trend that speaks volumes of what
consumers think of advertising. In the UK, for instance, 41% of
16-19s, 25% of 20-24s and 35% of 35-49s have all installed an ad
blocker. There are numerous reasons for this rise in ad blocking
behavior. However, the primary issues that consumers cite about
digital advertising tend to relate to the annoyance factor—UK
consumers find digital ads intrusive and disruptive. For instance;
in a Q3 2016 study AudienceProject found that irrelevant
messaging was a primary trigger, followed by slow loading times
and tracking concerns.
According to Apadmi; 74% of UK shoppers said they were mostly
concerned about the security of their information when they use
retail apps; whilst 34% said they didn’t like the idea of retailers
storing their information because they are unsure of what it
would be used for.
Opportunities for better data use
Paradoxically; there’s increasing demand for better & more
relevant user experiences, something that can only come
with leveraging data.
For instance; a 2016 study from Sitecore & Vanson Bourne
found that 35% of global internet users expect both mobile
apps and websites to be more personalized. The top reason for
sharing personal data was for deals (43%) with product/service
recommendations way behind (20%), whilst only 15% were
interested in targeted ads. 31% said they were unwilling to share
such data for any reason. The GDPR will give consumers much
more comfort and power; for instance, the opt-in policy will keep
brands honest about what data they collect and how they plan to
use it. As a result, there’s an opportunity to garner the trust and
belief from consumers that marketers in all sectors are capable of
using their data responsibly for the better of their experience.
68%
5www.clicksco.com
Brand Concern fueled by Consumer Power
There are a swathe of concerns among brands & agencies
from the potential impact of Brexit, the rise of ad blocking,
ad fraud, viewability, brand safety, and of course data. Most
of these concerns emanate from the potential impact on
consumer behaviour whether that’s the impact of consumer
spending (from Brexit), or the boycotting of ads through
skipping or using blockers due to feelings of “adcreep”. The
most direct impact on consumer behavior could be GDPR
and concerns about potential mass consumer opt-out,
whilst brands that perhaps aren’t doing any data activities
yet are concerned about investing in them.
According to Veritas Technologies; 86% of organisations across
the globe are concerned that failure to adhere to GDPR could have
a major negative impact on their business. 20% are worried that not
complying with the new regulation could put them out of business;
whilst 47% have major doubts that they’ll meet the compliance
deadline. Almost 32% said their current tech stack was unable
to manage their data effectively, thus hindering their compliance
abilities under GDPR.
Surprisingly 26% of UK companies still believe they’re unprepared
for the GDPR, though more worryingly 32% said they wouldn’t be
GDPR compliant by the time the regulation is implemented. The
biggest challenge is likely to be gaining consent from consumers,
but marketers simply have no choice but to get better with data –
they can’t reject use of data as it’s just too valuable.
WaysinWhichUKInternetUsersAvoidAds,byAge,Oct2016
%ofrespondentsineachgroup
ConcernsAboutDigitalMediaBuying/PlanningAccordingtoUSMediaAgencyvs.
BrandMarketingExecutives,April2016
%ofrespondents
16-19
74%
43%
41%
19%
15%
9%
39%
16%
9%
17%
Brandmarketers
74%
43%
41%
19%
15%
9%
39%
16%
9%
17%
20-34
62%
38%
25%
20%
10%
7%
30%
21%
16%
12%
MediaAgency
62%
38%
25%
20%
10%
7%
30%
21%
16%
12%
35-49
61%
28%
35%
24%
7%
10%
26%
20%
34%
10%
SkipadswheneverIcan
Clickfraud
Installedanadblockerapp
Controlovercontentenvironment
Lookawayfromthescreen
Bottraffic
Other
Lackofaudiencedata
Installedanadblockerplug-in
Viewability
Didn’tknowtherewasanythingIcoulddo
Consumerprivacy
Changedsettings
Adblocking
Haven’ttakenanyaction
Highfrequenceexposure
Willingtopayforpremiumservices
Conflictingaudiencedata
Don’tmindads
Don’tmindads
Source:KantarMillwardBrown,“AdReaction:EngagingGenX,Y,andZ,”Jan10,2017
Note:amongthosewithdigitalmediadecision-makingresponsibilities;responsesof8-10ona10-pointscale
Source:MyersBizNet,*SurveyofAdvertisingandMarketingExecutivesonMediaEffectivenessascitedbyMediaVillage,May2,2016
www.clicksco.com6
Data: Questions
to ask of your
Martech vendors
How do Martech vendors collect your data and what
do they do with it?​
Martech vendors’ offerings vary quite widely but the core value
proposition is to collect customer data from a variety of sources
to create a 360-degree profile to then enable a personalised
customer experience. This is done via a ​Data Management
Platform (DMP)​which is able to create valuable audience segments
and use them for a range of marketing and advertising activities.
