tag:econsultancy.com,2008:/topics/ad-exchanges Latest Ad exchanges content from Econsultancy 2018-04-10T13:00:00+01:00 tag:econsultancy.com,2008:BlogPost/69934 2018-04-10T13:00:00+01:00 2018-04-10T13:00:00+01:00 Google's response to header bidding is now available to all DFP publishers Patricio Robles <p>Announced nearly a year ago, Exchange Bidding gives publishers the ability to allow third party exchanges and <a href="https://econsultancy.com/blog/65197-the-beginner-s-glossary-of-programmatic-advertising">supply side platforms</a> (SSPs) to submit real-time bids that are considered alongside bids from the publisher's reservation campaigns and DoubleClick Ad Exchange.</p> <p>Unlike header bidding, Exchange Bidding doesn't rely on client-side code. This is a potentially big differentiator as one of the biggest concerns around header bidding is that it <a href="https://www.linkedin.com/pulse/how-header-bidders-affect-latency-christopher-reid">can increase page load latency</a>. While some publishers have reported substantial double-digit increases in revenue thanks to header bidding, others have also reported double-digit increases in page load times.</p> <p>There are ways to fight latency, such as using a wrapper solution like Prebid.js and configuring a reasonable timeout setting, but solutions that eliminate client-side code entirely <a href="https://pubmatic.com/blog/server-side-header-bidding-reduces-latency/">have obvious appeal</a>.</p> <p>Google says that it is delivering similar lifts in revenue for publishers “without sacrificing user experience across their properties.” For example, programmatic marketplace RhythmOne reports that its publishers using Exchange Bidding have seen a whopping 40% increase in programmatic revenue.</p> <p>In addition to offering the potential for increased revenue with better performance than header bidding, Google is also playing up the fact that Exchange Bidding allows publishers to consolidate billing and payment. And thanks to new reporting functionality Google unveiled at the time of its announcement, publishers can easily obtain a holistic view of performance.</p> <p>As DoubleClick's Jonathan Bellack explained:</p> <blockquote> <p>Exchange Bidding customers can now generate reports across several new dimensions including demand channel, exchange partner, yield group or advertiser on a per-impression level. With these new insights, publishers can make smarter and faster decisions to ensure they're getting the greatest value from every impression.</p> </blockquote> <h3>The end of header bidding?</h3> <p>Given DFP's position in the market, one might ask: is the general availability of Exchange Bidding the beginning of the end for header bidding? </p> <p>Perhaps not.</p> <p>When Google first announced Exchange Bidding, SOVRN, an ad tech firm that is a player in the header bidding ecosystem, <a href="https://www.sovrn.com/blog/header-bidding-grows-up/">suggested that</a> “the influx of new rich data generated by header bidding has enlightened publishers to a new reality and power that they are unlikely to abandon.”</p> <p>It added, “That isn't to say that publishers won't adopt Exchange Bidding at all. Most publishers utilizing header bidding have one mantra: more competition is always better. If there isn't a large impact on operations, most publishers will continue to increase demand whenever possible. Again, for publishers, efficient and results-based diversification will be key.”</p> <p>One of the biggest advantages header bidding retains is that publishers have the freedom to choose the demand partners they want to work with without limitation. While Exchange Bidding currently has more than 10 partners, publishers are ultimately limited to the exchanges Google selects. For publishers that are wary of giving up control, that could tip the scales in favor of header bidding.</p> <p>Even so, Exchange Bidding is evidence of the fact that demand among publishers for greater competition among ad partners is something that even Google has found it can't ignore.</p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><a href="https://www.econsultancy.com/blog/69671-programmatic-advertising-trends-in-2018-what-do-the-experts-predict">Programmatic advertising trends in 2018: What do the experts predict?</a></li> <li><a href="https://www.econsultancy.com/reports/the-cmo-s-guide-to-programmatic">CMO's Guide to Progammatic</a></li> <li><a href="https://www.econsultancy.com/blog/69588-10-signs-that-programmatic-advertising-is-reaching-maturity">10 signs that programmatic advertising is reaching maturity</a></li> </ul> <p><em><strong>Or check out <a href="https://econsultancy.com/training/courses/programmatic">Econsultancy's programmatic training</a>.</strong></em></p> tag:econsultancy.com,2008:BlogPost/69806 2018-02-16T15:53:00+00:00 2018-02-16T15:53:00+00:00 How publishers in Asia-Pacific are taking on Google and Facebook Jeff Rajeck <p>Individual publishers are too small to offer the reach of said platforms and their tech stacks are often too basic to integrate well with ad-buying platforms.</p> <p>The result? Declining ad revenue year-on-year for most publishers in the region.</p> <p><a href="https://digitalinasia.com/2017/05/09/how-google-and-facebook-are-eating-the-digital-industry-in-apac/">According to Digital in Asia</a>, digital ad revenue in Asia-Pacific (APAC) grew by US$1.23 billion last year, but nearly the entire industry growth ($1.13b) went to Google and Facebook. Consequently, Google and Facebook now account for more than 50% of digital ad spend in the region and this percentage is growing every year.</p> <p><img src="https://assets.econsultancy.com/images/0009/2300/publisher-consortiums-apac-1.jpg" alt="" width="800" height="272"></p> <p>So, what can regional publishers do? With the additional problem of declining revenue from print advertising and classifieds, how will they survive?</p> <p>Well, one approach which is popular now is for regional publishers to organize. They are joining up with their local, often bitter, rivals to create in-country 'publisher consortiums'.</p> <p>The purpose of the publisher consortiums is two-fold. First off, combining the country's publishers allows the consortium to pool readers into one, large audience. The collective reach then rivals Facebook and Google in the respective country.</p> <p>Additionally, consortiums offer a one-stop-shop for advertisers. With a single ad-buying gateway it suddenly becomes easier for brands and agencies to target a demographic without resorting to a complicated media strategy.</p> <p>Together, publishers aim to bypass Google and Facebook's iron grip on wide reach in the respective countries.</p> <p>Sounds great in theory, how well is it going in practice?</p> <h3>New Zealand: KPEX</h3> <p>Probably the most advanced of the publisher consortiums in APAC is The Kiwi Premium Advertising Exchange (KPEX) in New Zealand.</p> <p>Founded in October 2015, KPEX consists of New Zealand's leading media companies. Its mission is to allow advertisers to buy online ads across all the major New Zealand publishers and broadcasters (Fairfax Media, TVNZ, Mediaworks, and NZME) through a single ad exchange.</p> <p>Interestingly, DMP provider Lotame is the data engine behind KPEX, and its system is what makes the cross-publisher audience targeting and data buying possible.</p> <p><img src="https://assets.econsultancy.com/images/0009/2301/publisher-consortiums-apac-2.jpg" alt="" width="800" height="360"></p> <p>The approach seems simple enough and the site indicates that advertisers can buy video, display, and mobile programmatically through a single demand-side platform (DSP).</p> <p>So, how's it going? Since the launch, KPEX claims that advertisers are now able to <a href="https://www.bigdatamedia.org/2017/12/09/publisher-advertising-consortiums-a-competitive-advantage/">reach 80% of the country's population</a> through its portal. While even this impressive figure is still not as high as Google's, KPEX now has greater reach in the country than Facebook. </p> <p>Another interesting development is that they are going to launch a 'premier private marketplace' (PPMP) with their tech partner, AppNexus in February 2018. This will, again, make the buying process simpler for advertisers who are aiming to reach a demographic across many publishers.</p> <p>No revenue figures are yet available, but reports indicate that KPEX now serves more than 1 billion impressions per month.