Picture: Holger Brandt, Managing Partner at The Reach Group
Cross-device tracking falls short of expectations
2015 holds a disappointment for the online marketing industry that should not be underestimated: cross-device tracking is not yet at the level that had been hoped for at the end of the year. Only Google and Facebook are really convincing at the moment. However, both providers have only just opened up their technologies to the masses and are also in direct competition with many online marketing and e-commerce companies. The industry is under pressure to act and must focus on solutions that can offer an alternative to Google and Facebook's offerings in the near future. One possible approach is the development of a common tracking standard. However, there is still a long way to go until then and its concrete form is difficult to imagine at the moment. However, as customers log into online stores on both mobile and stationary devices, tracking technologies that are implemented directly by advertisers offer the first concrete solutions.
Content marketing still leaves opportunities and budgets untapped
Although content marketing was justifiably one of the most important buzzwords in 2015, the discipline has not yet been able to assert itself operationally. The definition is still being fine-tuned, and in many discussions the distinction from inbound marketing was not as clear as it ideally should be. Agencies will now have to put this into practice in 2016. For many marketers, this means a paradigm shift in conception and implementation from purely promotional to more editorial approaches. On the other hand, clients need to be convinced of the added value: at present, the long-term nature of content marketing measures is often still offset by advertisers' short-term budget allocation.
E-commerce uses mobile traffic as a springboard
Mobile traffic has once again increased dramatically compared to stationary traffic in 2015. Some publishers are now even reporting a majority of mobile visitors. At the same time, conversion rates are increasing, as many online retailers have now also optimized their stores for mobile use. Accordingly, mobile-clicking customers in particular are likely to bring further sales growth to e-commerce in 2016.
New audience targeting will rapidly increase in quality
Retargeting received a technological upgrade in 2015 with the so-called "new audience targeting". The method of generating statistical twins from first-party data and scaling the target group with the help of third-party data will gain further momentum in 2016. There are only two obstacles that could currently slow down development: Firstly, advertisers must successfully master the challenge of collecting first-party data in a structured manner and making it available to service providers. Secondly, the quality of third-party data still has development potential.
Challenge 2016: data management
While the technology for data-driven campaigns on the agency side has developed rapidly over the past three years, many advertisers are still in the early stages of collecting first-party data. There are often unresolved technical and legal questions that still need to be answered depending on the industry. For example, online stores face different challenges to banks. Companies with lean, flexible structures have an advantage when it comes to establishing suitable data collection systems. Companies that do not have online marketing in their DNA often have to go to great lengths to develop the new approach.
Challenge on the horizon: training and retaining employees
In 2016, there is another area of development in addition to the topics on the sales side: digital marketing is undergoing such rapid change that it is almost impossible for many companies to assess the qualifications of potential new employees. It is now up to management to provide HR staff with suitable support - such as training courses, specialized headhunters or support from internal departments. Against this backdrop, building up expertise within the e-commerce company itself is also becoming increasingly important, as is employee retention.
About The Reach Group
The Reach Group offers cross-channel, user-centric performance marketing as well as intelligently utilized reach and balanced technology along the entire customer journey. Campaigns are optimized for advertisers from the e-commerce and media sectors as well as for agencies in all digital channels based on detailed user models. The product portfolio is made up of the core areas of performance marketing, relations, media and brand. The Reach Group is headquartered in Berlin. It also has offices in Düsseldorf, London, Zurich and Vienna. Its most prominent clients include Postbank, UnityMediaKabelBW, Butlers, Barmenia, ThyssenKrupp, DriveNow, Congstar and Deutsche Bahn. The specialist performance providers Ad-Cons, Netlead, PR - Popularity Reference and Redvertisment merged in 2015 to form The Reach Group. The founders have driven and developed each of the specialist areas from the ground up to the present day.