The

accelerating
state of
digital
marketing:
Marketers and advertisers are racing to
master the post-analog world
Cross
Platform
ID

OMNI- REAL
TIME
CHANNEL
DATA

Personal-
ization
The accelerating state of
digital marketing: Marketers
and advertisers are racing to
master the post-analog world

The eclipse of analog marketing Now more than ever, people are What’s in this report?
has been thought inevitable for shopping — and being influenced —
years. As new digital platforms and in the digital space. New research
This report will surface
tactics have proliferated across confirms that marketers have been
the marketing ecosystem, digital experiencing a massive spike in comprehensive insights
channels seemed destined to sweep digital spending, coupled with a into the following topics
billboards, direct mail and even steep decline in analog spending.
linear TV out of the picture — or at In many cases, these shifts reflect a
least into very different quadrants one-to-one-transition: As linear TV
of the landscape for marketers and budgets decrease, connected TV is An analog spending collapse is
advertisers. rising. As individual analog marketing already underway — as is a digital
channels fall, omnichannel digital surge
In some ways, however, this sea media is picking up steam.
change has been slow to arrive. Even
as digital platforms and channels And now a crucial question arises: As Cookie restrictions and
became ascendant across some digital takes the reins from analog, regulations create obstacles to
parts of the marketing ecosystem, how can marketers adopt long-term digital expansion
analog platforms more than kept strategies that enable them to target
pace in long-established sectors. — and retain — the massive influx
But now, in the wake of a pandemic of digital customers they’re seeing?
The failure to reach unique user
that’s hindered and often shuttered And how can they reach unique
identities impacts personalization
physical commerce across the globe, individuals in a way that allows them
the long foretold shift to digital has to personalize everything from ad
accelerated the process. targeting to recommendations? Measurement and attribution
aren’t keeping pace
Shelter-in-place orders, store closings In August and September 2020,
and workplace shutdowns have Digiday surveyed 186 brand and
forced consumers to remain indoors agency decision-makers — 108 To solve personalization and
— where they’re often now glued to C-suite executives and 78 vice attribution, executives want to get
their screens. These changes have presidents. The survey gauged their better at collecting real-time data
had profound effects on e-commerce plans for digital investment in the
buying, which grew by 30 percent pandemic era — and the outcomes
Cross-publisher IDs will play
between Q1 and Q2. highlighted the most significant
a critical role in solving these
challenges they’re facing as they
challenges — and preserving a fair
Just as significantly, this shift has increase their digital footprints.
and open web
dramatically affected the platforms
and channels on which individuals
consume content and marketing.

01
An analog spending collapse Our new data supports
the conclusion that analog

is already underway — as is investment is ultimately giving

way — marketers have begun

a digital surge
shifting their budgets away from
analog channels and toward
digital platforms.

Budgets are shifting from analog

77%
Linear TV: Print:
66%

58% 62%
62%
58%

Traditional Terrestrial
Linear Print Traditional Terrestrial
OOH: radio: TV OOH radio:

77% 66%
Q. Since the beginning of the pandemic, how much of your organization’s
budget has shifted away from the following analog channels? (Percentages
show respondents that selected either a moderate or large amount.)

Just as the cornerstones of analog For most marketers, the trend since playing a major role in this shift
investment are diminishing, their March has been clear. According to from an ad-buyers’ perspective:
digital counterparts are taking Beth Weeks, vp and director, media, “Programmatic buying enables
flight. This trend isn’t complicated: at Digitas, since the pandemic, advertisers to utilize advanced
Executives recognize that media “there has been a steady shift targeting data — and enables for
trends are shifting rapidly, and are from analog, or more traditional a more nimble approach, which
racing to reach consumers where channels, to digital media. With is a major advantage in the 2020
they’re active. the insurgence of the pandemic, landscape.”
media consumption patterns have
“We are continuing to assess where changed as our society navigates Still, for the executives and
and how we are spending for both mass quarantines, the cancellation managers making investment
analog and digital channels on of major live events and travel decisions, the unprecedented rush
a daily basis,” said Kevin Keith, restrictions. We’re seeing shifts to digital has created challenges.
Chief Brand Officer at the fitness across major mediums, especially In many cases, company leaders
franchise Orangetheory Fitness. with respect to linear TV, OOH, are guiding their companies toward
“Above all, we want to ensure that radio etc.” new forms of omnichannel digital
we are meeting our members where engagement without the tools,
they are and adjusting our plans And, said Weeks, the relative ease technologies or roadmaps to reach
accordingly.” of programmatic investing is also consumers effectively.