</p> <h3>Thailand: Online Premium Publisher Association Thailand (OPPA)</h3> <p>Following swiftly in KPEX's footsteps, publishers in Thailand launched the Online Premium Publisher Association Thailand (OPPA) in May 2017. Bringing together 12 of Thailand's publishers, OPPA has a monthly reach of over 1.8 billion page views (5 billion ad impressions) per month.</p> <p><img src="https://assets.econsultancy.com/images/0009/2303/publisher-consortiums-apac-3.jpg" alt="" width="800" height="236"></p> <p>Claiming reach of 70% of the country's internet population, OPPA has partnered with DAC and Innity as consultants and technology partners to handle all the digital ad inventory. </p> <p>Despite a large fanfare at the launch, little has been written about the progress of the consortium since May and so no updates on its progress are currently available.</p> <h3>Singapore: Singapore Media Exchange (SMX)</h3> <p>More recently, the two largest publishers in Singapore, Mediacorp and Singapore Press Holdings (SPH), have also recently joined up to start a digital advertising marketplace in Singapore - the Singapore Media Exchange (SMX).</p> <p><a href="https://www.channelnewsasia.com/news/business/mediacorp-sph-enter-into-joint-venture-to-launch-digital-9097748">According to ComScore</a>, Mediacorp and SPH have the top five digital properties in the country and reach 70% of local digital consumers every month.</p> <p><img src="https://assets.econsultancy.com/images/0009/2304/publisher-consortiums-apac-4.jpg" alt="" width="800" height="427"></p> <p>While its reach is still less than both Google and Facebook, the benefits of using the consortium are still apparent. On SMX, advertisers will have rich targeting capabilities and be placed alongside locally relevant content for Singapore's often quirky consumers.</p> <p>SMX is, however, still in its early stages. Announced in August of 2017, the platform is not yet available and no launch date has been fixed. Job ads for SMX sales and ad operations specialists are now live, though, so an update is surely imminent.</p> <h3>Malaysia: Malaysia Premium Publishers Marketplace (MPPM)</h3> <p>Taking a slightly different approach than the other two, publishers in Malaysia have launched the Malaysia Premium Publishers Marketplace (MPPM) to combat negative perceptions of programmatic ad buying in the country.</p> <p>While the <a href="http://www.theedgemarkets.com/article/online-publishers-sign-mou-form-malaysian-premium-publishers-marketplace">announcement of the consortium</a> alludes to problems with Google and Facebook's dominance in the country, the five publishers (Media Prima Group, Star Media Group, Utusan Malaysia, MCIL and The Edge) are purportedly banding together to "simplify the ad buying process" and provide "transparency, viewability and brand safety".</p> <p><img src="https://assets.econsultancy.com/images/0009/2305/publisher-consortiums-apac-5.jpg" alt="" width="800" height="450"></p> <p>These tenets echo what both P&amp;G and Unilever have been asking for from their agency partners lately and also reflect concerns raised by a <a href="http://www.marketing-interactive.com/singapore-targeted-ad-fraud-mobile/">recent study by Click Mob</a>, which listed Malaysia as one of the top five countries most targeted by ad fraud on mobile.</p> <p>As with SMX, MPPM is not yet generally available, but <a href="https://www.thestar.com.my/business/business-news/2018/02/10/for-better-media-quality-going-private-is-the-way/">recent reports</a> indicate that the exchange will be launched to pilot customers by the end of February 2018.</p> <h3>The future?</h3> <p>So, are consortiums the future for publishers and media buying in APAC? It is too soon to tell.</p> <p>Google, Facebook, and other social media platforms have a sizable lead in both reach and ad tech throughout the region, so even a well-organized and functioning consortium will struggle to catch up. </p> <p>That said, it seems unlikely that countries in the APAC region will, anytime soon, sacrifice their local media to create a level playing-field now dominated by Silicon Valley behemoths. So, regardless of their success, it is likely that we will be hearing about publisher consortiums in Asia-Pacific for some time to come.</p> <p>Thanks to Alex Sibois, SVP &amp; Managing Director APAC - Lotame, for providing information for this post and a general background of the industry.</p> tag:econsultancy.com,2008:BlogPost/69796 2018-02-13T15:28:00+00:00 2018-02-13T15:28:00+00:00 Traffic buying allegations against Newsweek Media Group highlight complexity of the digital ad problem Patricio Robles <p>But <a href="http://socialpuncher.com/media/files/CFPB-IBTimes-Case-by-Socialpuncher.pdf">an investigative report</a> (PDF) recently published by Social Puncher, “an independent company that serves as a sheriff in the digital ad market”, suggests that publishers seen as legitimate can be the source of fraud. </p> <p>The report claims Newsweek Media Group (NMG), whose digital properties include Newsweek.com and IBTimes.com, paid for fraudulent traffic that led to it earning millions in ad revenue from an ad campaign run by the Consumer Financial Protection Bureau (CFPB). Specifically, the report alleges that  “Ibtimes.com in spring 2017 (March-May) received 13,300,000 of laundered via tech domain pop-under visits and 5,500,000 non-laundered pop-under visits.”</p> <p>Many of the sites originating this traffic were said to be file sharing and pirated video streaming sites. Layers of redirects were used to hide the origin of the traffic, Social Puncher's report states.</p> <p><img src="https://assets.econsultancy.com/images/0009/2238/ibt.png" alt="" width="477" height="170"></p> <p>BuzzFeed, which conducted its own investigation into IBTimes India, <a href="https://www.buzzfeed.com/craigsilverman/the-publisher-of-newsweek-and-the-international-business">says</a> that two independent ad fraud detection and measurement firms identified similar patterns. What's more, BuzzFeed reported that one of those firms, DoubleVerify, has this month “classified IBT’s US, UK, India, and Singapore sites as 'as having fraud or sophisticated invalid traffic'”.</p> <p>As a result, DoubleVerify “is now blocking all ad impressions on these sites on behalf of customers.”</p> <p>Not surprisingly, NMG disputes the claims that it has been engaging in fraudulent behavior. While it admitted that it purchases from ad networks that generate pop-up and pop-under traffic, it told BuzzFeed that this represents a “small percentage of traffic on our sites” and “we use third-party platforms to verify and filter this traffic to ensure it is of the highest quality.” </p> <p>According to BuzzFeed, NMG refused to identify those third-party platforms by name.</p> <h3>Who can advertisers trust?</h3> <p>Certainly, the fact that multiple independent sources have raised the same suspicions calls into question NMG's claim that it was acting on the up and up.</p> <p>But more importantly, it calls into question just how much advertisers can trust the digital advertising ecosystem. </p> <p>According to Social Puncher, the CFPB's purchase of ads from NMG was conducted on its behalf by GMMB, a Washington, D.C.-based agency. Its report indicates that one of the largest campaigns GMMB ran for the CFPB was a video campaign that consisted of $6.4m in direct ad buys through the DoubleClick Campaign Manager DSP and that over half of the budget went to NMG.</p> <p>Many advertisers of course outsource media buying to agencies and this wouldn't be the first time that an advertiser has come away let down.</p> <p>Late last year, <a href="https://econsultancy.com/blog/69438-is-uber-s-lawsuit-against-an-agency-a-harbinger-of-greater-brand-agency-discord">Uber sued ad agency Fetch</a>, which is owned by Japanese holding giant Dentsu, alleging that it had squandered "tens of millions of dollars" to purchase non-viewable, non-existent or fraudulent traffic on Uber's behalf.</p> <p>While that's a different scenario – neither Social Puncher or BuzzFeed has alleged that the CFPB's agency knew about NMG's questionable traffic buying – it is clear that even the firms advertisers are hiring for their media buying expertise are often falling short when it comes to policing fraud on behalf of their clients.</p> <p>In the case of the CFPB and NMG, what's particularly disturbing is that the alleged fraud wasn't the product of, say, opacity in the programmatic market. It was conducted by a publisher seen as reputable enough to be awarded a significant irect buy from a legitimate agency.