tag:econsultancy.com,2008:/topics/ad-networks Latest Ad networks content from Econsultancy 2016-05-19T11:21:14+01:00 tag:econsultancy.com,2008:BlogPost/67835 2016-05-19T11:21:14+01:00 2016-05-19T11:21:14+01:00 Bringing data into creativity in a programmatic world Glen Calvert <p>Data isn’t sexy, consequently, it isn’t loved by brand advertisers. In their minds, data is the preserve of the far less noble direct marketing realm.</p> <p>The idea of putting data at the core of campaigns, which the direct marketer does, is an anathema to the brand advertiser.</p> <p>A neat illustration of this thinking is through <a href="https://econsultancy.com/training/courses/personalisation-enhancing-the-customer-experience/">personalised advertising</a>. Brand marketers can’t deny that they’d like to connect with us all individually.</p> <p>The “Share a Coke” campaign in which cans and bottles were personalised was a huge brand success.</p> <p>Around 1,000 name variations were available on shelves and over 500,000 available through the online store.</p> <p>So, why do brand advertisers seem reticent to deploy personalisation techniques online – a media tailor-made for such activity due to data?</p> <p>Why do we so rarely see good examples of this type of campaign in the digital environment?</p> <h3><strong>Falling in love with data?</strong></h3> <p>The answer to the previous question is branding’s lack of love for data. However, this mind-set could be changing due to a couple of factors.</p> <p>Brands love TV because it’s a wonderful platform to tell stories at scale.</p> <p>In comparison, online platforms for telling good brand stories at scale using data and creative have been more constrained.</p> <p>With smaller screen sizes and more limited ad ‘real estate’, brand banner advertising is more of a challenge.</p> <p>However, the skills and appetite for meeting this challenge and using data efficiently are increasing.</p> <p><img src="https://assets.econsultancy.com/images/0007/4847/share-a-coke.jpg" alt="Share a Coke Bottles" width="460" height="330"></p> <p>This improvement in the banner format is combining with a growth in other branding-type formats in display advertising, such as video and <a href="https://econsultancy.com/blog/63722-what-is-native-advertising-and-do-you-need-it/">native advertising</a>.</p> <p>The IAB’s latest <a href="https://econsultancy.com/blog/67746-10-action-packed-digital-marketing-stats-from-this-week" target="_blank">digital ad spend figures</a> showed both video and native spend grew around 50% last year to account for nearly half of display ad spend.</p> <p>These two parallel developments in display prove its increasing allure as a branding medium - FMCG advertisers, historically considered the least relevant in regards to online ads, are now the dominant spender on display, accounting for nearly £1 in every £5.</p> <p>We’re seeing this increasing willingness to embrace data manifested by clients taking control of their data destiny.</p> <p>A number of high profile brands are taking on long-term software contracts with data management platforms (DMPs), showing the appetite clients have to both control and exploit the data opportunity.</p> <h3><strong>Programmatic plumbing</strong></h3> <p>Alongside the rise in online branding formats, the other factor changing mind-sets among brand advertisers, rather surprisingly, could be <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic</a>.</p> <p>Something originally seen as even less sexy than data.</p> <p>The “plumbing”, or logistics, side of programmatic is becoming less of an obstacle to using data and creative to tell a good brand story.</p> <p>The amount of heavy-lifting required is reducing in terms of time, resources and money among agencies and vendors to connect the data, the creative and the inventory.</p> <p>Consequently, there’s a growing sense of enthusiasm about take-up among brands.</p> <p>So, as programmatic matures, many of these growing pains are less pronounced.</p> <p>As the plumbing between creative, data and buying becomes more automated, it means the industry can move more towards programmatic as a creative solution.</p> <h3><strong>Programmatic as creative</strong></h3> <p>In turn, <a href="https://econsultancy.com/blog/67554-2016-the-year-of-programmatic-creative/" target="_blank">programmatic creative</a> has become more advanced and more flexible, without compromising scale and automation, to meet the specific creative requirements and nuances that advertisers have for being able to tell their brand story.</p> <p>Programmatic creative is now flexible and advanced enough to insert dynamic and personalised elements into online ads to enable the idea of “mass personalisation”, which was essentially what the big idea “Share of Coke” brand campaign was shooting for.</p> <p>These developments hopefully thaw the relationship between brand marketers and data, particularly as they open up exciting and innovative brand campaign ideas that can be brought to life in this brave new world.</p> <p>Take, for example, Netflix’s campaign to promote the addition of all ten seasons of Friends to its library.</p> <p>Conceived by Ogilvy Paris, it’s a pre-roll video campaign that responds dynamically to videos watched on YouTube by inserting a clip from Friends that relates to the video topic searched for.</p> <p><iframe src="https://www.youtube.com/embed/K_3uKmLFHRI?wmode=transparent" width="560" height="315"></iframe></p> <p>Essentially, it uses data to relate Friends to almost anything you search for on YouTube.</p> <p>What will be your big brand idea this year that comes alive through data?</p> <p><em>To learn more on this topic, book yourself onto Econsultancy's <a href="https://econsultancy.com/training/courses/programmatic/">Programmatic Training Course</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67576 2016-02-26T09:59:21+00:00 2016-02-26T09:59:21+00:00 Did South Park solve the ad blocking problem? Tom Dibble <p>It has happened to everyone. You are sitting at your computer minding your own business, watching cat videos or clicking through “10 Celebrities With Weird Body Parts” - yes, that is a real article - when all of the sudden it happens.</p> <p>Your computer is hijacked. A pop-up informs you that your computer is infected, your JavaScript plugin is out of date, you’ve just won a million dollars!</p> <p>But you can’t click out of it, and as soon as you try more windows open or even worse - spontaneous downloads take your computer hostage.</p> <p>When you consider how many times this exact scenario has repeated itself over the course of your internet-using life, it is no surprise that the <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats/">use of ad blocking software has ballooned</a> in the last year.  </p> <p>Sorry, advertisements, consumers just aren’t that into you.</p> <p><img src="https://assets.econsultancy.com/images/0007/2381/ad_blocking.png" alt="" width="800"></p> <p>And just like the end of a bad relationship, all sides are left asking, “How did we get here? How did it get so bad?”</p> <p>While there has been no shortage of finger-pointing between agencies, publishers, and brand marketers, it is safe to say that no one is void of blame.</p> <p>Publishers make money by selling ads on their content, and media addicted consumers need their fix.</p> <p>Publishers look at two things when deciding what pieces to finance: how much time and money a story takes to produce, and how much ad revenue it will generate.</p> <p>But the need to create more content with the intention of generating more advertising revenue only served to kill real journalism.</p> <p>Long form, investigative stories became too burdensome for our ADD riddled minds strung out on instant gratification.</p> <p>This gave rise to the listicle and click bait designed only to cheaply generate traffic while turning our brains to mush. Au revoir journalistic integrity.</p> <h3>The industry is complicit</h3> <p>Advertising agencies, meanwhile, concerned with making brands happy, implicitly went along for the ride.</p> <p>As purveyors of creativity and whit, agencies should have stood up to this rubbish rather than allowing brilliant strategy to be reduced to a pop-over ad.</p> <p>For consumers, <a href="https://econsultancy.com/blog/67399-a-brief-history-of-ad-blocking-shows-it-s-not-a-new-problem/">avoiding ads has long been a source of innovation</a>. Television commercials bred the remote control, the VCR, Tivo, and eventually Netflix.</p> <p>But internet advertising is a very different beast. It democratised advertising allowing anyone with a few quid and an internet connection to become a marketer.</p> <p>Like a plague of biblical proportions, amateurish, spammy ads infected the internet with no concern for the user experience.</p> <p>Primary school tactics of annoying someone to get them to like you simply don’t work for advertising, yet that didn’t deter us from using them.