Budgets are shifting toward digital 85%

83%
77%
68%
CTV/OTT: Digital display: Digital video: 66%

68% 85% 66% CTV/OTT Digital Digital Digital Digital audio

display video OOH

Digital OOH: Digital audio: Q. Since the beginning of the pandemic, how much of your organization’s

83%
budget has shifted toward the following channels? (Percentages show

77% respondents that selected either a moderate or large amount.)

02
Cookie restrictions
and regulations create
obstacles to digital
expansion

In crucial ways, the present rush to digital has

come at the worst possible moment.

Brands and agencies are living restrictions and regulations will be predict what comes next, we work
through an era of cookie deprecation technological in nature. diligently to ensure our marketing
and tightening privacy regulations, initiatives are as future-proof as
making it vastly more difficult to “While the thought of a cookie- possible. The brand works hand-in-
target users, measure behavior and less world makes precise audience hand with trusted partners that are
personalize content — right at the targeting seem like a daunting on the forefront of advancements in
moment when these abilities are most task for brands and marketers martech to proactively form solutions
crucial. alike, Orangetheory Fitness has to disruptions in the industry such as
tactically built creative solutions this. Data-backed and technology-
In spite of these challenges, that activate advancements in tracked is the backbone of our brand.”
executives and managers are alternative data collection and
pushing their companies to expand a refined strategic approach in Which begs the question: What
their digital footprints. And for the targeting methods to continue specific technology challenges are
most part, they appear to recognize driving brand success and growth,” executives trying to solve — and what
that the only realistic solutions to said Kevin Keith, at Orangetheory solutions do they think might work?
the challenges posed by cookie Fitness. “While we certainly can’t

03
 On the path to digital
expansion, the failure
to reach unique IDs
looms large

Critical roles for user IDs

In the effort to shift their companies platforms they’ve rapidly begun to Personalized ad
toward digital omnichannel media embrace, especially in their efforts
targeting:
environments, no technological around targeting, measurement

44%
roadblock is more challenging than and scale. In our survey, brands
identifying unique user IDs in the and agencies were clear about the
post-cookies era. importance of establishing unique
user identities — mainly when it came
Survey respondents clearly indicated to ad targeting and direct customer
Day-to-day engagement
that they’ve had trouble reaching engagement.
unique users through the digital with customers:

25%
44%
Overall customer retention:

25%
11%
Driving repeat/returning
11%
10% 10% purchases:

10%
Personalized Day-to-day Overall Driving repeat/ Overall
ad targeting engagement customer returning customer
Overall customer
with customers retention purchases acquisition
acquisition:

10%
Q. For which of the following purposes is it most important to
establish unique user identities?

04
Also evident in the survey, brands
and agencies struggle to identify How well do marketers
and engage with unique user IDs, work with user IDs?
making their personalized targeting
and engagement particularly
difficult. Only 22 percent of To a large extent:
respondents said their company

22%
was capable of identifying
and engaging with unique user
identities on digital platforms “to a
large extent.”

To some extent:

38%
38%

34%

To a small extent:

22%
34%
6%

To a large To some To a small To no

To no extent:
extent extent extent extent

Q. To what extent is your organization

capable of identifying and engaging with
6%
unique user identities on digital platforms?