None of that would be possible without properly collecting the
data first - that’s where ​tags​come in. A tag is a chunk of code
placed within the header of a page to perform a certain task, such
as analytics or retargeting. Most martech vendors place a tag on a
client’s site as an initial stage to start collecting data for the client,
data that no one else will see.
Simple tag integration: Rapid deployment of a tag via a tag
manager or direct on page; or If the site is complex a meta tag
can sometimes help to identify the page contents, or Custom
tag solutions can be used for more complex site interactions. No
personal identifier information data is taken, and the tag won’t
affect page loads (behaves like Google Analytics).
As well as collecting data via tags most martech vendors enable
clients to send customer data from other sources via an API -
something that many e-commerce players often do. The main
types of data DMPs collect includes:
- Primary data​including website/app visitors & their intent, and
data from marketing and advertising campaigns. As ecommerce
practitioner Clicksco understands clients may not want to share
‘intent’ data on the marketplaces, allowing competitors to
purchase and leverage that data point so we often ringfence this
data to ensure it only exists for potential marketing services use.
For extra security, we anonymise all sources, so purchasers on
DSPs (Demand Side Platforms) have no indication of the original
source.
- Secondary data​including data from second- and third-party
sources such as partner sites or other data providers. All your
other data is just as valuable to others on the marketplace,
and can be transferred anonymously without risking your
conversioninanyway. Welabelthatas‘secondary’-andstillpassthis
through the market place anonymously tostopanother retailer
leveraging the source. This value is a purely incremental revenue/
gross profit line that can be invested elsewhere e.g. back into
acquisition.
Once the data has been collected it is then ​normalised​, which
basically means cleaned up, organised and enriched with other
relevant data (such as geolocation and OS/browser attributes).
This then enables the building of profiles that can then be
segmented for better serving of ads, products or just content.
We’re also investing in how to better utilise
data via a Knowledge Transfer Partnership
with Durham University. This project will
see our AI team work with the university on
analysing machine driven advertising and its CTR (Click Through
Rate) impact to give us an improved understanding of the customers
and their journeys through the Clicksco extended network. This
improved understanding will then enable us to improve the CTRs and
revenue for our clients, as well as providing even deeper insights into
campaign performance.
7www.clicksco.com
What are the main areas where you think Data
could generate value for my company?​
In most cases data can, and should, be applied across the customer
journey to make every engagement as relevant as possible to each
individual. Below is Clicksco’s core data flows where data is used to
help our clients
Clicksco use data & machine learning to fuel our bidding
algorithms to boost our speed & agility at the acquisition stage
and throughout the customer lifecycle.
Forusthisenablestheautomationofmarketingactivitiescurrently
requiredtoengagecustomersandinspireanimpression,clickor
sale.
Using APIs, Clicksco have built integrations with all major
advertising and media partners. We then use bespoke bidding
and buying algorithms to drive auction behaviour, acquiring the
right customer at the right time.
What data does your technology generate that can
help my company become more efficient?
Whether collected from your sites, our sites, a network site or
combined with data from a 3rd party source; our data produces
insights that drive more efficient managing, leveraging and selling
of primary data; whilst freeing up secondary data for driving further
revenue. Using bidding algorithms that are fuelled by the data
we help clients collect - user profile, intent & behavioural data -
makes for more efficient content serving that is bought at the
optimum rate, but served to the right person at the right time. By
ensuring efficiency at the start of the process as well as automated
optimisation and transparent reporting throughout the customer
journey gives a more efficient overall process from start to finish.
DMPs can support multiple data points - consumer behaviour data;
ID data; high frequency transaction data; or unique enterprise data
- that combined create rich user profiles for powerful data insights.
This includes building custom audience segments.
What level of security do you offer for the
information that your technology generates?
Security is one of the most significant concerns among brands
when considering the prospect of working with a martech vendor
including placing tags on their sites, collecting data on their behalf,
and automating the processes. Given the threat of GDPR non-
compliance fines these concerns may well intensify. Ensuring
we comply with the upcoming GDPR, specifically gaining explicit
consent of data collection, is a key challenge in the next 12 months.
How will your technology handle information
scalability in the future?
Martech systems must deliver high throughput, low latency and
fault tolerance. In Martech, the pipeline is key; the more data a
platform can handle, the more successful its marketing campaigns
will be. Systems that aren’t scalable will become choke points, and
any system with high latency or significant faults will wreak havoc
on the delicately timed interplay between data and outreach. In the
past few years Clicksco have amassed 300m customer profiles &
1.5bn data points, but every month we add millions more profiles
whilst also adding breadth to that profiles we already have collecting
400 data points per second.
