SAP XM was part of this year’s dmexco in Cologne, Europe‘s largest marketing event and the sector‘s top event, combining the leading trade fair for digital marketing with an extraordinary conference. The interest in SAP XM was truly stunning and resulted in countless meetings with existing and potential customers. Overall, SAP XM has finally been recognized as a trusted player in transforming the digital advertising market with SAP customers.
During the keynote conference, SAP XM’s Head of Unit Dr. Wolfgang Faisst participated in a great panel discussion with Tina Beuchler (OVM), Matthias Bruell (GROUPM Germany), Bjoern Kaspring (AGOF) and Martin Luetgenau (BURDAFORWARD) with the topic: The tipping point of the ad ecosystem. The discussion covered three main questions:
And here are the answers!
According to Tina Beuchler, Agencies will suffer the most from SAP joining the adtechnology market, whereas Matthias completely disagreed, of course! Wolfgang Faisst mentioned that it was about the consolidation of a super fragmented landscape which resulted in adtech companies suffering the most from SAP’s step into the advertising market and Martin Luetgenau also agreed. Bjoern Kaspring furthermore added that the industry was in need of a clear and transparent landscape, which could be managed by SAP XM.
But: How is the ecosystem really changing and why?
Today’s ad ecosystem is very complex and it is huge. It has millions of players. For Tina Beuchler, who represented the role and opinion of advertisers in this round, the entering of SAP into the ad tech market is seen as a great advantage. Due to SAP XM, other competitors need to revise their models and standards which will hopefully lead to more transparency, safety for brands and more standards as the complexity of the market has been increasing over the past years. However, Tina questioned the success of SAP XM and asked for proof Wolfgang could give right away: “We have improved the efficiency of our own companies we run and reached 30% more conversion than with other systems”.
Some fear SAP XM as destroyer of the industry. However, as Wolfgang Faisst explained, it was not about destroying anything - it was about adding value where the industry suffered from fragmentation, fraud and complex processes. It was most of all about helping to clean up the mess together with agencies, advertisers and publishers to make their lives easier.
As the business model changed, associations need to create a new digital currency for publishers. There are still many things to do “in terms of data quality, credibility, comparability and transparency”, Bjoern explained. He added that AGOF needed to work on new market model to give clients more orientation and to build a new data currency.
Real, valuable customer data is key to success. It is no longer only about brands, it is about the audience, about customers, their wishes and expectations. Many customers do not want to share their data, especially in an unsecure environment; in consequence, the industry needs a neutral exchange platform where customers feel their data is save.
Other key factor for success are common standards and a common understanding of measurements. AGOF plans on creating a “Quality cockpit” in order to deliver these standards to the market.
Tina furthermore mentioned that brands want a view of their ad: No view à no ad seen à no value at all! According to her, we need less ad spaces of higher quality, if we want more efficiency. Companies need to think: user first! Offer less inventory of higher quality to receive more attention from users.
Finally, all market players need to collaborate. Programmatic advertising will develop as status quo. The market needs the development to go faster, so associations need to work closer with the market to better identify challenges and to drive transformation faster.
For more details and deeper insights watch the complete discussion on our YouTube channel or directly below:
What are your thoughts on these topics? Do you agree with all of the mentioned answers? Let us know and leave your comments below!