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Study: 37% of marketers to invest more in walled gardens at publishers' expense

Study: 37% of marketers to invest more in walled gardens at publishers' expense

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Slightly more than a third (37%) of marketers plan to invest more in walled gardens once third-party cookies go away, an increase from 18% last February. This is likely to come at publishers' expense as 53% of marketers predict a reduction in programmatic spend over the next year and only a third expect an increase.

This was according to Lotame's "Beyond the Cookie: Next Generation Customer Acquisition and Retention for Marketers & Publishers" report which polled over 1,400 respondents across seven global markets including Singapore and India in September this year. The report also found that 36% of marketers are concerned about business growth if the business is unable to target outside walled gardens. At the same time, 31% said they are constrained to using walled gardens for their acquisition strategies.

lotame programmatic spend

On the bright side, CTV remains a popular avenue for marketers. In June, GroupM's "This year next year" 2022 mid-year global forecast said global CTV advertising amounted to US$21 billion this year, a 24% increase over the last year. It also accounted for 12% of all TV globally. According to Lotame's report said 36% of marketers spend up to 25% of their ad budgets on CTV. Also, 47% of marketers said having having quality targeting data would convince them to invest more in the channel, followed by more efficient planning or buying process (36%), transparent measurement (30%), efficient frequency capping (30%), and connected ecosystem for greater scale (26%).

Marketers growing more urgent about identity solutions

In July, Google announced that it is delaying third-party cookie deprecation to 2024, allowing the industry to heave a sigh of relief. That said, Lotame's report found that identity is now an urgent priority among marketers and publishers. In early 2021, identity (58%) topped marketers' must-have investments while more than half of publishers (53%) seeking an identity solution. That need somewhat waned, according to Lotame, but a year later, this has once again become an urgent need.

Currently, 37% of marketers said it is an urgent priority to select identity solutions while 35% of publishers share the same view. In 2021, only 18% of marketers and 14% of publishers found this to be an urgent priority.

lotame identity urgency

The report also found near-even levels of interest in testing across all identity solutions, with probabilistic solutions seeing the highest growth at a 50% year-on-year increase. Despite being the newest entrant to the identity space, Google Topics is the most popular identity solution and is actively being used or tested by 71% of respondents.

Authenticated email usage came second at 67% usage with near flat growth YoY, and is held back by limitations in scale and inability to acquire new customers, with both issues reported by 30% of users. Future-proofing is a further concern, as 58% of respondents stated email-based identity solutions still used third-party cookies.

CDPs are a popular investment

Customer data platforms have grown in popularity with 44% of marketers and publishers currently using the technology as part of their martech stack. Personalisation (44%) and data consolidation (42%) are the primary use cases. Although satisfaction with CDPs is very high — as reported by 61% of users — 39% see room for improvement.

As a still nascent technology, clean rooms are steadily gaining popularity among publishers, as 48% use them, compared to 37% of marketers. A clean room allows advertisers to run campaigns while providing them with non-personally identifiable information to target specific demographics. According to Lotame, almost all clean room users have faced some level of challenge, with nearly half (47%) reporting privacy as a challenge and 39% citing budget. Interestingly, 58% of marketers cite budget as the main reason why they don’t plan to use clean rooms. 

When it comes to their adtech stack, marketers and publishers are keen to invest in collecting unknown customer data in addition to known customer data. More than a third (37%) say they plan to adopt data management platforms within the next six months to a year.

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