An AWS Executive Charts the Winds of Change Blowing the Digital Marketing World

Major changes are underway in the advertising model of the online world, and the marketing technology or MarTech industry must adapt accordingly.

Cookies, the tiny pieces of tracking code that are downloaded to a device when accessing a website, are being phased out by Google LLC. Apple Inc.’s decision to delete IDFA ID which allows the digital advertising industry to track iOS user activity has forced a major shift from marketers. Firefox also has announcement protections against all third-party cookies on its browser.

This creates a new reality in which traditional tools for delivering the right ad to the right customer at the right time are no longer as effective, but the exponential growth of content platforms has created more opportunities than ever to reach a wider audience.

“This is an inflection point in the history of ad tech and MarTech,” said Tim Barnes (pictured), Global Director and Managing Director of Advertising and Marketing Technology at Amazon Web Services Inc. It’s an explosion of opportunity, but how do you connect brands with customers and do it with privacy? This is really the big challenge we face.

Barnes spoke to industry analyst theCUBE furry jeans during the AWS Startup Showcase Event “MarTech Emerging Cloud-Scale Customer Experiences”, an exclusive broadcast on theCUBE, SiliconANGLE Media’s live streaming studio. They discussed the changes facing the world of digital marketing and how the industry is embracing new technology models to meet the challenge. (*Disclosure below.)

First party data dependency

With the elimination ability to target audiences using third-party cookies, companies will be forced to rely on first-party data, information collected from customers and held by the company.

“For advertisers and marketers today, the importance of getting direct access to your customer, with permission and consent, is paramount,” Barnes said. “How you establish that bond with trust and a very clear directive of how you’re going to use that data has never been more important.”

A challenge facing the MarTech world involves the exchange of data itself to reach a desired audience. Although third parties may no longer collect data on their own, they will continue to rely on them to run campaigns. This requires leveraging technology for federated data exchange.

“We’ll see the rise of next-generation, what I call data cleanrooms, approaches that a number of customers are taking to connect data without actually moving data between two sources,” Barnes explained. “We call it federated data exchange or federated data clean rooms, and you see that from a number of different parties in the industry. We see this growing with partners like Snowflake and InfoSum. Even within Amazon itself, at AWS, we have data sharing capabilities with Redshift.

Come from a new world

In addition to federated data exchange, the MarTech industry is also evaluating other solutions. These include proposals such as Unified ID 2.0an identity solution to preserve the exchange value of advertising while strengthening consumer control over data usage.

“The UID 2.0 Consortium is an effort to use hashed email addresses and other forms of identifiers to facilitate data exchange for the programmatic ecosystem,” Barnes said. “The old world is going, the new world is coming, and part of that is how we connect data sources more seamlessly and efficiently.”

A by-product of the changes involving the collection and use of third-party cookies will potentially be a power shift between advertisers and publishers. As third-party cookies go away, publishers hold more cards through first-party data ownership.

“We’re seeing a move back to the publisher and maybe a healthy balance between the two,” Barnes noted. “We’re going to see significant technology changes over the next three to four years that rely on the interaction between distributor and publisher in a way that helps both parties achieve their goals.”

Ultimately, this can translate to a better outcome for corporate clients. By moving away from a model where hidden tracking cookies can monitor user behavior around the clock, consumers may feel more relieved that their data is being treated in a very different way.

“There’s a recognition by the brand that we need to be a little more thoughtful about how we interact with our customers and how we build trust,” Barnes said. “That includes how we communicate with them. Most consumers find value in targeted messaging, but I think they want it done right. »

Watch the full video interview below, some of SiliconANGLE and theCUBE’s coverage of the AWS Startup Showcase Event “MarTech Emerging Cloud-Scale Customer Experiences”:

(*Disclosure: AWS sponsored this segment of theCUBE. Neither AWS nor other sponsors have editorial control over the content of theCUBE or SiliconANGLE.)

Photo: SiliconANGLE

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