tag:www.econsultancy.com,2008:/topics/ad-exchanges Latest Ad exchanges content from Econsultancy 2016-08-29T03:00:00+01:00 tag:www.econsultancy.com,2008:BlogPost/68232 2016-08-29T03:00:00+01:00 2016-08-29T03:00:00+01:00 China introduces far-reaching new internet ad law: Why it matters Jeff Rajeck <p><img src="https://assets.econsultancy.com/images/0007/8461/Us_ads.png" alt="" width="480" height="328"></p> <p>China, by comparison spends a far greater percentage (66%) of its advertising on internet and mobile and a much smaller percentage (24%) on traditional media.</p> <p><img src="https://assets.econsultancy.com/images/0007/8460/China_ad.png" alt="" width="481" height="323"></p> <p>So, even though the overall dollar amount spent in China is less than in the US, the<strong> internet is a much more significant part of advertising in China</strong>.</p> <p>Because of this, China is likely to be a trend-setter for other parts of the world.</p> <p>To learn a bit more about what might be coming to internet advertising in the rest of the world, here is the background and some detail of the new law in China.</p> <h3>Background</h3> <p>In July, 2015 China's State Administration for Industry and Commerce (“SAIC”) amended the Chinese Advertising Law to cover internet advertising.  </p> <p>New regulations were supposed to go in effect last September (2015) but were largely unenforced.</p> <p>Recently, however, there has been renewed interest in regulating online advertising, which may have something to do with the tragic story of Wei Zexi.</p> <h4>The death of Wei Zexi</h4> <p>On April 12, 2016, Chinese student Wei Zexi died after receiving experimental treatment for cancer which he found out about through an ad on China's main search engine, Baidu.</p> <p>The hospital had, apparently, claimed a high success rate for the treatment in the ad.  </p> <p>The ads were also regularly featured prominently in search results as the hospital group was reportedly responsible for nearly half of Baidu's multi-billion dollar ad revenues.</p> <p>Wei Zexi's death drew renewed attention to the Advertising Law from Chinese media, including 250,000 comments on an online editorial on the matter.</p> <p>In apparent response, the regulators not only censured Baidu and issued specific regulations for it, but also followed up with new laws.</p> <h4>Response</h4> <p>On July 4, 2016 the SAIC issued new regulations, the Interim Measures for the Administration of Internet Advertising, which take effect on September 1, 2016.</p> <p>The Advertising Law and the Interim Measures are the first step China's SAIC has taken toward defining and regulating advertising.</p> <h3>The new laws</h3> <h4>Internet advertising defined</h4> <p>There is a lot of detail in the definition of internet advertising in the new law (which you can read about <a href="http://www.lexology.com/library/detail.aspx?g=296c00a7-f562-4012-a6d3-c8ec58463c2f">here</a>), but in brief, <strong>internet advertising is defined as any commercial marketing anywhere on the internet for anything</strong>.</p> <p>The definition is broad and even includes out-of-home displays with web addresses and recommendation engines on ecommerce platforms.</p> <h4>Internet publishers defined</h4> <p>More interesting is how the regulators define a 'publisher.' According to the law <strong>a publisher refers to those who push OR display the advertising.</strong></p> <p>This can include websites, ad tech platforms, influencers, and even internet service providers.  </p> <p>In short, anyone who has the ability to review and prevent an illegal ad from showing can be held responsible.</p> <p>This definition is, again, quite broad and will give the government a lot of flexibility to enforce the law as it likes in the future.</p> <h4>Publishers obligations</h4> <p>The real meat of the regulation, however, are the <strong>publisher's obligations.</strong></p> <p>According to the new law, publishers will need to: </p> <ul> <li>know who their customers are,</li> <li>verify any credentials they give, and</li> <li>verify the ad content.</li> </ul> <p>To handle this, publishers and ecommerce sites will be expected to hire specialists to record customer details, review all ads and block those which do not comply. </p> <p>While there are other things in the law, such as anti-spam clauses and a ban on ad-blockers (<a href="http://adage.com/article/digital/china-ban-ad-blocking/305077/">maybe</a>), the fact that publishers, broadly defined, will be responsible for the claims made by advertisers is among the biggest changes.</p> <p>This means that China has gone from one of the least regulated advertising markets to one of the most, almost overnight.</p> <h3>Example: Baidu</h3> <p>These regulations sound somewhat far-reaching and difficult for companies to comply with.</p> <p>But have a look at Baidu's search results for cosmetics (化妆品).  The top three results are ads and are, as one might expect, marked as promotional posts on the right in blue (商业推广).