tag:www.econsultancy.com,2008:/topics/ad-exchanges Latest Ad exchanges content from Econsultancy 2017-07-03T02:00:00+01:00 tag:www.econsultancy.com,2008:BlogPost/69208 2017-07-03T02:00:00+01:00 2017-07-03T02:00:00+01:00 Programmatic has become problematic: Here's what marketers can do about it Jeff Rajeck <p>Yet programmatic has remained a very popular ad-buying strategy. The market has been growing at an <a href="https://www.zenithmedia.com/%EF%BB%BF%EF%BB%BF%EF%BB%BFprogrammatic-ads-grow-31-2017-ahead-channels/">average rate of 71% per year</a> for the past five years and is projected to be a $64bn dollar industry in 2018.</p> <p>At a recent Econsultancy event in Singapore, Digital Outlook 2017 Part 2 hosted by NTUC, Hari Shankar, MD at Escelis (the performance marketing brand of Havas Group) told attendees about a few of the current issues programmatic is facing and what marketers can do about them.</p> <p>Two of these are summarised as follows.</p> <h3>The 'machine problem' </h3> <p>Hari started by introducing the programmatic landscape, which can seem overwhelming and confusing.</p> <p><img src="https://assets.econsultancy.com/images/0008/7100/1a.jpg" alt="" width="800" height="500"></p> <p>But when programmatic is simplified down to how ads are served to web browsers, it is relatively straightforward. Publishers announce that they have an ad space to be filled and advertisers bid for the spot. The winning bid then serves the ad to the browser.</p> <p><img src="https://assets.econsultancy.com/images/0008/7101/2a.jpg" alt="" width="800" height="531"></p> <p>The 'machine problem' occurs due to how the bidding algorithms work. Instead of offering a free bidding market, programmatic buying auctions are held using a waterfall model. What this means is that while all advertisers can bid for the space, some bids take priority, even if they are not the highest bidder. </p> <p>In the case illustrated below, Partner #1 loses the bid because it is below the floor price set for the publisher, but Publisher #2, being above the floor price, wins the bid despite higher offers coming in from Partners #3 and #4.</p> <p><img src="https://assets.econsultancy.com/images/0008/7102/3a.png" alt="" width="321" height="371"></p> <p>Hari noted that this model creates an unfair advantage for large bidders, such as Google DoubleClick Bid Manager, as they are often at the top of the 'waterfall'. Publishers suffer too as they do not receive the highest bid for their ad space.</p> <p>Recently, however, a new technology called '<a href="https://econsultancy.com/blog/68687-my-nightmare-trying-to-understand-header-bidding/">header bidding</a>' has emerged as a solution to the 'machine problem'. Instead of using the waterfall model, header bidding takes in bids from all ad partners at the same time and serves up the ad with the highest bid.</p> <p><img src="https://assets.econsultancy.com/images/0008/7103/4a.png" alt="" width="354" height="422"></p> <p>While some estimate that many large publishers, including MailOnline and CNN International, are implementing header bidding, not everyone is yet on board with the new technology.</p> <p>Regardless, marketers were advised to ensure that header bidding is on their programmatic roadmap and to lobby publishers to adopt the technology soon. Otherwise, brands will lose out on bids for quality ad space and will not be able to get their ads in front of the people they are targeting through their partner sites.</p> <h3>The 'people' problem</h3> <p>Another programmatic problem Hari brought up has more to do with people than algorithms.</p> <p>He noted that a lot of programmatic is still bought via agencies and trading desks which operate using an 'undisclosed' model. What this means is that many brands are buying ads programmatically through a third party which doesn't disclose the fees they are paying for their services.</p> <p>This might not be a problem if the fees were low enough to be negligible, but Hari drew attention to some recent data about the costs of programmatic ad buying.</p> <p><img src="https://assets.econsultancy.com/images/0008/7106/7.jpg" alt="" width="800" height="500"></p> <p>Using <a href="http://www.ana.net/getfile/25070">data from the Association of National Advertisers, et al</a>, Hari stated that for 3.9 billion display ads, the volume-weighted average cost was $3.30 per thousand impressions (CPM). <em>Disclosed</em> fees from agencies, however added on a further $1.49 per CPM, a 45% premium.</p> <p><img src="https://assets.econsultancy.com/images/0008/7104/5b.png" alt="" width="800" height="230"></p> <p>The researchers concede that many of these costs may be worthwhile as they encompass such services as sophisticated targeting and buying against KPIs, but Hari's point was that if disclosed fees saw a 45% premium then undisclosed fees are likely to be much higher.</p> <p>The 'people problem' then leads to brands cutting back on spending by buying low-quality ad inventory which then results in issues with viewability, click fraud, and the brand safety problems currently plaguing programmatic buying.</p> <p><img src="https://assets.econsultancy.com/images/0008/7105/6.jpg" alt="" width="800" height="500"></p> <h3>The solutions</h3> <p>Hari concluded by pointing out that if programmatic is going to succeed as a performance-based ad buying strategy, then brands need to take more control of the process.