There will be more blood

MediaTel Group’s ‘First party data – the publisher’s black gold?’ event – held at the Haymarket Hotel on Wednesday – produced many views and exposed a number of market tensions. Potentially a clearer view of the future emerged from the discussions.

One of the main emerging themes and general consensus was that the market is very disruptive at the moment. Panellists and attendees are expecting a lot of change as the market for first party data develops.

What they could not agree on was exactly what was going to happen and who would be the so-called winners and losers. Everybody could see disintermediation as an issue as efficiencies could take out certain players in the supply chain. Depending on which side of the industry fence you sat, who was to be cut out of the supply chain was open to debate.

The first target was advertising networks, that aggregate inventory across many sites. Ben Wood, managing director at iProspect UK, said: “There are some 85 ad networks in the UK, expect consolidation in this market.”

Kat Kashefi, head of agency sales at Adjug interjected from the floor to suggest disintermediation may hit agencies too if they are not transparent with clients. “Clients may start to get savvy and handle the digital and data operation in-house”.

Ben Wood, saying he could only give an Aegis view, not speak for the whole agency side of the industry, felt that his clients were never kept in the dark. Wood had earned a lot of equity by being honest and frank in earlier statements and exchanges, but was also clear throughout that different agencies took very different positions in this market.

Kashefi may be right for a few clients that find this an ideal solution for their business, and some agencies may be excluded. Equally client companies could find that some parts of their marketing departments are disconnected as lines of demarcation between brand and direct response become wider.

There is also the possibility that there could be the emergence of publisher trading desks – those with highly valuable and engaged audiences who have a wealth of first party data. This is a threat to agencies.

There will certainly be consolidation. Agencies will consolidate, the advertising networks will consolidate and system suppliers and data providers will consolidate.

Will any of them as a group be cut out of the eco-system? Maybe not, but there will be blood!