However, if the conditions can be fully met there’s an opportunity
to garner real consumer trust and validation in data collection
and what companies do with that data. Here’s what our Chief
Compliance Office John Madden says about our commitment to
security:
Clicksco UK are using their ISO processes to ensure that we
identify as part of capturing user requirements anything in these
new regulations so that our solutions are being designed to meet
them. Better to design in these requirements rather than graft on
a patch in the future. Clicksco UK are committed to achieve GDPR
compliance before May 2018 and ISO expects us to introduce
continuous improvements to our security controls.”
Security is also about ensuring that your data is protected from
competitors. Using our virtual DMP allows clients to protect their
primary data from competitors too ensuring that only they know
when their customer are in-market. In addition; martech vendors
usually offer end-to-end reporting via a dedicated dashboard for
each client as a way to provide transparency across all processes
and metrics thereby ensuring brand safety.
How can you help me get the most out of my data?
Simply put; a martech vendor can collect customer data on
your sites, their own network of sites/partner sites and data
marketplaces (such as Lotame, for instance) to improve content
serving - ads, products and other content. In addition, data can be
used to improve acquisition, conversions, and further engagements
beyond the conversion to increase revenue & reduce costs.
Beyond that direct value; martech vendors can also sell
anonymized data on data marketplaces on your behalf. Data can
be sold on its own or combined with other data to strengthen its
quality, and value to potential data buyers - thus maximising the
monetary value of that data.
www.clicksco.com8 8www.clicksco.com
Whilst 25th May 2018 is the key date for marketers’ diaries, the reality is
that they need to fully understand and prepare for the new regulation
as soon as possible; whilst juggling a host of other issues such as ad
blocking, ad fraud, and brand safety. Data policy will be the next
competitive battleground as consumers & governments places brands’
data management under increasing scrutiny. However, instead of
seeing it as a problem to solve, brands should see the responsible
approach to data management as an opportunity to build trust with
their customers and prospects; even to the point where it becomes
part of their CSR strategies. By embracing the more responsible data
approach and gaining consumer trust, this could help brands gain
access to the data that will help them personalise interactions across
the customer journey.
Smartphones and the internet have made data abundant, ubiquitous and far more
valuable. Whether you’re playing sport, watching TV, driving or otherwise; every activity
has a digital trace. As more devices connect to the internet the volume of data continues
to rise; whilst AI techniques such as machine learning and better algorithms continue
to improve what can be done with that data. By collecting more data, a firm has more
scope to improve its products, attract more users, generate more data, and so on across the
whole customer journey from acquisition, purchase, and further future purchases.
Conclusions
9www.clicksco.com
“Crucially, in the next 5 years, across retail, healthcare
and financial services, the 15% of companies that
successfully deploy and leverage personalization
can expect to see an $800bn revenue shift”
– BCG data referenced by Warc.com
Acquire Buy Experience Retain WinBack
Key things to remember when it comes to data:​
- Opt-ins are key: not only for general marketing but also
to gain product categorised opt-ins so users are explicit
as to how they expect their data to be used. Equally they
must be able to select how they want to be marketed to i.e.
email, SMS, etc. Other than the obvious “tick box” approach
to gaining consent, expect to see an increase in innovative
approaches to data consent. For instance; People.io is a
mobile app that allows brands to engage with consumers in
return for incentives. Privacy policies will have to become
clearer, simpler and more concise too.
- Beyond security, provide customers with value: If people
see an immediate personal benefit in sharing data – whether
it be utility, convenience or just pleasure – they are more
likely to want to share.
- Transparency throughout: GDPR will also require brands
to list out the specific product categories and names of
brands that users may receive marketing from.
Many consumers frustrated by ad-clogged browsing
experiences have already opted to put themselves
beyond the reach of advertisers by installing an ad
blocker. Clarity and openness about what data brands
need and why, giving consumers more control over
how and what they share will be a start to repairing to
damage but brands must move beyond adhering to new
regulations. Martech vendors such as Clicksco represent
an important element to improving the situation,
specifically helping brands - big & small - to get better
at collecting, managing and leveraging data whilst
providing value to the end user, across their customer
journey.
www.clicksco.com10
Expert Viewpoints
Pete Danks
Chief Marketing Office; Clicksco
“ Every business probably has access to
more data than they can handle. Process,
and most critically, leverage. The winners
in this space are those that truly leverage
data to extract profit. Our View is that
only a best in class mix of technology and
data scientists can enablethat, and we aim to prove that
both internally and with our third party clients by making sure
that our decisions around data drive profitable outcomes.”