</p> <p>He makes three recommendations:</p> <h4>1) Set up a transparent model for programmatic buying</h4> <p>This could be one of three things: </p> <ul> <li>A fully-in house programmatic buying team, or</li> <li>Direct deals with DSP / RTB vendors, or</li> <li>Disclosed trading desk model with agency</li> </ul> <h4>2) Set up a strong tracking and optimization system</h4> <p>Hari advises that brands should use a single vendor for ad serving and web analytics and track display using multi-channel attribution. Additionally, marketers should integrate their customer data (CRM) with programmatic, ideally using a data management platform (DMP).</p> <h4>3) Test, learn, scale</h4> <p>Marketers should use tools like Optimize 360 for A/B testing and, using their transparent buying model, conduct more controlled buying such as programmatic direct, placement-led programmatic, and first-party tagged targeting. </p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank Hari Shankar, MD Asia Ecselis, Havas Media for his presentation as well as the delegates who took time out of their busy schedules to attend.</p> <p>We hope to see you all at future Singapore Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/7107/8.jpg" alt="" width="800" height="500"></p> tag:www.econsultancy.com,2008:BlogPost/68844 2017-02-28T10:23:30+00:00 2017-02-28T10:23:30+00:00 Should advertisers be more picky with programmatic? Patricio Robles <p>For example, according to MasterCard CMO Raja Rajamannar, "we don't want to be anywhere and everywhere."</p> <p>He explained to AdWeek, "We stick to reputed sites. We don’t just go into programmatic and give a price point and buy everywhere. We have a whitelist so we said, ‘We want to [only] be on these sites,’ which really helps with mitigating if not eliminating ad fraud."</p> <p>As a result, Rajamannar says that ad fraud is a minor problem for the financial services giant.</p> <h3>The virtues of whitelists and blacklists</h3> <p>MasterCard's programmatic pickiness highlights the value of using whitelists and blacklists.</p> <p>While extensive use of these lists would appear to be at odds with the promise of programmatic – the ability to target audiences instead of properties – the reality is that it's increasingly difficult for advertisers to take a hands-off, anywhere and everywhere approach to ad buys.</p> <p>That kind of approach exposes advertisers to ad fraud, and leaves their ads vulnerable to placement on low-quality sites that have been created to exploit the complex digital advertising ecosystem.</p> <p>These low-quality sites include fake news operations, which have <a href="http://www.recode.net/2017/1/25/14375750/google-adsense-advertisers-publishers-fake-news">come under scrutiny</a> following claims that they may have impacted the results of the 2016 U.S. presidential election.</p> <p><em>The Times of London recently brought attention to brand safety in programmatic</em></p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">The hazards of programmatic advertising... <a href="https://t.co/x9RXX8kLZv">pic.twitter.com/x9RXX8kLZv</a></p> — Emma Tucker (@emmatimes2) <a href="https://twitter.com/emmatimes2/status/829458659646251008">February 8, 2017</a> </blockquote> <p>Of course, putting whitelists and blacklists to use requires extra work on the part of advertisers, and isn't without its challenges. Advertisers using whitelists can find that their programmatic campaigns are less effective if the universe of properties they have whitelisted is too small, while those using blacklists can find that keeping up with bad actors is incredibly difficult.</p> <h3>Does the future belong to private exchanges?</h3> <p>Given the challenges, it shouldn't come as a surprise that private exchanges are on the rise.</p> <p><a href="http://www.mediapost.com/publications/article/294004/agency-trading-desks-still-dominate-programmatic.html">According to</a> a recent survey conducted by the World Federation of Advertisers, more than two-thirds of respondents are investing more dollars into private exchanges.</p> <p>And soon, advertisers will have even more options for buying high-quality inventory in programmatic fashion as premium publishers, which <a href="https://econsultancy.com/blog/68086-ads-on-premium-sites-drive-67-greater-brand-lift/">comScore says can deliver greater brand lift</a> than their non-premium counterparts, are <a href="https://adexchanger.com/publishers/digital-ad-ecosystem-messy-trustx-grabbing-broom/">banding together</a> to form programmatic cooperatives like TrustX.</p> <p>As the amount of inventory private exchanges and cooperatives like TrustX make available grows, it should become easier for advertisers to use programmatic to be anywhere and everywhere <em>worth</em> being without many of the headaches they currently face.</p> <p><em><strong>For Econsultancy subscribers:</strong></em></p> <ul> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/">The CMO's Guide to Programmatic</a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68742 2017-01-27T11:16:58+00:00 2017-01-27T11:16:58+00:00 Three common pitfalls in programmatic buying Lori Goldberg <p>Without an eye for the nuance, or a thorough understanding of a few key components of programmatic buying, advertisers run the risk of making pitfalls that create negative experiences while wasting ad dollars. </p> <p>Here's a summary of three common pitfalls.