tag:econsultancy.com,2008:/topics/ad-exchanges Latest Ad exchanges content from Econsultancy 2016-12-01T12:12:39+00:00 tag:econsultancy.com,2008:BlogPost/68578 2016-12-01T12:12:39+00:00 2016-12-01T12:12:39+00:00 The Weather Company on programmatic, ad fraud, and how extreme conditions affect business Olivia Solon <h4> <em>Econsultancy:</em> What proportion of The Weather Company’s ad sales are done programmatically?</h4> <p><em>Jeremy Hlavacek:</em><strong> </strong>There are two sales channels at The Weather Company. We have our direct sales organization and then I run the side of the business where we put our inventory up for sale through online platforms and exchanges.</p> <p><img src="https://assets.econsultancy.com/images/0008/1975/Jeremy_Hlavacek.png" alt="" width="246" height="194"></p> <p>It’s about half and half at the moment and the trend is towards more programmatic. </p> <h4> <em>E:</em> How do you make sure that your programmatic sales don’t cannibalize direct sales?</h4> <p><em>JH:</em> We’ve spent a great deal of time looking at yield and pricing across the two channels. From our point of view it doesn’t matter if an advertiser wants to buy through a human being and a handshake or a technology platform as long as the inventory is priced appropriately.</p> <p>The second part is that both me and the gentleman who runs direct sales report to the Chief Revenue Officer, who can see the performance of both channels and make strategic decisions.</p> <p>He may want one client to buy through automated platforms and another to buy through direct sales channels, maybe because of the client relationship or the type of buy they want to execute, but both divisions are on equal footing. </p> <h4> <em>E:</em> Some media companies think of using programmatic for unsold inventory. What do you make of that?</h4> <p><em>JH:</em> That’s an outdated way of looking at the business. At this point we see lots of premium advertisers who want to use automation technology to execute their buys.</p> <p>As long as the price works with the yield model we have no problem with that.</p> <p><img src="https://assets.econsultancy.com/images/0008/1976/weather_channel_map.png" alt="" width="800" height="413"></p> <p>We are finding that inventory can be worth even more when we sell it through automated platforms. When a buyer uses a DSP [demand side platform] they can get very precise with the impressions they want to buy so they get good return on investment. </p> <h4> <em>E:</em> What data points can you use to target consumers more accurately?</h4> <p><em>JH:</em> As a weather company we are unique in that we have many first-party data sets, primarily weather and location data.</p> <p>If a beverage advertiser wants to advertise they can use typical programmatic tools to identify the audience of, say, young men between 25 and 35 on the weekend when they are more likely to drink beer.</p> <p>We can then tell them when it is hot and sunny in New York City that’s a good time to run Budweiser ads for drinking a beer on the beach or whatever.</p> <p>Or if it’s cold and stormy in Chicago but it’s football season, it might be a good time to run a beer ad with a different message like “stay inside and watch the game with your friends and enjoy a Budweiser.” </p> <h4> <em>E:</em> Earlier this year the east coast of the United States had to deal with Hurricane Matthew, how does such a major weather event affect your job?</h4> <p><em>JH:</em> To really understand how publisher yield management works for digital properties a hurricane is a great unusual use case.</p> <p>In media traditionally lots of planning goes into forecasting inventory, understanding how many impressions you’ll have and selling those out in advance. That works well for our direct sales business.</p> <p>However, when a hurricane, snow storm, heatwave, tornado or other major weather event hits, it’s not unusual for us to see anywhere from a 200% to a 400% increase in traffic.</p> <p>It’s almost impossible to forecast that with enough precision to sell directly, so it’s really beneficial to have programmatic as we can immediately put that inventory up for sale in an exchange and monetize it. </p> <h4> <em>E:</em> What is the biggest challenge facing the programmatic industry?</h4> <p><em>JH:</em> One problem that has arisen in this space is <a href="https://econsultancy.com/blog/67659-three-things-that-show-the-scale-of-the-ad-fraud-challenge/">ad fraud</a>. Companies running the exchanges have perhaps been a little bit liberal in terms of who they let into that exchange.</p> <p>This means advertisers are spending good money on properties that are either very long tail, have non-human traffic or might not have highly viewable ads. </p> <h4> <em>E:</em> How does this affect your own business?</h4> <p><em>JH:</em> The good news is that advertisers are getting a lot more serious about that issue to the benefit of companies like Weather, which can offer premium inventory at scale without any of the worries of fraud, viewability and non-human traffic.</p> <p><img src="https://assets.econsultancy.com/images/0008/1977/weather_channel_map_2.png" alt="" width="800" height="399"></p> <p>We can give advertisers what they want: efficiency through automation and targeting through data. We want people to buy real legitimate impressions.  </p> <h4> <em>E:</em> How can the problem of ad fraud be solved?</h4> <p><em>JH:</em> It’s gone on in media for a long time if we’re honest – from the early days of TV and print. That’s why third-party verification companies like Nielsen were invented, to track exactly what was served.</p> <p>This is just a case of the programmatic industry growing up and recognizing it needs to be held to the same standard as other media.</p> <p>When it was a new and disruptive emerging industry maybe it didn’t matter as much, but now $20bn+ is being spent in programmatic ad technology it’s not okay to say, “We’re going to let this slide.” The stakes are too high.  </p> <h4> <em>E:</em> What are some of the innovations in programmatic?</h4> <p><em>JH:</em> It really grew out of web display inventory and the targeting technology has been pushed to the limit, but there is a huge opportunity in mobile.</p> <p>On the web side we have cookie targeting, but that doesn’t exist for mobile in-app inventory.</p> <p>We know there are huge audiences there, but advertisers haven’t figured out how to use data to target yet, so they are dumping most of their dollars into Facebook or Google.</p> <h4> <em>E:</em> How do you solve the mobile targeting problem?</h4> <p><em>JH:</em> To me the key is data. Look at web. People used to buy impressions blindly and would use the site as a proxy.</p> <p>So to reach young men they would probably buy ESPN, but then you would also reach women who may not be in your target so would be wasting your dollars.</p> <p>Weather.com, the New York Times and other brands also have large audiences of young men. So we need to move away from contextual targeting where companies’ brands represent the audience towards truly defined audience targeting. </p> <h4> <em>E:</em> What’s the future of programmatic?</h4> <p><em>JH:</em> In 2017 we’re looking at ways to apply our data across all media. Display is great but social advertising, outdoor advertising and TV advertising are very powerful.</p> <p>There’s no reason why our data shouldn’t be effective across all channels, but it’s early days. The operational systems behind all these media channels are very different from what we do to put an ad on a website.</p> <p>That’s an area where the industry needs to get smarter. Once you master the ad serving technology, you can then think about targeting programmatically. </p> <p><em>For more information on this topic, check out these resources:</em></p> <ul> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68405 2016-11-15T13:56:48+00:00 2016-11-15T13:56:48+00:00 The programmatic hiring challenge: How to find and retain talent? Ben Davis <p>Here are some thoughts on the issue.</p> <h3>Writing new and tricky job descriptions</h3> <p>Whether a publisher developing their own sell-side team or an advertiser hiring a buying team skilled in targeting audiences, this stuff is (fairly) new.