The recent emergence of new technology and measurement partners has caused a significant shift in how brands are marketing themselves. Not only are they relying more heavily on these partners, but they’re also getting met with higher costs as they activate multiple platforms and providers.
Still, a measurement provider is essential in revealing opportunities to boost effectiveness in campaigns. But is enlisting a high volume of partners necessary?
When connectivity gets costly
Brands weighing the costs and benefits of multiple marketing tools is nothing new. After all, external support can be crucial to achieving business goals. The difference now is that there’s an abundance of platforms and providers to choose from. And enlisting more doesn’t always equate to improved performance.
Indeed, it seems that the costs of full connectivity are outweighing the benefits–it’s well-beyond past peak efficacy levels. Consider this, each vendor has a distinct share of wallet and workflows, and since there are so many solutions, you might find overlap across their capabilities.
The way I see it, the problem has evolved into a growing “Ad Tech Tax.” By that, I mean there are extraneous costs tied to each campaign as the number of partners involved increases over time.
How might multi-partnering play out?
Beyond standard ad serving, creative services such as high-impact unit creation and DCO typically require a separate vendor, which also means disjointed fee structures, workflows, and timelines. These types of activations are the norm across display, and video activations are increasing year over year. Per Innovid’s recent global benchmark report, in 2021, there was a 32% increase in the number of advertisers running dynamic video campaigns over 2020.
Looking at video, it’s already a costly channel. With the increasing popularity of the format, and the rapid rise of converged TV fueling it, both the cost and complexity of activating multiple partners could easily skyrocket.
The same can be said for measurement, which is also seeing a speedy evolution. More and more brands are recognizing that it’s the best way to connect performance to business outcomes. Likewise, previously impenetrable spaces like converged TV have become more measurable–further spurring growth.
Converged TV measurement certainly comes at a cost. If you’re seeking metrics like reach, frequency, scale, incrementality, and cost-effectiveness across channels like display, social, audio, and converged TV (and we really hope you are), unifying those metrics to derive insights can be a nearly impossible task. That is, unless you 1. Spend a fortune towards a dedicated army of ad ops specialists, or 2. Enlist an all-encompassing measurement solution.
To help alleviate, when evaluating an activation strategy, I urge you to consider the true value add of each partner. Ask questions like, are there any ways to consolidate tools and services? What are the specific performance or measurement requirements?
The Google situation
One legacy answer to the multiple partner dilemma has been to turn to Google. Sure, Google has long been considered the incumbent when considering the “all inclusive” tech stack. However, they pose several concerns. For one, marketers are increasingly uneasy about onboarding all of their data on a platform that’s owned by a potential competitor.
Additionally, there’s the possibility that Google could become less open and more complicated for the user end in the future. Or, they could pull support from the measurement tools that so many marketers rely on, as they did when they restricted DCM ID use, and then required users to utilize their ADH product exclusively when utilizing their proprietary IDs.
The final issue comes from regulation. It’s looking increasingly likely that eventually Google’s platform will be compelled to disband due to regulation. So, in other words–what once made Google an appealing and efficient partner for measurement appears to be in flux.
Consolidation = achieve more with less
Having one platform to accomplish all of your measurement needs has a nice ring to it–doesn’t it? Fortunately, that’s precisely what Innovid offers brands. Innovid provides a unified platform to address these pain points head on.
By giving brands and their agencies one platform for creation, trafficking, delivery, and analysis of ads across all channels and devices, we provide the consolidated benefits of critical services and insights without the complexity of managing separate vendors. There are genuine cost savings to be had in consolidating to one platform, and in our experience, it’s much more than the sum of its parts.
The needs of the modern marketer will always be evolving. However, the core goal should remain constant: achieving more with less. In time, even small agencies and marketing teams will recognize the true limitations of a multi-partner approach. That’s why now is an ideal time for all brands and agencies to consider a single provider like Innovid.
After all, savvy marketers know that true savings come from strategic consolidation and mitigating the growing “Ad Tech Tax” problem. So, the next time you’re debating whether to activate multiple providers or centralize onto one platform–don’t hesitate, consolidate. It’s the smart thing to do.
Learn more about Innovid’s CTV capabilities here.