Ultimately, executives by major tech platforms regulation — make it should be interesting to

express only moderate and evolving privacy more difficult to stitch see how this all plays out
confidence in their ability regulations and consumer information in the coming months as
to engage and target consequences are playing together,” said Mike Hill, cookies continue to erode
customers based on their a significant role in these vp and group director at before being eliminated,
unique identities, with 40 difficulties. MediaHub Global. “That privacy regulations are
percent expressing little to the biggest players in the instituted and platforms
no confidence. “Personalizing content space fiercely protect and partners identify new
has become harder, as their data is another solutions for targeting
Experts agree that cookie customer privacy — and barrier to unified targeting audience cohorts.”
restrictions implemented potentially big tech and measurement. It

05
User ID
struggles impact
personalization,
attribution and
customer experience

Across the board, investments have become

executives express lesser more critical than ever.
confidence in their ability
to master attribution, When we asked brand
personalize content and agency executives
and create a positive to rank their ability to
customer experience on personalize content —
digital platforms. And including advertising — on
this inability is hitting digital channels, only 30
companies particularly percent said they had a
hard right when digital “high ability.”

Marketers on personalization

High ability: Moderate ability:

30% 49%
Low ability: No ability:

20% 1%
Q. Overall, how highly would you rank your organization’s
ability to personalize content (including advertising) on
digital channels?

06
Executives are struggling personalized content and customer experience. ability highly. Across the
with personalization and product recommendations, In any given area of board, they suggested
targeting. From email our respondents rarely personalized customer they have significant room
targeting to targeted gave themselves top experience, fewer than for improvement when it
promotions, from setting marks when it comes one-third of respondents comes to personalization
optimal pricing to to creating a positive in our survey rated their and targeting.

Rating personalized customer experiences

Setting personalized
Email Targeted promotions/ Setting optimal recommendations based
targeting discounts pricing on past interactions

High ability: 23% High ability: 30% High ability: 23% High ability: 29%

Moderate ability: 35% Moderate ability: 38% Moderate ability: 51% Moderate ability: 33%

Low ability: 37% Low ability: 21% Low ability: 18% Low ability: 34%

No ability: 5% No ability: 11% No ability: 8% No ability: 4%

Q. Overall, how highly would you rank your organization’s ability to create
a positive customer experience when it comes to the following elements
of personalization and targeting?

Experts point out that identification can also identities. Without the to the path to purchase
the proliferation of result in a significant ability to reach individuals in itself is valuable. When
new technologies and amount of waste as at that level — a capability it’s aggregated with the
targeting capabilities marketers target the wrong that executives say they’re full data set it can be a
— in conjunction with users. still struggling to master — powerful planning and
rapid expansion across developing personalized measurement tool to
digital channels — has “The people who brands messaging and directing it deliver the right message to
seemingly created are going after are getting toward receptive individuals the right person at the right
new personalization a lot more specific,” said across the omnichannel time at scale.”
opportunities. But in Katie Anderson, senior landscape becomes more
practice, things have also programmatic media challenging. These sentiments point to
gotten far more complex. manager at the agency the fact that the click-
PMG. “That’s a function of Experts point out that based measurement
“So it’s important to who they know is going arriving at a clear techniques so commonly
develop a sophisticated to spend money on their user ID is crucial not employed by marketers,
foundational strategy of product. But there is waste only for targeting, but while convenient, fail to tell
targeting distinct audience out there now, in terms measurement. the whole story in today’s
segments with specific of people who they’re omnichannel landscape.
messaging most relevant reaching who will not be “It provides more “Marketing budgets have
to them,” said Hill at interested or receptive to visibility throughout the never been under the
MediaHub. that message.” path to purchase and microscope more,” said
measurement in general, Hill. “So it’s important to be
Experts point out Once again, these which can then be infused able to attribute the media
that targeting and concerns raise questions into planning,” said Hill, at campaign to business
measurement challenges about targeting and MediaHub. “Being able to results.”
stemming from poor user measuring based on unique connect a singular user

07
Measurement
and attribution
aren’t keeping
pace

Experts and survey attribution — and those

respondents alike made it challenges, in turn, are
clear that companies face playing a significant role
significant shortcomings in their personalization
when it comes to challenges.