</p> <p>Many of these organisations are at a standing start and need to find employees that understand sophisticated platforms and their integration.</p> <p>Working with specialist recruiters may be vital in the first instance.</p> <h3>Finding people with soft skills and technical nous</h3> <p>For programmatic sales jobs, you ideally need a mix of two personalities.</p> <p>The most suitable candidates are media-sales people who are smart enough to understand programmatic disruption and are motivated by continually evolving technology.</p> <p>Likewise, when hiring more tech-minded people to work in operations, you should also look for <a href="https://econsultancy.com/blog/64780-have-changes-in-modern-marketing-led-to-a-soft-skills-revolution/">softer skills</a>, awareness of customer needs and of the bottom line.</p> <p>With programmatic advertising often challenging existing advertiser behaviours, new hires need to have this combination of soft skills and technical nous in order to educate customers.</p> <p>On the buy-side, too, whether agency or in-house, candidates must understand about getting the most bang for buck, but will also be tasked with defining and documenting best practice, collaborating with other teams and educating internally.</p> <p>What does this look like in the real world?</p> <ul> <li> <strong>Great communication:</strong> The ability to convey fairly abstract concepts and tell the story of programmatic both to stakeholders and the wider industry.</li> <li> <strong>Strategic thinking:</strong> Long term understanding of customer objectives within the programmatic world but also as a part of wider marketing and advertising.</li> <li> <strong>Media planning experience:</strong> Knowledge of ad formats, viewability, inventory, data management platforms etc.</li> <li> <strong>Measurement and optimisation experience:</strong> Tracking, troubleshooting and reporting.</li> </ul> <h3>Investing time and money in staff</h3> <p>Even when you find the right person for your team, the intricacies of different platforms means it takes time before they bed in.</p> <p>The danger for companies is that they get into a cycle of recruiting, training and then losing people from programmatic roles.</p> <p>Staff retention is important for any company trying to innovate with media. Recent emphasis on the role company culture plays in <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> has meant many organisations have invested in this area.</p> <p>From the use of personal devices, to remote working, more money for training and office perks, as well as finding <a href="https://econsultancy.com/reports/effective-leadership-in-the-digital-age/">the right digital leaders</a> that can both inspire and listen to the workforce.</p> <p>Short-termism is the enemy here.</p> <h3>Doing a good PR job for programmatic</h3> <p>One of the problems remains an issue of PR.</p> <p>Media has no problem in attracting intelligent young people away from other industries or studies, but to what extent is programmatic advertising a draw?</p> <p>Agencies and the advertising industry as a whole perhaps need to paint a better picture of this new technology, one that hasn't yet fulfilled its potential but may shape the future of advertising and creative.</p> <p><em>For more information on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68450 2016-11-11T10:21:47+00:00 2016-11-11T10:21:47+00:00 Six things to know about addressable TV advertising Ben Davis <p>Quite how advertisers will take full advantage of the addressable ad opportunity is still up for debate - creative execution of addressable media has arguably been lacking across the advertising industry and is one of the main challenges for advertising as a whole right now.</p> <p>In this post, I thought I would give a short introduction to addressable TV. How does it work? Who is doing it? What do brands need to know?</p> <h3>1. Advertisers pay for audiences not content</h3> <p>The advertiser defines the audience it wants to target and pays for impressions regardless of what content that audience is watching at the time.</p> <p>Addressable TV chiefly refers to ads targeted at specific household audiences watching linear television. Currently, the number of addressable households stands at around 50m in the US (essentially those that have a set-top box and for whom census-level data is available).</p> <p><img src="https://assets.econsultancy.com/images/0008/1407/tv.jpg" alt="" width="788" height="608"></p> <p>Census data allows for targeting based on income, ethnicity, children and even car leases.</p> <p>Of course, there is are addressable media available in TV and video. Video-on-demand (VoD), smart TVs and over-the-top (OTT) services allowing for programmatic ad buying and can offer more specific targeting (particularly on personal devices).</p> <h3>2. Addressable ads make TV accessible for more niche advertisers</h3> <p>Being able to buy fewer but much more targeted impressions helps more niche advertisers.</p> <p>Though addressable TV is more expensive per 'impression', there is inherently less wastage.</p> <p>A common example cited is the example of an advertiser targeting home renters - something that would be too wasteful if done with traditional broadcast advertising.</p> <h3>3. Uptake is pretty modest</h3> <p>According to eMarketer, addressable TV spend in 2015 was $400m in the US. In 2016 that will reach $890m, topping $2bn by the end of 2018.</p> <p>Sounds healthy enough, but for 2016 that's only 1.3% of total TV ad spend in the US.</p> <p>Some of the main providers offering addressable TV ads include Cablevision, Comcast, DirecTV and Dish.</p> <h3>4. Creative versioning has not yet taken off</h3> <p>Though providers such as Cablevision do offer the technology, advertisers are not yet versioning creative for addressable TV like they do with <a href="https://econsultancy.com/training/courses/programmatic/">programmatic</a> display ads.</p> <p>This isn't entirely suprising, given the nascency of the technology but it will prove an interesting talking point in the next few years.</p> <p>Will TV ads benefit from one-to-one dynamic content? Can retargeting (of a sort) be done creatively on the family set?</p> <p>One might suggest such impressive but rather functional targeting has been partly responsible for a malaise in online advertising.</p> <h3>5. Lack of standardisation makes for more work</h3> <p>Different operators use different technologies and so it can be time consuming to run and report on ads across a number of them.</p> <h3>6. Controlling ad frequency becomes possible</h3> <p>Addressable TV means that advertisers can measure and optimise the number of impressions a given person or household is exposed to.</p> <p>In theory this will allow advertisers to experiment and better understand optimum exposure. Ads can be changed or stopped when the audience hits a particular threshold.</p> <p>Of course, as online advertising shows, this isn't always the case in practice. TVs are rarely personal devices and we all make a cup of tea now and again.</p> <p>However, what's clear is that where some are advertisers are still concerned about <a href="https://econsultancy.com/blog/67659-three-things-that-show-the-scale-of-the-ad-fraud-challenge/">ad fraud</a> and viewability online, TV (both linear and on-demand) maintains a reputation for quality and transparency that advertisers love.</p> <p>The question is one of scaling addressable TV and making it work for all.</p> tag:econsultancy.com,2008:BlogPost/68470 2016-10-28T14:27:34+01:00 2016-10-28T14:27:34+01:00 10 of the finest digital marketing stats we've seen this week Nikki Gilliland <p>This week’s roundup includes news on adspend, Halloween search, global ecommerce spend and lots more good stuff.</p> <p>Don’t forget to download the <a href="https://econsultancy.com/reports/internet-statistics-compendium/" target="_blank">Internet Statistics Compendium</a> for further insight. </p> <h3>Time change expected to trigger boost in travel spend</h3> <p>The clocks are set to go back an hour in the UK this weekend, and as a result, online search relating to travel is expected to skyrocket.</p> <p>Data from Lastminute.com shows that searches for international flights shot up 22% overnight when the clocks went back in 2015 - clearly a result of people wanting to escape their winter woes.