Study: 100% of marketers face challenges with data orchestration and activation

Technology investment is set to surge in Singapore with 100% of marketers and agencies facing challenges with data orchestration and activation.

The primary struggles marketers and agencies face include using internal data for personalisation and dealing with limitations on its first-party data, which often fails to provide comprehensive insights.

That said, 78% of respondents recognise the urgency of leveraging first-party data, 8% higher than the global average. However, the nature of its first-party data - it being using primarily unstable identifiers such as email addresses and mobile IDs - exacerbates issues, leading many to consider data collaboration as a solution. 

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This is according to a report by global technology company Lotame titled "The state of data collaboration". The report found that there is an ongoing reliance on third-party cookies. More than half (53%) of marketers and a quarter of agencies are 100% reliant on third-party cookies. However, a portfolio approach to identity solutions has emerged, with an average of 3.1 options used in tandem to maximise reach with no clear frontrunner.

In addition, the report revealed that programmatic spending continues to decline with 34% of respondents anticipating a reduction in programmatic spend as compared to 28% expecting an increase, though agencies are twice as optimistic as marketers.

Surprisingly, spending forecasts are almost evenly split between walled gardens and the open web, despite the former being perceived as more attention-grabbing. 

Conversely, 99% of respondents plan to adopt new marketing technologies and data technologies. In fact, around a third of agencies and marketers are not planning on retiring any of their current technologies in the near future.

Interestingly, clean rooms are facing scrutiny. This is despite strong clean room adoption with three in five respondents currently using the technology. Respondents also, however, report a range of challenges, from lack of data overlap to ID scale and required expertise, with an average of 2.3 challenges reported.

Finally, despite being a relatively new technology, data collaboration platforms are gaining traction. This is especially since almost two-thirds (64%) of marketers and a third of agencies reported to have adopted data collaboration. The technology is also delivering tangible outcomes, such as improved audience targeting and enhanced personalisation — one of the primary data challenges noted by respondents — with an average of 2.3 positive changes to marketing operations.

“Orchestrating and activating data remains a major struggle for marketers and agencies, both inside and outside their organisations. However, they are finally overcoming this barrier through a combination of technology and shift in mindset. Rather than becoming mini walled gardens, marketers and agencies are realising that a rising tide lifts all boats and are embracing a collaborative approach to data — enabled by data collaboration platforms," said Andy Monfried, CEO, Lotame.

Similarly, a research study by Capegemini in July 2024 found that organisations are embracing Generative AI (Gen AI) with 80% of them increasing their investments from 2023. Meanwhile 20% of organisations are maintaining their investment level, and not one organisation has decreased their investment from last year.

In addition, nearly 24% of organisations have integrated Gen AI into some or most of their operations, an acceleration from 6% last year. This increase in Gen AI is witnessed across all sectors. For example, in retail, implementation increased to 40%, more than doubling from 17% in 2023.

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