</p> <p>The lesson: the ad fraud problem runs deep and while <a href="https://econsultancy.com/blog/69231-ads-txt-a-new-standard-for-fighting-inventory-spoofing-unauthorized-sellers-what-you-need-to-know">progress is being made</a> to reduce the ease with which ad fraud can take place in programmatic markets, there's still the very real ability for large-scale fraud to take place in plain sight. To address this, advertisers are going to have to get more aggressive in vetting the capabilities of their agencies to address fraud. Ultimately, they may conclude that they either need to move some of their media buying in-house or exercise much greater oversight over agency buys.</p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><a href="https://www.econsultancy.com/blog/69671-programmatic-advertising-trends-in-2018-what-do-the-experts-predict">Programmatic trends in 2018</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69712 2018-01-10T12:00:00+00:00 2018-01-10T12:00:00+00:00 Four ways the blockchain could be applied to digital advertising Patricio Robles <p>One market in which blockchain tech is seen to have significant potential is the digital advertising industry. Here are four of the most interesting ways blockchain could be applied to digital advertising.</p> <h3>Data management</h3> <p>Data is the lifeblood of the digital advertising ecosystem. From measurement to targeting, players who acquire and put to good use data have a growing advantage over players who don't.</p> <p>Not surprisingly, some are looking at the ways blockchain tech can address issues and challenges related to data. </p> <p>Comcast, for instance, last year announced that it is developing a Blockchain Insights Platform “aimed at improving the efficiency of premium video advertising, resulting in better planning, targeting, execution and measurement across screens.”</p> <p>In a blog post, the cable giant <a href="https://corporate.comcast.com/news-information/news-feed/comcasts-advanced-advertising-group-and-participants-announce-plans-for-blockchain-based-technology-platform-aimed-at-making-premium-video-advertising-more-efficient">explained</a>:</p> <blockquote> <p>One application of the Blockchain Insights Platform would be that advertisers and programmers could match data sets more effectively to build and execute media plans based on custom audience segments and more precisely and efficiently target across a nationwide footprint of pay-TV customers and streaming device users. Concurrently, programmers would be able to offer improved targeting precision across screens, increasing the value and quantity of monetized inventory. All participants would ultimately benefit from the resulting reporting and attribution metrics, and new potential revenue streams for participants could emerge for data insights they can generate for themselves and others.</p> </blockquote> <p>Privacy is a huge data management issue and this is one area where Comcast believes the blockchain has the greatest potential to shine. All of the data offered by participants in the Blockchain Insights Platform would remain in their own systems and the blockchain would let “participants in the platform ask questions of each other's data without having to access or take possession of anyone else's data.”</p> <h3>Targeting and engagement</h3> <p>Advertisers and the ad platforms they work with have for years invested heavily in finding methods and acquiring data aimed at enabling them to deliver the right message to the right user at the right time, resulting in action.</p> <p>Could the blockchain help them do this even more effectively? Some blockchain-based ad plays are betting it can. </p> <p>Take BitClave, for example. It <a href="https://medium.com/bitclave/a-blockchain-approach-to-targeted-advertising-27239dc83e5">envisions</a> a Consumer Activity Token that consumers earn by adding their data to the blockchain. When they perform searches through BitClave's decentralized search engine, businesses that want to reach them will have to compensate them.</p> <p><iframe src="https://www.youtube.com/embed/ZQlQv4zi6YI?wmode=transparent" width="560" height="315"></iframe></p> <p>As BitClave's founders see it, while internet giants do provide value through the free ad-supported services they offer, they shouldn't be the only ones who reap the financial rewards gained from data provided by users. “Our decentralized search engine helps you truly find what you're looking for and get compensated for your data, making third-party advertising networks unnecessary,” BitClave's website tells prospective users.</p> <p>China-based ATMChain, which describes itself as a “decentralized, digitized smart media platform”, is pursuing a similar approach under which users are compensated for viewing ads.</p> <p>It's important to note that both BitClave and ATMChain are works in progress and launched to the public via initial coin offerings (ICOs), which have become quite controversial due to fraud concerns. But while there's no guarantee that either project will even materialize, both do highlight how blockchain tech could serve as the foundation for new targeting and engagement models.</p> <h3>Fraud prevention</h3> <p>Ad fraud is a multi billion-dollar problem that is understandably one of the top concerns among advertisers. Unfortunately, stamping it out is difficult because the digital ad ecosystem has become more complex and opaque, especially in recent years as use of programmatic increased rapidly. </p> <p>The good news is that the industry is fighting back. Major ad vendors and publishers are getting behind the IAB standard <a href="https://www.econsultancy.com/blog/69231-ads-txt-a-new-standard-for-fighting-inventory-spoofing-unauthorized-sellers-what-you-need-to-know">Ads.txt</a>, for instance. But Ads.txt isn't perfect. Already, some are trying to trick publishers into adding them to their Ads.txt files, and Ads.txt doesn't describe what type of inventory a particular seller is authorized to sell, opening up the possibility that a vendor could, for example, offer remnant display inventory for a publisher as premium video inventory.</p> <p>While one company, MetaX, has opted to bring Ads.txt to the blockchain with an offering it calls Ads.txt Plus, others are aiming to create even more robust verification offerings using blockchain. </p> <p>Take, for instance, adChain, “a set of interoperable open protocols built on the public Ethereum blockchain.” The first solution build on adChain is the adChain registry, “a smart contract on the Ethereum blockchain that maintains and stores a record of publisher domain names accredited as non-fraudulent.” </p> <p><img src="https://assets.econsultancy.com/images/0009/1572/adtoken.png" alt="" width="738" height="313"></p> <p>The accreditation is performed by holders of adToken, a blockchain token. The creators of adChain believe that the adChain registry will maintain a high level of integrity because these holders don't have a financial interest in the ad transactions themselves.</p> <h3>Media buying and selling</h3> <p>Perhaps the most intriguing application of blockchain tech to digital advertising is to use the blockchain to enable publishers and advertisers to buy and sell ads with fewer intermediaries, or even directly.</p> <p>One project that is aiming to make this application possible is called XCHNG. PaymentsSource's Charles Manning recently <a href="https://www.paymentssource.com/opinion/blockchain-can-take-the-bloat-out-of-ad-payments-risk-management">explained</a> how it is designed to work:</p> <blockquote> <p>Through the use of blockchain technology, buyers and sellers outline their terms in a smart contract. The smart contract can be subjected to additional layers of verification and enforcement by optional service providers on the network, such as the measurement provider, ratings provider, payment provider and arbitrator. </p> <p>The payment provider is responsible for releasing payments to publishers as contract terms are met. Additional incentives for payment providers include offering accelerated payment to publishers for a fee, which would in turn incentivize publishers to deliver.</p> </blockquote> <p>Needless to say, the idea that blockchain-based smart contracts could effectively automate every aspect of the delivery of ads and the payments for them is very appealing.