</p> <h3><strong>Not understanding the nuance behind the data</strong></h3> <p>One thing that is incumbent on media planners and buyers is to choose the right data for each campaign. We’ve all had moments where we realize we’re being served an ad for something that is completely irrelevant — in fact, just last week I was getting ads for puppy food, even though I don't own a dog. </p> <p>In order to avoid this kind of misstep, it’s critical to understand where data providers are sourcing their inventory. At the most basic level, advertisers need to know if their data provider is a reseller or if they are working with first-party proprietary data and if that data is verified. </p> <p><img src="https://assets.econsultancy.com/images/0008/3442/dog_food.jpg" alt="" width="724" height="483"></p> <p>While most data providers believe that their data set is superior, it’s important to dig deeper to consider the nuances of the data set. Knowing what kind of data will make a great source for their campaigns can help marketers have a more sophisticated view of how their data can impact campaign performance. </p> <p>For example, when working with registration data, having an understanding of the consumers’ motivations for being on that list can shed insights into whether or not that data set is the right set for the campaign.</p> <p>If the end user has particular motivation to answer questions inaccurately (e.g. data from a dating website), campaign impressions might not yield the targeted user experience advertisers were hoping for. </p> <p>Yet when we align data sources with the targets of the campaign, we can create powerful fuel for relevant ad experiences. For example, one of Silverlight Digital’s travel clients, a tourism department for a Caribbean island, has been able to source data from travel networks that partner with two of the most popular airlines that fly to the island.</p> <p>Understanding not only what kind of data, but also the end consumers’ motivation for being part of this data set, tells us that they are likely to shop with these airlines and are likely to want to travel. Ultimately this is the ideal experience for both the marketer (targeting accurate impressions) and the consumer (great user experience).</p> <h3><strong>Not understanding where consumers are in the buying cycle</strong></h3> <p>Another area where we see advertisers missing opportunities in programmatic is not properly understanding how frequently consumers need to be targeted within the context of the product.</p> <p>A great example of this is a recent trip I took to Santa Monica. At the time of this writing, only eight weeks have passed and now I’m being retargeted by hotels and travel deal sites that are offering packages on a return trip to Santa Monica. While I had a great time, I’m not likely to go back across the country eight weeks after I just visited.</p> <p><img src="https://assets.econsultancy.com/images/0008/3440/Santa_Monica.png" alt="" width="650" height="368"></p> <p>If these advertisers understood the buying cycles of their consumers, they might hold off and re-target again in 6-12 months when I’m more likely to be considering a new trip.</p> <p>Continuing with this example of my recent trip, I noticed one of the advertisers that was re-targeting me was the hotel that I stayed in during my trip, offering a discount if I “complete my purchase” and book with their hotel.</p> <p>If they were to cross-reference their data with recent customers, they would know that I’ve already stayed at the hotel and would be able to serve me an ad that feels more customized (i.e. come back to Santa Monica!). Advertisers should take the time to cross-reference their data so that they save ad dollars and don’t waste impressions. </p> <h3><strong>Not capping the frequency </strong></h3> <p>Understanding the optimum number of impressions can not only boost campaign performance, but also prevent waste. According <a href="http://digiday.com/agencies/ad-techs-frequency-cap-problem/">to DigiDay</a>, “bad frequency management is costing digital marketers billions of dollars a year.”</p> <p>Research published in DigiDay showed that "64% of impressions were out of frequency, and no advertiser had fewer than 60% of its impressions delivered beyond their cap." What this means is that marketers are annoying consumers, and wasting lots of ad dollars while doing it. </p> <p>Often caps are neglected and never tested because they’re not straightforward, but not knowing what optimal frequency cap to use can give poor results. Running A/B tests to understand ideal frequency isn’t necessarily easy, but it is an imperative part of the process. </p> <p>Properly evaluating data sources, tailoring the campaign to the product lifecycle, and targeting consumer buying behavior is the key to creating successful and powerful programmatic campaigns. </p> <p><em>For more on programmatic, check out these Econsultancy resources:</em></p> <ul> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68665 2017-01-04T01:00:00+00:00 2017-01-04T01:00:00+00:00 Three keys to digital advertising success in 2017 Jeff Rajeck <p>Some the changes which have been covered extensively include: </p> <ul> <li> <strong>Platforms</strong> - some which have risen (hello Snapchat) and others, fallen (Meerkat, RIP).</li> <li> <strong>Header bidding</strong> - which has become a significant challenger to traditional ad exchanges.</li> <li> <strong>Advertising on messaging apps</strong> - which is tipped to bring big changes to the ad market.