DIGITAL MARKETING HUB v2.0 - AdExchanger

Digital Marketing Hub v2.0
BMO Capital Markets
Exhibit 38. Proving ROI and Lack of Budget Create a Cycle of
Barriers
"Please indicate the barriers, if any, that prevent your marketing organization from adopting new channels?"
Uncertain ROI
49%
No budget allocation
Company bureaucracy
31%
31%
Cost is too high
23%
Unfamiliararity with appropriate technologies and vendors
22%
Data security risks
21%
Lack of skills and resources
19%
Difficulty working with IT or external partners
13%
Legal issues
12%
Lack of executive support/sponsor
12%
concern about negative feedback from customers
11%
None. There are no barriers
4%
Negative feedback from within the company
3%
Other
1%
Source: Forrester Consulting on behalf of Webtrends
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Fragmentation and Lack of Standardization
The constant wave of IP marketing technology innovation has created an ever more
fragmented set of vendors and lack of standardization of tools, ad formats, and other
elements. This presents challenges both from technical integration standpoint, but also in
confusing and slowing decision-making of brands and marketers. Like any emerging technology,
the co-ordination of competing interests and creation of effective industry bodies takes
time to gel. In some cases, fragmentation is being solved through industry consolidation. For
example, Google’s acquisitions of DoubleClick, Invite Media, AdMeld, and Teracent (among
others) have helped create a unified technology platform for both the buy-side and sell-side of
display advertising.
Privacy Regulation Always Waiting in the Wings
Government plays an essential role in oversight of IP communications and advertising
and regulatory regimes are regularly chasing innovation. For the largest advertising and
marketing services companies, this also requires managing the shifting sands across multiple
jurisdictions/nations, each with their own legal framework and cultural norms. It can also involve
multiple bodies including various arms of federal, state/provincial and local governments
and consumer watch dog groups. As in other areas, like trade and foreign policy, we
would over time expect more and supra-national bodies and regulatory supervision (e.g., the
EU or NAFTA), and this could be very helpful to IP marketing companies as they seek to expand
more efficiently to new markets.
Regulation is driven by bad actors, consumer data breaches, and scams. Acting as a determinant
to bad actors is a cornerstone of good regulation. The IP marketing industry has often
executed effective and well coordinated self-regulatory models, but they tend to offer
more weight when helped, shaped, and implemented by government bodies.
A member of BMO
Financial Group
47
June 7, 2012