John Madden
Chief Compliance Officer, Clicksco
“There will be no getting away from GDPR
as the UK Information Commissioner’s
Office was asked by EU to lead the
generation of the new rules, so even if
Brexit goes ahead, the UK will just use the new law as is (from
25 May 2018). Given that the penalties for getting it wrong
could be massive, Clicksco UK have already started to work
towards ensuring that we will be ready in time by doing a risk
assessment and kicked off a Data Audit of our assets.
Key to this is identifying where Personally Identifiable
Information is being transferred, stored or processed then
ensuring it is protected by strong encryption. Also stronger
requirement to get explicit consent from user when PII data
is being used. This may require changes to cookie consent
and an end to pop-up ads.
Clicksco UK are using their ISO processes to ensure
that we identify as part of capturing user requirements
anything in these new regulations so that our solutions are
being designed to meet them. Better to design in these
requirements rather than graft on a patch in the future.
Clicksco UK are committed to achieve GDPR compliance
before May 2018 and ISO expects us to introduce
continuous improvements to our security controls.”
References
https://martechtoday.com/gdpr-martech-care-195650
https://www.emarketer.com/Article/New-eMarketer-Report-Looks-UKs-Need-Better-Display-
Measurement/1015734
https://retail.emarketer.com/article/consumers-skeptical-about-value-of-sharing-data-with-
retailers/58f53813ebd4000a54864b18
http://www.prnewswire.com/news-releases/survey-despite-privacy-concerns-consumers-will-share-personal-
data-if-it-saves-money-or-resolves-customer-service-issues-300440038.html
https://www.warc.com/NewsAndOpinion/Opinion/2369
https://www.emarketer.com/Article/Education-Key-Re-Engaging-Ad-Blockers-UK/1015302
https://www.emarketer.com/Article/Internet-Users-Expect-More-Personalized-Mobile-Apps-Sites/1013962
https://www.emarketer.com/Article/Heres-How-UK-Internet-Users-Deal-with-AdsIt-Aint-Pretty/1015587
https://www.emarketer.com/Article/What-Concerns-Advertisers-About-Digital-Media-Buying/1014027
https://www.warc.com/NewsAndOpinion/news/Personalization_to_push_800bn_revenue_shift/bf87a0e9-c241-
4d5e-946e-d972e05235f9
11www.clicksco.com

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Data opportunities mini whitepaper

  • 1. 1www.clicksco.com With the majority of ad spending shifting towards digital, internet based ad efforts are increasingly under the microscope, and subsequently has put data & privacy firmly in the spotlight. On 25th May 2018 the EU’s General Data Protection Regulation (GDPR) will become law - a privacy policy that will increase privacy for individuals and give regulatory authorities powers to punish those that breach the new laws. The policy underlines the pressures that exist for marketers across sectors, but instead of perceiving it as a problem to solve, brands should see the responsible approach to data management as an opportunity to build trust with their customers. DATA OPPORTUNITIES JULY 2017
  • 2. www.clicksco.com2 ata policy will have to become part of CSR strategies whereby data privacy is at the top of the agenda; but equally providing value to customers willing to share data – whether for utility, convenience or just pleasure – is critical to garnering trust. The incoming GDPR will put control over personal data back in the hands of the individual, extending their fundamental rights to privacy further i.e. the right to be forgotten, the right to access their data, the right to restrict processing, the right to data portability and the right to object to profiling, or tracking. When done right with consent of the user in return for incentives (i.e. personalized promotions, discounts, or content) there’s an opportunity to strengthen the relationship between brands & consumers through garnering trust and using data more efficiently and responsibly. A combination of ad fraud, brand safety and viewability concerns, as well as new policies - such as GDPR – have created a perfect storm in the marketing world where there’s now a collective responsibility to serve content to the right people, at the right time, in a brand safe environment. Whilst data may not be the solution to all these issues, it can certainly contribute to a safer and more efficient online ecosystem through better use of data, and a supportive system of analytics & control infrastructure. Executive Summary D “By 2020, companies that are digitally trustworthy will generate 20% more online profit than those that are not” – Penny Gillespie, Research VP @ Gartner
  • 3. 3www.clicksco.com 1. What are the main areas where you think Big Data could generate value for my company?​ In most cases data can, and should, be applied across the customer journey to make every engagement as relevant as possible to each individual. We collect data to improve content serving from improving acquisition, conversions, and further engagements beyond the conversion to increase revenue & reduce costs. Equally there’s an opportunity to garner trust & value in the marketer-consumer relationship by using data responsibly to the preferences and benefit of the consumer. 2. How can you help me get the most out of my data? Whilst improving your customer experience is the primary objective of data collection – ensuring ads & content is relevant - you can also sell anonymized data on data marketplaces to maximize the value of that data. 3. What data does your technology generate that can help my company become more efficient? Our technology generates insights, using the data that customers generate using your services, that can be used for targeting and personalized engagements – algorithms can then be applied for more efficient optimization of bids and content serving. 