The advertising landscape is going through significant changes, driven by Google’s plans to phase out third-party cookies and the increasing consumer concern around privacy. As a result, businesses need to develop new media strategies in order to reach their target audience effectively. However, this presents a challenge for Chief Technology Officers (CTOs) who are responsible for supporting these changes and implementing innovative technical approaches.
One of the key phrases that should be at the top of every CTO’s to-do list in 2024 is “be more composable”. But what does this mean and why is it important?
Composable architecture refers to the principle of dividing a company’s technical infrastructure into small, simple components that can easily be connected, combined, and reused to build systems that support various business processes. This architecture is built in the cloud and allows for the connection of components such as customer databases and ad servers through APIs, with minimal technical skills required. It provides a foundation for experimentation with new marketing tools and offers flexibility and adaptability in direct collaborations with partners in the advertising ecosystem.
The advantage of composable architecture is that it enables businesses to quickly build, test, and deploy solutions that facilitate collaborations with publishers, retail media networks, identity providers, measurement providers, SSPs, and DSPs. APIs, microservices, and containers serve as the building blocks for these composable solutions, which can be reused and reassembled multiple times for different collaborations.
However, ensuring effective communication between connected components can be technically challenging. The good news is that as the market develops, more software solutions are becoming available for each element of a composable system, giving CTOs the ability to choose the ones that best fit their organization’s needs and developer-friendly APIs.
One of the key considerations for CTOs when implementing composable architecture is the protection of first-party data. Marketing practices based on first-party data rely on consent and consumer trust, and it is the CTO’s responsibility to ensure that this sensitive data is protected. Composable architecture allows for the facilitation of direct collaborations with partners while retaining complete control over data through the use of Privacy-Enhancing Technologies (PETs).
PETs such as Secure Multi-Party Computation (SMPC) enable parties to analyze and extract insights from each other’s data sets while maintaining data confidentiality. Differential Privacy allows for the sharing of insights without exposing personally identifiable information, and Synthetic Data enables the generation of data sets that resemble real data but do not contain identifiable or real-world individual data.
With composable architecture, these PETs can be quickly and easily connected as needed, and reused for each subsequent collaboration. This ensures that consumer data is protected and fosters a bond of trust between the business and its customers.
In conclusion, composable architecture is the foundation for future advertising processes. It enables businesses to design and implement new media strategies that respect consumer privacy and improve advertising performance. By following the principles of composable architecture, CTOs can support these methodologies and help their organizations achieve their business goals. Composable solutions provide an agile, flexible, and scalable platform that can be tailored to specific use cases, while also offering multiple layers of protection for consumer data. Embracing composable architecture is essential for businesses looking to thrive in the evolving advertising landscape.
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