</p> <p>With a 43% rise in searches, New York topped the list of the most-searched for destinations, followed by Milan, Amsterdam, Barcelona and Las Vegas.</p> <h3>1 in 3 customers are disengaged due to online billing</h3> <p><a href="https://www.echo-ms.com/knowledge-centre/research-resources/the-secrets-of-better-billing" target="_blank">New research</a> from Echo Managed Services has uncovered conflicting consumer views over online billing practice.</p> <p>Despite 70% of consumers preferring to view their bills online, a quarter of people would like greater clarity over their billing.</p> <p>Moreover, from a survey of over 1,000 consumers, 77% said they had experienced poor billing practice including inaccurate bills, incorrect tariffs and hard-to-understand documents.</p> <p>In order to become more in touch with their bills, 27% said they would like to receive alerts in advance to warn them of unusually high payments.</p> <p><img src="https://assets.econsultancy.com/images/0008/0872/Online_Billing.JPG" alt="" width="503" height="480"></p> <h3>India predicted to become the world’s second biggest ecommerce power</h3> <p>Worldpay’s Global Payments Report has predicted that India will overtake the US as the world’s next biggest ecommerce power, coming second only to China. </p> <p>While India currently accounts for less than 1% of the world’s ecommerce spend, the report predicts the value of the market will reach $2,039bn by 2034.</p> <p>This prediction comes on the back of wages in India rising 10% this year – combined with increased internet usage and the fact that 70% of the population are under the age of 35.</p> <h3>Harley Quinn is the UK’s number one searched-for Halloween costume</h3> <p>Data from Hitwise has revealed what the nation will be dressing up as this Halloween.</p> <p>Suicide Squad's Harley Quinn is the UK’s top costume search, followed by Disney’s Moana, Matilda and Deadpool.</p> <p>Unsurprisingly, searches for Donald Trump and Kim Kardashian have also been on the rise this year, coming out on top as the most searched-for celebrity costumes overall.</p> <p><img src="https://assets.econsultancy.com/images/0008/0873/Halloween.jpg" alt="" width="454" height="164"></p> <h3>57% of consumers expect companies to innovate</h3> <p>A new SalesForce report, the State of the Connected Customer, has revealed the extent to which customer expectations are rising alongside innovation in mobile technology.</p> <p>Now, customers expect that companies will anticipate their needs, with a personalised experience across all channels becoming standard.</p> <p>According to the report, 57% of consumers expect companies to innovate. In turn, 45% of consumers and 57% of business buyers are likely to switch brands if a company doesn’t anticipate their needs.</p> <p><img src="https://assets.econsultancy.com/images/0008/0874/Salesforce.JPG" alt="" width="633" height="308"></p> <h3>Eight out of 10 UK consumers are willing to provide personal measurements when online shopping </h3> <p>New research by Tryzens has shown that confusion over variation in size and fit is driving the rise of the ‘serial returner’.</p> <p>As a result, 68% of consumers say that they would be willing to provide their measurements to online retailers to ensure a good fit.</p> <p>With the estimated average cost of handling returns being £15 per order, this would be a win-win for both retailers and consumers alike, reducing business costs and improving customer experience.</p> <h3>GBBO winner backed by social media fans</h3> <p>It’s been the talk of Twitter for the past 10 weeks, and the latest data from Spredfast has revealed who was this year's most popular contestant from the Great British Bake Off.</p> <p>*Spoiler alert*</p> <p>Reflecting the final results, winner Candice Brown led as favourite throughout the series, garnering nearly 12,000 fan tweets overall.</p> <p>Andrew Smyth was a close second, with Jane Beedle’s popularity failing to take off.</p> <p><img src="https://assets.econsultancy.com/images/0008/0875/GBBO.png" alt="" width="780" height="396"></p> <h3>Mobile predicted to account for 75% of internet use in 2017</h3> <p>From analysis of 60 key markets, Zenith has predicted that mobile devices are expected to account for 75% of global internet use in 2017 - rising to 79% by 2018.</p> <p>The Mobile Advertising Forecasts report also found how quickly mobile has grown over the past four years.</p> <p>Accounting for just 40% of internet use in 2012, it rose to 68% in 2016. </p> <p>In terms of countries with the highest mobile internet use, Spain tops the list, followed by Hong Kong, China and the US.</p> <h3>45% of consumers have reportedly been a victim of cybercrime</h3> <p>According to new research from MarkMonitor, one in six people globally are said to have lost money due to cybercrime, with 20% losing in excess of £1,000.</p> <p>The most common type of fraud is false requests to reset social media account passwords, followed by emails from people attempting to solicit personal information.</p> <p>When it comes to consumer confidence, mobile banking apps and online shopping websites are rated the most trustworthy, both scoring over 50% in terms of trust.</p> <p><img src="https://assets.econsultancy.com/images/0008/0877/cybercrime.jpg" alt="" width="600" height="400"></p> <h3>US TV adspend fell 5.8% in September</h3> <p>According to data from Standard Media Index, overall TV adspend in the US declined 5.8% year-on-year this September, with broadcast TV seeing a particularly steep fall of 13.2%.</p> <p>Insight suggests that this is due to advertisers holding back on upfront spend in September, after committing a large proportion of the budget to the Summer Olympics. </p> <p>As a result, upfront spend decreased 25% while scatter spend was up 32% YoY.</p> tag:econsultancy.com,2008:BlogPost/68435 2016-10-20T15:13:00+01:00 2016-10-20T15:13:00+01:00 Q&A: Publicis’s Rishad Tobaccowala on digital transformation & agency double dealing Olivia Solon <h3>You have said that customers are now Davids while marketers are Goliaths. What do you mean by that?</h3> <p>Traditionally marketers have spoken about how they would enable people, empower people.</p> <p>But now you and I have smartphones with the same amount of processing power that was in the Space Shuttle.</p> <p><img src="https://assets.econsultancy.com/images/0008/0574/rishad.jpg" alt="" width="226" height="226"></p> <p>So what happens is we already are enabled by our phone and our social networks connected to the internet. This technology allows us to bring down Goliath. </p> <h3>How well are marketers coping with digital transformation, on the whole?</h3> <p>They are in the stage somewhere between grief and anger. They no longer have denial.</p> <p>The problem with grief and anger is that they are taking it out not on themselves but on anybody else. It’s one of the reasons why you are seeing so many agency reviews.</p> <p>They are slowly moving to acceptance but that doesn’t mean there’s a solution there. </p> <h3>Which companies are thriving in this environment? </h3> <p>Look at Dollar Shave Club.</p> <p>They realized they could market using Facebook and YouTube effectively by giving people value by selling blades made in the same factories as Gillette, without the overheads of Gillette’s advertising.</p> <p>This means they give you the same blade for half the price and send it to you directly.</p> <p>In return they went from no market share to 15% of the market and they got bought by Unilever for $1bn.</p> <p><iframe src="https://www.youtube.com/embed/ZUG9qYTJMsI?wmode=transparent" width="640" height="360"></iframe></p> <p>P&amp;G is now going to have to write down the value of Gillette. </p> <p>Similarly cab drivers used to give us problems and now they are very nice to us.</p> <p>In the old days our bosses would tell us ‘you are well paid’. Now, with Glassdoor we can see when that’s wrong.</p> <p>Entire industries are being revitalized. </p> <h3>Which companies aren’t coping well?</h3> <p>Most newspaper brands with the exception of the Wall Street Journal, Washington Post and New York Times. They failed to adapt.