</p> <p><img src="https://assets.econsultancy.com/images/0007/8465/baidu_2.png" alt="" width="438" height="442"></p> <p>But interestingly there is also a grey link after the domain name (评价) which sends the browser to another page, offering details about the advertiser and fielding comments.  </p> <p>Here it is for one vendor, translated into English by Google.</p> <p><img src="https://assets.econsultancy.com/images/0007/8463/baidu_vendor.png" alt="" width="452" height="267"></p> <p>It seems, therefore, that <strong>Baidu is already taking the regulations quite seriously.</strong></p> <h3>Why everyone should be interested in China's new laws</h3> <h4>1. The new laws raise interesting questions for other countries</h4> <p>Most Western countries have carried over existing advertising legislation to online platforms.  </p> <p>This works well when the advertising model has two players, the advertiser and the publisher, but breaks down when there are multiple parties involved.</p> <p>Unresolved questions include:</p> <ul> <li>Who is responsible for ad content in <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic advertising</a>?</li> <li>Is checking native ads the reponsibility of the publisher or the agency?</li> <li>What about influencers who appear on a social media site via an agency?</li> </ul> <p>China's legislators have a simple answer, <strong>everyone in the ad chain is potentially responsible</strong>.  </p> <p>While this may seem heavy-handed it will likely encourage the various players to be much more careful with ads than if they felt they could always blame the originator or the delivery platform.</p> <h4>2. The regulation might set a trend</h4> <p>Because the law does address these issues left somewhat unclear in the West, China's approach may attract the attention of Western regulators.</p> <p>As of yet, there have been very few cases of regulators cracking down on behavioural, programmatic, or even <a href="https://econsultancy.com/reports/the-rise-of-influencers/">influencer marketing</a>.</p> <p>One recent example is from the US. The  Federal Trade Commission <a href="http://www.adweek.com/news/advertising-branding/ftc-slams-lord-taylor-deceiving-customers-not-disclosing-its-native-ads-170229">filed a complaint against fashion retailer Lord &amp; Taylor in the US</a> for unregulated influencer marketing.</p> <p><img src="https://assets.econsultancy.com/images/0007/8464/lord_taylor.jpg" alt="" width="486" height="243"></p> <p>There are, however, very few other cases of such action and, in fact, <a href="http://www.prweek.com/article/1390325/brands-agencies-admit-flouting-uks-rules-influencer-marketing">many marketers freely admit overstepping guidelines</a> set by their regulators.</p> <p>If China's approach works without seeming heavy-handed, therefore, <strong>other countries may end up with similar laws governing internet advertising.</strong></p> <h4>3. The new laws could spark innovation</h4> <p>One interesting angle in all of this is because each layer of the ad tech stack is held responsible for content, it is likely that technical monitoring solutions will arise.</p> <p>It will not be easy for publishers, agencies, buy and sell-side platforms, and even brands to ensure that all ads published are compliant.</p> <p>Because of this, new ad tech with compliance features may spring up to help all involved with the process.</p> <h3>So...</h3> <p>Brands that are advertising in China<strong> should become familiar with the legislation as soon as possible.</strong>  </p> <p>As of September 1, 2016 the State Administration for Industry and Commerce will be monitoring for ads which violate the policies set out in the Advertising Law and the Interim Measures for the Administration of Internet Advertising.</p> <p>Those who do not currently advertise in China should, however, take note as well.  </p> <p>Most other countries currently enjoy little or no regulation, but should China's attempts to regulate be effective it would not be a surprise to see such laws appear elsewhere.</p> <p><em>For related information, read Econsultancy's <a href="https://econsultancy.com/reports/the-china-digital-report/">China Digital Report</a>.</em></p> tag:www.econsultancy.com,2008:BlogPost/68210 2016-08-22T14:57:44+01:00 2016-08-22T14:57:44+01:00 How programmatic advertising is helping drive the digital transformation agenda Seán Donnelly <p>By combining automation and data, programmatic can enable marketers to make use of everything they know about their audience to send them personalised advertisements and customised messaging in real time.</p> <p>For this reason, the implications for marketing professionals, marketing departments and <a href="https://econsultancy.com/blog/68066-top-100-digital-agencies-2016-the-state-of-the-industry/">the agency landscape</a> are revolutionary. </p> <p>The reality though is that many marketers have been slow in getting to grips with this new approach.