Digital marketing & creative tools

1. Cookie’s crumbling

   There have been delays and heel-dragging — but the end of third-party cookies is finally getting a little real. The third-party cookie, for context, is the workhorse of the near-$100bn digital advertising economy in Europe and its demise has left the industry scrambling to find alternatives.

   One approach that had fallen out of fashion but is now enjoying a comeback: contextual targeting, which is the practice of ensuring that ads appear next to content that’s context-appropriate. So if you’re reading an article about tennis, a sports-related ad can show up on your page. Unlike cookies, this method doesn’t need any specific knowledge of the user.

   Another marketing obsession is the best ways to collect “first-party data”, or information volunteered by users to apps or websites (for example, readers of a news site may participate in surveys, which generates data to let that publisher improve its advertising).

2. AI tools tempt VCs

   As social media continues to dominate user engagement, startups specialising in influencer marketing, social commerce, and AI-driven customer engagement tools have experienced a surge in interest.

   Startups using AI for content and personalisation have had investors opening their wallets. ContentSquare (Series F, France) raised €400m in 2022 in a round led by SoftBank, BlackRock and Bpifrance to expand its AI-based content optimisation platform.

   Startups say new tech can help save companies considerable time and effort. For example, UK-based Userled raised a £4m pre-seed in August for its no-code tool that spins up branded marketing campaigns “in seconds, not weeks.”

3. AI raises new privacy concerns

   The arrival of GDPR legislation brought new challenges and opportunities for startups. Anyone offering privacy-compliant marketing tech suddenly thrived.

   The reliance on third-party data sources decreased because of these privacy regulations, forcing companies to adapt and invest in first-party data collection methods, which can be both costly and time-consuming.

   Startups using AI should also expect to face heightened scrutiny over data privacy in years to come. These technologies will also inevitably require more investment in secure infrastructure.

4. Digital creator marketing ticks up

   The rise of platforms like Patreon, TikTok and YouTube's Partner Programme have created new revenue streams for creators.

   These sites are also playing host to new forms of old advertising. For example, AI has made it easier to stick digital, realistic-looking versions of products into the backgrounds of videos.

   Europe’s digital creator economy was valued at €4.5bn in 2023 and is forecasted to grow to €6bn by 2025, according to a report by Influencer Marketing Hub.

Who early stage startups are up against