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Publishers fear agencies seek to commandeer first-party data to target consumers directly, says AOP census

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By Jessica Davies, News Editor

October 3, 2013 | 3 min read

Publishers are concerned that agencies are demanding more of their first-party data so they can “circumvent” the publishers and target consumers directly, according to the Association of Online Publishers' (AOP) Content and Trends Census 2013.

The report, which polls the views of some 1,500 digital brands with combined revenues of circa £1bn, revealed “data demands” to be among one of the biggest challenges publishers are currently facing.

More than a third (36 per cent) of respondents said they believe agency demands for their first-party data pose the biggest challenge to the industry, alongside the economy and competing media giants such as the BBC.

AOP chairman John Barnes said: “First-party data establishes the value of a publisher’s inventory to advertisers and, along with their editorial content, and the overlaying of third-party data are their crown jewels.

“This year’s census reveals publishers are concerned that agencies are demanding this information, possibly to circumvent publishers and target consumers directly.

"But agencies and networks don’t have audiences - they rely on third-party behavioural and intent data to target users - whereas publishers have a trusted relationship with readers that delivers first-party data.

“Publishers need to protect this data, stop leakage and find ways of demonstrating its value without giving away key information."

Meanwhile the Census also highlighted increased interest in private marketplaces, with two thirds of publishers expecting to move into this area in the coming year. A total 74 per cent of respondents said they expect to apply more real-time-bidding to their business – up from 38 per cent last year.

More than half (56 per cent) said they would open up more first-party data to increase ad yields and only 15 per cent said they would increase the use of ad networks.

The research was unveiled by AOP’s head of research and insight Tim Cain at its event in London today.

Cain said: “It’s all about advertising accountability. As buying becomes increasingly automated publishers could lose control.

“This year’s Census shows they are finally acknowledging the role data can play at helping them to retain control. That they are more interested in RTB and private marketplaces shows publishers better understand the role it can play.”

However respondents seemed less sure of the role programmatic trading will play, with 39 per cent saying it offers a major opportunity, and 42 per cent a small one. A quarter of them said it is agency demand that is driving them towards programmatic trading.

This August AOP's Barnes told The Drum publishers should follow in News Corp’s footsteps and embrace private exchanges to wrestle back control of digital ad trading,

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