The dusty corner of marketing known as customer-relationship management is emerging as a critical tool for data-driven advertising, as marketers look to tap what they know about customers for banner ad buys across the Web.
Customer relationship management, or CRM, integrates the marketing, sales and customer service components of a business. This process is increasingly facilitated by technology — so much so that the acronym used describe the concept is used to describe the technology, too. In simplified terms, this mean one central system is often being used to tailor different messages to different people; be it on a website, on email, one the phone to a customer service rep or via a digital ad unit.
Add display to that list. Oracle, Adobe and Salesforce.com are rushing to push the idea that first-party data is the most valuable data around — and is critical to ad buys. Witness Oracle’s acquisitions of Datalogix.
“CRM has come of age,” said iProspect chief media officer Matt Adams. “CRM won’t be seen or referred to as a single discipline, digital or otherwise. It will no longer sit as a siloed discipline, either from client side organizational structures or in the way the technology operates.”
At a practical level, Adams predicts universal customer IDs will replace the historical profiling that brands would address their messaging to. Those IDs will be further informed by second- and third-party data sources. For a luxury watch maker, for example, data shared by a partner e-commerce store would count as second-party, while cookie data aggregated by a vendor from a collection of business websites to help target CEOs would count as third-party.
Ultimately, Adams expects CRM will just become part of the fabric of a brand’s content play and real-time custom creative will become the norm.
Still, others say this is still a ways off. After all the era of “big data” is frequently fueled by big hype.
“The method of joining CRM databases to audiences within advertising is no longer a mythical beast and is done by many different stakeholders in the industry today. But CRM serves a purpose beyond just advertising and similarly advertising isn’t only about data management — they are two distinct disciplines,” said Danny Hopwood, Vivaki’s head of platform for EMEA. “However, they can be joined when needed.”
The main flaw in the convergence argument, say some critics, is that broadcast advertising cannot target individuals.
“CRM can help us identify patterns among millions which may make the advertising work better, but this does not make them the same thing,” said Adam Smith, GroupM’s head of futures.
Much of the disagreement centers around the pace of this shift, though – not the fact that it’s happening. Trends like programmatic TV could, in the longer term, accelerate this convergence. In the short term however, a more practical issue could hold back greater convergence. The business models of companies operating in these sectors are still very different.
“Big enterprise software vendors operate on the software as a service model, while ad tech vendors often take a percentage of media spend,” said Mark Williams, director at Results International. “This very different way of working could act as an immediate barrier to more convergence in this space.”
How the push for anti-‘woke’ advertising could create controversy for brand startups
As some push back on inclusive marketing, startups with more to lose sound off.
U by Kotex believes normalizing periods will help it reach millennials, Gen Z
U by Kotex is looking to continue with recent streaming ads, digital spots, banner ads, shopper marketing and influencer partnerships focused on “Normalizing Periods.”
Can Meta remain the ‘holy grail of paid advertising’ with challenges, challengers and Advantage+?
With more competitors and less solutions, advertisers sound off on Meta's social ad dominance.
SponsoredWhat the measurement and currency discussion really means to TV advertisers
Ali Mack, head of TV and agency, Experian Major streaming video providers have recently made headlines by adopting new currencies for ad measurement, threatening Nielsen’s long-standing TV ratings monopoly. NBCUniversal, for example, has certified iSpot and VideoAmp as currencies for advanced audiences and formed the Joint Industry Committee with Paramount, TelevisaUnivision and Warner Bros. Discovery. […]
Digiday+ Research Briefing: CMO Strategies — How marketers’ social platform budgets stack up
In this week's Digiday+ Research Briefing, we share focal points from Digiday's recently released reports on how marketers’ social platform budgets stack up, and how agencies are feeling less pessimistic about the death of the third-party cookie.
With TikTok star Keith Lee, Pepsi hopes to draw Gen Z to Black-owned restaurants
Pepsi is teaming up with TikTok food reviewer Keith Lee to promote the best Black-owned restaurants with a focus on Gen Z.