tag:econsultancy.com,2008:/topics/ad-exchanges Latest Ad exchanges content from Econsultancy 2016-10-28T14:27:34+01:00 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> tag:econsultancy.com,2008:BlogPost/68067 2016-07-15T14:27:00+01:00 2016-07-15T14:27:00+01:00 Is ad fraud the 21st century drug trade? Patricio Robles <p>The Senators are concerned that ad fraud, which is estimated to be costing advertisers billions annually, could eventually lead companies to pass the costs of fraud on to consumers in the form of higher prices.</p> <p>They are also concerned that as fraudsters flood the online ad market, consumers will be at greater risk of having personal information stolen and abused.  </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Here's an amazing fact: by 2025, the digital ad market could be 2nd only to drug trafficking as largest revenue source for organized crime</p> — Mark Warner (@MarkWarner) <a href="https://twitter.com/MarkWarner/status/752512068562063360">11 de julio de 2016</a> </blockquote> <h3>The role of programmatic</h3> <p>While digital ad fraud has been around in some form or another since digital ads first appeared, it appears to be becoming more lucrative and complex.</p> <p>There's more digital ad inventory than ever, and many advertisers are pouring more and more money into digital spend. At the same time, publishers and advertisers have embraced <a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic">programmatic</a> ad buying.</p> <p>According to Senator Mark Warner of Virginia, this makes for a dangerous combination. <a href="http://www.wsj.com/articles/senators-urge-ftc-to-examine-ad-fraud-1468231200">He told</a> the Wall Street Journal... </p> <blockquote> <p>This is a $60 billion industry, and some of the fraud numbers suggest that 10% of that is being wasted. And you’re seeing some of the same tools [we saw] in stock manipulation. This needs to be looked at.</p> </blockquote> <p>Warner likens the ad fraud problem to the 2008 financial crisis, and suggests that "some of the tech community has swept this under the rug," though he admits that he and other lawmakers have a lot to learn about the subject before the possibility of legislation should be put on the table.</p> <p><strong>But is ad fraud really a problem that can legitimately be compared to drug trafficking? That isn't so clear.</strong></p> <p>The industry is <a href="https://econsultancy.com/blog/67660-what-can-prevent-ad-fraud-we-ask-an-ad-tech-ceo">well aware of the issue</a>, and many parties are working to mitigate it.</p> <p>The good news is that digital advertising is one of the most accountable forms of advertising, so prudent advertisers have many opportunities to ensure that they're not being taken for a ride.</p> <p>So what explains the fact that advertisers are estimated to be spending billions on fraudulent ads that aren't being seen by real people? It's simple: in most cases, ad prices reflect advertisers' knowledge that fraud and <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats">ad blockers</a> will prevent 100% viewability.</p> <p>As former brand marketer Rick Webb <a href="https://econsultancy.com/blog/66712-former-brand-marketer-banner-ads-suck-but-they-re-great">explained last year</a>...</p> <blockquote> <p>We’ll spend a million bucks on a literal f**k ton of banners (I mean, just billions of the things, it’s crazy). And then we’ll do targeted brand sentiment and purchase-intent surveys using our internal peeps, online along with companies like Nielsen and Foresee, and offline with a bunch of (really quite awesome) companies you’ve never heard of. Then we’ll see whether the banners moved the needle, and if they did (and they often do), we’re happy.</p> </blockquote> <p>In other words, <a href="https://econsultancy.com/blog/67632-why-chasing-after-100-viewability-makes-no-sense-for-advertisers">100% viewability isn't required</a> to run profitable campaigns, and sophisticated advertisers are more than capable of factoring viewability into their considerations when determining how much they should pay for ads.</p> <h3>The bigger problem?</h3> <p>Obviously, this doesn't mean that ad fraud isn't a problem worth addressing, but the idea that ad fraud, and programmatic ad fraud in particular, is going to create a Wall Street-like crisis that threatens the digital advertising ecosystem seems far-fetched.</p> <p>If anything, lawmakers and regulators should be more concerned about how fraudsters <a href="https://econsultancy.com/blog/67924-is-facebook-doing-enough-to-prevent-fraudulent-ads">are using digital ads to target consumers</a>. Long-term, that is perhaps the biggest threat to digital advertising that publishers and advertisers should be most concerned about.</p> <p><em>Want to know more, why not attend <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a>, Marketing Week and Econsultancy's one-day conference on 21st September in London, to hear from brand and agency experts.</em></p> tag:econsultancy.com,2008:BlogPost/67927 2016-07-01T15:03:00+01:00 2016-07-01T15:03:00+01:00 Mobile programmatic is now an established digital channel: Stats Patricio Robles <p>In fact, last month mobile ad platform MoPub declared that mobile programmatic has made the transition "from emergent to established."