4. How will your technology handle information scalability in the future?​ To be successful martech systems need a quality (& quantity) feed of data, which requires the means to store, manage & leverage those levels of data. Clicksco have many years of experience in scaling up as we’ve collected more & more data - we now collect 400 data points per second. 5. What level of security do you offer for the information that your technology generates? How do you ensure that level of security?​ Some brands get concerned about the prospect of a martech vendor placing tags on their sites and given the threat of GDPR non-compliance fines these concerns may well intensify. Our strong dedication to security includes a commitment to keep up to date with ISO (International Organisation for Standardisation) standards, commitment to adapt to new data regulations, and being completely transparent in all data activities. Using 5 key questions to ask data tech vendors, we aim to uncover the key challenges & opportunities ahead related to using data in your marketing (e.g. GDPR, personalisation, Ad Blocking, Brand Safety, etc), and specifically how we can help. Key Challenges & Opportunities Thriving in a data-fueled and increasingly regulated marketing ecosystem will be a balancing act between gaining consumer trust & consent, having enough data for programmatic ad serving, and keeping regulators happy. Working with marketing tech vendors could be an added concern for many brands already worried about the incoming GDPR, but actually they should bring calm & stability. Clicksco’s extensive experience and skills in data analytics as well as its transparent & comprehensive approach to data protection – internally & externally – places us & our partners in a strong position to benefit.
  • 4. www.clicksco.com4 DATA CONCERNS Driven by Concumer Power and Legislation The incoming GDPR is the biggest nod to consumer power against marketing ever from legislators, and when combined with consumers’ & brands’ data concerns make for a potent mix of challenges and opportunities in the coming years. Morethan2/3ofconsumersdon’ttrustbrands withtheirpersonalinformation UNCONCERNED NEITHER CONCERNED 11% 21% What is GDPR? The EU’s General Data Protection Regulation represents a new standard in data processing where all the power is placed with consumers. Coming into law on the 25t​h​May 2018, the core components of GDPR include: - Unify data privacy laws across the EU​whereby users will have better control over their personal data and dictate how organizations may use it. - Applies to any company that processes personal data of EU citizens.​ - Explicit consent will be required to collect, analyse & leverage such data with the option to opt-out at any time. - Violations of the consent or privacy-by-design aspects of the GDPR will be subject to penalties of up to €20m or 4% of revenue​ – whichever is biggest. - Must notify Data Protection Authorities & individuals affected in case of a data breach. Top of the agenda must be that marketers must look at all identifiers as personal data, and processing such data requires explicit consent & the option to opt out at any point, a clear value proposition for using and/or selling that data, and a stringent set of processes to ensure privacy & protection of the consumer. Consumer Power fueled by Data Concern Brands risk endangering reputation and consumer trust if they fail to adopt strong methods to protect consumer identities, as two-thirds of UK and US consumers are concerned about how brands use their personal data, according to Gigya. In another study; [24]7 recently found that 42% of consumers thought retailers had put personal data to good use versus 48% that thought they’d hadn’t; showing room for improvement. Ad blocking is another growth trend that speaks volumes of what consumers think of advertising. In the UK, for instance, 41% of 16-19s, 25% of 20-24s and 35% of 35-49s have all installed an ad blocker. There are numerous reasons for this rise in ad blocking behavior. However, the primary issues that consumers cite about digital advertising tend to relate to the annoyance factor—UK consumers find digital ads intrusive and disruptive. For instance; in a Q3 2016 study AudienceProject found that irrelevant messaging was a primary trigger, followed by slow loading times and tracking concerns. According to Apadmi; 74% of UK shoppers said they were mostly concerned about the security of their information when they use retail apps; whilst 34% said they didn’t like the idea of retailers storing their information because they are unsure of what it would be used for. Opportunities for better data use Paradoxically; there’s increasing demand for better & more relevant user experiences, something that can only come with leveraging data. For instance; a 2016 study from Sitecore & Vanson Bourne found that 35% of global internet users expect both mobile apps and websites to be more personalized. The top reason for sharing personal data was for deals (43%) with product/service recommendations way behind (20%), whilst only 15% were interested in targeted ads. 31% said they were unwilling to share such data for any reason. The GDPR will give consumers much more comfort and power; for instance, the opt-in policy will keep brands honest about what data they collect and how they plan to use it. As a result, there’s an opportunity to garner the trust and belief from consumers that marketers in all sectors are capable of using their data responsibly for the better of their experience. 68%