</p> <p>And TV networks. The basic concept has died but they still don’t realize. People care about shows rather than networks. Or modern networks like Netflix. </p> <h3>Why hasn’t the TV industry realized that the model is broken?</h3> <p>Primarily because it’s been highly lucrative and successful until about now. They have to recognize that the spectrum is no longer valuable.</p> <p>They have to think about the storytelling business. TV is the next big thing that will be restructured in a big way.</p> <p>Magazines? Too late. Newspapers? Too late. TV had the opportunity but did nothing because they were succeeding because it was the last mass medium left.</p> <p>They didn’t do any deals with the devil like Apple like the music industry did, but consumer behavior has moved. They no longer align with the consumer like Amazon and Netflix do. </p> <h3>What do marketers need to do to adapt to the new digital landscape?</h3> <p>The future does not fit into the mindsets of the containers of the past.</p> <p>If you are trying to get into a different business using the same people, incentive system and structures you aren’t going to get there.</p> <p>A bus does not fly however much the bus people want it to fly. You need pilots. And this applies to every company, not just agencies. </p> <h3>Are there any skills that still apply in this new digital world?</h3> <p>Insights and ideas matter. The ability to align with customers matters. Marketing still matters. Understanding and meeting people’s requirements.</p> <p>Marketing works otherwise we would all be using Blackberrys and driving Yugos.</p> <p>Marketing works when it has this combination of respect, trust, value and design as well as empathy and storytelling.</p> <p>It’s not like throwing the baby out with the bathwater. </p> <h3>What does this mean for agencies?</h3> <p>The agency business is one of the few businesses that will survive very well. The rationale is not because I work in it, it’s because the only thing we have is people.</p> <p>As the world changes we can change the people. We don’t have things like factories and assembly lines, TV spectrum and any sunk costs.</p> <p>Our holding company went from 7% digital to 50% digital in seven years. We’re light. We are stupid but we’re light.</p> <p>Our business is about some combination of automation and creativity. Storytelling for big brands and connecting machines requires people. </p> <h3>What does this mean for the CMO?</h3> <p>The future is about allowing people to access companies, to market to themselves.</p> <p>When I’m looking for a product or service I’ll ask my friends, check out stuff on Facebook and Google.</p> <p>We have to facilitate this self-marketing, so I suggested the Chief Marketing Officer becomes the Chief Facilitating Officer. </p> <h3>How will marketing evolve over the next five to ten years?</h3> <p>People increasingly want access rather than ownership. That changes the way you speak to people. It’s not one sale, you have to keep them happy.</p> <p>You need a continued good experience. As a result of that you need more investment in utility services and a superior product and less in advertising.</p> <p>If you have a superior product and service and fantastic content and storytelling you can get it distributed.</p> <p>So spend more money on content, utility and services and less in messaging and media. </p> <p>You are also going to have less arbitrage. You are going to have to work in a world of perfect information.</p> <p>That’s going to impact a lot of companies. For our company, our clients wonder, ‘can we trust you to shepherd our money properly or are you double dealing?’. Most of us aren’t.</p> <p>The reason there was any double dealing is because clients were saying ‘we won’t give you any fees so make it your own way’. So we worked out how to get paid.</p> <p>We have to grow up and learn how to connect. Our industry may become smaller, but it will be more profitable and with better people. </p> <h3>How can agencies rebuild trust lost?</h3> <p>Most clients believe we are the sewage of the Nile. You have to convince them we are the jewel in the Nile.</p> <p>If you do that with any arrogance you’ll get kicked out in 15 seconds. You cannot take people into the future if you are scared or arrogant.</p> <p>You also have to address the ‘turd on the table’.</p> <h3>What do you mean by addressing the ‘turd on the table’?</h3> <p>A big part of leadership is addressing reality. There are too many meetings where nobody discusses the real issue. People do these dances. Accept reality!</p> <p>Then there’s credibility and you can spend time arguing about the real problem: the shitty brown thing on the table, rather than ignoring it or pretending it’s chocolate cake. </p> <p>At the moment clients have questions over whether they can trust us to allocate their money and whether we are double dealing.</p> <p>After they get past that, clients are deeply insecure about their own future. <a href="https://econsultancy.com/admin/blog_posts/new/">Digital transformation</a> is an issue that’s challenging everybody. </p> <h3>Everybody?</h3> <p>Well apart from Google and Facebook. Every other company that was unstoppable – AOL, even Apple – has problems.</p> <p>Microsoft was unstoppable, Yahoo was unstoppable and both got into trouble. </p> <h3>What’s your advice to anyone starting out in marketing now?</h3> <p>Try to spend one hour a day learning new things. People always ask me how I stay fresh when I’ve worked in the same company for 30-40 years.</p> <p>Every day I spend between 4.30am and 6am learning new things. Today I was reading a book called Magic and Loss by Virginia Heffernan.</p> <p>Sometimes I play around with new tech like Samsung Gear VR. Sometimes I’m reading blogs or learning about new technology.</p> <p>Or read poetry. I spend 90 minutes doing stuff that helps me grow but is not about work or email. That’s how we remain relevant in a changing world. You have to educate yourself. </p> <h3>Every day?! What time do you go to sleep?</h3> <p>10pm. I get up at 4.30am when I’m in Chicago, which is 50% of my time. 5.30am in New York, which is 15% of my time.</p> <p>The rest of the time I do not get up. </p> <h3>So you travel a lot, how do you cope with jetlag?</h3> <p>I have three tricks. The first is luck. I know how to sleep on planes and I am relatively senior so I travel business class, which makes it easier to sleep.</p> <p>Then I work out every morning, so my system recognizes that if I am working out I must be awake. It’s a Pavlovian sign.</p> <p>Then I have coffee take-offs and alcoholic landings. Three espressos, exercise, sleep on planes, two beers at night. That’s what I do. </p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="http://digitalagencies.econsultancy.com/"><em>Top 100 Digital Agencies Report 2016</em></a></li> <li><a href="https://econsultancy.com/blog/68066-top-100-digital-agencies-2016-the-state-of-the-industry/"><em>Top 100 Digital Agencies 2016: The state of the industry</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68259 2016-09-05T15:40:46+01:00 2016-09-05T15:40:46+01:00 Are online advertisers wising up about content quality? Patricio Robles <p>As Gizmodo's Bryan Menegus <a href="http://gizmodo.com/youtube-stars-are-blowing-up-over-not-getting-paid-1786041218">explained</a>, the <a href="https://support.google.com/youtube/answer/6162278?hl=en">Advertiser-Friendly Content Guidelines</a>, which describe "content that is considered inappropriate for advertising," have been in place for some time.</p> <p>But a change to the way Google notifies content creators about videos that run afoul of them has led some to believe that Google is enforcing new rules they weren't informed about.</p> <p>Some took to YouTube to complain, and a #YouTubeIsOverParty trending topic emerged on Twitter.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Youtube: This isn't a policy change, its just a notification/appeal change.<br>Me: So before you were just turning off ads and not emailing us?</p> — Philip DeFranco (@PhillyD) <a href="https://twitter.com/PhillyD/status/771393317305057280">September 1, 2016</a> </blockquote> <p>While some popular YouTubers are screaming "censorship!", that's really not the case.