</p> <p><img src="https://assets.econsultancy.com/images/0009/1573/xchng-blockchain-workflow-stacked.jpg" alt="" width="500" height="537"></p> <p>But XCHNG and projects like it will all face a huge adoption challenge if and when they get off the ground. Put simply, the industry will have to embrace blockchain-based solutions en mass for them to be useful and there are plenty of players in the ecosystem, namely intermediaries, who largely don't have incentives to go along.</p> tag:econsultancy.com,2008:BlogPost/69491 2017-10-17T10:00:00+01:00 2017-10-17T10:00:00+01:00 Why digital out-of-home advertising is not really digital (yet) Nick Hammond <p>With this investment comes greater impact (e.g. increasing use of video), flexibility and of course income for the vendors. Alongside this burgeoning focus on digital creative delivery, there is attention on how the medium could be sold more efficiently – more like other digital channels and less like traditional out of home. </p> <p>Moving from a cost-per-panel approach and with access to more detailed, real time audience information on the horizon (rather than periodic panel data) the ability to trade on an audience model isn’t far off. For example, in Canada Outfront Media has launched its own real-time analytics platform, having agreed a partnership with mobile network Cellint.</p> <p>By tapping into available data, the platform will allow tracking of hourly impression numbers, including the proportion of those that are unique views. In the UK Transport for London has a considerable amount of data garnered from 5.6m mobile phones connected to Wi-Fi on the Tube. This mobile data can be used to track interchanges, and even walking routes and platform use within a station.</p> <p><img src="https://assets.econsultancy.com/images/0008/9753/dooh.jpg" alt="" width="470" height="353"></p> <p>Whilst these developments provide considerable opportunities for advertisers and OOH vendors alike, a recent piece <a href="http://www.campaignlive.co.uk/article/jcdecaux-we-ensure-outdoor-doesnt-fall-pitfalls-digital-media/1446445?bulletin=campaign_breakfast_briefing&amp;utm_medium=EMAIL&amp;utm_campaign=eNews%20Bulletin&amp;utm_source=20171005&amp;utm_content=Campaign%20Breakfast%20">in Campaign</a> highlights how out of home’s convergence with the digital world could have its downsides. </p> <p>OOH vendor JCDecaux has launched a brand charter which is seeking to avoid problems that have been plaguing the mainstream digital sector. These include accountability, viewability, measurability, transparency and brand safety. JCDecaux commented at launch, 'we must ensure outdoor doesn't fall into the pitfalls of digital media'.</p> <p>This charter aims to set a gold standard of best practice across the digital out-of-home industry and in this brave new world JCDecaux will ensure its metrics and measurements are independently verified by Price Waterhouse Coopers; who will provide a quarterly compliance report to ensure transparency.</p> <p>This is an interesting development as out of home has a history of being one of the more opaque advertising channels in terms of the buying process, audience measurement and invoicing.</p> <h3>OOH automation </h3> <p>In the UK, digital buying practices are moving into the OOH sector in the shape of increased automation. </p> <p>From the Campaign piece – ‘Also mirroring the wider digital market, JCDecaux has launched a new external smartsuite platform, SmartBRICS, which allows advertisers and agencies to place their own DOOH campaigns for the first time. The platform has been used internally for the past two years but (now).. will be available to external users through an API. Users will now be able to plan, budget and create their own campaigns based on the platforms in-depth rules and filters on its dashboard.’ </p> <p>So, what are the challenges and opportunities for digital practitioners? We are already seeing digital experts’ influence spreading across traditional channels such as TV, which is increasingly being bought <a href="http://www.thedrum.com/opinion/2017/06/13/get-ready-programmatic-tv-advertising">in an automated fashion</a> (see <a href="https://www.skyadsmart.co.uk/">Sky AdSmart</a>), and this is beginning to happen with OOH as well, as observed above.</p> <p>Clever recent activational examples in DOOH were featured in <a href="https://econsultancy.com/blog/69100-six-clever-examples-of-what-dynamic-outdoor-advertising-can-do">this Econsultancy piece</a>. I particularly liked the FT’s use of digital billboards at Heathrow’s Terminal 5 to target passengers travelling to six pre-selected US cities. It was achieved by tapping into Heathrow's flight data via an API.</p> <p><img src="https://assets.econsultancy.com/images/0008/9752/FT_heathrow.jpg" alt="" width="568" height="400"></p> <p>Guinness devised a dynamic campaign in London that allowed posters to direct RBS 6 Nations fans to nearby pubs to watch the games. </p> <h3>Is DOOH digital?</h3> <p>So, just how digital is digital out of home? For DOOH to become fully digital in terms of trading (as well as delivery of creative), the key area will be around improved audience assessment. It is achieving this, which will allow a mainstream programmatic digital approach including real-time bidding, behavioural and contextual targeting.</p> <p>Because of the size of the OOH medium, the variety of locations and the challenge and cost of quantifying and assessing audience behaviour, the measurement of OOH has traditionally been restricted to periodic panel research – OSCAR, then <a href="https://www.research-live.com/article/news/postar-to-measure-90-of-outdoor-media/id/2000079">POSTAR</a>, and now <a href="http://route.org.uk/research/">ROUTE</a>.</p> <p>The resultant audience information is therefore nowhere as detailed and current as that available across other digital channels. JCDecaux’s charter is well timed, especially in terms of brand safety, but from an audience perspective the PWC verification is only happening on a quarterly basis.  </p> <p>For DOOH to really align with digital media, it will need to achieve accurate, real time, detailed consumption data that can fuel truly digital trading methodologies.</p> <p><strong><em>For more on this topic, see:</em></strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/68051-six-case-studies-that-show-how-digital-out-of-home-advertising-is-changing"><em>Six case studies that show how digital out-of-home advertising is changing</em></a></li> <li><a href="https://econsultancy.com/blog/67414-is-this-the-next-step-in-programmatic-out-of-home"><em>Is this the next step in programmatic out-of-home?</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/69463 2017-09-29T16:43:30+01:00 2017-09-29T16:43:30+01:00 10 delightful digital marketing stats we’ve seen this week Nikki Gilliland <p>Without further ado...</p> <h3>Digital ad fraud predicted to rise to $19bn in 2018</h3> <p>A new report by <a href="https://www.juniperresearch.com/researchstore/content-commerce/future-digital-advertising/ai-ad-fraud-ad-blocking-2017-2022" target="_blank">Juniper Research</a> predicts that digital ad fraud will cost advertisers $19bn in 2018 – that’s equivalent to $51m per day. This figure, which represents advertising on online and mobile devices, is also predicted to rise to $44bn by 2022. </p> <p>Meanwhile, the report further predicts that platforms using AI for targeting purposes will account for 74% of total online and mobile advertising spend by 2022.</p> <h3>Honesty is the key to winning trust from travel consumers</h3> <p>According to research by the <a href="https://dma.org.uk/research/dma-insight-customer-engagement-focus-on-travel" target="_blank">DMA</a>, simple factors like honesty and value for money can instill trust in travel consumers – perhaps even more so than technological innovation.</p> <p>The DMA found that 59% of consumers want value for money, 58% want ease of use, and 58% want good customer service from travel brands. Similarly, these factors can also keep customers loyal, with 53% saying good customer service would lead to a repeat booking, and 40% saying the same for deals and loyalty schemes.</p> <p>That's not to say customers don’t want the convenience of technology as well. 52% of consumers say they would use a chatbot to help with pre-travel questions, and 53% would be interested in using a VR headset to see a hotel room.