The Technology Layer Cake

spumoni-layer-cakeI saw a great presentation at this year’s Industry Preview where Brian Anderson of LUMA Partners presented on the future of marketing clouds. His unifying marketechture drawings looked like an amalgamation of various whiteboarding sessions I have had recently with big enterprise marketers, many of whom are building the components of their marketing “stacks.” Marketers are feverishly licensing offerings from all kinds of big software companies and smaller adtech and martech players to build a vision that can be summed up like this:

The Data Management Layer

Today’s “stack” really consists of three individual layers when you break it down. The first layer, Data Management (DM), contains all of the “pipes” used to connect people identity together. Every cloud needs to take data in from all kinds of sources, such as internet cookies, mobile IDs, hashed e-mail identity keys, purchase data, and the like. Every signal we can collect results in a richer understanding of the customer, and the DM layer needs access to rich sets of first, second, and third-party data to paint the clearest picture.

The DM layer also needs to tie every single ID and attribute collected to an individual, so all the signals collected can be leveraged to understand their wants and desires. This identity infrastructure is critical for the enterprise; knowing that you are the same guy who saw the display ad for the family minivan, and visited the “March Madness Deals” page on the mobile app goes a long way to attribution. But the DM layer cannot be constrained by anonymous data. Today’s marketing stacks must leverage DMPs to understand pseudonymous identity, but must find trusted ways to mix PII-based data from e-mail and CRM systems. This latter notion has created a new category—the “Customer Data Platform” (CDP), and also resulted in the rush to build data lakes as a method of collecting a variety of differentiated data for analytics purposes.

Finally, the DM layer must be able to seamlessly connect the data out to all kinds of activation channels, whether they are e-mail, programmatic, social, mobile, OTT, or IOT-based. Just as people have many different ID keys, people have different IDs inside of Google, Facebook, Pinterest, and the Wall Street Journal. Connecting those partner IDs to an enterprises’ universal ID solves problems with frequency management, attribution, and offers the ability to sequence messages across various addressable channels.

You can’t have a marketing cloud without data management. This layer is the “who” of the marketing cloud—who are these people and what are they like?

The Orchestration Layer

The next thing marketers need to have (and they often build it first, in pieces) is an orchestration layer. This is the “When, Where, and How” of the stack. E-mail systems can determine when to send that critical e-mail; marketing automation software can decide whether to put someone in a “nurture” campaign, or have a salesperson call them right away; DSPs decide when to bid on a likely internet surfer, and social management platforms can tell us when to Tweet or Snap. Content management systems and site-side personalization vendors orchestrate the perfect content experience on a web page, and dynamic creative optimization systems have gotten pretty good at guessing which ad will perform better for certain segments (show the women the high-heeled shoe ad, please).

The “when” layer is critical for building smart customer journeys. If you get enough systems connected, you start to realize the potential for executing on the “right person, right message, right time” dynamic that has been promised for many years, but never quite delivered at scale. Adtech has been busy nailing the orchestration of display and mobile messages, and the big social platforms have been leveraging their rich people data to deliver relevant messages. However, with lots of marketing money and attention still focused on e-mail and broadcast, there is plenty of work to be done before marketers can build journeys that feature every touchpoint their customers are exposed to.

Marketers today are busy building connectors to their various systems and getting them to talk to each other to figure out the “when, where, and how” of marketing.

The Artificial Intelligence Layer

When every single marketer and big media company owns a DMP,and has figured out how to string their various orchestration platforms together, it is clear that the key point of differentiation will reside in the AI layer. Artificial intelligence represents the “why” problem in marketing—why am I e-mailing this person instead of calling her? Should I be targeting this segment at all? Why does this guy score highly for a new car purchase, and this other guy who looks similar doesn’t? What is the lifetime value of this new business traveler I just acquired?

While the stacks have tons of identity data, advertising data, and sales data, they need a brain to analyze all of that data and decide how to use it most effectively. As marketing systems become more real-time and more connected to on-the-go customers than ever before, artificial intelligence must drive millions of decisions quickly, gleaned from billions of individual data points. How does the soda company know when to deliver an ad for water instead of diet soda? It requires understanding location, the weather, the person, and what they are doing in the moment. AI systems are rapidly building their machine learning capabilities and connecting into orchestration systems to help with decisioning.

All Together Now

The layer cake is a convenient way to look at what is happening today. The vision for tomorrow is to squish the layer cake together in such a way that enterprises get all of that functionality in a single cake. In four or five years, every marketing orchestration system will have some kind of built-in DMP—or seamless connections to any number of them. We see this today with large DSPs; they all need an internal data management system for segmentation. Tomorrow’s orchestration systems will all have built-in artificial intelligence as a means for differentiation. Look at e-mail orchestration today. It is not sold on its ability to deliver messages to inboxes, but rather on its ability to provide that service in a smarter package to increase open rates and provide richer analytics.

It will be fun to watch as these individual components come together to form the marketing clouds of the future. It’s a great time to be a data-driven marketer!

[This post was originally published April 4, 2017 on Econsultancy blog

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