Attribution score
Good:

42%
Fair:

29%
Excellent:

Q. Overall, how would you

rate your organization’s digital
27%
attribution/measurement?
Poor:

2%

Fewer than 30 percent applying those learnings

of respondents ranked to personalization and
their attribution and targeting.
measurement capabilities
as excellent — a sign that And, according to our
companies are doing a research, a wide variety
less-than-ideal job of of factors are impacting
understanding customer their capabilities.
behavior and then

08
Marketers’ biggest challenges

47%
Matching digital campaigns
to offline conversions:

Difficulty measuring cross-

device/cross-platform
advertising:
42%

Insufficient user data:

38%
Insufficient technology:
28%

28%
Matching digital campaigns
to online conversions:

28%
Insufficient budget dedicated
to measurement efforts:

Insufficient personnel
dedicated to measurement 16%
efforts:

Q. What are your biggest challenges when it comes to

attribution/measurement?

It’s safe to say that no single digital strategy at Horizon Next. visibility and reliable omnichannel
factor keeps digital measurement “Media mix modeling suggests our reporting models that incorporate
from reaching its full potential as last-click attribution is not showing custom attribution algorithms
companies shift their budgets the full picture, and that limits based on the business and outside
to digital platforms. But three digital spends and leads to less environmental factors. But that
challenges loom largest: Matching faith in digital.” has also introduced technological
digital campaigns to offline barriers as the landscape
conversions, difficulty measuring Cross-platform and cross-device becomes more fragmented, device
cross-device and cross-platform measurement have also become proliferation continues and cookies
and insufficient user data. more challenging as companies are crumbling. So while we’ve never
have placed a sudden and had the type of analytical solutions
Matching digital campaigns to unprecedented amount of content we do now, there is a lot of work
offline conversions is a very old on digital platforms. and logic that goes into developing
problem, no doubt exacerbated a sophisticated cross-channel
by an unprecedented rush to shift “Technology and a desire to better measurement model.”
analog dollars to digital platforms. attribute offline and online media
to business results have helped Meanwhile, the challenges related
“Offline data is still not easy to port merge macro and microanalytical to user data are worth diving into
back to online for true full-funnel streams,” said Hill, at MediaHub. further.
attribution,” said Keith Brewer, vp, “This has resulted in more full-funnel

09
Executives want to
get better at collecting
real-time data for
attribution
Brands and marketers say they’re
only moderately confident in
their ability to collect real-time
data from digital platforms — a
major problem at a moment when
digital platforms are taking on an
unprecedented importance. Only
31 percent of executives said they
have a high ability to collect real-
time data from digital channels.

Real-time data capabilities

High ability: Moderate ability:

31% 40%
Low ability: No ability:

26% 3% Q. Overall, how highly would you rank your

organization’s ability to collect real-time audience
data from digital channels?

So, as marketers and brands shift to “The advertisers who are winning … at reaching and measuring users
digital platforms, they’re not merely are those that are able to actually on an individual level, marketers
struggling to collect data — they’re understand what a user is looking and advertisers alike will need
struggling to collect it quickly. It’s at in real-time in order to react, and to examine the full range of
a sticking point that makes it more protect brands, and make sure they technological solutions available to
difficult for them to react, measure, are appearing where they want to,” them to help them identify unique
target and personalize swiftly and said Anderson, at PMG. users.
nimbly.
Examining real-time data is just Cross-publisher IDs are an
a start, of course. To get better important starting point.