</p> <p>Consumers want to be wooed, for their needs to be acknowledged - not to be interrupted while they are in the middle of reading. The problem has gotten so bad that even marketers themselves are fed up.</p> <p><iframe src="https://www.youtube.com/embed/HpqLcufrxQo?wmode=transparent" width="560" height="315"></iframe></p> <h3>The dilemma</h3> <p>Now we are stuck in Limbo. Last year more than $21bn dollars in ad revenue were lost due to ad blockers.</p> <p>The Interactive Advertising Bureau (IAB) is so livid about the situation that they not so politely <a href="http://www.wsj.com/articles/tensions-escalate-between-adblock-plus-and-iab-1452881625">disinvited Ad Block Plus</a> from its annual conference.</p> <p>Meanwhile, publishers are looking for ways to <a href="https://econsultancy.com/blog/67508-10-publishers-that-want-you-to-disable-your-ad-blocker/">sweet talk visitors into turning off their ad blocking software</a> which seems to have some positive effect. But are we just ignoring the larger problem?</p> <p>The term “<a href="http://adage.com/article/digitalnext/brands-build-loyalty-surprise-delight-strategies/298425/">surprise and delight</a>” has been thrown around a lot as the advertising industry debates how we should approach ads moving forward, but it might be too little, too late. </p> <p>Some consumers have been burned by poor advertising so many times, that no amount of “surprise and delight” could usher them back into the fold. </p> <p>For them, ads are manipulative and untrustworthy. Even the idea of <a href="https://econsultancy.com/blog/67044-is-native-advertising-the-answer-to-ad-blocking/">sponsored content</a> leaves a bad taste in their mouths.</p> <p>In the movie The Matrix, Neo is offered two different pills. One will show him the truth, and the other will allow him to return to his life, blissfully ignorant. </p> <p>While it may be a bitter pill to swallow, the advertising industry has to acknowledge our part in the fall of Rome to begin moving forward and build on top of the rubble. </p> <p>Sure, some ad blockers are offering “whitelist” status <a href="http://www.businessinsider.com/google-microsoft-amazon-taboola-pay-adblock-plus-to-stop-blocking-their-ads-2015-2">for a price</a>, but that just reeks of blackmail. </p> <p>The industry must learn to bring value to consumers again while educating them that content comes at a cost. On that other hand, brands must learn they can’t produce shoddy products and expect them to sell based off an advertising strategy alone. </p> <p>What we really need is a paradigm shift - to put the consumer back at the center. <br></p> <h3>South Park has the answer</h3> <p>At the end of last season, South Park quite poignantly satirised the current state of affairs in advertising, turning the lens on the “evolution” of ads from television, to mobile, to sponsored content.</p> <p>According to South Park:</p> <blockquote> <p>But the ads adapted. They became smarter. They disguised themselves as news. All around the world, people read news stories, completely unaware they were reading ads. </p> <p>And now, the ads have taken the next step in their evolution. They've taken human form. Ads are among us, they could be your friend, your gardener. </p> <p>The ads are trying to wipe us out. The question is... how?</p> </blockquote> <p>While the hyperbole is a bit overblown - as all good hyperbole should be - Trey Parker and Matt Stone might just be onto something.</p> <p>Instead of ads becoming people, shouldn’t our industry instead be focused on turning people into “ads”? </p> <p>We already know that earned media works. 90% of consumers say they trust their peers’ recommendations, but only 33% trust ads. </p> <p>Brand evangelism is a powerful thing and <a href="https://econsultancy.com/reports/the-rise-of-influencers/">influencer marketing</a> is already set to become one of the year’s biggest trends.</p> <p><iframe src="https://www.youtube.com/embed/IVfslRsNXUc?wmode=transparent" width="615" height="346"></iframe></p> <p>Why is it so effective? Because it breaks through all the online noise, drives awareness, and breeds purchase intent later on.</p> <p>As marketers, we must become better at relationships, at building trust, at being human.</p> <p>Selling products needs to become less of a shouting match between brands about who is better, and more of a conversation between brands and consumers about what consumers want.</p> <p>We have to learn to listen to our audience because they certainly have stopped listening to us. The industry depends on marketers putting people back into the equation.</p> <p>So what does the future hold for the advertising industry? In the age of “banner blindness”, the industry would be digging itself a deeper hole by ignoring what consumers are already telling us.</p> <p>Advertising is such an ingrained part of our culture that it is unlikely to go quietly and certainly too big to go away completely.</p> <p>But that doesn’t mean that it can’t evolve, as it has for centuries - that doesn’t mean that one day, very soon, advertising could live among us - your friend, your gardener.</p> <p>Advertising could become - human. </p> tag:econsultancy.com,2008:BlogPost/67574 2016-02-24T15:03:00+00:00 2016-02-24T15:03:00+00:00 Has Programmatic Advertising killed creativity in marketing? David Moth <p>And it’s also commonly criticised for relying too heavily on automation, thus removing the creative element from marketing campaigns.</p> <p>To see whether this is the case, we spoke to two seasoned digital experts, namely:</p> <ul> <li> <a href="https://www.linkedin.com/in/clare-deloford-4694b342">Clare Deloford</a>, Digital Development Associate Director at ‎Starcom MediaVest Group</li> <li> <a href="https://www.linkedin.com/in/janmikulin">Jan Mikulin</a>, Global Head of Digital Marketing at Grayling</li> </ul> <p>You can watch their answers below, or read a brief summary of what they had to say.</p> <p>And to learn more about programmatic advertising, come along to our <a href="https://econsultancy.com/events/creative-programmatic/">Creative Programmatic</a> event in London next week.</p> <p>These videos were created in partnership with <a href="https://wooshii.com/">Wooshii</a> and are the first in a series of interviews we’ve carried out with senior digital marketers from various agencies and brands.</p> <p>Now, on with the show...</p> <h3>People often accuse programmatic of killing creativity. Do you agree with this point of view?</h3> <p><iframe src="https://www.youtube.com/embed/7fEj3_hG5mc?wmode=transparent" width="615" height="346"></iframe></p> <p>Clare and Jan both strongly disagreed with the suggestion that programmatic kills creativity.</p> <p>According to Jan, it’s incumbent upon marketers to think about how the technology can enable them to be more creative.</p> <p>The technology has a momentum around it which in turn creates a need and a desire for more creativity.</p> <p>Clare said that the ability to run targeted, personalised ads actually encouraged greater creativity. </p> <h3>How do you think programmatic will impact the role of marketing professionals?</h3> <p><iframe src="https://www.youtube.com/embed/k93THhdXIIw?wmode=transparent" width="615" height="346"></iframe></p> <p>Clare said that programmatic has been quite difficult for marketers to understand, which creates fear and apprehension, however people now realise that it’s a very important technology.</p> <p>And by automating the buying process, marketers will have more time to invest in content creation and richer experiences which are really important for every brand.</p> <p>Jan suggested that programmatic has seen a similar cycle to other advancements in advertising and communications.</p> <p>There was initially a flurry to understand how it worked, then marketers gradually got to grips with it, now we're beginning to use it as a standard operating procedure, and that process will start again soon when a new marketing technology appears.</p> <h3>How has programmatic affected the relationship between agencies &amp; clients? Are there misgivings over transparency?</h3> <p><iframe src="https://www.youtube.com/embed/eyCkp5Kx6yo?wmode=transparent" width="615" height="346"></iframe></p> <p>Another major criticism of programmatic is that <a href="https://econsultancy.com/blog/65860-13-interesting-quotes-from-our-programmatic-marketing-panel/">the process isn’t transparent</a>, which can lead to mistrust between agencies and their clients.</p> <p>Jan said that things will only turn sour if the agency had a poor relationship with their clients in the first place and wasn’t being upfront and honest.</p> <p>However, he also referenced an IAB report which shows that only 45% of people who use programmatic in agencies actually understand the technology and the concept behind it.</p> <p>That lack of knowledge can potentially impact the entire industry in terms of trust and failure to generate ROI.