</p> <p><img src="https://assets.econsultancy.com/images/0008/9270/DMA.JPG" alt="" width="750" height="568"></p> <h3>Three in four UK consumers are concerned about privacy of connected devices</h3> <p>New research from <a href="http://www.worldpay.com/uk/about/media-centre/2017-09/shoppers-give-thumbs-up-to-in-store-biometrics" target="_blank">Worldpay</a> has revealed a lack of trust in connected devices among UK consumers. </p> <p>In a study of over 2,000 people, just 23% of UK respondents said they feel comfortable with a smart device such as a fridge or virtual assistant ordering items on their behalf. Not only did the study uncover that Brits are laggards when it comes to Internet of Things adoption, but also that privacy is still a massive barrier. </p> <p>Worldpay found that 78% of British consumers are worried that businesses would share their personal data, while 77% are concerned about the prospect of devices being hacked by fraudsters. UK consumers are clearly a stubborn lot too, as 33% claimed that nothing would make them feel comfortable with automated purchasing.</p> <h3>93% of consumers would consider a rival brand after a negative email experience</h3> <p>A new report by <a href="https://www.mailjet.com/blog/guide/transactional-research-report/" target="_blank">Mailjet</a> suggests that lost emails can negatively affect levels of customer retention.</p> <p>Research has found that 28% of consumers across the UK now receive four or more transactional emails per day. Furthermore, 77% state they always check that they have received a purchase confirmation email, and 41% won’t wait more than one minute for a transactional email to arrive before getting annoyed with the company they are using.</p> <p>Consequently, 93% of customers would consider choosing a rival provider following a negative transactional email experience, with 21% of UK consumers saying speed of email delivery is the most important factor.</p> <p><img src="https://assets.econsultancy.com/images/0008/9269/Mailjet.JPG" alt="" width="760" height="407"></p> <h3>Decline in number of retailers offering free returns </h3> <p>Research by <a href="https://emea01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.reboundreturns.com%2Fquarter-2-2017&amp;data=02%7C01%7Cdavid.moth%40econsultancy.com%7C3ed69e69770147425ea908d50590c01e%7Cfdd3bf0d1bfa49198a45f1a311d56753%7C0%7C0%7C636421041622281531&amp;sdata=%2B%2F6%2FC2F5MpzzWUd4cyJCEreZwzqYMJR1Zszj3mYBFHE%3D&amp;reserved=0" target="_blank">ReBound</a> has uncovered a drop in the number of UK and European retailers offering their customers free returns. In a study of over 200 leading fashion brands, just 28% were found to offer free returns – a big decrease from 55% in Q1.</p> <p>ReBound’s report also found that the majority of retailers are failing to be upfront about their returns policies, with just 6% promoting their returns policy at all three key stages of the purchase journey – product page, basket, and checkout.</p> <p><img src="https://assets.econsultancy.com/images/0008/9276/Returns.jpg" alt="" width="760" height="456"></p> <h3>Social sentiment for Uber increases following licence revoke </h3> <p>Since TFL announced that it won’t be renewing Uber’s licence to operate, social media has been awash with conversation about the decision. 4C Insights has been looking at engagement and sentiment for both companies across platforms including Facebook and Twitter.</p> <p>Surprisingly, it found that sentiment has dropped 13% for TFL since the announcement, with Uber remaining level despite the working practices highlighted by TfL's decision. </p> <p>With 730,000 signatures on the petition for Uber to have its London license renewed, it seems the general attitude on social media is annoyance at the service being taken away. </p> <h3>90% of Gen Z travellers influenced by social media</h3> <p>When it comes to travel plans, <a href="https://info.advertising.expedia.com/travel-and-tourism-trends-for-american-travelers" target="_blank">Expedia Media Solutions</a> has revealed that the Generation Z is the demographic most influenced by social media, with Instagram and Facebook being named as the most influential platforms. </p> <p>While Gen X (or millennials) are influenced less by social media than younger generations, more than half of them say Facebook has an effect on their decision-making.</p> <p>Lastly, baby boomers are the least likely to research travel destinations on social media, with more than 55% already deciding where to go, and 43% saying they don’t need help with planning.</p> <p><img src="https://assets.econsultancy.com/images/0008/9272/Expedia.JPG" alt="" width="780" height="347"></p> <h3>iOS 11 sparks consumer demand for new AR apps</h3> <p>Following on from the launch of iOS 11 and Apple’s new AR platform, ARKit, consumer demand for AR apps is on the rise.</p> <p>A new report by <a href="https://emea01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fdigitalbridge.eu%2Fdownload-our-new-report-augmented-reality-changing-the-face-of-retail%2F&amp;data=02%7C01%7Cnikki.gilliland%40centaurmedia.com%7Cadb8f897d4ac427e9e8d08d505beece0%7Cfdd3bf0d1bfa49198a45f1a311d56753%7C0%7C0%7C636421239942488912&amp;sdata=DN6h7HZhQ23xErI%2BpE0u4xwhEyFol2J3t7zrWcfNRAo%3D&amp;reserved=0" target="_blank">DigitalBridge</a> suggests that 61% of consumers say augmented reality is the technology they are most excited about using, compared to 30% for virtual reality. Consequently, 69% now expect retailers to launch an AR app within the next six months.</p> <p>Meanwhile, a further 18% of consumers don’t expect to be kept waiting longer than 12 months before they are offered access to an augmented reality platform, and 82% are expecting the technology to be made available via mobile.</p> <h3>Consumers fail to recall brand logos</h3> <p>Signs.com has been looking at how well consumers can recall the brand logos they see every day. <a href="https://www.signs.com/branded-in-memory/" target="_blank">The study</a> involved 150 participants drawing 10 famous logos from memory, including Apple, Burger King, and Domino's.</p> <p>Results found that just 6% of people could recall the Starbucks logo – perhaps surprising considering many participants buy one of the 18m cups of coffee it sells per day.</p> <p>Ikea saw the most success, with nearly a third of participants recreating near-perfect logos. Meanwhile, more than 20% of participants wrongly included a crown when drawing the Burger King logo, despite the fact that the design hasn’t included one in almost 50 years.</p> <p>Lastly, one in three participants incorrectly included a stalk in the Apple logo. </p> <p><img src="https://assets.econsultancy.com/images/0008/9271/brand_logos.JPG" alt="" width="550" height="631"></p> <h3>Pizza generates 26m shares on Instagram</h3> <p>Lastminute.com has revealed the world’s most-shared food trends, including the top international foods and the most popular obscure trends.</p> <p>Topping the list of the most-shared international foods is pizza, with 26m shares on Instagram. This is followed by sushi with 17.6m shares, and pasta with 11m shares.</p> <p>Meanwhile, matcha tea was found to be the most popular unusual food, generating 2.5m shares. Cronuts, bubble tea, and freakshake also appear in the top 10 obscure foods Instagram users love to document.</p> tag:econsultancy.com,2008:BlogPost/69413 2017-09-11T09:49:36+01:00 2017-09-11T09:49:36+01:00 10 fascinating digital marketing stats we’ve seen this week Nikki Gilliland <h3>Searches for iPads increase 1.2x YoY</h3> <p>First up, <a href="http://www.hitwise.com/blog/2017/08/hot-back-school-products-age-student/?lang=1&amp;bis_prd=1" target="_blank">Hitwise has revealed</a> what parents have been searching for as their kids head back to school. </p> <p>Parents of children aged 6-11 have been searching for iPads, with online searches for iPad increasing 1.2 times overall year on year. For kids aged 12-17, branded apparel has been in demand, with searches for Gucci belts, Net backpacks and Yeezys by Kanye West all being popular.</p> <p>Lastly, interest in fashion has been much lower for college-age youngsters, while searches for technology such as Nintendo Switch, Apple Watch and HBO Now have been high.</p> <p><img src="https://assets.econsultancy.com/images/0008/8867/Hitwise.JPG" alt="" width="702" height="380"></p> <h3>More than half of Brits use an ad blocker</h3> <p>In a survey of over 2,000 UK adults, Affilinet has found that more than half of all respondents use an ad blocker while browsing the internet.</p> <p>When it comes to the reasons why, 61.5% say it’s because they find online ads annoying, 41.5% say it’s because they find ads intrusive, while 33.1% say it’s because the ads they used to see were irrelevant.</p> <p>Men are also slightly more likely to use an ad blocker than women, with 48.7% of women stating that they never use them compared to 42.5% of men.