</li> </ul> <p> At Digital Cream Singapore, we spoke with dozens of client-side marketers about these changes and how they affect their agenda for the coming year. </p> <p>Surprisingly, though, <strong>most brand marketers were less concerned about the latest technology or platforms and </strong><strong>more worried about how they will use digital advertising to deliver value to the business. </strong></p> <p>To make that happen, participants on the day identified three things which they consider as priorities if they are to bring success in the coming year.</p> <h3>1) A single view of the customer</h3> <p>Attendees felt that most organisations have plenty of customer data. Nearly everyone has a CRM with customer attributes, most use web analytics to capture on-site user behaviour, and now a significant number have implemented a data management platform to understand what their customers do on other sites.</p> <p>The problem for marketers, though, is that customer data is spread across several systems. As a result, it is difficult to join up the data and obtain a single view of the customer which links their attributes, interests, and behaviour.</p> <p>Participants felt that fragmented customer data is particularly problematic for digital advertising. As digital ad platforms need data for segmenting, targeting, and positioning, marketers without a single view of the customer are not able to exploit opportunities and deliver the best value to the business.</p> <p><strong><img src="https://assets.econsultancy.com/images/0008/2647/3.jpg" alt="" width="800" height="533"></strong></p> <p>One technology which helps marketers obtain a single customer view is a <strong>'customer data platform' (CDP)</strong>.</p> <p>A CDP is a system which:</p> <ul> <li>Combines data from multiple sources.</li> <li>Lets marketers build customer profiles.</li> <li>Delivers messaging across multiple platforms.</li> <li>Uses decision-making algorithms to optimize performance.</li> </ul> <p>While CDPs sound promising, they are relatively new and so marketers will need to conduct more research before they are widely-deployed.</p> <p>More information about CDPs is available <a href="http://customerexperiencematrix.blogspot.sg/2015/01/customer-data-platforms-revisited.htm">here</a> and a list of vendors is available via the <a href="http://www.cdpinstitute.org/">CDP Institute</a>.</p> <h3>2) A cross-market ad buying strategy</h3> <p>Another issue client-side marketers hope to solve in 2017 is how to buy ads programmatically across different markets.</p> <p><strong>The problem marketers face is that different countries usually have different ad platforms</strong>. Marketing managers struggle with becoming familiar with each of them in order to train the regional teams.</p> <p><strong>Some participants avoid this issue by relying solely on the 'ad duopoly', Google and Facebook</strong>, to cover multiple markets. Others, however, find this approach limiting and feel compelled to use additional programmatic platforms to reach more consumers.</p> <p><img src="https://assets.econsultancy.com/images/0008/2648/5.jpg" alt="" width="800" height="533"></p> <p>Another issue raised was that <strong>Asia-Pacific does not have many third-party measurement services</strong> which help them avoid bot fraud, fraudulent inventory, and unviewable ads. This was particularly a problem for advertisers who operate in China.</p> <p>Delegates offered few ideas into what managers can do about this besides upgrading ad-buying technology and ensuring that regional marketers keep a closer eye on local ad networks.</p> <p>According to a 2016 <a href="https://www.exchangewire.com/bidswitch-report/">BidSwitch survey of buy-side technology firms in Asia-Pacific</a>, the problem isn't going away soon - and indeed may get worse. Nearly half (45%) of respondents indicated that <strong>there will be more programmatic technology companies in APAC over the next three years.</strong></p> <p><img src="https://assets.econsultancy.com/images/0008/2646/graph.png" alt="" width="800" height="517"></p> <h3>3) An attribution model</h3> <p>Finally, the most frequently-discussed item on the digital advertiser 'wish list' for 2017 was marketing attribution.</p> <p>Having an agreed method for attributing marketing success to different channels has eluded most marketing teams, participants noted. The issues they face include: </p> <ul> <li>Obtaining the view and click data from all of the channels.</li> <li>Calculating the value of each touchpoint.</li> <li>Using the model to dictate media spend.</li> <li>Understanding of the customer journey.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0008/2649/4.jpg" alt="" width="800" height="533"></p> <p>One delegate said that<strong> their marketing team overcame some of these issues by implementing a 'fluid' attribution model</strong>. Their approach was to have all stakeholders meet regularly, review ad performance data and, based on hard data, adjust the attribution model appropriately.</p> <p>While not perfect,<strong> introducing flexibility into the model reduced the stakes for all parties as nothing was 'fixed in concrete'</strong>. This, in turn reduced the politics around adopting a model and led to quicker acceptance.</p> <p>Still, many attendees felt that they did not yet know enough to develop an attribution model and so 2017 was going to be another year of learning.</p> <h3>A word of thanks </h3> <p>Econsultancy would like to thank all of the marketers who participated on the day and the moderator for the Online Advertising table, <strong>Stephanie Myers, Senior Vice President of Digital Marketing at HSBC.