The speed of growth of the digital advertising industry has been staggering. In little over a decade it has become the single largest advertising category by dollars spent, and shows little sign of slowing down. Yet the path to digital has not always been a smooth one for advertisers, who have had to contend with complicated and conflicting advice on how to best build a campaign. Needless to say, the ratio of knowledge in the digital ad space has not always kept up with the dollars spent.
With such rapid growth, ad tech companies have also readily emerged to try and take on some of the heavy lifting for marketers and agencies, offering a slew of tools to help them better manage data regarding audiences and effectiveness. Front and centre amongst these are the Data Management Platforms (DMPs), which serve to hold the various forms of data used by advertisers to define their desire audience.
DMPs were the focus for my most recent feature for the CMO website, and you can read all about them here.
Startups scare the daylights out of many execs from traditional businesses. Its common to hear them speak of their fear of some business currently being incubated in its CEO’s mother’s garage that one day will emerge and steal a large or lucrative slice of their business.
Why? Because it happens – Uber and Airbnb are cited so often as proof of this that they have become a conference cliche. But they are not alone, and the low barriers to entry into numerous markets for startups means there will be many more to come. There is always a margin to be taken somewhere, and a market to be disrupted in doing so.
What a lot of execs in traditional businesses fail to realise however is that all of the tools and processes that startups wield with such effectiveness, such as lean and agile product development methodologies, are also available to them. All they need to do is master them.
Of course mastery takes time, and these tools can be harder to wield in an environment that already includes significant legacy tools and processes. But that shouldn’t stop them from trying. The transformation taking place within organisations such as Telstra and the Commonwealth Bank is proof of that, with their new systems and processes owing much to methods refined in the startup sector. And if it can work in those organisations, there is no reason that it can’t work in any other, given the right stimulous.
I’ve written a few articles on what existing businesses can learn from startups this year, but probably the most comprehensive is this one for SmartCompany.
I’ve been fascinated with startups for most of the 20 or so years that I’ve been writing. My first book, Innovation and Emerging Markets, published way back in 2004, was all about Australia’s indigenous startup talent and their path to death or glory (mostly death, unfortunately). What I know for certain is that we need both more startups, and startup-enabled traditional businesses, if this country is to maintain its economic status.