The technology, which is now used to power most digital media buying, is baffling marketers and advertisers with only 15% of advertisers claiming to be using it “effectively”. In a study conducted by ID Comms, zero marketers claimed to be using it “very effectively” and 41% of advertisers admit they are still using media technology “ineffectively” or “completely ineffectively”.
The poor performance and dependency of many advertisers contrasts with the agreement on both sides that successful advertisers understand the impact of marketing technology on their business and have a clear strategy for ensuring it adds value rather than complexity. About 75% of all respondents either agreed or strongly agreed.
Advertisers also admitted that they had a lack of understanding of how each technology platform within the stack contributes to the value chain and serves specific business/media goals. Around 8% claimed a “good understanding”, 67% “some understanding”, 22% “little understanding” and 3% “no understanding”. No one claimed a “full understanding” of the role of their tech stack.
“What we find with these results is that marketers have a concerning lack of understanding about the precise impact that marketing technology is already having and will continue to have on their wider business, said Susy Pyzer-Knapp, consultant at ID Comms. “Marketers demonstrated anxiety over the rapid pace of change, anxiety about where to seek objective advice and an over-dependence on on agency-provided solutions. There has never been a greater need for marketers to get to grips with this area.”
While agency participants were more bullish – 24% said advertisers were using tech “effectively” – the ID Comms 2017 Global Media Technology Report found they have also benefited from the lack of knowledge around the new tech landscape. The vast majority of advertisers agreed with the statement “Advertisers inability to keep up with the rapid evolution of the tech landscape makes them over dependent on solutions provided by their agency”. In total, 83% either “agreed” or “strongly agreed”. Even 37% of agency respondents agreed.
ID Comms 2017 Global Media Technology Report also found that advertisers were turning to a wide variety of advisers in their search for guidance on the best technology to use and how to deploy it. Whilst both agency and advertisers agreed specialist tech consultants are trusted most often to advise advertisers on tech solutions (30% and 28% respectively), advertisers also highlighted media agencies (23%) and agency participants highlights management consultants (19%) as trusted advisors in this space.
The findings are based on responses from 229 respondents. The respondents were comprised of Marketing, Media and Procurement professionals with a range of global, regional and local market responsibilities, representing companies spending over US$40bn globally on advertising each year. 77% of the respondents were Europe-based, 11% were from the US and the remaining 12% representing the rest of the world.