</strong></p> <p>We hope to see you all at future Singapore Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/2650/end.jpg" alt="" width="800" height="533"></p> tag:www.econsultancy.com,2008:BlogPost/68637 2016-12-14T10:11:44+00:00 2016-12-14T10:11:44+00:00 The Guardian claims impressive results from new native ad platform Nikki Gilliland <p>On the back of this, the fact that the Guardian has launched a new platform for advertiser created content might not come as much of a surprise.</p> <p>But is it a welcome move? Here a bit more on the story.</p> <h3>What is ‘Hosted by the Guardian?’</h3> <p>‘Hosted by the Guardian’ is a new platform that has been specifically designed to host advertiser content on Guardian.com, mainly in the form of videos, articles and galleries.</p> <p>It has been described as a ‘premium environment’, drawing on traffic from the Guardian’s homepage where the content will first be promoted.</p> <p>So far, Renault is one of the biggest brands to test out the platform, running three videos to sell its new range of electric ‘ZOE’ vehicles.</p> <p><img src="https://assets.econsultancy.com/images/0008/2399/Renault_desktop.png" alt="" width="780" height="490"></p> <h3>A transparent approach</h3> <p>Native advertising continues to be a big challenge for both brands and publishers.</p> <p>On one hand, <a href="https://econsultancy.com/blog/67019-12-alarming-ad-blocking-stats-that-reveal-the-size-of-the-problem/" target="_blank">the rise of ad blocking</a> suggests that readers are fed up of intrusive ads, meaning that surely native ads - where the content mimics the editorial environment on which it is displayed – would be preferable.</p> <p>However, increasing confusion and frustration over poorly labelled sponsored content means that reader distrust is one of the biggest risks for publishers.</p> <p>The below chart from Contently’s <a href="https://contently.com/strategist/2016/12/08/native-advertising-study/" target="_blank">latest report</a> reflects confusion over the classification of ads, with the majority of readers unsure about what a native advert actually is.</p> <p><img src="https://assets.econsultancy.com/images/0008/2400/Contently_chart.JPG" alt="" width="780" height="412"></p> <p>Interestingly, the Guardian’s new platform aims to combat this issue, mainly by prominently labelling the various types of sponsored content it produces.</p> <p>The example from Renault is clearly labelled as ‘advertiser content’, meaning that is has been paid for and produced by the advertiser rather than the publisher. </p> <p>It also includes a link to a more in-depth disclaimer about what this means.</p> <p><img src="https://assets.econsultancy.com/images/0008/2404/Guardian_disclaimer.JPG" alt="" width="640" height="560"></p> <p>The videos distinctly feel like adverts, too.</p> <p>Showing a group of Central St Martins students taking part in a competition to design the 'car of the future' - the brand involvement is obvious.</p> <p>While there’s no real mention of the ‘ZOE’ cars, Renault has a heavy presence throughout, even down to praise from the judges about the company's innovative nature and its support of students.</p> <p>Despite this, the storytelling aspect means it is engaging to watch, with the genuine hard work and talent of the students shining through.</p> <h3>Will readers embrace it?</h3> <p>Results from Renault’s campaign indicate that the platform has so far proven successful.</p> <p>Apparently, Renault’s ‘Hosted by’ videos delivered a 60% view-through rate from over 25,000 unique visitors, with a further 4% clicking through to the brand website.</p> <p>What’s more, the overall campaign was said to double awareness of the Renault ZOE, with a third of those who recalled the campaign claiming that they would consider buying an electric car in the future.</p> <p>It’s surprising to hear such a positive result, however, this could be down to the platform being hosted on its own hub.</p> <p>It’s unclear whether or not the ad was labelled as ‘advertiser content’ on the homepage, as there is currently no sign of Renault’s campaign anywhere else on the site. But I’m assuming that this was the case, which means that readers would have known this before actively clicking through to watch it.</p> <p>Perhaps we can also put down this campaign's success to the fact that readers view both the Guardian and Renault as two trusted brands. </p> <p>Contently found that 41% of readers would feel increased trust towards a publisher if it featured a native ad from a most trusted brand.</p> <p>So, while there are obvious risks involved, native advertising does have the potential to increase positive sentiment for the publisher - as long as it is executed correctly.</p> <p><img src="https://assets.econsultancy.com/images/0008/2401/Impact_on_reputation.JPG" alt="" width="705" height="436"></p> <h3>In conclusion… </h3> <p>With native advertising remaining an important source of revenue for publishers, the Guardian's new platform is a sign that many are taking notice of the <a href="https://www.ftc.gov/tips-advice/business-center/guidance/native-advertising-guide-businesses" target="_blank">FTC's stricter regulations</a>.</p> <p>Of course, it helps that Renault's content is well produced, using the real-life context of a student competition to increase engagement.</p> <p>Likewise, with prominent labelling of 'advertiser content' as well as heavy use of the Renault logo, it's pretty unlikely that anyone would view it without knowing that it is an ad.</p> <p>Created with transparency in mind <em>and</em> the aim of providing value for readers, it is a decent example for others to follow.