Why today’s CTO must be Composable Technology Officer

Composable Technology Officer: Google has repeatedly delayed cookie deprecation, leaving many companies with the daunting prospect of overhauling their processes. Since new media tactics necessitate creative technological solutions, the chief technology officer primarily backs these adjustments.

Heads of technology guiding their companies into the exciting new world of advertising should prioritize being more composable in 2024. This includes monitoring their technology options as they drive digital transformation projects, such as generative AI, large language models, and automation. So, why is this new slogan for the industry so crucial?

Advertisers need to develop new media strategies.

Brands need to develop new media strategies due to the dynamic nature of the advertising ecosystem, which is influenced by factors such as Google’s intentions to shut down third-party cookies, increasing consumer awareness of privacy concerns, and a constantly evolving regulatory landscape.

Using third-party identifiers is neither practical nor viable, despite Google’s repeated extensions of the cookie’s expiration date. They will be turned off because of their lack of perfection in accuracy and performance. Brands risk tarnishing their reputations if they persist in using tracking cookies, which consumers are also rejecting at an alarming rate.

Now, companies need to figure out how to reach their customers in the future. Other ID-based systems have drawbacks; media owners find them difficult to administer and maintain, and having many ID options will inevitably lead to a fragmented environment.

Not only does Google’s Privacy Sandbox only work with Chrome, but targeting technologies like geolocation and contextualization fail to deliver the performance and precision that marketers require. Brands can improve their future advertising tactics by using first-party data and focusing on these alternatives. Because of this, it’s wise for companies to try out a few different approaches to see which ones work best.

Complex technology requires a framework.

The CTO shouldn’t have a say over marketing strategy, but they should make it easier to try cookieless options, which will necessitate some wiggle room on the back end. Adding solutions and supporting new platforms isn’t easy, even though the tech stack in digital businesses isn’t static. Therefore, it is prudent to embrace the concepts of composable architecture. To put it simply, composable architecture is a way of thinking about a company’s technology that encourages breaking it down into smaller, more manageable parts that can be merged, reused, and linked to create larger systems that can handle different activities.

Integrating cloud-based components like customer databases and ad servers is a breeze using APIs and requires very little technical know-how. Changing or replacing individual components is also a breeze. As a base for testing new marketing tools, it’s far superior to monolithic-architecture-based legacy infrastructure. Organizations can be adaptable and agile using composable architecture for direct partnerships with advertising partners, such as publishers, retail media networks, identity suppliers, measurement providers, SSPs, or DSPs.

Thanks to APIs, microservices, and containers, businesses can rapidly develop, test, and deploy composable solutions that facilitate these partnerships. With each new relationship, you can reuse and rebuild these building components.

Assuring that all linked components can communicate with each other successfully becomes the most technically demanding part of the composable design. Thanks to the proliferation of developer-friendly APIs and software solutions for composable system components, chief technology officers (CTOs) now have more leeway to pick and choose which ones work best for their organizations.

The challenge of protecting first-party data

Consent and trust are the two most essential factors in first-party data marketing. The CTO is responsible for guaranteeing the utmost security of this sensitive data. At the same time, marketers and legal counsel are responsible for collecting consent, sending out opt-out letters, and clarifying the value exchange to the consumer. There are obvious benefits to using composable architecture in this domain as well. Privacy-enhancing technologies (PETs) allow businesses to control their data fully while facilitating direct partnerships with brands, publishers, and retail media networks.

To provide more precise targeting, one PET that allows many parties to securely analyze and draw insights from each other’s data sets is Secure Multi-Party Computation (SMPC). Differential Privacy is another PET that lets businesses share insights with others without revealing any PII, and Synthetic Data enables you to create a data set that looks a lot like the real thing but doesn’t have any real-life personal information. Thanks to their modular design, these PETs can be used for future collaborations and can be easily connected in any area.

Takeaway: Composable architecture is the foundation for future advertising processes

Brands have a great chance to create and execute new media strategies that protect customer privacy and boost ad performance with the end of third-party cookies. Chief Technology Officers should consider how they can provide optimal support for these techniques so that the marketing team can reach their KPIs and contribute to the organization’s business objectives.

The secret to a scalable, adaptable, and agile platform for advertising collaborations is adhering to the principles of composable architecture. With the help of composable solutions, businesses can create advertising processes that are resilient, adaptable, and future-proof. Additionally, with their help, companies may secure customer data with numerous layers of protection, which helps maintain customer confidence.