</p> <h3>39% of teen YouTube users say it has too many ads </h3> <p>A survey by Forrester Research has found that four in 10 teen users aged 12-17 say there are <a href="https://www.emarketer.com/Article/YouTubes-Teen-Viewers-Complain-of-Too-Many-Ads/1016436" target="_blank">too many ads</a> on YouTube. </p> <p>This is despite the fact that YouTube is accessed by more US teens than any other social platform, with 77% using it on a daily basis compared to 55% who use Facebook.</p> <p>Just 11% of teens think that there are too many ads on Instagram and Snapchat, perhaps proving that native ads are less disruptive than pre or mid-roll ads.</p> <p><img src="https://assets.econsultancy.com/images/0008/8871/iStock-458931653.jpg" alt="" width="700" height="438"></p> <h3>Brits abandoning £3.4bn in online shopping baskets due to device switching</h3> <p>A new report by <a href="http://www.newsroom.barclays.com/r/3514/_10_5bn_more_in_five_years___that_s_what_uk_retailers" target="_blank">Barclays</a> has revealed that £3.4bn worth of goods are left in online shopping baskets in the UK each year. This is said to be due to device switching, with consumers browsing on their mobile phones before changing to laptops to make the purchase.</p> <p>The report suggests that basket abandonment is also due to a lack of discount incentives and the desire for a variety of delivery options. 38% of consumers say discount codes and 56% say free deliveries would incentivise them to buy.</p> <p>By making online shopping more convenient, Barclays says that retailers could generate £10.5bn more within just five years.</p> <h3>44% of consumers will make a holiday purchase via a voice controlled device</h3> <p>A report by <a href="https://www.walkersands.com/The-Future-of-Retail-2017-Holiday-Report">Walker Sands</a> has predicted that purchases by voice-controlled devices are set to rise this holiday season.</p> <p>Currently, 24% of frequent online shoppers say they ‘often’ or ‘always’ purchase through a voice-controlled device like Amazon Echo. However, 44% of total survey respondents also say that they are ‘somewhat’ or ‘very likely’ to make a product purchase through a voice-controlled device in the next year.</p> <p>Meanwhile, the report also highlights the demand for same-day delivery services, with 66% of frequent online shoppers saying they have used Amazon Prime in the past year, and 39% saying same-day delivery would make them shop online even more.</p> <p><img src="https://assets.econsultancy.com/images/0008/8868/Voice_controlled_shopping.JPG" alt="" width="666" height="274"></p> <h3>Popularity of mobile payments is rising</h3> <p>A new survey by <a href="https://www.aciworldwide.com/news-and-events/press-releases/2017/september/mobile-payments-rise-in-popularity-reaching-tipping-point-in-some-countries" target="_blank">ACI Worldwide</a> has found that European and American consumers are increasingly embracing mobile payments.</p> <p>While just 6% of US consumers regularly used their mobile devices to make payments in 2014, this has now tripled to 17%. Similarly, 25% of Spanish consumers now use mobile wallets, as do 24% of Italian and 23% of Swedish consumers. </p> <p>Consumer confidence in mobile wallet security is also on the rise, with 37% of UK respondents saying they trust their bank to protect their personal information when paying via their smartphone.</p> <h3>37% of internet users watch Netflix each month</h3> <p><a href="http://blog.globalwebindex.net/chart-of-the-day/netflix-vs-amazon-prime-video-a-global-view/" target="_blank">GlobalWebIndex</a> has been looking into the user-share of both Netflix and Amazon, following on from the latter extending its introductory Prime Video offer across all global markets.</p> <p>It has found that 20% of internet users now use Amazon Prime Video each month, whether on their own account or via someone else’s. However, 37% of people say the same about Netflix.</p> <p>In terms of marketshare, Netflix boasts impressive usage in both Mexico and Brazil, while Amazon Prime reigns supreme in India.</p> <p><img src="https://assets.econsultancy.com/images/0008/8869/Netflix_vs_Amazon_Prime.JPG" alt="" width="632" height="664"></p> <h3>More than 60% of digital publishers auto-play half of video ads</h3> <p>Despite auto-play ads often being viewed as intrusive or annoying by consumers, <a href="http://www.marketingdive.com/news/mediaradar-61-of-publishers-autoplay-at-least-half-of-video-ads/504417/" target="_blank">MediaRadar</a> has found that 31% of publishers auto-start 75% or more of their on-site video ads. Meanwhile, 60% of publishers auto-play at least half.</p> <p>Small, regional, and B2B publishers have the highest instances of auto-play video ads. Similarly, websites that rely on programmatic advertising are also more likely to employ this type of ad.</p> <p><img src="https://assets.econsultancy.com/images/0008/8870/MediaRadar.JPG" alt="" width="685" height="346"></p> <h3>Consumers annoyed by disruptive ads</h3> <p style="font-weight: normal;">In other ad news, Inskin Media has been delving into the ad formats that users find the most annoying.</p> <p style="font-weight: normal;">Unsurprisingly, 28% of respondents cited pop-up ads as the most irritating mobile format, closely followed by 26% saying the same for ads that sit in the middle of the screen. 18% said that they are vexed by ads that delay the page loading.</p> <p style="font-weight: normal;">In contrast, ads that that move down the page alongside the content or sit at the top and bottom of the page were found to be much less annoying. In fact, the study also found that people are 134% more likely to remember ads that sit around content compared with the average mobile ad.</p> <h3>Brand activation revenues to reach $357bn this year</h3> <p>According to the <a href="http://www.ana.net/content/show/id/brand-activation-spend-2017" target="_blank">ANA</a> (Association of National Advertisers) and PQ Media, brand activation revenues will reach around $357bn in 2017.</p> <p>This is based on the fact that total marketing operator revenues from brand activation rose by 6.7% in 2016, with further growth now expected.</p> <p>Revenues in content marketing climbed 11.3% last year, while influencer marketing saw the second-highest growth rate, growing 8.7% to $49.1bn. Revenues from experiential marketing also jumped by 6.7% to $50.6bn.</p> tag:econsultancy.com,2008:BlogPost/69394 2017-09-01T12:18:43+01:00 2017-09-01T12:18:43+01:00 10 stupendous digital marketing stats we’ve seen this week Nikki Gilliland <p>Please enjoy.</p> <h3>McGregor generates the most social media engagements</h3> <p>He might have lost in the ring, but data from <a href="http://www.4cinsights.com/news/" target="_blank">4C Insights</a> has revealed that Conor McGregor was victorious in generating online media conversation.</p> <p>McGregor saw more than 3,294,078 Facebook and Twitter engagements on fight night, which includes tweets, retweets, replies and likes. In comparison, Mayweather generated 2,986,484 engagements, highlighting McGregor’s ability to generate mass hype and media discussion.</p> <p>The fight amassed 889,705 engagements on Facebook and Twitter in the week leading up to it, before a massive surge on the night itself saw engagements rise 605% to 6,280,562.</p> <h3>Small businesses falling behind on digital transformation</h3> <p><a href="https://www.g2crowd.com/blog/small-business/introducing-crowd-views-iii-small-business-technology/" target="_blank">G2 Crowd</a>’s third quarterly report has revealed that small business owners are failing to effectively market their businesses in a digital world. Research found that 24% of businesses are still largely investing in either newspaper ads and/or billboards, while only 19% of respondents are spending money on Google AdWords. </p> <p>That being said, the report suggests that technology is an area of focus for small businesses interested in scaling growth, with 47% planning to increase IT spending this year.</p> <h3>Number of hours spent checking email decreases 27%</h3> <p>According to Adobe’s third annual <a href="https://blogs.adobe.com/conversations/2017/08/consumers-are-still-email-obsessed-but-theyre-finding-more-balance.html" target="_blank">email survey</a>, people are checking their work and personal email less frequently than they were in 2016.