  • 5. 5www.clicksco.com Brand Concern fueled by Consumer Power There are a swathe of concerns among brands & agencies from the potential impact of Brexit, the rise of ad blocking, ad fraud, viewability, brand safety, and of course data. Most of these concerns emanate from the potential impact on consumer behaviour whether that’s the impact of consumer spending (from Brexit), or the boycotting of ads through skipping or using blockers due to feelings of “adcreep”. The most direct impact on consumer behavior could be GDPR and concerns about potential mass consumer opt-out, whilst brands that perhaps aren’t doing any data activities yet are concerned about investing in them. According to Veritas Technologies; 86% of organisations across the globe are concerned that failure to adhere to GDPR could have a major negative impact on their business. 20% are worried that not complying with the new regulation could put them out of business; whilst 47% have major doubts that they’ll meet the compliance deadline. Almost 32% said their current tech stack was unable to manage their data effectively, thus hindering their compliance abilities under GDPR. Surprisingly 26% of UK companies still believe they’re unprepared for the GDPR, though more worryingly 32% said they wouldn’t be GDPR compliant by the time the regulation is implemented. The biggest challenge is likely to be gaining consent from consumers, but marketers simply have no choice but to get better with data – they can’t reject use of data as it’s just too valuable. WaysinWhichUKInternetUsersAvoidAds,byAge,Oct2016 %ofrespondentsineachgroup ConcernsAboutDigitalMediaBuying/PlanningAccordingtoUSMediaAgencyvs. BrandMarketingExecutives,April2016 %ofrespondents 16-19 74% 43% 41% 19% 15% 9% 39% 16% 9% 17% Brandmarketers 74% 43% 41% 19% 15% 9% 39% 16% 9% 17% 20-34 62% 38% 25% 20% 10% 7% 30% 21% 16% 12% MediaAgency 62% 38% 25% 20% 10% 7% 30% 21% 16% 12% 35-49 61% 28% 35% 24% 7% 10% 26% 20% 34% 10% SkipadswheneverIcan Clickfraud Installedanadblockerapp Controlovercontentenvironment Lookawayfromthescreen Bottraffic Other Lackofaudiencedata Installedanadblockerplug-in Viewability Didn’tknowtherewasanythingIcoulddo Consumerprivacy Changedsettings Adblocking Haven’ttakenanyaction Highfrequenceexposure Willingtopayforpremiumservices Conflictingaudiencedata Don’tmindads Don’tmindads Source:KantarMillwardBrown,“AdReaction:EngagingGenX,Y,andZ,”Jan10,2017 Note:amongthosewithdigitalmediadecision-makingresponsibilities;responsesof8-10ona10-pointscale Source:MyersBizNet,*SurveyofAdvertisingandMarketingExecutivesonMediaEffectivenessascitedbyMediaVillage,May2,2016
  • 6. www.clicksco.com6 Data: Questions to ask of your Martech vendors How do Martech vendors collect your data and what do they do with it?​ Martech vendors’ offerings vary quite widely but the core value proposition is to collect customer data from a variety of sources to create a 360-degree profile to then enable a personalised customer experience. This is done via a ​Data Management Platform (DMP)​which is able to create valuable audience segments and use them for a range of marketing and advertising activities. None of that would be possible without properly collecting the data first - that’s where ​tags​come in. A tag is a chunk of code placed within the header of a page to perform a certain task, such as analytics or retargeting. Most martech vendors place a tag on a client’s site as an initial stage to start collecting data for the client, data that no one else will see. Simple tag integration: Rapid deployment of a tag via a tag manager or direct on page; or If the site is complex a meta tag can sometimes help to identify the page contents, or Custom tag solutions can be used for more complex site interactions. No personal identifier information data is taken, and the tag won’t affect page loads (behaves like Google Analytics). As well as collecting data via tags most martech vendors enable clients to send customer data from other sources via an API - something that many e-commerce players often do. The main types of data DMPs collect includes: - Primary data​including website/app visitors & their intent, and data from marketing and advertising campaigns. As ecommerce practitioner Clicksco understands clients may not want to share ‘intent’ data on the marketplaces, allowing competitors to purchase and leverage that data point so we often ringfence this data to ensure it only exists for potential marketing services use. For extra security, we anonymise all sources, so purchasers on DSPs (Demand Side Platforms) have no indication of the original source. - Secondary data​including data from second- and third-party sources such as partner sites or other data providers. All your other data is just as valuable to others on the marketplace, and can be transferred anonymously without risking your conversioninanyway. Welabelthatas‘secondary’-andstillpassthis through the market place anonymously tostopanother retailer leveraging the source. This value is a purely incremental revenue/ gross profit line that can be invested elsewhere e.g. back into acquisition. Once the data has been collected it is then ​normalised​, which basically means cleaned up, organised and enriched with other relevant data (such as geolocation and OS/browser attributes). This then enables the building of profiles that can then be segmented for better serving of ads, products or just content. We’re also investing in how to better utilise data via a Knowledge Transfer Partnership with Durham University. This project will see our AI team work with the university on analysing machine driven advertising and its CTR (Click Through Rate) impact to give us an improved understanding of the customers and their journeys through the Clicksco extended network. This improved understanding will then enable us to improve the CTRs and revenue for our clients, as well as providing even deeper insights into campaign performance.