</p> <p>Clare said that Starcom MediaVest tries to educate its clients to ensure everyone understands how the technology works.</p> <p>For example, it has an online tool where clients can run a dummy campaign and take a look “under the hood”.</p> <p>Marketers are more comfortable with programmatic once they see how it works.</p> <p><em>And finally, to learn more on this topic book yourself onto Econsultancy’s <a href="https://econsultancy.com/training/courses/programmatic/">Programmatic Training course</a>.</em></p> tag:econsultancy.com,2008:BlogPost/67524 2016-02-16T14:43:00+00:00 2016-02-16T14:43:00+00:00 Combating ad blocking: What we can learn from the affiliate channel Helen Southgate <p>The broader digital industry faces a huge threat from <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats/">ad blocking</a> and could take some useful lessons from what the affiliate channel has achieved.</p> <p>I have followed with great interest the hot topic of ad blocking. Of particular amusement has been the anger directed from many corners of the digital advertising industry at the ad blocking companies themselves.</p> <p>Let’s take a step back for a minute. Why have ad blockers been able to find a market of consumers (reported to be 18% of the UK online population) willing to use their tools?</p> <p>It's because some of the advertising within the digital industry is quite frankly terrible. It can be disruptive, bad quality and not relevant or targeted to the consumer.</p> <p>The cynic in me would say consumer experience is not always a priority of those controlling the ad spend.</p> <p>The IAB has been somewhat pro-active in addressing the ad blocking debate and has produced a number of useful stats and materials. </p> <p>A few of the most noteworthy are from a consumer study carried out in October last year:</p> <ul> <li>25% of online adults have downloaded ad blocking software.</li> <li>3/4 of those downloaders, so 18% of online adults, are currently using ad blockers. This is up from 15% in June 2015.</li> </ul> <p>No wonder this has the digital industry spooked, that is a lot of cash being lost.</p> <p>But even more interesting are some of the reasons people gave for using ad blockers:</p> <ul> <li>52% use them to block all ads.</li> <li>Just 9% use them to protect against privacy, so stopping tracking software working.</li> <li>One in two would be less likely to block ads if they did not interfere with what they were doing.</li> </ul> <p>And this answer:</p> <ul> <li>61% of people would prefer to access content for free and have ads present than pay to access content</li> </ul> <p>So it appears the frustration from consumers is with poor quality, badly executed, disruptive ads.  </p> <p>Therefore, rather than attack the companies that are helping consumers rid their world of these frustrations, perhaps we should be condemning those companies that are the cause of this irritation.</p> <h3>On the bright side</h3> <p>There are positive things happening, the IAB launched <a href="http://www.iabuk.net/news/iab-uk-launches-principles-to-address-ad-blocking">its L.E.A.N principals</a> which are a step in the right direction and have been getting the industry talking reasonably sensibly about the problems we face.</p> <p>We need to come together and self-regulate, pointing a spotlight on those companies that do not adhere to these principals.</p> <p>After all, these are basic good marketing and advertising principals which should already be being observed. Once we find sites that don't comply we should all chase them down the street with pitch forks until they do it right or go out of business. Easy.</p> <p><img src="https://assets.econsultancy.com/images/0007/1930/LEAN_Ads_Program_1__3_.jpeg" alt="" width="320" height="240"></p> <p>I jest a little, this is a huge industry with many different components and mostly there are good companies and people that understand the principals of honest and ethical marketing. </p> <p>But there are also a lot of bad eggs out there chasing money. As an industry we need to find and stop these companies executing bad practices.</p> <p>But after they have been getting away with it for years, it is not an easy task.</p> <h3>Follow the affiliate's lead </h3> <p>To find an industry that has executed this with reasonable success we need to look no further than the affiliate marketing channel.</p> <p>In the last 10 years we have worked hard as a group of individuals and companies to ensure quality, a fair playing field and ethical practices.</p> <p>With the help of the IAB, the Affiliate Marketing Council has put in place a number of best practice and self-regulatory principals that all stakeholders within the market adhere to (affiliate networks, agencies, advertisers and publishers). </p> <p>We are proud of these principals as an industry and we do not take lightly to those that break the rules as we know that can harm the reputation of all of us. </p> <p>I suggest the digital industry needs to follow a similar path and clean up its act, otherwise the use of ad blockers will only increase. </p> <p>Educating consumers about advertising and commercial relationships with publishing sites is clearly another avenue that needs to explored. </p> <p>Most of the sites that consumers visit would not exist without advertising, but <a href="https://econsultancy.com/blog/67128-stats-how-social-media-brought-down-the-sun-paywall/">paywalls have been tried and failed</a> numerous times by large and small publishers alike.</p> <p>61% of consumers say they would rather have ads than pay for content so I don’t really ever see a world where paywalls will be successful, there will always be someone that gives it away for free. </p> <p>So we have to tackle to fundamental issue first and foremost, which is ridding the industry of companies executing poor advertising.</p> <h3>Why would an affiliate be concerned?</h3> <p>You might wonder why an affiliate marketer woud be worried about this, and that would be a good question. </p> <p>Across the affilinet network just 2% of our orders come from banners, and 98% come from content. What you now understand as “<a href="https://econsultancy.com/blog/63722-what-is-native-advertising-and-do-you-need-it/">native advertising</a>” has been the bedrock of affiliate marketing since its creation over 20 years ago. </p> <p>However, as a channel we are being negatively affected by ad blocking for two main reasons.</p> <p><strong>Firstly,</strong> ad blockers offer the ability to opt out of all 'tracking', meaning the tracking mechanism which we use to attribute sales and pay publishers is disabled. </p> <p>Without this the publisher and network do not get paid. </p> <p><strong>Secondly,</strong> many of our publishers rely on banner advertising and ad networks alongside their income from affiliate ads. Without this in many cases the publishers simply will not survive.</p> <h3>In summary...</h3> <p>Growing consumer awareness will result in increased use of ad blocking and is a danger to all of us in the digital industry.</p> <p>We need to come together, to self-regulate and chase those bad eggs out.</p> <p>While without a doubt we have not eradicated bad practice in the affiliate industry, we most certainly have improved immensely and are proud to be a transparent and ethical industry.</p> <p>We've shown that this can be achieved with time, resource and commitment from all stakeholders.</p> <p>It’s time to focus on the root cause of the problem, and as a digital industry tackle this head on. </p> tag:econsultancy.com,2008:BlogPost/67399 2016-01-13T15:54:00+00:00 2016-01-13T15:54:00+00:00 A brief history of ad blocking shows it’s not a new problem Lori Goldberg <p>They constructed a reclining, upholstered chair perfectly engineered to support the human body in a prone but sitting position. </p> <p>They described their new invention as “nature's way of relaxing” and held a contest to give it a name. </p> <p>When coupled with a television, the “La-Z-Boy” recliner became a staple in American living rooms and getting up to change the channel during commercials became unlikely while nestled inside in the chair’s cozy, cocoon-like comfort.</p> <p><a href="http://www.la-z-boy.com/p/vail-reclina-rocker-recliner/_/R-010403"><img src="https://assets.econsultancy.com/images/0007/0694/la-z-boy.jpg" alt="" width="332" height="332"></a></p> <p>Enter American inventor Robert Adler who was experimenting with a process that would enable remote control of a television using radio waves. </p> <p>His remote device, the “Space Command” used aluminum rods that vibrated when struck by tiny hammers, producing high-frequency tones that would be received by the television set, instructing it to change channels. </p> <p>The device was perfected in the 1960’s as Adler’s remote control was modified to allow ultrasonic signals to communicate complex commands to TV sets, enabling the operator of the remote to block ads by changing the channel during a commercial break – <a href="http://inventorspot.com/adler">without leaving the comfort of their reclining chair</a>.