Brands, agencies and publishers use an average of 28 tech vendors. And 70% believe they’ll have even more within three years, according to a study by MadHive and AdLedger.
Moreover, they expect to add 8.5 within the next year.
The respondents expect to have an average of 15 vendors in three years. However, despite this seeming reduction, vendor consolidation appears to be a “pipe dream” for most, the study states.
Of the firms surveyed, 27.68% expect to add or replace AI-based tools in the next year, and 24.11% expect to add or replace their DMP, 24.11% their campaign management tools and 24.11%, their third-party vendors.
They identify the worst-performing elements of their current stack as fraud control (32.07%), transparency (25.54%), brand safety (22.28%) and cross-screen targeting (20.11%),
Despite the need to simplify their processes, 80% feel it’s the vendor’s job to deal with the complexity of the ecosystem.
However, the study notes that: “Point-based solutions cannot be expected to change the ecosystem in which they operate, let alone propose solutions that cut out the middlemen. They are the middlemen.
Industry Index surveyed 100 brand marketers, 100 agency marketers, and 100 digital publishers, most of whom were media planners, buyers, or directors. The study was commissioned by MadHive and AdLedger.