</p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67083-is-native-advertising-sustainable" target="_blank">Is native advertising sustainable?</a></em></li> <li><em><a href="https://econsultancy.com/blog/67044-is-native-advertising-the-answer-to-ad-blocking/" target="_blank">Is native advertising the answer to ad blocking?</a></em></li> <li><em><a href="https://econsultancy.com/blog/66281-five-changes-programmatic-native-advertising-will-bring/" target="_blank">Five changes programmatic native advertising will bring</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68578 2016-12-01T12:12:39+00:00 2016-12-01T12:12:39+00:00 The Weather Company on programmatic, ad fraud, and how extreme conditions affect business Olivia Solon <h4> <em>Econsultancy:</em> What proportion of The Weather Company’s ad sales are done programmatically?</h4> <p><em>Jeremy Hlavacek:</em><strong> </strong>There are two sales channels at The Weather Company. We have our direct sales organization and then I run the side of the business where we put our inventory up for sale through online platforms and exchanges.</p> <p><img src="https://assets.econsultancy.com/images/0008/1975/Jeremy_Hlavacek.png" alt="" width="246" height="194"></p> <p>It’s about half and half at the moment and the trend is towards more programmatic. </p> <h4> <em>E:</em> How do you make sure that your programmatic sales don’t cannibalize direct sales?</h4> <p><em>JH:</em> We’ve spent a great deal of time looking at yield and pricing across the two channels. From our point of view it doesn’t matter if an advertiser wants to buy through a human being and a handshake or a technology platform as long as the inventory is priced appropriately.</p> <p>The second part is that both me and the gentleman who runs direct sales report to the Chief Revenue Officer, who can see the performance of both channels and make strategic decisions.</p> <p>He may want one client to buy through automated platforms and another to buy through direct sales channels, maybe because of the client relationship or the type of buy they want to execute, but both divisions are on equal footing. </p> <h4> <em>E:</em> Some media companies think of using programmatic for unsold inventory. What do you make of that?</h4> <p><em>JH:</em> That’s an outdated way of looking at the business. At this point we see lots of premium advertisers who want to use automation technology to execute their buys.</p> <p>As long as the price works with the yield model we have no problem with that.</p> <p><img src="https://assets.econsultancy.com/images/0008/1976/weather_channel_map.png" alt="" width="800" height="413"></p> <p>We are finding that inventory can be worth even more when we sell it through automated platforms. When a buyer uses a DSP [demand side platform] they can get very precise with the impressions they want to buy so they get good return on investment. </p> <h4> <em>E:</em> What data points can you use to target consumers more accurately?</h4> <p><em>JH:</em> As a weather company we are unique in that we have many first-party data sets, primarily weather and location data.</p> <p>If a beverage advertiser wants to advertise they can use typical programmatic tools to identify the audience of, say, young men between 25 and 35 on the weekend when they are more likely to drink beer.</p> <p>We can then tell them when it is hot and sunny in New York City that’s a good time to run Budweiser ads for drinking a beer on the beach or whatever.</p> <p>Or if it’s cold and stormy in Chicago but it’s football season, it might be a good time to run a beer ad with a different message like “stay inside and watch the game with your friends and enjoy a Budweiser.” </p> <h4> <em>E:</em> Earlier this year the east coast of the United States had to deal with Hurricane Matthew, how does such a major weather event affect your job?</h4> <p><em>JH:</em> To really understand how publisher yield management works for digital properties a hurricane is a great unusual use case.</p> <p>In media traditionally lots of planning goes into forecasting inventory, understanding how many impressions you’ll have and selling those out in advance. That works well for our direct sales business.</p> <p>However, when a hurricane, snow storm, heatwave, tornado or other major weather event hits, it’s not unusual for us to see anywhere from a 200% to a 400% increase in traffic.</p> <p>It’s almost impossible to forecast that with enough precision to sell directly, so it’s really beneficial to have programmatic as we can immediately put that inventory up for sale in an exchange and monetize it. </p> <h4> <em>E:</em> What is the biggest challenge facing the programmatic industry?</h4> <p><em>JH:</em> One problem that has arisen in this space is <a href="https://econsultancy.com/blog/67659-three-things-that-show-the-scale-of-the-ad-fraud-challenge/">ad fraud</a>. Companies running the exchanges have perhaps been a little bit liberal in terms of who they let into that exchange.</p> <p>This means advertisers are spending good money on properties that are either very long tail, have non-human traffic or might not have highly viewable ads. </p> <h4> <em>E:</em> How does this affect your own business?</h4> <p><em>JH:</em> The good news is that advertisers are getting a lot more serious about that issue to the benefit of companies like Weather, which can offer premium inventory at scale without any of the worries of fraud, viewability and non-human traffic.