</p> <p>To try and understand why, I caught up with Head of Digital at Disrupt the Market Ltd and Econsultancy trainer Andy Letting. </p> <p>Andy, an established senior digital leader, has worked across a range of digital transformation projects supporting traditional businesses to adapt to the fast paced world of digital marketing.</p> <p>He will be delivering a programmatic workshop prior to Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get with the Programmatic 2016</a>, taking place on September 21.</p> <h4>Programmatic has been around for several years now. Is there are a reason why some organisations have been hesitant about making it a part of their marketing activities? </h4> <p>“If I put a digital hat on, the process is straightforward in terms of data and technology. </p> <p>"For marketers schooled in traditional marketing and non-marketers within a business, it might be easy to get confused by the vocabulary used to describe programmatic and so it can be difficult to get your head around. </p> <p>"My background is all digital and so I am used to thinking about data, reaching the right audiences and rigorous measurement.</p> <p>"I can however understand how programmatic may not have evolved as quickly within mainstream marketing departments due to organisational structures, marketing skillsets and leadership teams which may not have come from a digital background."</p> <h4>Digital transformation is a topic that we spend a lot of time thinking about at Econsultancy. Is it fair to say that programmatic is another lever driving the transformation agenda? </h4> <p>“Digital is disruptive by its own nature; whether that's from a customer’s perspective or within an organisation.</p> <p>"I think programmatic could be seen as disruptive within the media buying space but then again digital as a whole is disruptive. Mobile has been disruptive for many years now.</p> <p>"There are different areas of digital from website design, media buying, tracking customer journeys, operations and ecommerce.</p> <p><em>A hub and spoke model for organisational structure</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8319/hub_and_spoke.png" alt="" width="336" height="323"></p> <p>"Programmatic is just another iteration that to some extent is simplifying a way of buying media that was fairly clunky and not straightforward."</p> <hr> <p>Andy makes a good point. Programmatic is another step along the path to <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a>.</p> <p>Another theme that regularly surfaces from Econsultancy research, analysis and client discussions is the requirement to become more customer centric.</p> <p>A key barrier in becoming more customer centric cited by many businesses is that of organisational structure. </p> <p>Econsultancy publishes a very popular report called “<a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/">Digital Marketing: Organizational Structures and Resourcing Best Practice Guide</a>” which offers guidance to companies on organisational restructuring and digital transformation.</p> <p>The report first came out in 2011 but has been revised since. Among other things it proposes a digital maturity model which has five stages of evolution:</p> <ol> <li>Dispersed</li> <li>Centralised</li> <li>Hub and spoke</li> <li>Multiple hub and spoke</li> <li>Fully integrated</li> </ol> <p>The end vision for ‘digital’ is essentially that it becomes so much part of the organisation that it ceases to exist as a separate function.</p> <p>Many organisations though, are currently somewhere between the centralised and hub and spoke stages. This means that they still have separate marketing and digital teams.</p> <p>I asked Andy how the separation between digital and marketing teams might impact upon the effectiveness of programmatic campaigns.</p> <hr> <h4>You mention the separation of digital and marketing teams. Could there be an issue where programmatic campaigns are run separately to other marketing initiatives?</h4> <h4>Or could there be an issue where digitally minded people are able to structure a programmatic campaign but may not have the same marketing and commercial awareness as their colleagues in the marketing team? </h4> <p>“Yes that's a good point. From my experience programmatic has always been a nice to have. I've generally seen it sit within the digital team.</p> <p>"How closely the digital team works with the marketing team depends upon the organisation.</p> <p>"I think you'll find that because it's perceived as technical, you will find traditional marketers may be wary either because of a lack of exposure or knowledge. </p> <p>"As digital becomes more immersed within the marketing department and the marketing framework, we still start to see the two working in more harmony. </p> <p>"Until digital is fully integrated into the business and the marketing team has been skilled up on digital, that knowledge gap and challenge will remain.</p> <p>"The reality is you need both. You need to know who your customer is and also the technical know-how of how to reach those people.