</p> <p>In its <a href="http://www.mopub.com/2016/05/19/global-mobile-programmatic-trends-report-mobile-programmatic-from-emergent-to-established/"><em>Global Mobile Programmatic Trends Report</em></a> for Q1 2016, MoPub detailed how "event-based and seasonal trends early this year now point to alignment with the most established advertising channels." </p> <p>For example, political advertisers upped their mobile programmatic ad spend around key dates, such as debates.</p> <p>And tax preparation companies did the same as due dates for taxes approached.</p> <p><img src="https://assets.econsultancy.com/images/0007/6287/mopub2.png" alt="" width="630" height="351"></p> <p>MoPub also observed that the mobile programmatic ecosystem was expanding beyond major advertisers.</p> <p>In Q4 2015, over half of mobile programmatic spend was attributed to Fortune 1000 companies, and a third was attributed to the Fortune 500.</p> <p>But in Q1 of this year, non-Fortune 1000 advertisers upped their spend.</p> <h3>Banner ads are blah, high-impact inventory drives rise of private exchanges</h3> <p>Looking at where that spend went, it's clear that advertisers taking advantage of mobile programmatic are looking beyond the ubiqutious but increasingly lowly banner ad.</p> <p>According to MoPub, competition, which MoPub defined as bid depth, was 36% higher for interstitial inventory, and competition for video inventory was 53% higher.</p> <p>To meet the demand, publishers brought on more interstitial and video inventory.</p> <p>Video inventory alone grew by 32% quarter-over-quarter, and more importantly, publishers are realizing financial gains from this inventory.</p> <p>Year-over-year, revenue from video ads has more than doubled.</p> <p><img src="https://assets.econsultancy.com/images/0007/6286/mopub1.png" alt="" width="629" height="351"></p> <p>Some of the significant revenue growth from high-impact inventory is probably the result of the growth of <a href="https://econsultancy.com/blog/66226-prominent-news-publishers-band-together-to-sell-ads">private exchanges</a>.</p> <p>MoPub says that 88% of spend in private exchanges in Q1 was directed to interstitial inventory, and advertisers paid 77% higher eCPMs for that inventory than in open exchanges. </p> <p>With that in mind, it would not be surprising to see publishers moving to sell more of their premium inventory through private exchanges going forward.</p> <h3>Mobile programmatic goes global</h3> <p>The demand for inventory is global, and MoPub saw rapid growth in both the EMEA and APAC regions.</p> <p>In Q1, EMEA inventory grew 52% year-over-year while spend nearly doubled. In APAC, inventory grew a whopping 127% year-over-year, while spend increased 104%.</p> <p>But while both regions are growing at a rapid pace, there are still significant differences.</p> <p>Video and native ad spend has more than tripled in EMEA, but in APAC, banner ads still account for nearly half (44%) of mobile programmatic supply.</p> <p>That has decreased from 77% a year ago, though, so the trend toward higher impact ad units is evident in APAC too.</p> <p><img src="https://assets.econsultancy.com/images/0007/6289/mopub3.png" alt="" width="629" height="349"></p> <h3>Challenges remain</h3> <p>Despite the fact that mobile programmatic can arguably be called established instead of emergent, challenges remain.</p> <p>In 2014, a study by Forrester <a href="https://econsultancy.com/blog/66930-five-things-marketers-need-to-know-about-programmatic">found that just 23% of marketers understood programmatic</a>.</p> <p>While that figure has almost certainly increased since then, programmatic is still seen as complex if not downright confusing to many marketers and use of <a href="https://econsultancy.com/blog/65197-the-beginner-s-glossary-of-programmatic-advertising">programmatic terminology</a> can produce blank stares.</p> <p>But even for marketers that understand and have embraced programmatic, making the most of it is an ongoing process.</p> <p>Issues like the role of <a href="https://econsultancy.com/blog/67580-creativity-in-programmatic-should-not-be-an-afterthought">creativity in programmatic</a> are the subject of much debate today, and will probably remain topics of discussion for the foreseeable future.</p> <p>That means marketers will have to learn and adapt as they go because as MoPub's data demonstrates, the programmatic train has clearly left the station and it will be difficult for marketers to avoid jumping on board. </p> <p><em><strong>Econsultancy and Marketing Week are hosting <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> on 21 September in London. </strong></em></p> <p><em><strong>Now in its third year, the conference will demystify the most enigmatic topics in programmatic and explore future trends.</strong></em></p> tag:econsultancy.com,2008:BlogPost/67931 2016-06-13T14:20:32+01:00 2016-06-13T14:20:32+01:00 Why all the excitement surrounding Facebook’s Dynamic Ads? Lauren Evans <p>Because they're starting to really take off.</p> <p>In fact, the growth in product-focused dynamic ads (originally called Dynamic Product Ads) is believed to be one of the factors that helped spend on social ads jump 86% year-on-year in Q1 2016 according to Kenshoo data (see chart).  </p> <p>And dynamic ads, coupled with growing Instagram advertising, helped push social spend in Q1 2016 higher than Q4 2015, going against the grain of typical seasonal spend patterns.