Publicis has announced the aqusition of ad tech firm Lotame, marking a new agency era that combines data signals and AI, writes Rob Webster, Co-Founder of Tau Marketing Solutions – and publishers should be watching closely.
Founded in 2006 by Andy Monfried, Lotame began as a media data business with two divisions: an advertising network called Lotame Media Group, and a data management platform (DMP) named Crowd Control. In 2011, the company exited the advertising network business to focus on data management.
The advent of the programmatic revolution around 2010 marked Lotame’s first significant pivot, positioning itself as a leading global DMP and data marketplace. However, the introduction of the General Data Protection Regulation (GDPR) in 2018 posed substantial challenges, leading to the devaluation of DMPs and data marketplaces. Industry giants like Oracle and Salesforce shuttered their DMP offerings, while Nielsen withdrew from the global data marketplace, leaving only a few, including Lotame, to navigate the new landscape.
Demonstrating remarkable adaptability, Lotame doubled down on data partnerships, launched innovative solutions such as its data collaboration platform Spherical, and developed its own identity solution, Panorama ID. These strategic moves solidified Lotame’s position as a go-to resource on both the buy- and sell-sides of data.
Why Publicis acquired Lotame
Publicis’s acquisition of Lotame is a strategic move aimed at enhancing its global data capabilities:
- Global Data and Identity Graph: Lotame’s extensive identity solution, Panorama ID, is a privacy-first, person-based universal identification that can be used on the global open web for audience attribution and targeting. This ID provides a single view of known and anonymous users that links first, second, and third-party data (without relying on third-party cookies) into one interoperable ID for use across the programmatic ecosystem. This acquisition will expand Publicis’s individual consumer profiles from 2.3 billion to 4 billion, covering 91 percent of all internet-using adults. Publicis were already strong here in the US; now they are strong globally.
- Technology and Integration: Lotame’s platform seamlessly connects to major supply-side platforms (SSPs) and demand-side platforms (DSPs), offering Publicis the technology to manage multiple data partnerships across various clients globally.
- Publisher Relationships: While not the primary driver, Lotame’s strong relationships with publishers ensure data integrity and provide additional revenue streams to support technological advancements. It’s also a great way to ensure that they have valid and recent consent strings – something publishers should be aware of as they syndicate the data and IDs (part of many predbid setups).
CTV connectivity
Lotame are best known in the world of display, yet this data can be just as powerful in the world of video and CTV. This connectivity reach can help transform CTV’s targeting and measurement potential. Lotame connects to many programmatic CTV publishers and potentially allows that data to be leveraged. This could further skew the gap in data from the buy-side to the sell-side, and publishers would be well advised to double down on their data capabilities to redress the balance.
Implications in an AI-driven world
In the evolving landscape of AI, the synergy between data and AI is paramount. WPP has emphasised the growing importance of AI over traditional data strategies, highlighting a shift in industry focus. However, the integration of robust data sets with advanced AI capabilities is essential. Data serves as the foundational signal, while AI provides the intelligence and application.
Publicis’ acquisition of Lotame, coupled with its prior strategic moves, such as the purchase of retail media data firm Circana, positions it to leverage AI for enhanced media planning, optimisation and automation. CoreAI, the “intelligent system” from Publicis, can now operate from a base of data to rival the likes of Google, Amazon and Meta.
On speaking with Phil Raby, Chief Commercial Officer at mediarithmics, he noted: “This shows how connecting data with a regional specialism and access to real-time marketplaces may shift in fashion, but not in value.” This sentiment underscores the enduring significance of data collaboration and real-time access in the AI era.
In conclusion, Publicis’s acquisition of Lotame not only strengthens its data and technology infrastructure but also signifies a strategic alignment with the future of AI-driven marketing. Integrating and delivering on that will be a challenge in a fast-paced world, but seeing whether it can deliver on this potential will be fascinating to watch.
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