Monday, 30 June 2014 15:30

Major vendors ‘slow’ to embrace online advertising market says analyst Featured


Enterprise marketers have been advised to embrace online advertising, with global analysts suggesting that enterprises, advertising technology vendors and digital marketers need to urgently redefine their online advertising strategies.

In a global review of the online advertising industry, analyst firm Ovum says the online advertising industry is full of supply chain complexities, acronyms and buzzwords that have made it difficult for CMOs and marketing executives to fully comprehend.

According to Ovum Senior Analyst Customer Engagement Gerry Brown CMOs and Marketing Executives need to break down this “complex industry into easy-to-consume, bite-sized chunks in order to make informed, educated, and strategic decisions about online advertising technology investments and their choice of external services partners.”

The Ovum report reviewed the state of maturity of the online advertising industry, the early adopter industry sectors, the key vendors and service providers, and forecasts the future technology developments and enterprise adoption trends. In particular Ovum discusses how vendors should address the key enterprise concerns of ad viewability, ad performance measurement, and ad attribution within the context of a “hostile” regulatory environment and enterprise Big Data strategies.

And, Brown takes a swipe at leading enterprise marketing technology providers such as Oracle and IBM, saying they have been “slow to embrace the online advertising market.”

“As a result, specialist best-of-breed vendors such as Rocket Fuel, MediaMath, and OpenX have been able to grow extremely quickly from humble beginnings into powerful and influential online advertising technology vendors. Now these vendors are entering their next growth stage, transitioning from point solutions into enterprise advertising platforms.”

According to Brown, enterprise marketing vendors should respond to incursions into their enterprise customer base, and he says global management consultancies and systems integrators are looking to exploit the burgeoning services market that surrounds online advertising technologies, “in particular the creation and management of the Big Data that is integral to online advertising processes.”

“Enterprises need to embrace the online advertising market, which is becoming a key promotional channel to market for enterprise marketers. However, enterprises’ market participation needs to be managed with caution.

“Fraud and data security in particular are issues that plague the online advertising industry. IT departments should work alongside marketers to ensure that robust IT best practices are deployed.” Brown concludes.


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



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