<sup><br></sup></p> <p>But television, you are not alone. In the 1930’s Motorola’s AM radios were appearing in many vehicles. </p> <p>The invention of the “transistor” lowered costs and made car radios so affordable, they were installed on 50m new cars by 1963. </p> <p>Deadly accidents skyrocketed over time as <a href="http://mentalfloss.com/article/29631/when-car-radio-was-introduced-people-freaked-out">drivers would take their eyes off the road to change the radio station</a> (perhaps to avoid commercials). </p> <p>By the 1970s, mechanical preset buttons (likely inspired by Xerox’s early user interface machines) allowed drivers to not only change the radio station while safely watching the road, but it also gave listeners a quick solution to skipping ads. </p> <p>Today, if you’re not using commercial-free satellite radio, then you’re likely punching through presets when the ads come on.<sup><br></sup></p> <p>It was in 1999 when the first Digital Video Recorders (DVR’s) arrived in Las Vegas at the <em>Consumer Electronics Show</em>. </p> <p>TiVo and it’s chief rival ReplayTV not only changed how we watch television, but also the ease at which we skip ads. DirectTV eventually acquired ReplayTV while TiVo continued to evolve and thrive, even today.<sup>4</sup></p> <p>Viewers quickly learned that they could record a show and tune in to the live broadcast 15 minutes late, and by fast-forwarding through the commercials they would catch-up to the live broadcast by the end of the show, reducing a 30-minute sitcom to a lean 22 minutes.</p> <p><em>Click on the image to access the full infographic</em></p> <p><a href="http://www.silverlightdigital.com/an-illustrated-history-of-ad-blocking-1960-2016/"><img src="https://assets.econsultancy.com/images/0007/0696/Screen_Shot_2016-01-13_at_15.46.08.png" alt="" width="794" height="470"></a></p> <p>Appointment television made famous with NBC’s “Must See TV” Thursday nights gave way to viewers recording everything and zipping right through the ads. </p> <p>Lawsuits by Fox and others followed as advertisers and networks challenged the “consumer’s right” <a href="https://news.google.com/newspapers?id=lc8vAAAAIBAJ&amp;sjid=1Y0DAAAAIBAJ&amp;pg=5630,870934&amp;hl=en">to record shows and skip commercials</a>.<sup><br></sup></p> <p>Legal means of preventing ad blockers were failing in court and new attempts to block advertisers were hitting the market fast and furious.  </p> <p>In 2004, the legal attempts to prevent the Federal Trade Commission’s National <em>Do Not Call Registry</em> failed and millions of Americans were empowered to block telemarketing calls by simply registering their phone number on the “Do Not Call” website. </p> <p>Mozilla – creators of the Firefox Web browser – later introduced its <em>Do Not Track</em> feature that blocked advertisers from profiling a user’s identity and browser history. </p> <p>Today’s browsers all offer standard features enabling users to surf the web in secret, or employ ad blockers – popular with about 16% of US Internet users according to a new report from Adobe/PageFair - that completely free mobile and desktop browsers from banner ads – literally eliminating them from view by preventing the browser from loading the ad.<sup><br></sup></p> <p>In 2012, Satellite television provider Dish Network released its new <em>Auto Hop DVR</em> feature that would <em>automatically</em> skip commercials on programs recorded using its <em>PrimeTime Anytime</em> service. </p> <p>Third-party applications created by DVRMST Toolbox, ComSkip, and ShowAnalyzer <a href="https://www.eff.org/deeplinks/2012/05/tv-networks-say-youre-breaking-law-when-you-skip-commercials">use technology to locate commercial segments in a broadcast</a> and save the time code as data, later utilized to identify and remove blocks of commercials from recorded video files.</p> <p>These applications were compatible with DVR’s manufactured by Windows Media Player among others.</p> <p>And recently, TiVo reappears back on the ad blocking market with its new <em>Bolt DVR</em> that tags the start and end of commercials so that viewers can skip over them with the push of a single, convenient button.<sup><br></sup></p> <p><img src="https://assets.econsultancy.com/images/0007/0697/Screen_Shot_2016-01-13_at_15.49.33.png" alt="" width="700"></p> <p>In conclusion, history shows us that ad blocking innovation and consumer’s demand for it is nothing new. </p> <p>Panic over recent methods of digital ad blocking must be put in proper historical context and the consumer’s long-held desire to skip ads must be acknowledged. </p> <p>Despite this, we also understand that advertising provides a valuable service in shaping and informing consumer behavior, accelerating our economy, and enabling wide consumption of low-cost or free products – such as apps or music – where costs are deferred with advertisements. </p> <p>Even consumers would likely agree with these benefits <em>or they can often opt to pay for content so they realize the benefit of what advertising subsidizes.</em></p> <p>The key for the digital advertising industry remains the same: to challenge ourselves to serve better and more relevant ads to audiences and be mindful of their frustrations with ad clutter and its negative impact on the brands we serve. </p> <p>Ad blocking is not the end of our industry. It’s simply an evolution point.</p> <p><em>For more on ad blocking, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats/"><em>The rise and rise of ad blockers: Stats</em></a></li> <li><em><a href="https://econsultancy.com/blog/66650-how-do-you-solve-a-problem-like-ad-blocking/">How do you solve a problem like ad blocking?</a></em></li> <li><em><a href="https://econsultancy.com/blog/67044-is-native-advertising-the-answer-to-ad-blocking/">Is native advertising the answer to ad blocking?</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/67366 2016-01-05T01:31:00+00:00 2016-01-05T01:31:00+00:00 Three display advertising issues to watch in 2016 Jeff Rajeck <p>With so much money at stake, it's not surprising that the industry has its share of issues.</p> <p>Persistent concerns about how ads are delivered, where they go, and how ad views are priced has made it difficult for marketers to know whether to keep investing.</p> <p>To summarize what's going on in the industry, here are three of the main issues which came up for digital display advertising in 2015 - and what you need to watch out for in 2016.</p> <h3>1. Ad blocking</h3> <h4>The issue in 2015</h4> <p>Ad blocking technology has been around for a long time and it has always been controversial. As early as 2010, Econsultancy was writing about <a href="https://econsultancy.com/blog/5531-is-ad-blocking-really-devastating-to-the-sites-you-love">how ad blocking was 'killing' site Ars Technica</a>. (Which has somehow miraciously survived!)</p> <p>But the issue came up again in September 2015 when Apple started to allow ad blockers into its App Store.  </p> <p>Suddenly publishers felt like a niche technology which threatened their business would be going mainstream.</p> <p>And this fear was heightened by a <a href="https://blog.pagefair.com/2015/ad-blocking-report/">report by PageFair and Adobe</a> which shows<strong> ad blocking software usage grew 41% year-on-year from Q2 2014 to Q2 2015.</strong></p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0278/adblock1-blog-flyer.png" alt="" width="470" height="254"></p> <p>This meant that there were 198m users of ad blocking software which, according to the report, would lead to a $41.8bn loss in online ad revenue by 2016.</p> <p><img src="https://assets.econsultancy.com/images/0006/8173/adblock4.png" alt="" width="326" height="298"></p> <h4>What to watch for in 2016</h4> <p>According to a <a href="http://www.niemanlab.org/2015/12/the-mobile-ad-blocking-apocalypse-hasnt-arrived-at-least-not-yet/">report from Harvard University Neiman Journalism Lab</a>,<strong> the number of people using ad blocking on mobile is very low.</strong></p> <p>Actual numbers were not attributed to any publisher, but Nieman Lab said that most respondents said the share of mobile ads being blocked was around "1 or 2 percent."</p> <p>Hardly the mobile 'admageddon' predicted.</p> <p>Neiman Lab does go on to say, though, that desktop ad blocking is still an issue. 77m Europeans and 45m Americans use ad blocking software, according to the PageFair report.</p> <p>But, <strong>new technology is now available which allows publishers to hide content from those who block ads</strong>.</p> <p>And if enough publishers use this technology, this problem may be self-correcting and 2016 will not see anywhere near $41.8bn loss in revenue.