</p> <p><img src="https://assets.econsultancy.com/images/0008/1977/weather_channel_map_2.png" alt="" width="800" height="399"></p> <p>We can give advertisers what they want: efficiency through automation and targeting through data. We want people to buy real legitimate impressions.  </p> <h4> <em>E:</em> How can the problem of ad fraud be solved?</h4> <p><em>JH:</em> It’s gone on in media for a long time if we’re honest – from the early days of TV and print. That’s why third-party verification companies like Nielsen were invented, to track exactly what was served.</p> <p>This is just a case of the programmatic industry growing up and recognizing it needs to be held to the same standard as other media.</p> <p>When it was a new and disruptive emerging industry maybe it didn’t matter as much, but now $20bn+ is being spent in programmatic ad technology it’s not okay to say, “We’re going to let this slide.” The stakes are too high.  </p> <h4> <em>E:</em> What are some of the innovations in programmatic?</h4> <p><em>JH:</em> It really grew out of web display inventory and the targeting technology has been pushed to the limit, but there is a huge opportunity in mobile.</p> <p>On the web side we have cookie targeting, but that doesn’t exist for mobile in-app inventory.</p> <p>We know there are huge audiences there, but advertisers haven’t figured out how to use data to target yet, so they are dumping most of their dollars into Facebook or Google.</p> <h4> <em>E:</em> How do you solve the mobile targeting problem?</h4> <p><em>JH:</em> To me the key is data. Look at web. People used to buy impressions blindly and would use the site as a proxy.</p> <p>So to reach young men they would probably buy ESPN, but then you would also reach women who may not be in your target so would be wasting your dollars.</p> <p>Weather.com, the New York Times and other brands also have large audiences of young men. So we need to move away from contextual targeting where companies’ brands represent the audience towards truly defined audience targeting. </p> <h4> <em>E:</em> What’s the future of programmatic?</h4> <p><em>JH:</em> In 2017 we’re looking at ways to apply our data across all media. Display is great but social advertising, outdoor advertising and TV advertising are very powerful.</p> <p>There’s no reason why our data shouldn’t be effective across all channels, but it’s early days. The operational systems behind all these media channels are very different from what we do to put an ad on a website.</p> <p>That’s an area where the industry needs to get smarter. Once you master the ad serving technology, you can then think about targeting programmatically. </p> <p><em>For more information on this topic, check out these resources:</em></p> <ul> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68405 2016-11-15T13:56:48+00:00 2016-11-15T13:56:48+00:00 The programmatic hiring challenge: How to find and retain talent? Ben Davis <p>Here are some thoughts on the issue.</p> <h3>Writing new and tricky job descriptions</h3> <p>Whether a publisher developing their own sell-side team or an advertiser hiring a buying team skilled in targeting audiences, this stuff is (fairly) new.</p> <p>Many of these organisations are at a standing start and need to find employees that understand sophisticated platforms and their integration.</p> <p>Working with specialist recruiters may be vital in the first instance.</p> <h3>Finding people with soft skills and technical nous</h3> <p>For programmatic sales jobs, you ideally need a mix of two personalities.</p> <p>The most suitable candidates are media-sales people who are smart enough to understand programmatic disruption and are motivated by continually evolving technology.</p> <p>Likewise, when hiring more tech-minded people to work in operations, you should also look for <a href="https://econsultancy.com/blog/64780-have-changes-in-modern-marketing-led-to-a-soft-skills-revolution/">softer skills</a>, awareness of customer needs and of the bottom line.</p> <p>With programmatic advertising often challenging existing advertiser behaviours, new hires need to have this combination of soft skills and technical nous in order to educate customers.</p> <p>On the buy-side, too, whether agency or in-house, candidates must understand about getting the most bang for buck, but will also be tasked with defining and documenting best practice, collaborating with other teams and educating internally.</p> <p>What does this look like in the real world?</p> <ul> <li> <strong>Great communication:</strong> The ability to convey fairly abstract concepts and tell the story of programmatic both to stakeholders and the wider industry.</li> <li> <strong>Strategic thinking:</strong> Long term understanding of customer objectives within the programmatic world but also as a part of wider marketing and advertising.</li> <li> <strong>Media planning experience:</strong> Knowledge of ad formats, viewability, inventory, data management platforms etc.</li> <li> <strong>Measurement and optimisation experience:</strong> Tracking, troubleshooting and reporting.</li> </ul> <h3>Investing time and money in staff</h3> <p>Even when you find the right person for your team, the intricacies of different platforms means it takes time before they bed in.</p> <p>The danger for companies is that they get into a cycle of recruiting, training and then losing people from programmatic roles.</p> <p>Staff retention is important for any company trying to innovate with media. Recent emphasis on the role company culture plays in <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> has meant many organisations have invested in this area.