</p> <p>Advertisers have a vested interest in ensuring that their ads aren't associated with content that isn't in alignment with their brands, and advertisers and YouTube have the right to determine which content is appropriate and desirable for ad-based monetization.</p> <p>Historically, many advertisers have failed to do a thorough job of policing where their ads are displayed.</p> <p>This is certainly due in some part to laziness, but also to the increasingly complex online advertising ecosystem.</p> <p><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">Programmatic</a> in particular makes it possible for advertisers to buy audiences, but also makes it difficult to control where those audiences are being reached.</p> <h3>Just how bad is the problem?</h3> <p>In some cases, this has seemingly unintended consequences.</p> <p>Take, for example, MeetMe, which bills itself as "a leading social network for meeting new people in the US."</p> <p>MeetMe <a href="http://www.sfcityattorney.org/2014/02/03/meetme-com-enables-sexual-predators-and-child-stalkers-herreras-lawsuit-contends/">was sued</a> by San Francisco's City Attorney Dennis Herrera in 2014 for failing to protect underaged users.</p> <p>At the time, Herrera stated that "MeetMe has become a tool of choice for sexual predators to target underage victims, and the company’s irresponsible privacy policies and practices are to blame for it."</p> <p>He claimed that "dozens of children nationwide have already been victimized by predators who used MeetMe to coerce minors into meeting."</p> <p>The case <a href="http://www.law360.com/articles/692914/meetme-changes-policies-settles-calif-minor-privacy-suit">was settled</a> in 2015, but critics of the company, some of whom it should be noted are shorting the company's stock, claim that MeetMe is still home to questionable content and activity.</p> <p>One company critic <a href="http://seekingalpha.com/article/3999917-meetme-1_50-target-price-advertisers-disavow-den-sexual-predators">recently claimed</a> that "it took us only minutes to find Tier-1 brand ads attached to sexually explicit / drug-related content on MEET’s mobile app."</p> <p>It then helpfully posted screenshots showing ads from brands like Coca-Cola, AT&amp;T, L.L. Bean and Target on pages these brands probably wouldn't expect to find them...</p> <p><img src="https://assets.econsultancy.com/images/0007/8744/meetme.png" alt="" width="400" height="327"></p> <p>A MeetMe investor relations presentation refers to companies like Disney, McDonalds, Walmart, Hallmark, Kraft and P&amp;G as "brand partners," although it's not clear that the company actually has a direct relationship with these brands.</p> <p>The company critic suggests that many of these brands are advertisers who purchase ads through third-party ad networks like MoPub, which is owned by Twitter.</p> <p>It goes without saying that no mainstream brand would consciously choose to display an ad alongside illegal or explicit content, but it can easily happen in today's online advertising ecosystem.</p> <h3>Reach doesn't always deliver results</h3> <p>As for YouTube, while it's not clear that the Google-owned property is "demonetizing" videos at a higher clip, the fact that it <em>is</em> apparently enforcing its Advertiser-Friendly Content Guidelines to some degree hints that advertisers just might be wising up about content quality.</p> <p>And that's a good thing.</p> <p>Sure, content creators might be upset that it will be harder to make money from videos featuring inane rants, vulgar pranks and the like, but they're not entitled to advertising dollars, and there's plenty of evidence that advertisers benefit most from true premium content.</p> <p>A recent comScore study <a href="https://econsultancy.com/blog/68086-ads-on-premium-sites-drive-67-greater-brand-lift/">found that ads on premium sites delivered 67% higher average brand lift</a> and the ability of premium content to deliver better results <a href="https://econsultancy.com/nma-archive/15251-premium-publishers-most-effective-for-performance-campaigns">has been observed for years</a>.</p> <p>So while viral videos with questionable content might deliver eyeballs, advertisers don't necessarily benefit when they lower their standards to chase reach.</p> <p>And as more of them come to accept that, it's possible that content quality will come to be discussed as frequently as, say, <a href="https://econsultancy.com/blog/66425-video-ad-viewability-is-a-major-problem-google-study">viewability</a>.</p> tag:econsultancy.com,2008:BlogPost/68232 2016-08-29T03:00:00+01:00 2016-08-29T03:00:00+01:00 China introduces far-reaching new internet ad law: Why it matters Jeff Rajeck <p><img src="https://assets.econsultancy.com/images/0007/8461/Us_ads.png" alt="" width="480" height="328"></p> <p>China, by comparison spends a far greater percentage (66%) of its advertising on internet and mobile and a much smaller percentage (24%) on traditional media.</p> <p><img src="https://assets.econsultancy.com/images/0007/8460/China_ad.png" alt="" width="481" height="323"></p> <p>So, even though the overall dollar amount spent in China is less than in the US, the<strong> internet is a much more significant part of advertising in China</strong>.</p> <p>Because of this, China is likely to be a trend-setter for other parts of the world.</p> <p>To learn a bit more about what might be coming to internet advertising in the rest of the world, here is the background and some detail of the new law in China.</p> <h3>Background</h3> <p>In July, 2015 China's State Administration for Industry and Commerce (“SAIC”) amended the Chinese Advertising Law to cover internet advertising.  </p> <p>New regulations were supposed to go in effect last September (2015) but were largely unenforced.</p> <p>Recently, however, there has been renewed interest in regulating online advertising, which may have something to do with the tragic story of Wei Zexi.</p> <h4>The death of Wei Zexi</h4> <p>On April 12, 2016, Chinese student Wei Zexi died after receiving experimental treatment for cancer which he found out about through an ad on China's main search engine, Baidu.</p> <p>The hospital had, apparently, claimed a high success rate for the treatment in the ad.  </p> <p>The ads were also regularly featured prominently in search results as the hospital group was reportedly responsible for nearly half of Baidu's multi-billion dollar ad revenues.</p> <p>Wei Zexi's death drew renewed attention to the Advertising Law from Chinese media, including 250,000 comments on an online editorial on the matter.</p> <p>In apparent response, the regulators not only censured Baidu and issued specific regulations for it, but also followed up with new laws.</p> <h4>Response</h4> <p>On July 4, 2016 the SAIC issued new regulations, the Interim Measures for the Administration of Internet Advertising, which take effect on September 1, 2016.</p> <p>The Advertising Law and the Interim Measures are the first step China's SAIC has taken toward defining and regulating advertising.</p> <h3>The new laws</h3> <h4>Internet advertising defined</h4> <p>There is a lot of detail in the definition of internet advertising in the new law (which you can read about <a href="http://www.lexology.com/library/detail.aspx?g=296c00a7-f562-4012-a6d3-c8ec58463c2f">here</a>), but in brief, <strong>internet advertising is defined as any commercial marketing anywhere on the internet for anything</strong>.</p> <p>The definition is broad and even includes out-of-home displays with web addresses and recommendation engines on ecommerce platforms.</p> <h4>Internet publishers defined</h4> <p>More interesting is how the regulators define a 'publisher.' According to the law <strong>a publisher refers to those who push OR display the advertising.</strong></p> <p>This can include websites, ad tech platforms, influencers, and even internet service providers.  </p> <p>In short, anyone who has the ability to review and prevent an illegal ad from showing can be held responsible.</p> <p>This definition is, again, quite broad and will give the government a lot of flexibility to enforce the law as it likes in the future.</p> <h4>Publishers obligations</h4> <p>The real meat of the regulation, however, are the <strong>publisher's obligations.