</p> <h3>2. Ad viewability</h3> <h4>The issue in 2015</h4> <p>In August, the Media Rating Council updated its viewability guidelines:</p> <blockquote> <p>The current industry standard for a viewable display ad impression is a minimum of 50% of pixels in view for at least one second, and for a viewable digital video ad impression, a minimum of 50% of pixels must be in view for at least two continuous seconds.</p> </blockquote> <p>And the IAB has agreed with this definition. IAB CEO Randall Rothenberg said <a href="http://www.wsj.com/articles/iab-ceo-randall-rothenberg-on-ad-blocking-viewability-fraud-1442836801">in an interview in September</a> that the 'debate side [of viewability] is over now' and that it's up to the publishers to implement the standards.</p> <p>The end result of this standard will be a new measurement for buying ads, a 'viewable CPM' (vCPM) which allows advertisers to only buy ads which can be seen.  </p> <p>And, you can already buy vCPMs through Google Display network.</p> <h4>What to watch out for in 2016</h4> <p>But not everyone is happy with the MRC/IAB definition. <a href="https://www.clickz.com/2015/09/16/50-of-senior-digital-execs-believe-iab-mrc-online-ad-viewability-standards-are-inadequate">A survey of senior digital execs by ClickZ</a> in September said that <strong>only about a third of respondents believe that the MRC recommendation is sufficient.</strong></p> <p>Also, <a href="http://adwords.blogspot.ca/2015/09/Enhancing-the-google-display-network.html">Google announced that it is aiming for 100% viewable pixels</a> and advertisers do not have to pay for unviewable ads. And to make that point, Google has now changed all CPM campaigns to vCPMs.</p> <p>Facebook has also announced the intention <a href="https://www.facebook.com/business/news/100-in-view-impressions-and-moat-partnership">to only charge for 100% viewability</a> and will use a third party verification service, Moat, for video ads.</p> <p>But Econsultancy's Patricio Robles points out in a <a href="https://econsultancy.com/blog/67246-advertisers-willing-to-shift-spend-over-viewability-report/">recent post</a> on the topic that "advertisers should ultimately be basing their investment decisions on whether or not the media they're buying is moving the needle or not."</p> <p>That is, if you're segmenting your audiences and measuring properly on the back end, then viewability should not affect you very much.  </p> <p>If the ads aren't showing, you won't get the same results and you'll stop spending money on that platform, presumably.</p> <h3>3. Inappropriate ad placements</h3> <h4>The issue in 2015</h4> <p>And finally, inappropriate placements came up as an issue in 2015.</p> <p>When display ads are bought programmatically, they may end up in a very bad location due to placing by interest or keyword.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0281/picture1-blog-flyer.jpg" alt="" width="470" height="311"></p> <p>This also causes a problem for brands when publishers are not entirely ethical. Here is a Singtel ad appearing on a site which offers illegal streaming of sporting events.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0282/singtel-inappropriate-ads-blog-flyer.png" alt="" width="470" height="295"></p> <p>And it's not a small issue for brands.</p> <p>In a <a href="http://www.mumbrella.asia/2015/12/programmatic-rated-as-more-important-capability-than-creativity-for-agencies-in-the-future-finds-survey/">recent AppNexus survey</a> in APAC, the biggest challenge to using <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic buying</a> more was 'the fear of adverts appearing on undesirable sites' and the third most important issue was 'lack of of transparency on where advertisements end up'.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0284/programmatic-issues-blog-flyer.png" alt="" width="470" height="304"></p> <p><strong>What to watch out for in 2016</strong></p> <p>Pixalate, a data platform built specifically to bring transparancy to programmatic ad buying, created a <a href="http://www.pixalate.com/sellertrustindex/">ranking index</a> for the display ad sellers based on the quality of their inventory.</p> <p>That goes some way to helping big ad buyers know the quality of the sites on which they are showing ads, but still the only way to truly ensure ads don't appear in the wrong place is to manually blacklist the sites that marketers want to avoid.</p> <p>As Singtel told <a href="http://www.mumbrella.asia/2015/10/ads-for-singtel-pg-posb-and-toyota-found-on-unlicenced-streaming-websites-highlight-failing-of-automated-media-buying/">Mumbrella</a>: “As new sites are constantly introduced, we regularly update our exclusion list to ensure that we only run advertising on relevant and appropriate websites.</p> <p>"We are reviewing the process to ensure that advertising only appears on suitable sites.”</p> <h3>So...</h3> <p>Display advertising is still a huge opportunity for marketers to raise awareness of products and services in 2016. </p> <p>It does have its issues, but it seems that ad blocking, viewability, and even publisher quality are at least being taken seriously now.</p> <p>How these issues affect brands, however, can always best be determined by the results.  </p> <p>Even in 2016, nothing will beat high-quality back-end analytics for determining return on ad spend.</p> tag:econsultancy.com,2008:BlogPost/67355 2015-12-22T01:31:00+00:00 2015-12-22T01:31:00+00:00 Four display advertising trends in APAC Jeff Rajeck <p>To help out, especially with the programmatic bit, we published a few reports on:</p> <ul> <li> <a href="https://econsultancy.com/blog/67018-programmatic-advertising-in-apac-an-introduction/">What programmatic display ad buying actually is</a>,</li> <li><a href="https://econsultancy.com/blog/67040-how-big-is-the-programmatic-advertising-market-in-apac-stats/">The size of the programmatic market in APAC,</a></li> <li>And <a href="https://econsultancy.com/blog/67050-programmatic-advertising-a-brief-history-predictions-for-the-future/">predictions for the future of display</a> </li> </ul> <p>But for an end-of-year follow-up on the topic, we thought it would be good to review a few of the current trends for display advertising, while keeping an Asia-Pacific focus.</p> <p>Here are the top four:</p> <h3>1. Programmatic is increasing in importance in the APAC region</h3> <p>According to a recent study by AppNexus, <a href="http://www.digitalmarket.asia/2015/12/apac-90-ad-professionals-use-programmatic-for-mobile/">77% of advertising professionals in the APAC region use programmatic advertising</a>.</p> <p>And the same study also shows that marketers believe that <a href="http://www.mumbrella.asia/2015/12/programmatic-rated-as-more-important-capability-than-creativity-for-agencies-in-the-future-finds-survey/">a strong knowledge of programmatic is increasing in importance</a>.</p> <p>In 2010, less than half of marketers said strong knowledge of programmatic was important but 70% said that it will be by 2020. </p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0199/display1-blog-flyer.png" alt="" width="470" height="228"></p> <p>This ties in with marketers reporting an increased importance of having high in-house technical capabilities and a strong knowledge of digital advertising as well.</p> <h3>2. Publisher relationships are becoming less important</h3> <p>As providers of programmatic ad buying increase in importance with marketers, publishers will naturally become less important.</p> <p>That is, if brands are spending more on programmatic solutions, then <strong>marketers don't need to know as much about the publishers who are actually showing the ads.</strong></p> <p>Whereas digital ad buying used to be about placement, <strong>display targeting is becoming more about demographics, interests, and CRMs</strong> (more on that below).</p> <p>This notion is backed up by the AppNexus survey which shows that strong relationships with advertisers and publishers are decreasing in importance between 2010 and 2020.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0200/display2-blog-flyer.png" alt="" width="470" height="195"></p> <h3>3. Data management is key</h3> <p>In a recent post, which provided <a href="https://econsultancy.com/blog/67018-programmatic-advertising-in-apac-an-introduction/">an introduction to programmatic advertising</a>, we discussed 'data management platforms' (DMPs) and emphasized that despite their simple name, DMPs are actually quite sophisticated.</p> <p>If you aren't yet familiar with them, and work with display advertising, then <strong>you may want to start learning about DMPs.</strong></p> <p>According to a recent Econsultancy report, <a href="https://econsultancy.com/reports/the-role-of-dmps-in-the-era-of-data-driven-advertising/">The Role of DMPs in the Era of Data-Driven Advertising</a>, over two-thirds of marketers (68%) believe that 'DMPs are the key to the future of programmatic advertising'.