Advancing AI and Data Privacy: Insights from DMEXCO 2023
DMEXCO 2023 uncovers the latest discussions around transparency, creativity, AI, and more.
Nick Pinks, co-founder and CEO of Covatic, highlights key insights from the DMEXCO 2023 conference, where leading marketing experts convened to discuss the significance of data privacy, advancements in CTV advertising, the impact of cookieless advertising, and adoption of AI in marketing.
Trust and transparency were major conversation points when digital marketing’s finest gathered at this year’s DMEXCO in Cologne, Germany, on September 20th and 21st. People want to know where their insights are coming from and the effects that they may have on the consumer, which is refreshing to see as the focus shifts to a more ethical approach to privacy-first ad strategies. Emerging technology was also a hot topic – whether the rapid growth of AI or the popularity of streaming and connected TV (CTV).
While the conference was less busy than pre-COVID times, the atmosphere felt more focused, and the discussions were more intentional and targeted. Here are some key takeaways from this year’s event.
The Era of Privacy Is Upon Us
Privacy is an undeniable concern for marketers and the coming cookieless landscape has been enough to kickstart debate around the topic. What initially felt like an issue for tomorrow – when Google first announced its intentions to part ways with cookies by 2022- is now today’s challenge, and discussions at this year’s event reflected this. With tightening regulations and increasing consumer expectations, advertisers and agencies will rely on tech providers to create accurate and highly relevant audiences.
Ad targeting optimization remained in sharp focus as marketers hunt for the next great solution that protects user privacy but retains the same accuracy and ability to drive reach. Conversations around alternative ID solutions were prolific and most discussed that, with tightening regulations, these similar solutions will also cease to exist in the next few years. In the past, the emphasis has seemingly always been on collecting bigger and better insights from our data, so the conversations around how that data is collected and the impact that has on consumers themselves is hugely reassuring as we move into this privacy-centric era.
Creativity With AI as Co-Pilot
Conversations earlier this year pitting AI against creativity could not be ignored, but the general consensus at this year’s event was that AI-powered solutions should be used as helpful tools to assist agency teams dealing with vast amounts of creativity rather than being seen as a replacement. AI can be used to do the ‘bulk’ of the work, automating monotonous tasks and running analysis of high volumes of content, freeing up human teams to work on strategy and focus on how to make their creative unique and engaging.
ChatGPT, for example, made waves and hit the headlines for its extensive capabilities, but it also demonstrated the need for human revision to ensure accuracy. The same can be done with the creative side of things, with AI analyzing high volumes of performance data and guiding creative decisions for future campaigns.
A particular session discussing whether Generative AI platforms will be the savior or nemesis of the media industry proved interesting. The conversation focused on the transformative potential of Generative AI to redefine content creation by supporting industry professionals to optimize processes and ultimately boost monetization opportunities.
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Streaming Leads the Charge
Streaming had a powerful presence this year, thanks to the rising popularity of Connected TV (CTV). However, free ad-supported streaming TV (FAST) was the big focus of the event, with widespread predictions that every streaming service will have an ad-supported tier.
Disney+ recently announced the launch of ad-supported tiers in selected markets, and Netflix’s success with the new system cemented the potential of the decision.
With new audiences pouring into FAST channels, marketers discussed technologies and strategies that maximize the breadth of opportunities for those looking to expand their audiences on privacy-safe platforms. Industry professionals are aware of the potential that streaming opens up in comparison to linear TV channels, including its ability to provide high addressability and more precise targeting, measurement, and reporting.
Commercial Challenges
Economic turmoil made its way into the discourse, both in panels and on the ground. A squeeze on budgets and a fiercely competitive digital landscape have sent marketers searching for commercially viable solutions, and with investments under intense scrutiny, higher ROI seems to be the guiding rule.
One of the main arguments discussed was the need for industry players to find common ground and work together – even if they’re rivals. Tech vendors and agencies, for example, can flip the script and support brands who need to be more technically versed, as innovation continues to change the face of the industry. The focus is no longer on what data is being used but how it’s being used and if the solutions used maximize potential, which collaboration can help achieve.
Transparency Must Be Clear
Consumers live in an increasingly omnichannel world and marketers must plan, execute, and measure campaign performance across channels to meet this reality. However, omnichannel marketing requires specific technologies and targeting capabilities competent enough to withstand a highly volatile market. As consumer behavior becomes more assertive, transparency must become part of every marketer’s toolkit.
Unpredictable consumer behavior makes the future hard to foresee, but one thing is certain – people want brands to be more transparent, particularly when it comes to the use of their data. Conversations flowed between agencies and brands on how to deliver against these rising concerns to build consumer trust and an ecosystem that works for everyone.
Sustainability Is Gaining Momentum
Mounting decarbonization pressures across all industries are finally catching up with the advertising industry, and discussions around sustainability in the sector seem to be in full swing.
It’s challenging to understand the carbon footprint of digital industries because people associate climate change with the physical environment, not necessarily what we do on our screens. Nonetheless, it’s essential that advertisers enter advanced discussions to incorporate sustainable practices into their strategies. This also answers another growing sustainability demand from consumers; as climate protests rise, their priorities become clearer. It’s only a matter of time until advertising has to catch up.
This year’s event was undoubtedly dominated by a running theme of AI and emerging tech conversations. From supporting the advertising industry’s privacy transformation to co-piloting human teams rather than replacing them, leveraging new streaming services’ opportunities to helping decarbonize the industry, innovative technologies continue to be key to addressing emerging industry challenges and offer a pool of exciting new opportunities.
What marketing trends do you anticipate emerging over this year and the next? Share with us on Facebook, X, and LinkedIn. We’d love to hear from you!
Image Source: Shutterstock
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