It’s Time For Vanity Metrics To Perform A Disappearing Act
Nov 28, 2023
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This podcast discusses the importance of recognizing non-transactional performance channels like Connected TV. It also explores topics such as the future of consolidation and fragmentation in the AdTech ecosystem, the problematic nature of compensating people for sharing personally identifiable information, privacy concerns with data aggregators, and the effectiveness of performance-based outcomes in advertising.
The industry is shifting towards performance metrics and measuring actual outcomes rather than relying on vanity metrics like viewability and click-through rates.
Advertisers are becoming more aware of the importance of transparency and opt-in consent in data sharing, leading to increased focus on ethical data collection practices.
Deep dives
The Rise of Retail Media and the Shift to Performance Metrics
Retail media is gaining momentum as budgets are being pulled from traditional channels. Advertisers are shifting their focus to performance metrics, such as sales, rather than vanity metrics. The industry is moving away from relying on proxies like viewability and click-through rates and towards measuring actual outcomes. This shift has been driven by the availability of data and the need for more accurate and ROI-driven measurement. Retail media partnerships, like the one between Walmart and the Trade Desk, are helping advertisers optimize their campaigns and allocate budgets more effectively based on real-time sales data.
The Problem with Data Aggregators
Data aggregators, often referred to as data brokers, are facing scrutiny due to their business practices of buying and selling data without direct consent from consumers. The issue lies in the lack of control consumers have over their data and who it is being shared with. Advertisers are becoming more aware of the need for transparency and opt-in consent when it comes to data sharing. Companies like Atene are focused on ethical data collection practices, providing clear information to consumers prior to opting in and ensuring the ability to opt out. Regulatory measures, such as the California Delete Act, are putting pressure on data aggregators to change their practices and prioritize consumer privacy.
The Shift from Vanity Metrics to Outcome-Based Measurement
The industry is moving towards outcome-based measurement, driven by a focus on performance and sales. Advertisers are reducing spend on channels that do not deliver performative results and shifting budgets towards retail media and other channels that drive tangible outcomes. The push for effective measurement has revealed the limitations of proxy metrics like viewability and click-through rates. Marketers are seeking metrics that tie advertising exposure directly to sales and ROI. This shift in mindset is paving the way for more accurate and ROI-driven measurement practices.
The Importance of AdTech Community and Collaboration
The ad tech community plays a pivotal role in shaping the industry and driving it forward. The small and close-knit community fosters collaboration, information sharing, and partnerships that have propelled the business in the right direction. Competitors also act as friends in this community, working towards a common goal of advancing the industry as a whole. The tight-knit nature of the ad tech community allows for open dialogue, note trading, and collective efforts to champion progress and innovation within the industry.
Just because a channel isn’t where a final transaction happens doesn’t mean it’s not a performance channel. Connected TV is the perfect example, says Brian Mandelbaum, CEO of commerce data platform Attain.
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