</p> <p><img src="https://assets.econsultancy.com/images/0007/0201/display5.png" alt="" width="534" height="364"></p> <p>And, in the same survey, over half of the respondents reported that they are using data to: </p> <ul> <li>improve advertising effectiveness,</li> <li>enhance ad campaigns,</li> <li>and improve cross-channel marketing performance.</li> </ul> <p>All of these point to a trend that, yes, data is important but <strong>in order to get the most out of your data, it's worth looking into DMPs</strong>.</p> <h3>4. CRM systems now integrate with display networks.</h3> <p>Traditionally, CRM systems have most been linked with delivering emails and high-quality customer service. But that is all changing now.</p> <p>In 2014, <a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences/">Facebook added the Custom Audience</a> feature which let you upload your email or mobile phone list and advertise to the people who were in your CRM system.</p> <p>Now Google has followed suit. In September of 2015, <a href="http://adwords.blogspot.sg/2015/09/Google-brings-you-closer-to-your-customers.html">Google announced Customer Match</a> which lets you upload a list of email addresses which can then be matched to signed-in uses on Google.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/0202/display6-blog-flyer.png" alt="" width="470" height="244"></p> <p>You can read more about how it works at <a href="https://developers.google.com/analytics/solutions/data-import-user">Google's developer site</a>, but the implications for this on display advertising are quite significant.</p> <p>Because many Google users stay logged in on the desktop for Gmail and YouTube, <strong>the likelihood of reaching your customers with targeted display advertising is now much higher</strong>.</p> <p>And because you can now target your advertising to a segment according to how your audience interacts with your brand, your advertising can be more relevant and, hopefully, enjoy much better results.</p> <p>Finally, like Facebook, Customer Match also lets you build 'lookalike' audiences so you can advertise your carefully targeted message to people who are similar to your existing customers.</p> <h3>So...</h3> <p>If these trends in display advertising in Asia-Pacific continue, then brands which use display advertising are going to have to think both about their programmatic strategy, including data management, and how they can best use the vast amount of data in their CRM systems for segmenting and targeting.</p> <p>And as these trends offer new opportunities for marketers to reach their customers in a more automated and targeted fashion, they are very good things to learn about indeed.</p> tag:econsultancy.com,2008:BlogPost/67050 2015-10-14T02:01:00+01:00 2015-10-14T02:01:00+01:00 Programmatic advertising: A brief history & predictions for the future Jeff Rajeck <p>But before we start, I'd just like to highlight that Econsultancy will be hosting a webinar on the subject, <strong>Programmatic: Trends, Data and Best Practice (APAC)</strong>, on 15 October at 10am Singapore / 1pm Sydney time.  </p> <p><a href="https://econsultancy.com/events/programmatic-trends-data-and-best-practice/">Click here to book your spot.</a></p> <h3>Why programmatic?</h3> <p>It's good to know <a href="https://econsultancy.com/blog/67018-programmatic-advertising-in-apac-an-introduction">what programmatic ad buying (or 'programmatic') is</a> and estimate <a href="https://econsultancy.com/blog/67040-how-big-is-the-programmatic-advertising-market-in-apac-stats">how big it will be in the future</a>. But to achieve a deeper understanding of the topic, it's helpful to look at the circumstances which have caused programmatic to exist.  </p> <p>That is, why do we have programmatic buying? Isn't our existing ad infrastructure good enough?</p> <p>To answer that question, we need to go back - way back - and track the evolution of the online advertising</p> <h3>A brief history of advertising on the web</h3> <p>The first banner ad appeared in 1994 on the website Hotwired. And, according to legend, the format was so new and revolutionary that it had a 44% click through rate.  (As a comparison, banner ads today get .06% click throughs - more than a 99% decrease).</p> <p><img src="https://assets.econsultancy.com/images/0006/7951/first_banner_ad.jpg" alt="" width="500" height="67"></p> <p>By 1996, many more people had joined the web and the number of websites grew enormously. Brands, which initially negotiated ad deals with popular sites, found it increasingly difficult to keep track of their banners.</p> <p>Because of this problem, DoubleClick, among others, created 'ad servers' which helped to produce and distribute ads on the web.</p> <p>But as the web kept growing, it became difficult to manage the various relationships required to serve ads across different websites.  So in 1998 the first 'ad networks' were born.  </p> <p>The ad networks helped brands advertise on many websites through one ad dashboard. The media landscape became manageable once again.</p> <p><img src="https://assets.econsultancy.com/images/0006/7952/valueclick.png" alt="" width="218" height="112"></p> <p>But by the late 90s, with the dot-com boom, the web was growing too fast for these networks to keep up. Web crawlers and portals, like Excite and Yahoo, emerged to index and categorize the web, but many felt at the time that the web had become too fragmented for effective advertising.</p> <p>By 2000, though, Google had developed a search engine which, almost miraculously, made the ever-expanding web accessible again.  </p> <p>And then in 2000 Google, the great organizer, launched AdWords. AdWords was sharply different from the ad networks as it delivered ads against just about every site on the web - while the user was searching.</p> <p>It made effective advertising possible again.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7953/adwords-blog-flyer.jpg" alt="" width="235" height="98"></p> <p>Google followed on by developing its own massive banner ad network (AdSense) in 2003, so with relatively simple interfaces brands were able to reach just about the whole web.</p> <p>Video advertising followed in 2006 with YouTube, and soon after Facebook started delivering ads against the social graph.</p> <p>Of course, I am skipping over a lot of details here but by 2007, it looked like things were pretty much under control.  </p> <p>Every time the web became more complex, new technologies emerged to organize the media landscape and help advertisers reach their audience effectively.</p> <h3>And then things changed</h3> <p><img src="https://assets.econsultancy.com/images/resized/0006/7970/iphone-blog-flyer.png" alt="" width="470" height="301"></p> <p>In 2007 Apple launched the iPhone and Google followed shortly after with the Android OS, and over the next four years, the whole game changed.  </p> <p>Have a look at this chart to see what I mean:</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7954/rise_of_smartphones-blog-flyer.jpg" alt="" width="470" height="258"></p> <p>Over the four years or so after the launch of the smartphones, the price of internet-connected devices plummeted, ownership spread like wildfire and internet usage has skyrocketed.</p> <p>And between 2007 and 2011, the number of internet users doubled.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7955/number_of_internet_users-blog-flyer.png" alt="" width="470" height="235"></p> <p>And daily usage grew by 50%.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7956/time_spent_online_2008_2015-blog-flyer.png" alt="" width="470" height="309"></p> <p>And we are not done. Internet users are set to double again this decade, from 2bn in 2010 to over 4bn in 2020. </p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7957/internet_mobile_in_2020-blog-flyer.png" alt="" width="470" height="249"></p> <p>And usage, as we can see above is on an upward trend as well. </p> <h3>How we consume media has changed too</h3> <p>And this proliferation of devices and growth of time spent on the internet is not the whole story. We also consume our media differently now as well.</p> <p>With mobile devices, we now access the internet on-the-go and in random places and are subject to constant distractions. We consume media more in the 'stream' of social, messaging apps, or short videos, and less in a nicely-structured HTML page.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7958/mobile_usage-blog-flyer.png" alt="" width="329" height="201"></p> <p>All of this adds complexity and brings us back to an environment that's incredibly difficult for brands to figure out, and means we are less effective at measuring advertising ROI. </p> <h3>What are we going to do?</h3> <p>To see what is going to happen, and what we should do, we need to look back to the history of online advertising.</p> <p>From 1994 to 2007, the web grew and became much more complex just like now, and new technologies emerged to help advertisers navigate the new media landscapes.