</p> <p>The overall number of hours spent on email per day decreased 27% from last year. Specifically, there was a 28% decrease in consumers checking email messages from bed in the morning, with more than a quarter of consumers now waiting until they get to the office to check their inboxes. </p> <p>The report also suggests one in five consumers never check email outside of normal work hours, and nearly half don’t or rarely check while they’re on holiday. </p> <p>However, this is not the case for millennials. More than half of 18-24 year olds still check their email while in bed in the morning, and 43% of millennials aged 25-34 admit to doing the same.</p> <p><img src="https://assets.econsultancy.com/images/0008/8676/Adobe.JPG" alt="" width="780" height="311"></p> <h3>Google and Alexa make up 90% of voice commerce market share</h3> <p>The news that Amazon and Google are joining forces could mean big things for voice commerce, according to insight from Walker Sands.</p> <p>Currently, 24% of consumers own a voice controlled device, while 20% plan to purchase within the next year. Together Google and Alexa make up approximately 90% of the market share. </p> <h3>US social ads failing to drive conversions</h3> <p>Research by <a href="https://civicscience.com/facebook-ads-affect-purchases-snapchat-twitter-instagram-combined/" target="_blank">CivicScience</a> has found that ads on social platforms like Facebook and Instagram are failing to convert users. </p> <p>In a survey of over 1,900 US consumers, just 1% of respondents aged 13 and older said they have previously made a purchase based on a Snapchat ad, and only 4% said they have bought anything after seeing an Instagram ad. Overall, 45% said that they have never purchased anything based on ads they saw from social media sites, and over a third said they don’t use social media.</p> <p>Facebook was found to be the most influential channel for purchasing behaviour, with 16% of consumers buying a product based on a Facebook ad.</p> <p><img src="https://assets.econsultancy.com/images/0008/8675/CivicScience.JPG" alt="" width="780" height="394"></p> <h3>Personalisation brings footwear brand 64% increase in ROI </h3> <p>Dune London has revealed that it’s seen a 64% increase in return on investment per customer after personalising its media to real people, in partnership with <a href="http://info.conversantmedia.eu/dune-london" target="_blank">Conversant</a>.</p> <p>Instead of targeting segments or cookies, Dune tailored messages to individual customer’s specific needs and interests. This involves showing complementary products post-purchase, and tailoring ads according to what kinds of products a customer tends to browse and buy the most.</p> <p>As well as a 64% increase in ROI per customer, personalisation also led to a 33% increase in messaged conversion rate.</p> <h3>Push notifications boost in-app spending by 16%</h3> <p>According to <a href="http://www.prnewswire.com/news-releases/leanplums-analysis-reveals-push-notifications-increase-in-app-spend-16-and-drive-96x-more-users-to-buy-300510182.html?tc=eml_cleartime" target="_blank">Leanplum</a>, push notifications can lead to a significant increase in mobile conversions.</p> <p>The Insights to Mobile Revenue report states that push notifications can boost in-app spending by 16% – driving nearly 10 times more users to make a purchase compared to those who did not receive one.</p> <p>Research also found that promotional push notifications sent on a Saturday resulted in over twice as many purchases than notifications sent on Thursday. Meanwhile, push notifications sent during the late afternoon lead to 2.7 times more purchases than any other time of day.</p> <p><img src="https://assets.econsultancy.com/images/0008/8674/Leanplum.JPG" alt="" width="500" height="509"></p> <h3>One in nine marketers will spend more than £100,000 on influencers in the next year</h3> <p>New research from Takumi has revealed that one in nine marketers plan to spend in excess of £100,000 on influencer marketing in the next 12 months.</p> <p>39% of professionals say they will spend up to £10,000, while a further fifth predict their budget to fall somewhere between £10,000 and £100,000. In contrast, just 4% say they plan to forgo influencer campaigns entirely. </p> <p>This shows the extent to which influencer marketing has grown in popularity, with 26% of marketers now believing it is a more effective way to target consumers than traditional advertising. 43% agree that it is more effective, but only for millennial audiences.</p> <h3>‘In the moment’ searches are on the rise</h3> <p><a href="https://www.thinkwithgoogle.com/consumer-insights/consumer-immediate-need-mobile-experiences/?utm_medium=email&amp;utm_source=promo&amp;utm_team=twg-us&amp;utm_campaign=20170829-twg-micro-moments-email-B&amp;utm_content=cta&amp;mkt_tok=eyJpIjoiWlROaE16STJaVE00TkdJdyIsInQiOiI3cVpldDV6cml6S1wvbHlhM0t1SjJzckdyUVZseGQ1NmtjeVwvUmtQXC9mYUVQTmExOEJOZFRNUWJmRkxVcUR0Z0JmcDZNaGMrbFVWNzlDQ2dxYjNia0hjc2FXeEZqd2IwUHFOdVo5N3p5Zk1QM0MxdjBXU1NxUktkNDZ1dVdQWlM0aSJ9" target="_blank">Google research</a> has found that consumers are more impatient than ever before, with increasing expectations for brands to immediately meet their needs. </p> <p>Searches related to ‘same-day shipping’ have grown more than 120% since 2015. Similarly, searches for ‘open now’ have tripled over the past two years, while searches for ‘store hours’ have dropped.</p> <p>Lastly, Google found that travel-related searches for ‘tonight’ and ‘today’ have grown more than 150% on mobile, reflecting consumer demand for spontaneous and in-the-moment bookings.</p> <p><img src="https://assets.econsultancy.com/images/0008/8673/Open_Now.JPG" alt="" width="780" height="454"></p> <h3>Consumers more likely to make frivolous purchases on touchscreens</h3> <p>A <a href="http://www.sciencedirect.com/science/article/pii/S0969698917300024" target="_blank">new study</a> has revealed that consumers are more likely to make purchases when browsing on a touchscreen device, especially when it comes to things they don’t necessarily need.</p> <p>This is because touchscreens create more experiential thinking in users, while desktops evoke rational consideration. </p> <p>An experiment found that participants were more inclined to buy a restaurant gift card than a grocery gift card on a touchscreen, while desktop users favoured the opposite. In this sense, desktop elicits a similar response to shopping in-store, where a series of logical steps means we are less likely to be driven by emotions or impulse.</p> tag:econsultancy.com,2008:BlogPost/69276 2017-07-25T15:00:00+01:00 2017-07-25T15:00:00+01:00 Following YouTube's brand safety backlash, will ad relevance take center stage? Patricio Robles <p>But another crisis could be brewing for Google as advertisers wise up to the fact that their ads aren't always being displayed alongside relevant content. </p> <p>As detailed by AdAge's Jack Neff, one advertiser reviewed 1,000 YouTube videos its ads had been displayed with and came to the conclusion: "A lot of inventory was going to the wrong place."</p> <p>What does that mean in practice?</p> <p>Zefyr, a VideoID technology provider, performs audits for advertisers and Andrew Serby, the company's director of marketing, gave the example of alcohol marketers' ads "showing up in front of 'Minecraft' videos, Peppa Pig and all this problematic content where the only possible consumer is a kid."</p> <p>Serby further explained:</p> <blockquote> <p>We've looked at several campaigns where the target is a 25-year-old male or a 35-year-old woman, and no matter what, they're running against Peppa Pig videos, because the algorithm goes to where the eyeballs are, and younger people aren't skipping ads, and if there's a shared device and you're demo targeting, mom hands the kid an iPad and they see it.</p> </blockquote> <p>Oops. For all of <a href="https://econsultancy.com/blog/69115-what-marketers-need-to-know-about-google-attribution">Google's efforts to build tech that can track consumers across devices</a>, it's targeting capabilities are clearly falling short in this type of shared device scenario. </p> <p>John Snyder, CEO of Grapeshot, a "context marketing engine", suggests that this is because Google is ignoring the relevance problem. "They let these things happen because they're a media company, and they want to sell as many ads as possible. Basically, the tools are there. They're just not using them," he told AdAge.</p> <p>Grapeshot's tool, which is used by brands like Unilever, Johnson &amp; Johnson and Chase, as well as media agencies including Group M and Ogilvy, has access to Facebook inventory but not YouTube inventory.