</p> <p>"If you take an FMCG company like P&amp;G or Unilever that owns multiple brands, one approach to integrating programmatic into other marketing activities may involve testing.</p> <p>"One brand could test programmatic by having an internal sponsor who can put the building blocks in place and take other business stakeholders on a journey. </p> <p>"Ultimately though, programmatic is all about focusing on the customer and pulling together skillsets within the organisation to reach that customer in ways that you haven't done before.</p> <p>"That means getting brand buy in and support. You will also need to bring together legal and data teams.”</p> <h4>In <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-2016-digital-trends/">Econsultancy’s 2016 Digital Trends report</a>, 7 out of 10 marketers said that optimising the customer journey across multiple touchpoints was going to be very important for their marketing over the next few years.</h4> <h4>Is there an opportunity for programmatic to serve different kinds of advertising depending on where somebody is along that journey? </h4> <p>“So there are a number of things here. Of course, advertising needs to be relevant.</p> <p>"If you are in the infancy of your programmatic journey, you will have your lookalike models, CRM models and your prospecting models and you'll put them into the data pot (DMP) to try and get them all to work together. </p> <p>"I think the reality is that relevance is the utopia but at the same time that is only as good as your data.</p> <p><img src="https://assets.econsultancy.com/images/0007/8318/touchpoints.png" alt="" width="700" height="583"></p> <p>"From my experience, a lot of brands have really struggled in terms of getting <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">a single customer view</a> and (so) have been very reliant on partnership data, second-party data and even third-party data.</p> <p>"Ultimately where the real value lies is in creating unique data sets that are so refined to that customer and that need that ultimately you are driving greater conversion and greater revenues.</p> <p>"There are many different scenarios that you play out that you then have to adapt and make use of the learnings. For instance, programmatic buying on Facebook is probably one of the most advanced in terms of data available.</p> <p>"The data that Facebook has on people is phenomenal. That's why there's this huge head-to-head between Facebook and Google. </p> <p>"My point is that programmatic can help marketers to see opportunities. For example, you can do A/B testing and seed videos on Facebook for 24 hours.</p> <p>"Then, Facebook can scale up the video that gets the most traction after 24 hours to meet your budget automatically. It's all done in an automated fashion. </p> <p>"Also, what can actually happen is that brands find out that they've inspired audiences that they never knew were interested in their brand and so suddenly they get all of this insight back from testing that can completely reshape their customer profiling and awareness. </p> <p>"For me it's about bringing that insight back into the business to reform campaigns.”</p> <h4>If marketers are going to launch and optimise ad initiatives as opportunities emerge, does this suggest that the process of setting advertising budgets on quarterly cycles may not be appropriate for managing campaigns that need to be managed in real time?</h4> <p>“The Financial Controller will give you a budget but it’s important that you make some of that budget available for some sort of innovation. You take a percentage of your budget and that's your innovation pot.</p> <p>"If you don’t make budget available for testing, you won’t be able to benefit from programmatic and other new tactics."</p> <hr> <p>As organisations continue to respond to digital and the opportunities available through tactics like programmatic, we can expect to see a new marketing model that marries the ability of marketers to think creatively with the precision of utilising multiple data sets to create a single customer view and deliver automated campaigns that can be adapted on the fly.</p> <p>For this reason, marketers may need to embrace programmatic and the opportunities it brings or they risk being left behind.</p> <p>To continue your programmatic education, why not attend <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get with the Programmatic</a>, Econsultancy and Marketing Week’s conference on the topic, taking place on in London on September 21.</p> tag:www.econsultancy.com,2008:BlogPost/68198 2016-08-17T10:06:00+01:00 2016-08-17T10:06:00+01:00 How ‘people-based marketing’ is redefining effectiveness in programmatic ad buying Maeve Hosea <h3>How is programmatic allowing you to move forward with your advertising strategy?</h3> <p>Crucially, programmatic enables us to have more transparency.</p> <p>Historically, we didn’t get a lot of information out of the media buys we were doing through large media agencies.