10
Cross-publisher
user IDs are privacy
safe, crucial for
personalization — and
they’ll keep the digital
marketing ecosystem
wide open

Experts say that, in the post- and harness their own first-party
cookies, post-regulatory era, data in a platform like a CDP so
agency and brand execs will need that it can be joined with these
more technological sophistication ID-based solutions and activated
around targeting unique IDs — and across channels.”
that they’ll need to bring their first-
party data into play as well. As things stand, marketers are
measured about their abilities to
“Non cookie-based identity attribute, personalize and target
solutions currently exist,” said Rob across platforms. Becoming more
Auger, svp and head of media adept at targeting unique users will
technology at Digitas. “What will be change that opinion.
important is for brands to organize

11
A look forward:
Responsible cross-publisher
IDs will balance the walled
gardens’ advantage

What cross- Cross-publisher IDs will also

publisher IDs
be vital to keeping the mobile
web alive and ensuring
that it remains a powerful

mean for the

mechanism for personalization
and targeting. Responsible

future
addressable advertising — which
depends on cross-publisher
IDs — is what pays for the
open web. When deployed in
the right way, these IDs will
continue to enable marketers
to target and personalize — and
The post-cookies era is already a moment when executives are
to do so outside of the Googles
here, and a powerful user identity directing their companies to invest
and Facebooks of the world,
approach is crucial to helping in a vast array of digital platforms mitigating the prospect that
marketers persevere beyond it. — marketers need to ensure that major tech companies will take
The good news is, cross-publisher content and marketing are not only too much ownership of the very
ID solutions already exist — and privacy-compliant but flexible and idea of personalization.
they’re entirely at home in the post- individualized across all platforms.
cookies, GDPR present.
“Brands and marketers need to
Many misconceptions abound on look beyond antiquated notions of Decision-makers need to look
this point. Industry leaders often first- and third-party distinctions toward true user identification
labor under the idea that cross- to ensure all advertising is
publisher user IDs are a threat to responsible,” said Joshua Koran, As cookies vanish, and as
user privacy. But in truth, privacy head of innovation labs, Zeta the pandemic gives rise to
regulations like GDPR and CCPA Global. “Cross-publisher IDs, omnichannel digital dominance,
marketing and advertising
incentivize companies to rely on which enable marketers to reach
executives say they’re struggling
digital IDs — so long as they’re individual users without violating
with measurement, targeting and
pseudonymous. And since users their privacy, are a key part of this
personalization. As a result, their
can easily reset pseudonymous equation. With a targeted and organizations are experiencing
digital ideas, such identifiers offer individualized approach to user ID, waste and inefficiency,
reduced privacy risks compared to advertising can remain privacy- frequently serving the wrong
advertising tied directly to offline compliant, addressable and users with the wrong content.
user identity. individualized across all channels.” Moreover, these companies are
failing to surface data that can
To maintain personalization and actually tell them which efforts
individualized targeting across the drove which business results.
entire digital ecosystem — and at
Ultimately, all of these struggles
can be traced back to the
fierce challenge of identifying
and reaching unique users in
an increasingly omnichannel
landscape. Marketers already
recognize the need for cross-
channel ID solutions; now
executives need to seriously
consider adopting them.

12
About
Zeta
Zeta Global was founded in 2007 by David A. REAL
TIME
Steinberg and John Sculley with the vision that DATA

data was going to change the way marketers

engage with consumers to drive successful
business outcomes. Now, Zeta owns the industry’s
third largest proprietary data set and artificial
intelligence to make marketing more intelligent,
ensuring every business will never miss a growth
opportunity.

Zeta Global has continued to double down on

Cross
data, AI and omnichannel activation capabilities Platform
ID

by organically developing and strategically

acquiring cutting-edge marketing technology.
We are one of the first companies to successfully
implement industry-leading innovations in big
data and AI to be the recognized leader in
the convergence of marketing and advertising
technology.

Today, Zeta Global has offices on four

continents, serving over 1000-plus enterprise
clients such as: Samsung, Toyota and Sprint.
Our data-powered marketing technology
platform houses the third largest data set in
the marketplace (2.4 billion-plus identities) and
DIGITAL
combines with outcome-driven AI to predict
consumer intent, personalize experiences across
every channel and power business growth for
Fortune 1000 companies.

DIGITAL