An interesting piece by Will Margiloff, CEO of IgnitionOne, who I know and respect.
Why Vcs Are Ignoring Brand Marketers’ Needs.
I think Will is speaking specifically about the vast number of re-targeting, DSP and ‘Audience’ buying technology that’s around right now. And there does seem to be a new one each week. He writes;
VCs haven’t been shy about funding a seemingly never-ending potpourri of point solutions, those “shiny new toys” in the marketer digital tool kit that can often do one thing really well with a low cost of market entry. Specialization is fine as a feature, but as a company it’s a roadmap to irrelevance in this highly fluid and evolving space.
As a provider of a ‘point’ solution I think there’s a couple of things worth mentioning. Firstly, point solutions generally do it very well whereas integrated platforms generally are seen as not being equally good at all things. Secondly, I guess, that most point providers, like me, start somewhere and have plans to expand into other areas, building on what they learn. But, maybe not. Will continues with;
Right now, for the most part, the marketplace is far from delivering what advertisers need: a value proposition that offers an integrated and simplified technology platform that allows for seamless, cross-channel digital media buying, optimization and management,
However, the biggest challenge for an integrated platform is both at agencies and within an advertisers marketing team, where integration across channels isn’t that integrated. Many agencies are structured around channels, with separate display, PPC, SEO and performance teams, as well as traditional media brand and direct teams. This is compounded by advertiser structure, many have distinct brand, direct and digital teams, each with their own challenges, goals and budgets.
Some advertisers are changing, but many large advertisers still struggle with the challenge of integrating traditional and online marketing as well as direct and brand activity.
For a startup the pitch to a VC is very clear when it’s a point solution, they can easily articulate that – ‘this is the problem’, ‘this is the client’, ‘this is the solution’. One problem, one point of contact in the buyers organization, one solution. Trying to persuade a VC that you need buy-in from 5 departments solving different challenges that are paid for out of different budgets isn’t as easy to get across.
So for me it’s about clarity and focus.
And to quote Seth Godin – Do One Thing, Brilliantly.