</p> <p>From the use of personal devices, to remote working, more money for training and office perks, as well as finding <a href="https://econsultancy.com/reports/effective-leadership-in-the-digital-age/">the right digital leaders</a> that can both inspire and listen to the workforce.</p> <p>Short-termism is the enemy here.</p> <h3>Doing a good PR job for programmatic</h3> <p>One of the problems remains an issue of PR.</p> <p>Media has no problem in attracting intelligent young people away from other industries or studies, but to what extent is programmatic advertising a draw?</p> <p>Agencies and the advertising industry as a whole perhaps need to paint a better picture of this new technology, one that hasn't yet fulfilled its potential but may shape the future of advertising and creative.</p> <p><em>For more information on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/"><em>A super accessible beginner’s guide to programmatic buying and RTB</em></a></li> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/"><em>The CMO's Guide to Programmatic</em></a></li> <li><a href="https://econsultancy.com/training/courses/programmatic/"><em>Programmatic Training Course</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68450 2016-11-11T10:21:47+00:00 2016-11-11T10:21:47+00:00 Six things to know about addressable TV advertising Ben Davis <p>Quite how advertisers will take full advantage of the addressable ad opportunity is still up for debate - creative execution of addressable media has arguably been lacking across the advertising industry and is one of the main challenges for advertising as a whole right now.</p> <p>In this post, I thought I would give a short introduction to addressable TV. How does it work? Who is doing it? What do brands need to know?</p> <h3>1. Advertisers pay for audiences not content</h3> <p>The advertiser defines the audience it wants to target and pays for impressions regardless of what content that audience is watching at the time.</p> <p>Addressable TV chiefly refers to ads targeted at specific household audiences watching linear television. Currently, the number of addressable households stands at around 50m in the US (essentially those that have a set-top box and for whom census-level data is available).</p> <p><img src="https://assets.econsultancy.com/images/0008/1407/tv.jpg" alt="" width="788" height="608"></p> <p>Census data allows for targeting based on income, ethnicity, children and even car leases.</p> <p>Of course, there is are addressable media available in TV and video. Video-on-demand (VoD), smart TVs and over-the-top (OTT) services allowing for programmatic ad buying and can offer more specific targeting (particularly on personal devices).</p> <h3>2. Addressable ads make TV accessible for more niche advertisers</h3> <p>Being able to buy fewer but much more targeted impressions helps more niche advertisers.</p> <p>Though addressable TV is more expensive per 'impression', there is inherently less wastage.</p> <p>A common example cited is the example of an advertiser targeting home renters - something that would be too wasteful if done with traditional broadcast advertising.</p> <h3>3. Uptake is pretty modest</h3> <p>According to eMarketer, addressable TV spend in 2015 was $400m in the US. In 2016 that will reach $890m, topping $2bn by the end of 2018.</p> <p>Sounds healthy enough, but for 2016 that's only 1.3% of total TV ad spend in the US.</p> <p>Some of the main providers offering addressable TV ads include Cablevision, Comcast, DirecTV and Dish.</p> <h3>4. Creative versioning has not yet taken off</h3> <p>Though providers such as Cablevision do offer the technology, advertisers are not yet versioning creative for addressable TV like they do with <a href="https://econsultancy.com/training/courses/programmatic/">programmatic</a> display ads.</p> <p>This isn't entirely suprising, given the nascency of the technology but it will prove an interesting talking point in the next few years.</p> <p>Will TV ads benefit from one-to-one dynamic content? Can retargeting (of a sort) be done creatively on the family set?</p> <p>One might suggest such impressive but rather functional targeting has been partly responsible for a malaise in online advertising.</p> <h3>5. Lack of standardisation makes for more work</h3> <p>Different operators use different technologies and so it can be time consuming to run and report on ads across a number of them.</p> <h3>6. Controlling ad frequency becomes possible</h3> <p>Addressable TV means that advertisers can measure and optimise the number of impressions a given person or household is exposed to.</p> <p>In theory this will allow advertisers to experiment and better understand optimum exposure. Ads can be changed or stopped when the audience hits a particular threshold.</p> <p>Of course, as online advertising shows, this isn't always the case in practice. TVs are rarely personal devices and we all make a cup of tea now and again.</p> <p>However, what's clear is that where some are advertisers are still concerned about <a href="https://econsultancy.com/blog/67659-three-things-that-show-the-scale-of-the-ad-fraud-challenge/">ad fraud</a> and viewability online, TV (both linear and on-demand) maintains a reputation for quality and transparency that advertisers love.</p> <p>The question is one of scaling addressable TV and making it work for all.</p> tag:www.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:www.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>