In this third section, I have one more analogy for you. This one is in regard to “best-of-breed” integration of several small vendors to solve one big problem. Let’s look at it in terms of a car. If you are a typical car owner or mechanic, taking a “best-of-breed” approach to a car would mean buying an engine from BMW, a transmission from Mercedes, a body from Audi and so on. Even if all of these individual parts are well made, you need to be extremely adept at custom car making to assemble the parts, let alone for the car to run well. Not only that, but where do you go when the car needs service? And if there is an upgrade to one part, how does that affect its ability to function with the other parts?
In our space, there is no incentive for these smaller vendors to work together. In fact, each of them charges you for a wider set of features than you actually use because each wants more of your business. Their goal is to get more of your money and to push out the other vendors.
As a result, unless you have a well-staffed, incredibly powerful marketing technology department, “best-of-breed” solutions tend to increase rather than resolve inefficiencies. The problems are manifested across both technological and operational lines.
Technology problems include:
- Data loss — Complex synchronization of audience data between different platforms results in substantial loss of valuable audience data.
- Data on-ramping costs — The continuous expense from migrating data from one system into another adds up quickly.
- Incomplete optimization — Independent systems struggle to holistically optimize audience profiles and media.
Operational problems are just as common, such as:
- Siloed customer views — Multiple tools for data management mean that the customer view stays stuck in tech silos. Customer data can’t be relevant at every touchpoint.
- Inefficient media execution — Multiple media execution tools make true frequency capping impossible, meaning 20-80% of impressions go to waste.
- Lack of agency flexibility — Agency-owned tools mean that data stays with the agency over the long-term, not with the advertiser. This is especially problematic if you change agencies.
Control spend with your own platform
The best way to reduce waste is to consolidate. One platform that combines data management and media buying can reduce waste by 80% almost immediately. More important, marketers must control the technology to ensure that they have complete authority and transparency from segment creation to frequency capping to campaign delivery. Finally, avoid partners who charge on a percentage-of-media basis; they have an incentive to keep volume high, even when the advertiser isn’t happy.