  • 7. 7www.clicksco.com What are the main areas where you think Data could generate value for my company?​ In most cases data can, and should, be applied across the customer journey to make every engagement as relevant as possible to each individual. Below is Clicksco’s core data flows where data is used to help our clients Clicksco use data & machine learning to fuel our bidding algorithms to boost our speed & agility at the acquisition stage and throughout the customer lifecycle. Forusthisenablestheautomationofmarketingactivitiescurrently requiredtoengagecustomersandinspireanimpression,clickor sale. Using APIs, Clicksco have built integrations with all major advertising and media partners. We then use bespoke bidding and buying algorithms to drive auction behaviour, acquiring the right customer at the right time. What data does your technology generate that can help my company become more efficient? Whether collected from your sites, our sites, a network site or combined with data from a 3rd party source; our data produces insights that drive more efficient managing, leveraging and selling of primary data; whilst freeing up secondary data for driving further revenue. Using bidding algorithms that are fuelled by the data we help clients collect - user profile, intent & behavioural data - makes for more efficient content serving that is bought at the optimum rate, but served to the right person at the right time. By ensuring efficiency at the start of the process as well as automated optimisation and transparent reporting throughout the customer journey gives a more efficient overall process from start to finish. DMPs can support multiple data points - consumer behaviour data; ID data; high frequency transaction data; or unique enterprise data - that combined create rich user profiles for powerful data insights. This includes building custom audience segments. What level of security do you offer for the information that your technology generates? Security is one of the most significant concerns among brands when considering the prospect of working with a martech vendor including placing tags on their sites, collecting data on their behalf, and automating the processes. Given the threat of GDPR non- compliance fines these concerns may well intensify. Ensuring we comply with the upcoming GDPR, specifically gaining explicit consent of data collection, is a key challenge in the next 12 months. How will your technology handle information scalability in the future? Martech systems must deliver high throughput, low latency and fault tolerance. In Martech, the pipeline is key; the more data a platform can handle, the more successful its marketing campaigns will be. Systems that aren’t scalable will become choke points, and any system with high latency or significant faults will wreak havoc on the delicately timed interplay between data and outreach. In the past few years Clicksco have amassed 300m customer profiles & 1.5bn data points, but every month we add millions more profiles whilst also adding breadth to that profiles we already have collecting 400 data points per second. However, if the conditions can be fully met there’s an opportunity to garner real consumer trust and validation in data collection and what companies do with that data. Here’s what our Chief Compliance Office John Madden says about our commitment to security: Clicksco UK are using their ISO processes to ensure that we identify as part of capturing user requirements anything in these new regulations so that our solutions are being designed to meet them. Better to design in these requirements rather than graft on a patch in the future. Clicksco UK are committed to achieve GDPR compliance before May 2018 and ISO expects us to introduce continuous improvements to our security controls.” Security is also about ensuring that your data is protected from competitors. Using our virtual DMP allows clients to protect their primary data from competitors too ensuring that only they know when their customer are in-market. In addition; martech vendors usually offer end-to-end reporting via a dedicated dashboard for each client as a way to provide transparency across all processes and metrics thereby ensuring brand safety. How can you help me get the most out of my data? Simply put; a martech vendor can collect customer data on your sites, their own network of sites/partner sites and data marketplaces (such as Lotame, for instance) to improve content serving - ads, products and other content. In addition, data can be used to improve acquisition, conversions, and further engagements beyond the conversion to increase revenue & reduce costs. Beyond that direct value; martech vendors can also sell anonymized data on data marketplaces on your behalf. Data can be sold on its own or combined with other data to strengthen its quality, and value to potential data buyers - thus maximising the monetary value of that data.