</p> <h3>So what can advertisers do?</h3> <p>They can gain access to theoretically more relevant inventory through the Google Preferred program, which "aggregates YouTube's top content...into easy-to-buy packages for brand advertisers." These packages offer access to 12 "lineups" that fit into categories like Beauty and Fashion and Entertainment and Pop Culture.</p> <p>But as AdAge's Neff notes, Google Preferred is already crowded and the costs of participation are hefty. </p> <p>"Preferred inventory is scarcer and pricier, subject either to category exclusives or more clutter from competitors, and leaves out lots of high-quality content," he explained, while also noting that Google Preferred, at one point, even included inventory from PewDiePie, the YouTube star whose offensive videos sparked the brand safety backlash.</p> <p>Ultimately, there are few easy answers. Nobody in the ecosystem is realistically going to pay human reviewers to sort through millions upon millions of videos, screening them for relevance. Brand safety is a big enough challenge.</p> <p>More likely, advertisers will have to come to grips with the fact that there will always be a conflict between reach and relevance, meaning being able to buy millions or billions of impressions in an automated or semi-automated fashion while ensuring relevance is little more than a pipe dream.</p> <p>Instead, advertisers will need to accept that greater relevance will come at a higher cost through programs like Google Preferred, as well as <a href="https://econsultancy.com/blog/68844-should-advertisers-be-more-picky-with-programmatic">private programmatic exchanges</a> (programmatic direct). </p> <p>They will also have to look at their investments in alternative ad formats, <a href="https://econsultancy.com/blog/69245-native-ads-gain-as-advertisers-seek-brand-safety-away-from-programmatic">such as native ads</a>, which not only promise greater levels of brand safety but could also be easier to control vis-à-vis relevance.</p> tag:econsultancy.com,2008:BlogPost/69208 2017-07-03T02:00:00+01:00 2017-07-03T02:00:00+01:00 Programmatic has become problematic: Here's what marketers can do about it Jeff Rajeck <p>Yet programmatic has remained a very popular ad-buying strategy. The market has been growing at an <a href="https://www.zenithmedia.com/%EF%BB%BF%EF%BB%BF%EF%BB%BFprogrammatic-ads-grow-31-2017-ahead-channels/">average rate of 71% per year</a> for the past five years and is projected to be a $64bn dollar industry in 2018.</p> <p>At a recent Econsultancy event in Singapore, Digital Outlook 2017 Part 2 hosted by NTUC, Hari Shankar, MD at Escelis (the performance marketing brand of Havas Group) told attendees about a few of the current issues programmatic is facing and what marketers can do about them.</p> <p>Two of these are summarised as follows.</p> <h3>The 'machine problem' </h3> <p>Hari started by introducing the programmatic landscape, which can seem overwhelming and confusing.</p> <p><img src="https://assets.econsultancy.com/images/0008/7100/1a.jpg" alt="" width="800" height="500"></p> <p>But when programmatic is simplified down to how ads are served to web browsers, it is relatively straightforward. Publishers announce that they have an ad space to be filled and advertisers bid for the spot. The winning bid then serves the ad to the browser.</p> <p><img src="https://assets.econsultancy.com/images/0008/7101/2a.jpg" alt="" width="800" height="531"></p> <p>The 'machine problem' occurs due to how the bidding algorithms work. Instead of offering a free bidding market, programmatic buying auctions are held using a waterfall model. What this means is that while all advertisers can bid for the space, some bids take priority, even if they are not the highest bidder. </p> <p>In the case illustrated below, Partner #1 loses the bid because it is below the floor price set for the publisher, but Publisher #2, being above the floor price, wins the bid despite higher offers coming in from Partners #3 and #4.</p> <p><img src="https://assets.econsultancy.com/images/0008/7102/3a.png" alt="" width="321" height="371"></p> <p>Hari noted that this model creates an unfair advantage for large bidders, such as Google DoubleClick Bid Manager, as they are often at the top of the 'waterfall'. Publishers suffer too as they do not receive the highest bid for their ad space.</p> <p>Recently, however, a new technology called '<a href="https://econsultancy.com/blog/68687-my-nightmare-trying-to-understand-header-bidding/">header bidding</a>' has emerged as a solution to the 'machine problem'. Instead of using the waterfall model, header bidding takes in bids from all ad partners at the same time and serves up the ad with the highest bid.</p> <p><img src="https://assets.econsultancy.com/images/0008/7103/4a.png" alt="" width="354" height="422"></p> <p>While some estimate that many large publishers, including MailOnline and CNN International, are implementing header bidding, not everyone is yet on board with the new technology.</p> <p>Regardless, marketers were advised to ensure that header bidding is on their programmatic roadmap and to lobby publishers to adopt the technology soon. Otherwise, brands will lose out on bids for quality ad space and will not be able to get their ads in front of the people they are targeting through their partner sites.</p> <h3>The 'people' problem</h3> <p>Another programmatic problem Hari brought up has more to do with people than algorithms.</p> <p>He noted that a lot of programmatic is still bought via agencies and trading desks which operate using an 'undisclosed' model. What this means is that many brands are buying ads programmatically through a third party which doesn't disclose the fees they are paying for their services.</p> <p>This might not be a problem if the fees were low enough to be negligible, but Hari drew attention to some recent data about the costs of programmatic ad buying.</p> <p><img src="https://assets.econsultancy.com/images/0008/7106/7.jpg" alt="" width="800" height="500"></p> <p>Using <a href="http://www.ana.net/getfile/25070">data from the Association of National Advertisers, et al</a>, Hari stated that for 3.9 billion display ads, the volume-weighted average cost was $3.30 per thousand impressions (CPM). <em>Disclosed</em> fees from agencies, however added on a further $1.49 per CPM, a 45% premium.</p> <p><img src="https://assets.econsultancy.com/images/0008/7104/5b.png" alt="" width="800" height="230"></p> <p>The researchers concede that many of these costs may be worthwhile as they encompass such services as sophisticated targeting and buying against KPIs, but Hari's point was that if disclosed fees saw a 45% premium then undisclosed fees are likely to be much higher.</p> <p>The 'people problem' then leads to brands cutting back on spending by buying low-quality ad inventory which then results in issues with viewability, click fraud, and the brand safety problems currently plaguing programmatic buying.</p> <p><img src="https://assets.econsultancy.com/images/0008/7105/6.jpg" alt="" width="800" height="500"></p> <h3>The solutions</h3> <p>Hari concluded by pointing out that if programmatic is going to succeed as a performance-based ad buying strategy, then brands need to take more control of the process.</p> <p>He makes three recommendations:</p> <h4>1) Set up a transparent model for programmatic buying</h4> <p>This could be one of three things: </p> <ul> <li>A fully-in house programmatic buying team, or</li> <li>Direct deals with DSP / RTB vendors, or</li> <li>Disclosed trading desk model with agency</li> </ul> <h4>2) Set up a strong tracking and optimization system</h4> <p>Hari advises that brands should use a single vendor for ad serving and web analytics and track display using multi-channel attribution. Additionally, marketers should integrate their customer data (CRM) with programmatic, ideally using a data management platform (DMP).</p> <h4>3) Test, learn, scale</h4> <p>Marketers should use tools like Optimize 360 for A/B testing and, using their transparent buying model, conduct more controlled buying such as programmatic direct, placement-led programmatic, and first-party tagged targeting. </p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank Hari Shankar, MD Asia Ecselis, Havas Media for his presentation as well as the delegates who took time out of their busy schedules to attend.</p> <p>We hope to see you all at future Singapore Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/7107/8.jpg" alt="" width="800" height="500"></p>