</p> <p>We weren’t aware of where the inventory was being served and therefore unable to learn about where customers were and what type of messaging and content they were interacting with.</p> <p>We were paying lots of money but not taking the learnings away from it in terms of how to optimise – spending hundreds of thousands but none the wiser.</p> <p>The advantage of programmatic is that you are making that investment, you are seeing media buys that are working, how that changes over the course of a year, how it is affected by seasonality and so forth.</p> <p>That is then valuable knowledge that the business retains.</p> <h3>What do you think are the most exciting programmatic developments across media?</h3> <p>The line Facebook is currently touting about people-based marketing is something that I am passionate about.</p> <p>The programmatic solution in Facebook today means you can upload lists and very specifically target people.</p> <p><em>MBNA has been buying Facebook ads programmatically</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8109/MBNA_programmatic_ad.jpeg" alt="" width="715" height="449"> </p> <p>So it seems it is only a matter of time before we see the next evolution of programmatic display, TV buying and whatever else programmatic evolves into.</p> <p>Programmatic will increasingly become about audiences rather than cookies and pixels.</p> <h3>What can you say about fraud and the challenge that poses?</h3> <p>Fraud as an issue is ever-evolving. We have to watch that just as we have to watch ad blocking and anything else that fundamentally changes the area we are operating in.</p> <p>Our way of dealing with it has been to change our success metric. We have been working on changing the KPI to look at incrementality as a way to help mitigate risk from fraud.</p> <p>We are now using our non-viewed display conversions – of which we have a lot, like everybody else – to get our baseline conversion rate.</p> <p>Success is the incremental between the impressions we serve that don’t get viewed and the impressions that do get viewed.</p> <p>That shows us the true performance of our display advertising.</p> <h3>Where do value, creativity and effectiveness meet?</h3> <p>For us it is about [defining the right audience segments for a campaign] but it is also about tailoring the message to what we know about people.</p> <p>My approach, with our provider Infectious Media, is to think about different treatments where advertising is more likely to resonate with people, based on information that I can acquire from across social or various third parties.</p> <p>Programmatic is a strange field in that it increasingly requires numbers people but ultimately the output for all those numbers and analysis – the segmentation that you are running – is still creative and requires creative people.</p> <p>We do some of that work in-house but we also reach out to specialist agencies to push the boundaries of creative thinking.</p> <h3>Which media channels are next for programmatic and why?</h3> <p>The obvious one is TV. The guys at Sky are kind of there with AdSmart but it is a little on the expensive side.</p> <p>You would think that the players will bring that element to the table soon enough and we are going to be able to buy TV advertising programmatically.</p> <p>That is the challenge for the industry: helping people feel a bit better about marketing by delivering marketing that is more aligned to their wants, needs and interests.</p> <h3>What are the pressing issues in the programmatic sphere moving forward?</h3> <p>Cross-device marketing is crucial. There are lots of people trying to do deterministic measurement models within display advertising [where a consumer is identified by linking browsing behaviour with personal login data] and I have a big issue with a way a lot of those are set up.</p> <p>I am not convinced by the accuracy or transparency that sits within that. It is still a bit of a bugbear and I think the industry still has a lot of work to do on solving that cross-device piece.</p> <p>Programmatic needs to evolve by moving away from cookies and pixels and I think the people-based marketing approach has the power to tip the whole industry on its head.</p> <p><em><strong>Back for a third year, Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a> conference and workshop will take place in London on 20 and 21 September. </strong></em></p> <p><em><strong>Nic Travis is one of the brand experts sharing insights into how to make the programmatic landscape work for you.</strong></em></p> <p><em>This article was originally <a href="http://www.marketingweek.com/2016/08/16/how-people-based-marketing-is-redefining-effectiveness-in-programmatic-ad-buying/">published on Marketing Week</a>.</em></p> tag:www.econsultancy.com,2008:BlogPost/68086 2016-07-20T12:30:00+01:00 2016-07-20T12:30:00+01:00 Ads on premium sites drive 67% greater brand lift Patricio Robles <p>comScore came to this conclusion after looking at data from sites owned by publishers that are members of Digital Content Next (DCN), a trade organization that consists of brand publishers that have direct relationships with the consumers they serve, such as The New York Times and Condé Nast.