  • 8. www.clicksco.com8 8www.clicksco.com Whilst 25th May 2018 is the key date for marketers’ diaries, the reality is that they need to fully understand and prepare for the new regulation as soon as possible; whilst juggling a host of other issues such as ad blocking, ad fraud, and brand safety. Data policy will be the next competitive battleground as consumers & governments places brands’ data management under increasing scrutiny. However, instead of seeing it as a problem to solve, brands should see the responsible approach to data management as an opportunity to build trust with their customers and prospects; even to the point where it becomes part of their CSR strategies. By embracing the more responsible data approach and gaining consumer trust, this could help brands gain access to the data that will help them personalise interactions across the customer journey. Smartphones and the internet have made data abundant, ubiquitous and far more valuable. Whether you’re playing sport, watching TV, driving or otherwise; every activity has a digital trace. As more devices connect to the internet the volume of data continues to rise; whilst AI techniques such as machine learning and better algorithms continue to improve what can be done with that data. By collecting more data, a firm has more scope to improve its products, attract more users, generate more data, and so on across the whole customer journey from acquisition, purchase, and further future purchases. Conclusions
  • 9. 9www.clicksco.com “Crucially, in the next 5 years, across retail, healthcare and financial services, the 15% of companies that successfully deploy and leverage personalization can expect to see an $800bn revenue shift” – BCG data referenced by Warc.com Acquire Buy Experience Retain WinBack Key things to remember when it comes to data:​ - Opt-ins are key: not only for general marketing but also to gain product categorised opt-ins so users are explicit as to how they expect their data to be used. Equally they must be able to select how they want to be marketed to i.e. email, SMS, etc. Other than the obvious “tick box” approach to gaining consent, expect to see an increase in innovative approaches to data consent. For instance; People.io is a mobile app that allows brands to engage with consumers in return for incentives. Privacy policies will have to become clearer, simpler and more concise too. - Beyond security, provide customers with value: If people see an immediate personal benefit in sharing data – whether it be utility, convenience or just pleasure – they are more likely to want to share. - Transparency throughout: GDPR will also require brands to list out the specific product categories and names of brands that users may receive marketing from. Many consumers frustrated by ad-clogged browsing experiences have already opted to put themselves beyond the reach of advertisers by installing an ad blocker. Clarity and openness about what data brands need and why, giving consumers more control over how and what they share will be a start to repairing to damage but brands must move beyond adhering to new regulations. Martech vendors such as Clicksco represent an important element to improving the situation, specifically helping brands - big & small - to get better at collecting, managing and leveraging data whilst providing value to the end user, across their customer journey.
  • 10. www.clicksco.com10 Expert Viewpoints Pete Danks Chief Marketing Office; Clicksco “ Every business probably has access to more data than they can handle. Process, and most critically, leverage. The winners in this space are those that truly leverage data to extract profit. Our View is that only a best in class mix of technology and data scientists can enablethat, and we aim to prove that both internally and with our third party clients by making sure that our decisions around data drive profitable outcomes.” John Madden Chief Compliance Officer, Clicksco “There will be no getting away from GDPR as the UK Information Commissioner’s Office was asked by EU to lead the generation of the new rules, so even if Brexit goes ahead, the UK will just use the new law as is (from 25 May 2018). Given that the penalties for getting it wrong could be massive, Clicksco UK have already started to work towards ensuring that we will be ready in time by doing a risk assessment and kicked off a Data Audit of our assets. Key to this is identifying where Personally Identifiable Information is being transferred, stored or processed then ensuring it is protected by strong encryption. Also stronger requirement to get explicit consent from user when PII data is being used. This may require changes to cookie consent and an end to pop-up ads. Clicksco UK are using their ISO processes to ensure that we identify as part of capturing user requirements anything in these new regulations so that our solutions are being designed to meet them. Better to design in these requirements rather than graft on a patch in the future. Clicksco UK are committed to achieve GDPR compliance before May 2018 and ISO expects us to introduce continuous improvements to our security controls.” References https://martechtoday.com/gdpr-martech-care-195650 https://www.emarketer.com/Article/New-eMarketer-Report-Looks-UKs-Need-Better-Display- Measurement/1015734 https://retail.emarketer.com/article/consumers-skeptical-about-value-of-sharing-data-with- retailers/58f53813ebd4000a54864b18 http://www.prnewswire.com/news-releases/survey-despite-privacy-concerns-consumers-will-share-personal- data-if-it-saves-money-or-resolves-customer-service-issues-300440038.html https://www.warc.com/NewsAndOpinion/Opinion/2369 https://www.emarketer.com/Article/Education-Key-Re-Engaging-Ad-Blockers-UK/1015302 https://www.emarketer.com/Article/Internet-Users-Expect-More-Personalized-Mobile-Apps-Sites/1013962 https://www.emarketer.com/Article/Heres-How-UK-Internet-Users-Deal-with-AdsIt-Aint-Pretty/1015587 https://www.emarketer.com/Article/What-Concerns-Advertisers-About-Digital-Media-Buying/1014027 https://www.warc.com/NewsAndOpinion/news/Personalization_to_push_800bn_revenue_shift/bf87a0e9-c241- 4d5e-946e-d972e05235f9