Founded in 2006 by CEO Andy Monfried, Lotame is a privately-owned data solutions company that helps customers maximize the value of their data at each touchpoint. Its tech empowers publishers, marketers and agencies globally to collect, manage and activate audience data across channels and devices in real time. Based in New York with offices across the U.S., Europe, and Asia Pacific, WNIP caught up with Chris Hogg, Lotame’s Managing Director EMEA to find out more.
What business problem is your company addressing?
Digital publishers are under threat. From the duopoly to media fragmentation, retaining an audience and driving revenue is harder than ever.
For many publishers today, data is the key to survival. It has the potential to unlock new revenue streams and monetization opportunities, helping them to compete and thrive. Still, even for the largest and savviest publishers, there’s a reservoir of untapped data opportunity.
According to eMarketer, despite the revenue crunch most face, few publishers are solving it by creating new data-driven revenue lines. So, how can publishers maximize the value of their data for advertising? Additionally, how can they activate it to improve the end-user experience? That’s where Lotame can help. We help publishers collect, organize, analyze, and activate audience data from any source to increase revenue and increase the stickiness of their properties.
What is your core product addressing this problem?
Lotame offers publishers two key solutions: the Lotame Data Management Platform (DMP) and the Lotame Data Exchange (LDX). Here’s how they work together to support your business.
- Deliver Personalized Content — Integrating first-party audience data from the Lotame platform within your content management system will enable you to deliver more customized editorial experiences. This custom content will increase the time consumers spend on your sites and apps, drive more repeat visits and create more advertising opportunities. Our cross-device technology also establishes links between different digital devices. By bridging the gap between cookies and mobile device IDs, you will be able to monetize more of your inventory and execute highly valuable and effective cross-device campaigns. Reach the right audience at the right time on the right device.
- Glean Actionable Insights to Boost CPMs — Lotame enables publishers to capture first-party audience data from any source and enrich it with insights from our global third-party data exchange, which is the world’s largest and most high-quality exchange of its kind. By harnessing these audience insights, you will be able to increase CPMs for both direct sold and programmatic inventory.
- Win More RFPs and Sell More Ads — Include a targeted audience component with your proposals to win more RFPs. Give the marketer the ability to reach exactly who they want to reach, with no ad waste. Sell smarter to your advertisers using audience insights on your first-party data, by understanding the interests, actions, demographics, and locations of your consumers to be able to find more of the same.
- Increase Subscribers — Using the audience insights from the DMP gives publishers a chance to connect with more potential subscribers, send them relevant and interesting content, and use these connections to upsell subscriptions.
Can you give some examples of publishers successfully using your solution?
We have worked with publishers around the world to help them increase revenue. Here are a few examples:
- Verticalscope, a publisher in Canada, uses Lotame’s DMP to collect insights from their network of web forums and feed this data into their advertising campaigns. Using this User-Generated Content (UGC) data helps drive performance for auto campaigns, leading to a 67% increase in CTR, and
24% decrease in CPA.
- Viacom18 is a publisher in India that uses our platform to offer custom advertising solutions to advertisers, increasing CTR and accuracy with audience targeting. They saw a 2.3x increase in
CTR,and a 1.2x increase in accuracy for their targeted ads.
- Mediacorp used Lotame’s DMP to increase
CTRsfor the top management university in Singapore with cross-device targeting, to drive more ticket sales for management events. They saw a 300% increased conversion rate, and a 570% increase in CTR.
- DotDash (formerly About.com) uses Lotame to increase campaign performance, leading to a 50% decrease in CPU and a 94% increase in CTR.
Pricing varies according to the circumstances of each client.
What are other people doing in the space and why?
We understand that every marketer and publisher has a different tech stack and a different set of places they want to collect data from and send data to. Lotame is different than the bigger marketing clouds because we focus on flexibility, and we believe in an open data ecosystem. We have integrations and APIs that allow our publishers to pull in data from anywhere, and take it everywhere their business needs it to go – even to other DMPs. That is a huge differentiator when compared to the walled gardens of the clouds.
Lotame is bringing a people-first model to delivering on your business objectives for data. For example, we recently launched Lotame Strategic Services, which is a new way for publishers to work with Lotame. With Strategic Services, Lotame can now support you with the development and execution of your data strategy as part of a hands-on managed service. The new model enables you to benefit from all that Lotame has to offer — from its resources to its experience to its technology, ensuring data success. By offering data planning and strategy, technology, analytics and overall execution as a one-stop managed service, Lotame is empowering publishers to maximize the value of their data, regardless of in-house resources.
How you do view the future?
There are two key changes occurring in the industry that we are adapting to. In 2019, I anticipate data needs to begin migrating entirely to third-party providers. Every publisher will want data planning and strategy, technology, analytics and overall execution as a one-stop managed service.
Vendors need to roll with that shift. In this era, it’s not enough to be a platform anymore. Successful vendors will understand that. Many will try to stay the course and continue to push technology only and first to publishers. But those who do that will fail. You need to sell your team and your technology to win in this business. That’s what Lotame is doing.
The other shift is revenue diversification. From the duopoly to media fragmentation, driving revenue is harder than ever. And, unfortunately, advertising isn’t as reliable a source of revenue as it used to be.
As a result of that, we’re seeing a number of publishers get creative and launch physical products or brick-and-mortar presences to support their business. Take, for example, Hearst’s high-end yoga mat. Or Time Out New York’s global chain of restaurants, where all of the food is curated by Time Out editors. These types of activations can require significant investments, but can also deliver huge rewards. As advertising becomes more and more competitive, with narrower margins, larger publishers are increasingly likely to embrace similarly unique strategies in the next year.
In effect, publishers are becoming brands, and brands are becoming publishers. These two very distinct sides of the market are colliding!
Thank you for your time.