</p> <p><img src="https://assets.econsultancy.com/images/0007/5969/facebook_dynamic_ads.png" alt="" width="464" height="233"></p> <p><img src="https://assets.econsultancy.com/images/0007/5970/facebook_dynamic_ads_2.png" alt="" width="464"></p> <p>So what is behind the increasing interest in this ad format?</p> <p>Here are three important things you should know about dynamic ads.</p> <h4>1. They were designed to make advertising easier for retailers who have a large product inventory</h4> <p>Dynamic ads were introduced in early 2015 to give retailers an effective, automated way to promote large numbers of products on Facebook.</p> <p>To use this ad format, advertisers have to connect their online product feed to their Facebook ad accounts.</p> <p>This allows Facebook to dynamically generate ads for individual products and show them to relevant audiences.  </p> <p>Product IDs, names, descriptions, landing page and image info is automatically pulled from the feed to build the ads, hence the ‘dynamic’ in the name.</p> <p><img src="https://assets.econsultancy.com/images/0007/5971/facebook_Walgreens_ad.jpg" alt="" width="800"></p> <p>Dynamic ads can support thousands of products and as long as your feed is up to date, any items that are out-of-stock will never be shown.</p> <p>You can choose to display a single product image or video per ad, or showcase a carousel of up to ten products within a single ad unit.</p> <p>You might use the carousel format to show a pair of shoes in several colours for example, or a selection of jeans in a specific price range.</p> <p>Typically we’ve found that between three and five related products in a carousel produces the best results.</p> <p>To date, more than 2.5bn unique products have been uploaded to the dynamic ads for Facebook format.  </p> <p>And as of April 2016 dynamic ads have also become available to advertisers on Instagram.</p> <h4>2. Retargeting and personalisation are a key part of their success</h4> <p>You can target dynamic ads at people’s interests, likes or demographic profile, as well as to <a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences/">custom audiences</a> extracted from your customer database or email lists.</p> <p>And what’s been really effective, is retailers using this ad format to retarget those who have visited their website or app.</p> <p>Facebook provides a custom audiences pixel which tracks the product pages a visitor has viewed, which products they’ve added to shopping baskets and what they’ve purchased.</p> <p>This allows advertisers to show people personalised ads based on their behaviour and interaction with their products online.</p> <p>So a retailer can, for example, target someone who’s looked at a specific product page and show them ads displaying different versions of the same or related products or offer incentives to help them convert.</p> <p>This kind of intent-based retargeting makes ads less intrusive.</p> <p>And is one of the reasons why we’ve seen clients generating click-through rates of 1.7% in Q1 of 2016, outperforming the overall social average of 1.0%.</p> <p>Facebook recognises the value of personalised behavioural targeting and has added new options to retarget based on stronger intent signals - such as when a visitor has gone to the same page a number of times or spent a certain amount of time there.</p> <p>You can also retarget based on the value of their last purchase.</p> <h4>3. They’re now available to travel advertisers</h4> <p>Facebook now believes that dynamic ads can appeal to more than just product advertisers.</p> <p>So in the first instance it has started making them available to travel advertisers to run more personalised retargeted ads.</p> <p>Initially a select number of travel advertisers are able to retarget hotel ads to online visitors who have browsed hotels or bought flights from their sites.  </p> <p>The ads can be dynamically updated with hotel availability and pricing for the booking window and the location someone has shown an interest in, for example.                                               </p> <p>Looking ahead you can quite clearly imagine other travel services that could be advertised in this way aligned to purchase intent.  </p> <p>For example car rental ads could be retargeted based on time and location that someone has browsed.</p> <p>And it would not be a big leap to envisage this type of dynamically retargeted ad working for other verticals besides travel.</p> <p>The danger with any kind of advertising is that it can seem invasive and an unwelcome interruption.  </p> <p>Dynamic ads are showing that it’s possible to sidestep this with high performing automated social campaigns that make ads meaningful and relevant to the audience.</p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67924-is-facebook-doing-enough-to-prevent-fraudulent-ads"><em>Is Facebook doing enough to prevent fraudulent ads?</em></a></li> <li><a href="https://econsultancy.com/blog/67879-facebook-s-busy-may-2016-provides-new-opportunities-for-marketers"><em>Facebook’s busy May 2016 provides new opportunities for marketers</em></a></li> <li><a href="https://econsultancy.com/blog/67603-what-marketers-need-to-know-about-facebook-s-livestreaming-push/"><em>What marketers need to know about Facebook's livestreaming push</em></a></li> </ul>