Overcoming Data Challenges: The State of Data Collaboration Chapter 1

There’s no denying that digital marketers everywhere are facing data challenges. In Chapter One of Lotame’s “The State of Data Collaboration: A Global Perspective,” fielded by Cint, we highlight how data obstacles are pervasive, with 98% of marketers and agencies citing some form of barrier in their data orchestration and utilization efforts.

The Ubiquity of Data Challenges

The digital marketing landscape has grown in complexity, with data being both a valuable asset and a significant hurdle. The report identifies several key challenges that marketers and agencies face:

1. Quality of Data Sources: Over half of the respondents (54%) struggle to find high-quality data sources, partners, or reliable data for enrichment and modeling. This challenge is particularly acute as organizations increasingly rely on data to drive decision-making and personalized customer experiences.
2. Limitations of First-Party Data: Nearly half of the respondents (46%) find their first-party data offers a limited perspective, failing to provide the comprehensive insights needed for effective marketing strategies. This issue is exacerbated by the unreliability of common identifiers like email addresses and mobile IDs, which are often tied to unstable data points.
3. Internal Data Silos: A significant proportion of agencies report struggling with internal data silos, which prevent them from accessing a comprehensive customer view. The fragmented nature of data within organizations leads to inefficiencies and missed opportunities for deeper customer understanding and engagement.
4. Cookieless Targeting: With the ongoing phase-out of third-party cookies, many marketers (37%) and agencies (43%) are grappling with audience targeting in a cookieless world. The transition to alternative identity solutions has been slower than anticipated, leaving organizations in a precarious position as they adapt to new standards.

Data Challenges by Region

The report also uncovers regional differences in how these data challenges manifest. For example, marketers in North America and the UK face significant hurdles in finding quality data sources, while those in LATAM and APAC regions report greater difficulties with the limitations of first-party data. Understanding these regional nuances is critical for global organizations looking to tailor their strategies to different markets. Download the full report for more regional differences. 

The Urgency of First-Party Data Utilization

Despite the widespread challenges, the importance of first-party data remains paramount. The report reveals that 70% of marketers and agencies view first-party data collection and activation as an urgent priority. However, the effectiveness of first-party data is often compromised by its limited scope, which underscores the need for innovative solutions to enrich and expand these datasets.

How to Overcome Data Challenges

To address these challenges, many organizations are turning to data collaboration platforms. These platforms offer a versatile solution for combining and analyzing data sets within an organization or with external partners. By enabling new use cases such as uncovering consumer insights, enhancing personalization, and improving audience targeting, data collaboration platforms help marketers and agencies overcome the barriers that have traditionally impeded their data-driven efforts.

Data Enrichment and AI: The Leading Methods

The report highlights data enrichment and artificial intelligence as the top methods marketers and agencies plan to use to enhance their first-party data. By partnering with high-quality data sources and leveraging AI-driven insights, organizations can overcome the limitations of their current data and gain a more holistic view of their customers.

Embracing Data Collaboration

While the challenges surrounding data are significant, they are not insurmountable. As Chapter One of the report makes clear, the key to overcoming these obstacles lies in embracing data collaboration and investing in technologies that enable a more comprehensive and connected approach to data utilization.

If you’re a marketer or agency looking to stay ahead of the rapidly changing industry trends, you’ll want to download “The State of Data Collaboration: A Global Perspective”. The full report offers deeper insights into the data challenges facing the industry and the strategies that can help organizations turn these challenges into opportunities.

Inside the report you’ll find: 

• Programmatic Ad Spend Shift: 55% of marketers predict a reduction in programmatic spend, learn what it means for the future of the open web and walled gardens.
• Technology Adoption Trends: Explore what’s on the tech stack shopping list.
• The Rise of Data Collaboration Platforms: Why they’re becoming the Swiss Army Knife of marketing. 

Click here to download now.