</strong></p> <p>According to the new law, publishers will need to: </p> <ul> <li>know who their customers are,</li> <li>verify any credentials they give, and</li> <li>verify the ad content.</li> </ul> <p>To handle this, publishers and ecommerce sites will be expected to hire specialists to record customer details, review all ads and block those which do not comply. </p> <p>While there are other things in the law, such as anti-spam clauses and a ban on ad-blockers (<a href="http://adage.com/article/digital/china-ban-ad-blocking/305077/">maybe</a>), the fact that publishers, broadly defined, will be responsible for the claims made by advertisers is among the biggest changes.</p> <p>This means that China has gone from one of the least regulated advertising markets to one of the most, almost overnight.</p> <h3>Example: Baidu</h3> <p>These regulations sound somewhat far-reaching and difficult for companies to comply with.</p> <p>But have a look at Baidu's search results for cosmetics (化妆品).  The top three results are ads and are, as one might expect, marked as promotional posts on the right in blue (商业推广).</p> <p><img src="https://assets.econsultancy.com/images/0007/8465/baidu_2.png" alt="" width="438" height="442"></p> <p>But interestingly there is also a grey link after the domain name (评价) which sends the browser to another page, offering details about the advertiser and fielding comments.  </p> <p>Here it is for one vendor, translated into English by Google.</p> <p><img src="https://assets.econsultancy.com/images/0007/8463/baidu_vendor.png" alt="" width="452" height="267"></p> <p>It seems, therefore, that <strong>Baidu is already taking the regulations quite seriously.</strong></p> <h3>Why everyone should be interested in China's new laws</h3> <h4>1. The new laws raise interesting questions for other countries</h4> <p>Most Western countries have carried over existing advertising legislation to online platforms.  </p> <p>This works well when the advertising model has two players, the advertiser and the publisher, but breaks down when there are multiple parties involved.</p> <p>Unresolved questions include:</p> <ul> <li>Who is responsible for ad content in <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic advertising</a>?</li> <li>Is checking native ads the reponsibility of the publisher or the agency?</li> <li>What about influencers who appear on a social media site via an agency?</li> </ul> <p>China's legislators have a simple answer, <strong>everyone in the ad chain is potentially responsible</strong>.  </p> <p>While this may seem heavy-handed it will likely encourage the various players to be much more careful with ads than if they felt they could always blame the originator or the delivery platform.</p> <h4>2. The regulation might set a trend</h4> <p>Because the law does address these issues left somewhat unclear in the West, China's approach may attract the attention of Western regulators.</p> <p>As of yet, there have been very few cases of regulators cracking down on behavioural, programmatic, or even <a href="https://econsultancy.com/reports/the-rise-of-influencers/">influencer marketing</a>.</p> <p>One recent example is from the US. The  Federal Trade Commission <a href="http://www.adweek.com/news/advertising-branding/ftc-slams-lord-taylor-deceiving-customers-not-disclosing-its-native-ads-170229">filed a complaint against fashion retailer Lord &amp; Taylor in the US</a> for unregulated influencer marketing.</p> <p><img src="https://assets.econsultancy.com/images/0007/8464/lord_taylor.jpg" alt="" width="486" height="243"></p> <p>There are, however, very few other cases of such action and, in fact, <a href="http://www.prweek.com/article/1390325/brands-agencies-admit-flouting-uks-rules-influencer-marketing">many marketers freely admit overstepping guidelines</a> set by their regulators.</p> <p>If China's approach works without seeming heavy-handed, therefore, <strong>other countries may end up with similar laws governing internet advertising.</strong></p> <h4>3. The new laws could spark innovation</h4> <p>One interesting angle in all of this is because each layer of the ad tech stack is held responsible for content, it is likely that technical monitoring solutions will arise.</p> <p>It will not be easy for publishers, agencies, buy and sell-side platforms, and even brands to ensure that all ads published are compliant.</p> <p>Because of this, new ad tech with compliance features may spring up to help all involved with the process.</p> <h3>So...</h3> <p>Brands that are advertising in China<strong> should become familiar with the legislation as soon as possible.</strong>  </p> <p>As of September 1, 2016 the State Administration for Industry and Commerce will be monitoring for ads which violate the policies set out in the Advertising Law and the Interim Measures for the Administration of Internet Advertising.</p> <p>Those who do not currently advertise in China should, however, take note as well.  </p> <p>Most other countries currently enjoy little or no regulation, but should China's attempts to regulate be effective it would not be a surprise to see such laws appear elsewhere.</p> <p><em>For related information, read Econsultancy's <a href="https://econsultancy.com/reports/the-china-digital-report/">China Digital Report</a>.</em></p> tag:econsultancy.com,2008:BlogPost/68210 2016-08-22T14:57:44+01:00 2016-08-22T14:57:44+01:00 How programmatic advertising is helping drive the digital transformation agenda Seán Donnelly <p>By combining automation and data, programmatic can enable marketers to make use of everything they know about their audience to send them personalised advertisements and customised messaging in real time.</p> <p>For this reason, the implications for marketing professionals, marketing departments and <a href="https://econsultancy.com/blog/68066-top-100-digital-agencies-2016-the-state-of-the-industry/">the agency landscape</a> are revolutionary. </p> <p>The reality though is that many marketers have been slow in getting to grips with this new approach.</p> <p>To try and understand why, I caught up with Head of Digital at Disrupt the Market Ltd and Econsultancy trainer Andy Letting. </p> <p>Andy, an established senior digital leader, has worked across a range of digital transformation projects supporting traditional businesses to adapt to the fast paced world of digital marketing.</p> <p>He will be delivering a programmatic workshop prior to Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get with the Programmatic 2016</a>, taking place on September 21.</p> <h4>Programmatic has been around for several years now. Is there are a reason why some organisations have been hesitant about making it a part of their marketing activities? </h4> <p>“If I put a digital hat on, the process is straightforward in terms of data and technology. </p> <p>"For marketers schooled in traditional marketing and non-marketers within a business, it might be easy to get confused by the vocabulary used to describe programmatic and so it can be difficult to get your head around. </p> <p>"My background is all digital and so I am used to thinking about data, reaching the right audiences and rigorous measurement.</p> <p>"I can however understand how programmatic may not have evolved as quickly within mainstream marketing departments due to organisational structures, marketing skillsets and leadership teams which may not have come from a digital background."</p> <h4>Digital transformation is a topic that we spend a lot of time thinking about at Econsultancy. Is it fair to say that programmatic is another lever driving the transformation agenda? </h4> <p>“Digital is disruptive by its own nature; whether that's from a customer’s perspective or within an organisation.</p> <p>"I think programmatic could be seen as disruptive within the media buying space but then again digital as a whole is disruptive. Mobile has been disruptive for many years now.</p> <p>"There are different areas of digital from website design, media buying, tracking customer journeys, operations and ecommerce.</p> <p><em>A hub and spoke model for organisational structure</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8319/hub_and_spoke.png" alt="" width="336" height="323"></p> <p>"Programmatic is just another iteration that to some extent is simplifying a way of buying media that was fairly clunky and not straightforward."