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In this episode of A Coffee With... Ruben Niet, founder of digitalAudience, joins ExchangeWire's John Still over a black coffee to chat the Publicis-LiveRamp deal and its impact on Europe's data ecosystem.

Ruben Niet joins ExchangeWire again a year after his famous TraderTalk on data collaboration to discuss digitalAudience’s position amid the Publicis-LiveRamp deal and broader data ecosystem changes. He explains the European impact of LiveRamp’s US-centric model and breaks down the key components of its technical stack: onboarding, identity, and integrations.

digitalAudience is experiencing increased inbound interest, suggesting momentum and tailwinds from this development. With AI intensifying the importance of data, fragmentation and regulatory scrutiny remain challenges for European players. Industry-wide, a significant opportunity lies in educating brands to dramatically increase first-party data utilisation.

Impact of the Publicis-LiveRamp Deal

Around 95% of LiveRamp’s revenue is from the US and Canada, making it less of a European player despite some footprint and market education. However, the acquisition compromises LiveRamp’s perceived neutrality, prompting US client and tech provider churn. Ruben anticipates that European holdcos and independent agencies lacking in-house tech will also seek alternative data platforms.

The US benefits from unified, large-scale data providers (e.g., TransUnion, Experian) creating comprehensive population graphs. Meanwhile, Europe’s fragmentation necessitates a market-by-market approach to identity graphs and partner networks, presenting an opportunity for companies like digitalAudience that have developed a local-market playbook.

The LiveRamp Stack vs. European Needs

LiveRamp’s extensive integrations drive acquisition value. digitalAudience has prioritised the same capabilities – localised identity spines and major platform integrations – positioning it to benefit from the market shift. Strategic value lies in three key components of the data stack:

  1. A secure onboarding platform (clean rooms, ownership, activation)
  2. Identity spine (to link client data to identifiers)
  3. Connectivity (integrations with ad platforms)

Ruben emphasises the difficulty and value of maintaining many platform integrations – LiveRamp has hundreds, while digitalAudience supports 45 widely used platforms. Connectivity spans programmatic, CTV, and digital out-of-home. The work involves not only technical connectors but also marketplace relationships and billing with platforms, which are time-consuming and differentiating.

State of the Data Industry and Future Outlook

AI underscores data as an essential component across the industry, prompting holding companies’ M&A activities, with the LiveRamp deal being the latest. Ruben agrees that longstanding foundational work now enables them to benefit, as global infrastructure supports moving data across regions while the local data piece remains challenging and differentiating.

Citing Rob McLaughlin from AUDIENCES, Ruben is baffled that only about 3% of brands leverage first-party data. He highlights basic, high-value use cases like excluding existing customers from campaigns, as well as upsell/cross-sell. He sees a major opportunity in market education and aims to lift adoption from 3% to 25% within two years, referencing successful telco and energy use cases in the Netherlands.

In Europe, local companies face stricter scrutiny on privacy compliance as compared to global giants like Google and Amazon, demanding a more level playing field relative to walled gardens. Ruben senses Brussels is becoming more aware and hopes they will enact regulations that create more equitable conditions for European tech companies to compete.