More Than Just A Liaison Data Ownership In Agency Relationships
Management Summary
Why data ownership is crucial
Data ownership means having both legal legitimacy and full control over a data set or individual data. Maybe now is a good time to ask yourself: Do I have this? Or are there some historical agency pixels on my website that haven’t been used in years?
The ideal setup should look like this:
In any case, the advertiser should always also be the legal controller of the data, agency and consultants, in any case only service providers. The ad systems, be they licensed directly or via resellers, are therefore the processor.
In summary, there are three big and good reasons to secure data ownership in your own company:
1. Independence and Flexibility:
If you have your own license, you are generally more independent. You save a lot of resources and effort, especially when there is a change in the collaboration, be it through new contracts, a change or the strategic decision to take certain areas in-house. You can also switch and customize tools as needed without depending on an agency. This creates flexibility in adapting your own AdTech & MarTech landscape.
2. Control over sensitive data:
Internal company data or your customers’ data should be under the control of the company, not an agency. This includes not only CRM data, but also campaign data or audiences. If you have your license with an agency, you rarely have the chance to get your campaign data back after the collaboration has ended. This means you have to start from scratch with the next agency and have no opportunity to use past learnings in planned campaigns.
3. Long-term cost savings:
Owning licenses is more cost-effective in the long run. It is a myth that agency licenses are cheaper – the devil is often hidden in the details. Experience has shown that non-transparent contracts and invoices tend to dominate the picture. With your own license you know where every euro goes. Instead of regular agency fees or hidden margins, you can ultimately use your budget more strategically.
How do I get data ownership?
If you notice that you are using some tools where you are not the controller, you need to take action. Evaluate these, including if necessary, and engage with the technology provider (and agency) to find a solution.
In any case, it is essential to deal with the technologies and invest in them. It is also worthwhile to train employees in this, regardless of whether they will then be used on a daily basis. A technologically savvy internal department makes it possible to better understand and control the tools and data.
When it comes to (new) contracts with agencies, care should also be taken to ensure that they are transparent and clearly regulate data sovereignty. You should ensure that they always have access to your data, regardless of the termination of the collaboration.
Our conclusion
Data ownership does not necessarily mean ending the collaboration with the agency or changing existing structures. Rather, it’s about gaining control and sovereignty over your own data by purchasing licenses – regardless of who operationally manages these licenses. This is not just a strategic consideration, but an indispensable basis for the long-term success of the company. Control over licenses and data should be the central element of any marketing strategy. With secured data sovereignty, you will be more agile, more independent and optimally positioned to operate successfully in the digital world.