</p> <hr> <p>Andy makes a good point. Programmatic is another step along the path to <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a>.</p> <p>Another theme that regularly surfaces from Econsultancy research, analysis and client discussions is the requirement to become more customer centric.</p> <p>A key barrier in becoming more customer centric cited by many businesses is that of organisational structure. </p> <p>Econsultancy publishes a very popular report called “<a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/">Digital Marketing: Organizational Structures and Resourcing Best Practice Guide</a>” which offers guidance to companies on organisational restructuring and digital transformation.</p> <p>The report first came out in 2011 but has been revised since. Among other things it proposes a digital maturity model which has five stages of evolution:</p> <ol> <li>Dispersed</li> <li>Centralised</li> <li>Hub and spoke</li> <li>Multiple hub and spoke</li> <li>Fully integrated</li> </ol> <p>The end vision for ‘digital’ is essentially that it becomes so much part of the organisation that it ceases to exist as a separate function.</p> <p>Many organisations though, are currently somewhere between the centralised and hub and spoke stages. This means that they still have separate marketing and digital teams.</p> <p>I asked Andy how the separation between digital and marketing teams might impact upon the effectiveness of programmatic campaigns.</p> <hr> <h4>You mention the separation of digital and marketing teams. Could there be an issue where programmatic campaigns are run separately to other marketing initiatives?</h4> <h4>Or could there be an issue where digitally minded people are able to structure a programmatic campaign but may not have the same marketing and commercial awareness as their colleagues in the marketing team? </h4> <p>“Yes that's a good point. From my experience programmatic has always been a nice to have. I've generally seen it sit within the digital team.</p> <p>"How closely the digital team works with the marketing team depends upon the organisation.</p> <p>"I think you'll find that because it's perceived as technical, you will find traditional marketers may be wary either because of a lack of exposure or knowledge. </p> <p>"As digital becomes more immersed within the marketing department and the marketing framework, we still start to see the two working in more harmony. </p> <p>"Until digital is fully integrated into the business and the marketing team has been skilled up on digital, that knowledge gap and challenge will remain.</p> <p>"The reality is you need both. You need to know who your customer is and also the technical know-how of how to reach those people.</p> <p>"If you take an FMCG company like P&amp;G or Unilever that owns multiple brands, one approach to integrating programmatic into other marketing activities may involve testing.</p> <p>"One brand could test programmatic by having an internal sponsor who can put the building blocks in place and take other business stakeholders on a journey. </p> <p>"Ultimately though, programmatic is all about focusing on the customer and pulling together skillsets within the organisation to reach that customer in ways that you haven't done before.</p> <p>"That means getting brand buy in and support. You will also need to bring together legal and data teams.”</p> <h4>In <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-2016-digital-trends/">Econsultancy’s 2016 Digital Trends report</a>, 7 out of 10 marketers said that optimising the customer journey across multiple touchpoints was going to be very important for their marketing over the next few years.</h4> <h4>Is there an opportunity for programmatic to serve different kinds of advertising depending on where somebody is along that journey? </h4> <p>“So there are a number of things here. Of course, advertising needs to be relevant.</p> <p>"If you are in the infancy of your programmatic journey, you will have your lookalike models, CRM models and your prospecting models and you'll put them into the data pot (DMP) to try and get them all to work together. </p> <p>"I think the reality is that relevance is the utopia but at the same time that is only as good as your data.</p> <p><img src="https://assets.econsultancy.com/images/0007/8318/touchpoints.png" alt="" width="700" height="583"></p> <p>"From my experience, a lot of brands have really struggled in terms of getting <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">a single customer view</a> and (so) have been very reliant on partnership data, second-party data and even third-party data.</p> <p>"Ultimately where the real value lies is in creating unique data sets that are so refined to that customer and that need that ultimately you are driving greater conversion and greater revenues.</p> <p>"There are many different scenarios that you play out that you then have to adapt and make use of the learnings. For instance, programmatic buying on Facebook is probably one of the most advanced in terms of data available.</p> <p>"The data that Facebook has on people is phenomenal. That's why there's this huge head-to-head between Facebook and Google. </p> <p>"My point is that programmatic can help marketers to see opportunities. For example, you can do A/B testing and seed videos on Facebook for 24 hours.</p> <p>"Then, Facebook can scale up the video that gets the most traction after 24 hours to meet your budget automatically. It's all done in an automated fashion. </p> <p>"Also, what can actually happen is that brands find out that they've inspired audiences that they never knew were interested in their brand and so suddenly they get all of this insight back from testing that can completely reshape their customer profiling and awareness. </p> <p>"For me it's about bringing that insight back into the business to reform campaigns.”</p> <h4>If marketers are going to launch and optimise ad initiatives as opportunities emerge, does this suggest that the process of setting advertising budgets on quarterly cycles may not be appropriate for managing campaigns that need to be managed in real time?</h4> <p>“The Financial Controller will give you a budget but it’s important that you make some of that budget available for some sort of innovation. You take a percentage of your budget and that's your innovation pot.</p> <p>"If you don’t make budget available for testing, you won’t be able to benefit from programmatic and other new tactics."</p> <hr> <p>As organisations continue to respond to digital and the opportunities available through tactics like programmatic, we can expect to see a new marketing model that marries the ability of marketers to think creatively with the precision of utilising multiple data sets to create a single customer view and deliver automated campaigns that can be adapted on the fly.</p> <p>For this reason, marketers may need to embrace programmatic and the opportunities it brings or they risk being left behind.</p> <p>To continue your programmatic education, why not attend <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get with the Programmatic</a>, Econsultancy and Marketing Week’s conference on the topic, taking place on in London on September 21.</p> tag:econsultancy.com,2008:BlogPost/68198 2016-08-17T10:06:00+01:00 2016-08-17T10:06:00+01:00 How ‘people-based marketing’ is redefining effectiveness in programmatic ad buying Maeve Hosea <h3>How is programmatic allowing you to move forward with your advertising strategy?</h3> <p>Crucially, programmatic enables us to have more transparency.</p> <p>Historically, we didn’t get a lot of information out of the media buys we were doing through large media agencies.</p> <p>We weren’t aware of where the inventory was being served and therefore unable to learn about where customers were and what type of messaging and content they were interacting with.</p> <p>We were paying lots of money but not taking the learnings away from it in terms of how to optimise – spending hundreds of thousands but none the wiser.</p> <p>The advantage of programmatic is that you are making that investment, you are seeing media buys that are working, how that changes over the course of a year, how it is affected by seasonality and so forth.