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Oracle has a third-party data headache, but its proposed deal with TikTok could solve it by giving the tech giant access to increasingly coveted first-party data.
After weeks of talks, Oracle confirmed on Sept. 14 that it struck a deal with TikTok’s parent company ByteDance to be “its trusted technology provider” in the US. The proposed deal still has to be approved by the US government but would essentially make TikTok a client of Oracle’s cloud products.
Marketers use Oracle Data Cloud to target and measure ads, including a data-brokerage business that uses third-party data to create profiles of people for ad targeting.
But data privacy laws like California’s Consumer Privacy Act and Europe’s General Data Protection Regulation have clamped down on the use of people’s third-party data. Big technology companies like Google and Apple are also tightening up on the use of people’s personal data to target and measure ads.
Last month, consumer-privacy group Privacy Collective filed a lawsuit against Oracle and Salesforce for allegedly violating Europe’s General Data Protection Regulation that protects people’s personal data. And last week, Oracle shut down its third-party products in Europe, according to Adweek.
First-party data collected directly from consumers opting in to share their data is becoming more important for marketers. With the proposed TikTok deal, sources said Oracle could potentially bolster its first-party data to better compete against Facebook and Google.
“With the deprecation of third-party cookies, Oracle can leverage TikTok data into its data systems,” said Taha Dharamsi, national marketing specialist at Postmedia Network.
Oracle likely won’t sell TikTok ads, though
Still, Oracle is unlikely to sell TikTok’s ads.
Oracle owns several companies like Moat and Grapeshot that help marketers make sure that their ads are viewed by real people and avoid fraud. Oracle’s position in the advertising industry has been to be a neutral player that doesn’t sell or run any paid media. If Oracle were to run part of TikTok’s ad business, it would put that neutrality at risk. Oracle would need to spin out TikTok into a standalone division separate from its advertising business, said Mike McGuire, VP analyst at Gartner Research.
“Compared to Salesforce and Adobe, Oracle has made a pretty good set of investments as a set of tools that marketers use,” McGuire said. “They’ve been neutral and if they now have a network that they’re responsible for maintaining and monetizing, that sounds like a neutrality issue.”
Marketing-tech giants face challenges with advertising
Oracle, Adobe, IBM and Salesforce have all made big bets to build out advertising-tech stacks. As marketers lean more on data, these marketing clouds have been pitching CMOs data and tools to help them target ads at people and analyze if they actually work.
Recent signs suggest advertising is getting harder for the marketing clouds.
Adobe is closing its managed services advertising business after acquiring adtech company TubeMogul in 2016. Adobe is also not accepting political advertising for this year’s presidential election.
IBM recently spun off its marketing cloud into a new company called Acoustic.
“These are companies that have …read more
Source:: Business Insider