</p> <p>Ad servers helped serve banner ads more efficiently. Ad networks organized publishers. Google indexed the whole internet - and let us advertise on it.</p> <p>So how might this possibly happen again? How are brands going to reach consumers in such a fragmented media landscape this time?</p> <h3>Here's what we need to do</h3> <p>I believe the answer lies in the programmatic ad buying infrastructure that is being developed right now. If you look at the diagram below (and please read <a href="https://econsultancy.com/blog/67018-programmatic-advertising-in-apac-an-introduction/">the previous post</a> for details), you can see the building blocks for the future of online advertising.</p> <p><img src="https://assets.econsultancy.com/images/0006/7747/programmatic-ecosystem.png" alt="" width="640" height="248"></p> <p>The SSPs will hide the complexity from publishers and the DSPs will do the same for advertisers.</p> <p>Trading desks will deliver the single point of contact experience for those who need it and first and third party data will be managed by DMPs. Analytics and optimization will be available at every node to help with ROI.</p> <p>In short, with such an infrastructure brands can concentrate on the message they wish to deliver and who they wish to reach, and technology will take care of the rest. </p> <p>Now some sites, notably Google and Facebook, have a different approach.  </p> <p>They are attempting to organize the web once again and offer brand marketers simple, yet powerful, access to their network.</p> <p>But if mobile devices, usage, and behavior keep changing at the same rate, I think the distributed programmatic environment is a much more robust solution. It offers a high-level abstraction of the core components necessary to deliver advertising across a complex array of devices, interfaces, and publishers.</p> <p>Whether we have the actual products now is debateable, but the architecture that is evolving does makes sense and, by many accounts, it is set to take over display in the next few years.</p> <p><img src="https://assets.econsultancy.com/images/0006/7883/3.jpg" alt="" width="345" height="321"></p> <h3>So now what?</h3> <p>Well, if you feel like you're late to the game, you're probably not.  </p> <p>As Mary Meeker showed in her 2015 Internet Trends Report, mobile advertising is severely lagging behind other mediums if you consider time spent vs. dollars spent. </p> <p><img src="https://assets.econsultancy.com/images/0006/7960/mobile_under_indexed.png" alt="" width="452" height="337"></p> <p>And as most mobile advertisting will soon be programmatic, according to a <a href="http://www.emarketer.com/Article/Mobile-Programmatic-Display-Ad-Spend-Eclipse-Desktop-Automation-Grows/1013090">recent eMarketer report,</a> if you can capture that time spent on mobile with programmatic advertising you are probably still ahead of most others.</p> <p>If you're wondering where to start, ironically the best place may be on Google and Facebook. I say this because even as they try to absorb the web into their own sites, they now offer 'programmatic lite' ad engines.</p> <p>And by becoming familiar with the vast features and analytics available on those platforms, you will be preparing yourself for more complicated programmatic ad buying in the future.</p> <h3>The future of programmatic</h3> <p>Of course there are many other challenges for programmatic. It's facing big issues from <a href="https://econsultancy.com/blog/67019-12-alarming-ad-blocking-stats-that-reveal-the-size-of-the-problem/">ad blocking</a>, ad-free messaging apps, and privacy concerns. </p> <p>But keep in mind that the web has always seemed a difficult place for advertisers. New technology has organized the chaos before, though, and it seems likely that it will do it again.</p> tag:econsultancy.com,2008:BlogPost/67020 2015-10-13T15:31:00+01:00 2015-10-13T15:31:00+01:00 Why Instagram should be the channel of choice for marketers Stephanie Carr <p>Are digital marketers witnessing a watershed moment for Instagram? 200 countries have access to <a href="https://econsultancy.com/blog/66689-how-brands-are-using-instagram-ads/">Instagram ads</a> and further international expansion is expected.</p> <p>By completely opening up its ad platform to all marketers and third party platforms, Instagram is marking a profound shift in its advertising model.</p> <p>This is a fantastic opportunity for advertisers to easily reach an engaged and fast growing community of 400m users.</p> <p>The benefit for Instagram is clear. The move will help it tap into potential ad revenue. But what does it mean for marketers, brands and importantly Instagram’s users?</p> <p>Below, I’ve outlined the key takeaways for each of these groups. </p> <h3><strong>Marketers</strong></h3> <p>Marketers with access to Instagram’s Ads API will now have unprecedented control over their social budgets.</p> <p>Previously, marketers would have to buy advertising space via an Instagram sales representative, which was a slow process and has held back <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic buying</a> through the platform.</p> <p>Now, this is very much a possibility and marketers can optimise and manage their campaigns more effectively.</p> <p>The easy access that marketers now have to Instagram’s valued community is ground-breaking. Instagram is being treated as a targeting placement option for Facebook ad sets.</p> <p>So with just a click of a button, marketers can replicate their existing Facebook ads on Instagram.</p> <p>This means marketers can use the <a href="https://econsultancy.com/blog/64845-seven-dos-and-don-ts-of-custom-audience-targeting/">audience targeting capabilities of Facebook</a>, removing the guesswork and friction of launching on a new publisher.</p> <p>This tailored approach means marketers will more easily ensure KPIs are met.</p> <p><img src="https://assets.econsultancy.com/images/0006/7730/NET-A-PORTER_LONDON_FASHION.JPG" alt="" width="796" height="592"></p> <h3><strong>Brands</strong></h3> <p>Brands that use a platform with access to Instagram’s Ads API have the opportunity to engage directly with their fans in real time.</p> <p>For example, Helen McGee, Head of Marketing International at Net-A-Porter commented:</p> <blockquote> <p>The Instagram Ads API allows us to target a very specific European audience within 24 hours of our events.</p> </blockquote> <p>Net-A-Porter can now drive better brand awareness, and importantly share exceptional fashion content with its customers.</p> <p>By using just one interface to manage ads across various platforms, brands can significantly improve the speed of ad deployment.</p> <p><strong><img src="https://assets.econsultancy.com/images/0006/7731/NET-A-PORTER_INSTA.JPG" alt="" width="916" height="596"></strong></p> <h3><strong>Users</strong></h3> <p>Finally, perhaps the greatest impact of a more open advertising structure is on Instagram’s users themselves.</p> <p>Brands have a responsibility to use this opportunity to deliver a positive user experience and keep the audience engaged, especially as advertising on the platform is still a relatively new concept. </p> <p>This can be achieved by using rich visuals and considering other creative options such as image format (square, portrait, or landscape) and the viability of using the same creative across audiences and platforms.</p> <p>Marketers that target users effectively with relevant content will inevitably be rewarded.</p> <p>While Facebook will continue to dominate the budgets of advertisers to great effect, this shift by Instagram now provides an attractive alternative.</p> <p>With Instagram revenue expected to equal a tenth of Facebook’s total ad revenue by 2017, by maximising the options available and diversifying spend, marketers will increase the efficiency of their ad placement. </p> <p> <img src="https://assets.econsultancy.com/images/0006/7740/Instagram_s_5th_Birthday_infographic.png" alt="" width="1000" height="500"></p> tag:econsultancy.com,2008:BlogPost/67018 2015-10-07T02:02:00+01:00 2015-10-07T02:02:00+01:00 Programmatic advertising in APAC: An Introduction Jeff Rajeck <p>Everyone is talking about programmatic ad buying, but with all of the unfamiliar systems, strategies, and acronyms it's a bit difficult to understand what people are saying.</p> <p>And it's even more tricky in Asia-Pacific as programmatic advertising is a new concept in the region and APAC countries are all at a different stage of adoption.</p> <p>So, in order to understand programmatic in APAC, we need to first go through what the term actually means, and then later go through where we are at in the region.</p> <h3>Webinar announcement</h3> <p>But before we start, I'd just like to highlight that Econsultancy will be hosting a webinar on the subject, <strong>Programmatic: Trends, Data and Best Practice (APAC)</strong>, on 15 October at 10am Singapore / 1pm Sydney time.  </p> <p><a href="https://econsultancy.com/events/programmatic-trends-data-and-best-practice/">Click here to book your spot.</a></p> <h3>Programmatic Overview</h3> <p>Trying to figure out what's going on with programmatic ad buying in Asia is tough. Few industry overviews are available, and the ones which do exist offer statistics which presume that you already know something about the area.</p> <p>For example, Campaign Asia-Pacific and Ipsos announced a <a href="http://www.mediaquark.com/programmatic-in-the-apac/">great headline figure</a> earlier this year: Seven in 10 marketers in Asia-Pacific use or plan to use programmatic.  </p> <p>This tells us, sure, that programmatic is becoming more popular but what does that mean?</p> <p>Well, here today we're going to start from the basics and try to unpack it. We will first look at what programmmatic ad buying is and then in a follow-up post have a look at what this means for APAC.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7735/60331596-blog-flyer.jpg" alt="" width="470" height="461"></p> <h3>First, a definition</h3> <p>Before we get into any details, it's best to start with a definition.</p> <p><strong>The term 'programmatic' typically means an ad buying process that relies on software, or programs, to buy and sell advertising space.</strong></p> <p>And that definition lets us know that programmatic uses algorithms instead of human judgement for pricing ads. But what does programmatic look like in practice?</p> <p>Well, <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">a previous Econsultancy post</a> offers some help. 'Programmatic... is like Google AdWords, only it's for display ads rather than search results'. And I think that is both a useful explanation and a little bit misleading.</p> <p>Useful in the sense that if you know <em>nothing</em> about programmatic, but you know AdWords, then it helps to put it in context. </p> <p>But it's misleading because Google AdWords is fairly limited compared to a true programmatic solution, as you will soon see. </p> <h3>Next, the systems</h3> <p>To understand programmatic a bit better, we have to get beyond a high-level definition and get into the details about what makes the whole programmatic ecosystem work. </p> <h4>Advertisers and Publishers</h4> <p>First off, we have the things we all know and understand - advertisers and publishers.  These two act as you would expect.  The advertisers buy ads and the publishers sell ad space.</p> <p>It's fundamentally no different than how we operate today, but it's how the advertising is bought (i.e. programmatically) where things get interesting - and where the acronyms start.</p> <h4>Demand-side platform (DSP)</h4> <p>Any serious discussion of programmatic should include a relatively new type of ad buying system, a 'demand side platform.'</p> <p>Simply put, a DSP is a system which advertisers, or the 'demand-side', use to buy ad space. It's a 'platform' in the sense that you don't directly buy the space on the publishers, but instead input parameters (typically who you want to reach) and the DSP then, programmatically, buys the ad space for you.</p> <p>And in this way, a DSP is like Google AdWords but with the added bonus of also managing your ad buying. But AdWords is limited to using Google search traffic and a few other factors as targeting parameters. </p> <p>DSPs, however, are connected to many different networks (not just Google) and they offer targeting options beyond what single-platform publishers could offer.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7737/targeting-blog-flyer.jpg" alt="" width="470" height="282"></p> <p>These parameters can include things we are familiar with such as time of day, age ranges, or even interests. But they can go much further than that and offer new targeting options such as life events (just married or retired), recent purchases, or even the emotional content of the video they are watching.</p> <p>And DSPs also learn about the effectiveness of your targeting and can change your targeting subtly and dynamically to optimize results. </p> <p>To really benefit from the options available, though, you need another system. And we need to learn another acronym...</p> <h4>Data management platform (DMP)</h4> <p>The name 'data management platform' sounds simple, but DMPs are arguably the most complex, and most important, part of the programmatic ecosystem.</p> <p>'Data management' does sounds like something quite basic like, say, a database with an admin screen.</p> <p>But there is much more to a DMP than just managing data. DMPs also typically include data organization tools, audience builders, analytics, an optimization engines, and APIs to get data in and out.</p> <p>And with all those features, they are quite difficult to configure and manage. In fact, even sophisticated brand marketers may use a specialist agency with a media 'trading desk' to help configure and manage the platform.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7736/programmatic-ad-buying-blog-flyer.jpg" alt="" width="470" height="250"></p> <p>And proper configuration is just the start. More importantly, your DMP blends first-party (your customer data) and third-party data (from data providers) and lets you build ad audiences that you could never build before.</p> <p>For example, your first party data may be email addresses of customers who have made a big purchase at your store.  </p> <p>A DMP, with third party data, can take that data and blend it with demographic data from another vendor.  </p> <p>Then you can advertise specifically to customers who have another characteristic which you don't know about, say high disposable income, so you can target your ads to the right micro-audience.</p> <h4>Supply-side platform (SSP)</h4> <p>So now we know that the advertiser buys ads using a variety of data sources in their DMP using the capabilities of a DSP. But where do the DSPs buy the ad space?</p> <p>Let's go back to the AdWords comparison. If programmatic is like AdWords, then the DSP (AdWords) buys the ad space from Google search. So Google AdWords provides the demand and Google Search provides the supply.</p> <p>In the world of programmatic buying, there isn't just one supplier, there are millions. But with so many different publishers available, how can DSPs know where to buy?</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7746/news-blog-flyer.jpg" alt="" width="470" height="269"></p> <p>In order to make it easier for DSPs to buy ad space, publishers sign up, typically via an Ad Network, with a supply-side platform (SSP) which then manages both the ad content delivered to the site, the audience data, and paying the publisher for the use of their ad space.</p> <p>How this works is beyond the scope of this post but as, we will cover in the next post, the programmatic industry now has billions of dollars in revenue so you can presume that it works very well indeed!</p> <h3>How it works: Real-time bidding (RTB)</h3> <p>Now that we know who is involved in the programmatic ecosystem, we can now say how this all works in practice.</p> <p>The overwhelming majority of programmatic buying is transacted through a method called 'real-time bidding' (RTB). </p> <p>The way RTB works is that when someone browses a publisher's web page, they tell the SSP that new ad inventory is available. The SSP then informs the DSPs and provides some information about the person who is viewing the page. An auction then commences between the various DSPs connected to the SSPs.</p> <p>The DSPs then bid, in real-time, for that ad space according to a bidding strategy determined by the parameters set by the advertiser. The advertiser who wins the bid, via their DSP, is then given the space to show their ad.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7738/oil-span-blog-flyer.jpg" alt="" width="470" height="202"> </p> <p>What this means in practice, is that a DSP will, programmatically, determine a bid price on behalf of the advertiser so that they are likely to win the ad space for the people they want to reach and lose the bid, thereby not spending ad dollars, on the people they don't care to reach.</p> <p>Note that this all happens in less than a second so that the person viewing the publisher's site will typically receive the ad before the page is even loaded.</p> <p>Of course there are other nuances and complexities to the RTB process, but essentially this is how billions of dollars are now spent on advertising online.</p> <h3>So...</h3> <p>So now you know the participants, the systems, and the acronyms involved in programmatic ad buying, you can see how this all fits together rather nicely in the diagram below.</p> <p>And now that we have covered what exactly programmatic is, we are ready to tackle the stats, trends, and outlook for the programmatic industry in APAC in the next post!</p> <p><img src="https://assets.econsultancy.com/images/0006/7747/programmatic-ecosystem.png" alt="" width="808" height="310"></p>