</p> <p>That is then valuable knowledge that the business retains.</p> <h3>What do you think are the most exciting programmatic developments across media?</h3> <p>The line Facebook is currently touting about people-based marketing is something that I am passionate about.</p> <p>The programmatic solution in Facebook today means you can upload lists and very specifically target people.</p> <p><em>MBNA has been buying Facebook ads programmatically</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8109/MBNA_programmatic_ad.jpeg" alt="" width="715" height="449"> </p> <p>So it seems it is only a matter of time before we see the next evolution of programmatic display, TV buying and whatever else programmatic evolves into.</p> <p>Programmatic will increasingly become about audiences rather than cookies and pixels.</p> <h3>What can you say about fraud and the challenge that poses?</h3> <p>Fraud as an issue is ever-evolving. We have to watch that just as we have to watch ad blocking and anything else that fundamentally changes the area we are operating in.</p> <p>Our way of dealing with it has been to change our success metric. We have been working on changing the KPI to look at incrementality as a way to help mitigate risk from fraud.</p> <p>We are now using our non-viewed display conversions – of which we have a lot, like everybody else – to get our baseline conversion rate.</p> <p>Success is the incremental between the impressions we serve that don’t get viewed and the impressions that do get viewed.</p> <p>That shows us the true performance of our display advertising.</p> <h3>Where do value, creativity and effectiveness meet?</h3> <p>For us it is about [defining the right audience segments for a campaign] but it is also about tailoring the message to what we know about people.</p> <p>My approach, with our provider Infectious Media, is to think about different treatments where advertising is more likely to resonate with people, based on information that I can acquire from across social or various third parties.</p> <p>Programmatic is a strange field in that it increasingly requires numbers people but ultimately the output for all those numbers and analysis – the segmentation that you are running – is still creative and requires creative people.</p> <p>We do some of that work in-house but we also reach out to specialist agencies to push the boundaries of creative thinking.</p> <h3>Which media channels are next for programmatic and why?</h3> <p>The obvious one is TV. The guys at Sky are kind of there with AdSmart but it is a little on the expensive side.</p> <p>You would think that the players will bring that element to the table soon enough and we are going to be able to buy TV advertising programmatically.</p> <p>That is the challenge for the industry: helping people feel a bit better about marketing by delivering marketing that is more aligned to their wants, needs and interests.</p> <h3>What are the pressing issues in the programmatic sphere moving forward?</h3> <p>Cross-device marketing is crucial. There are lots of people trying to do deterministic measurement models within display advertising [where a consumer is identified by linking browsing behaviour with personal login data] and I have a big issue with a way a lot of those are set up.</p> <p>I am not convinced by the accuracy or transparency that sits within that. It is still a bit of a bugbear and I think the industry still has a lot of work to do on solving that cross-device piece.</p> <p>Programmatic needs to evolve by moving away from cookies and pixels and I think the people-based marketing approach has the power to tip the whole industry on its head.</p> <p><em><strong>Back for a third year, Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a> conference and workshop will take place in London on 20 and 21 September. </strong></em></p> <p><em><strong>Nic Travis is one of the brand experts sharing insights into how to make the programmatic landscape work for you.</strong></em></p> <p><em>This article was originally <a href="http://www.marketingweek.com/2016/08/16/how-people-based-marketing-is-redefining-effectiveness-in-programmatic-ad-buying/">published on Marketing Week</a>.</em></p> tag:econsultancy.com,2008:BlogPost/68086 2016-07-20T12:30:00+01:00 2016-07-20T12:30:00+01:00 Ads on premium sites drive 67% greater brand lift Patricio Robles <p>comScore came to this conclusion after looking at data from sites owned by publishers that are members of Digital Content Next (DCN), a trade organization that consists of brand publishers that have direct relationships with the consumers they serve, such as The New York Times and Condé Nast.</p> <p>As <a href="http://www.comscore.com/Insights/Blog/Premium-Publishers-Drive-Much-Higher-Brand-Lift-Particularly-Mid-Funnel">detailed by</a> comScore's Andrew Lipsman...</p> <blockquote> <p>One of the key findings from the research demonstrated that ads appearing on DCN premium publishers were significantly more effective in driving brand lift. While some of this effect was due to higher ad viewability on premium sites, the more significant driver was the halo effect of appearing on these sites. </p> </blockquote> <p>Overall, sites operated by DCN members delivered 67% higher average brand lift.</p> <p>Mid-funnel, where favorability, consideration and intent to recommend are established, the lift was even more pronounced, with DCN publishers delivering three times the lift as their non-premium counterparts.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7164/halo_effect_graphic2_reference-blog-flyer.png" alt="" width="470" height="413"></p> <p>According to Lipsman, "This outsized mid-funnel performance is of particular significance for the large consumer brands that drive the majority of digital ad spending.</p> <p>"These brands will tend to have already established high brand awareness and therefore prefer to focus more on influencing how consumers feel about the brand so that they are more likely to purchase that brand when they are in the market to do so."</p> <p>In addition to the "halo effect" of high-quality content, the outsize performance of ads on premium sites can partially be attributed to higher viewability rates (50% compared to 45%) and lower levels of illegitimate traffic.<br></p> <h3>Implications for programmatic</h3> <p><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic">The rise of programmatic</a> has been fueled, in part, by the notion that advertisers can more easily target audiences they want to reach at scale.</p> <p>In many cases, programmatic also creates arbitrage opportunities for advertisers in which they can reach audiences similar in composition to those they would have to pay higher rates to reach if they purchased premium inventory.</p> <p>comScore's data, however, suggests that it's not quite that simple.</p> <p>Instead, there appears to be a relationship between the quality of the site on which ads appear and the lift advertisers can expect to see from those ads. In other words, performance is not just about audiences, it's about where those audiences are reached. </p> <p>Should this change views about programmatic? Not necessarily. Audience-based media buying still makes sense, and just because ads on premium sites deliver higher lift doesn't mean that premium inventory is uniquely capable of delivering healthy ROI.</p> <p>Different campaigns have different goals, and even for those brand advertisers that highly value the kind of mid-funnel lift comScore observed, there is only so much premium inventory available.</p> <p>But comScore's research does suggest that advertisers would also be wise to consider looking for <a href="https://econsultancy.com/blog/62028-programmatic-premium-is-not-about-bidding">premium programmatic</a> opportunities, such as those offered by <a href="https://econsultancy.com/blog/66226-prominent-news-publishers-band-together-to-sell-ads">private exchanges</a>, to ensure that they're tapping into the apparent advantages of premium inventory.</p> <p><strong>For more on programmatic, why not attend our <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> conference in London.</strong></p>