I recently sat in on Denver Startup Week’s panel on “The Future of Ad-Tech & Digital Marketing.” Although this seminar was extremely startup-centric there were many interesting nuggets pertaining to digital marketing and ad-tech in general. The most interesting takeaways:

Threats to Digital Advertising:

Of the major threats to the future of digital advertising, the three most crucial according to this panel were Ad Blocker downloads, identity theft, and the concentration of power and assets by major companies.

1) Ad blocking software is becoming increasingly prevalent for online media users and these apps are not limited to desktops or laptops, but extend to mobile devices also. Ad blockers function in a way that keeps individuals from seeing ads therefore eliminating crucial calculable data for ad agencies like ours. However, as we move forward and even in pop culture we see that brands are starting to rely more and more upon social influencers as ambassadors or walking billboards for brands. Influencers can act as a way around ad blockers. It was noted that “nearly 86% of our decisions are made based off one’s peer group.” This may lead to social influencers, CEOs, owners, and other “spokesmen” appearing more frequently in branding campaigns, as body language is noted as one of the strongest reinforcements advertising can offer.

2) Identity theft and cyber security has long been an issue, but has become more prevalent as more personal information is stored and shared online and between third party entities. Living in a time of technology that allows one to check their bank statements and then go right to Facebooking or internet shopping on a connection that is most likely open and accessible to any computer savvy individuals puts all sorts of personal information at risk. This simultaneously creates the need for protection of personal information through encryption and other means not often understood by typical Internet users, but these sorts of measures are sure to become more normal to the average Internet surfer. This also creates an issue for advertisers, and their partners, who often rely on third party affiliates to purchase client targeting information. A cease or major reduction of the almost free flowing information gathered by third parties would create an interesting situation for advertisers, who may see this sort of crucial information experience high rates of inflation and an overall decreased quantity of this type of information in general.

3) We are seeing huge concentrations of power and assets in companies like Facebook and Google – which can end up being incredibly problematic. These companies already have so much client information and power that they nearly eliminate true competitiveness in the market place through the shear amount of customer monetizing information they have.

First Party vs. Third Party Data:

The speakers on the panel also relayed an interesting viewpoint on the relationship between first and third party data. They suggested that first parties should try to import or purchase third party data and augment it with their own rather than push their data to third party companies. Sometimes when giant third parties have customer data the risk of this information being shared grows exponentially, and this is where data leakage may occur to where competitors can see and use this data to their own benefit.

Quantitative vs. Qualitative Data:

The final discussion of the panel was the strategy of shifting from quantitative data to qualitative data. This seems counter-intuitive for buyers and sellers of media who simply want to reach the largest amount of viewers possible. However, it makes sense when considering the role of qualitative data as part of developing a real relationships with viewers and customers. It will become increasingly more important for companies to create campaigns that collect more data about the users while simultaneously becoming more engaging therefore helping to curve the perceived intrusive/invasive nature of ads.