</p> <p>As <a href="http://www.comscore.com/Insights/Blog/Premium-Publishers-Drive-Much-Higher-Brand-Lift-Particularly-Mid-Funnel">detailed by</a> comScore's Andrew Lipsman...</p> <blockquote> <p>One of the key findings from the research demonstrated that ads appearing on DCN premium publishers were significantly more effective in driving brand lift. While some of this effect was due to higher ad viewability on premium sites, the more significant driver was the halo effect of appearing on these sites. </p> </blockquote> <p>Overall, sites operated by DCN members delivered 67% higher average brand lift.</p> <p>Mid-funnel, where favorability, consideration and intent to recommend are established, the lift was even more pronounced, with DCN publishers delivering three times the lift as their non-premium counterparts.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7164/halo_effect_graphic2_reference-blog-flyer.png" alt="" width="470" height="413"></p> <p>According to Lipsman, "This outsized mid-funnel performance is of particular significance for the large consumer brands that drive the majority of digital ad spending.</p> <p>"These brands will tend to have already established high brand awareness and therefore prefer to focus more on influencing how consumers feel about the brand so that they are more likely to purchase that brand when they are in the market to do so."</p> <p>In addition to the "halo effect" of high-quality content, the outsize performance of ads on premium sites can partially be attributed to higher viewability rates (50% compared to 45%) and lower levels of illegitimate traffic.<br></p> <h3>Implications for programmatic</h3> <p><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic">The rise of programmatic</a> has been fueled, in part, by the notion that advertisers can more easily target audiences they want to reach at scale.</p> <p>In many cases, programmatic also creates arbitrage opportunities for advertisers in which they can reach audiences similar in composition to those they would have to pay higher rates to reach if they purchased premium inventory.</p> <p>comScore's data, however, suggests that it's not quite that simple.</p> <p>Instead, there appears to be a relationship between the quality of the site on which ads appear and the lift advertisers can expect to see from those ads. In other words, performance is not just about audiences, it's about where those audiences are reached. </p> <p>Should this change views about programmatic? Not necessarily. Audience-based media buying still makes sense, and just because ads on premium sites deliver higher lift doesn't mean that premium inventory is uniquely capable of delivering healthy ROI.</p> <p>Different campaigns have different goals, and even for those brand advertisers that highly value the kind of mid-funnel lift comScore observed, there is only so much premium inventory available.</p> <p>But comScore's research does suggest that advertisers would also be wise to consider looking for <a href="https://econsultancy.com/blog/62028-programmatic-premium-is-not-about-bidding">premium programmatic</a> opportunities, such as those offered by <a href="https://econsultancy.com/blog/66226-prominent-news-publishers-band-together-to-sell-ads">private exchanges</a>, to ensure that they're tapping into the apparent advantages of premium inventory.</p> <p><strong>For more on programmatic, why not attend our <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> conference in London.</strong></p> tag:www.econsultancy.com,2008:BlogPost/68067 2016-07-15T14:27:00+01:00 2016-07-15T14:27:00+01:00 Is ad fraud the 21st century drug trade? Patricio Robles <p>The Senators are concerned that ad fraud, which is estimated to be costing advertisers billions annually, could eventually lead companies to pass the costs of fraud on to consumers in the form of higher prices.</p> <p>They are also concerned that as fraudsters flood the online ad market, consumers will be at greater risk of having personal information stolen and abused.  </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Here's an amazing fact: by 2025, the digital ad market could be 2nd only to drug trafficking as largest revenue source for organized crime</p> — Mark Warner (@MarkWarner) <a href="https://twitter.com/MarkWarner/status/752512068562063360">11 de julio de 2016</a> </blockquote> <h3>The role of programmatic</h3> <p>While digital ad fraud has been around in some form or another since digital ads first appeared, it appears to be becoming more lucrative and complex.</p> <p>There's more digital ad inventory than ever, and many advertisers are pouring more and more money into digital spend. At the same time, publishers and advertisers have embraced <a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic">programmatic</a> ad buying.</p> <p>According to Senator Mark Warner of Virginia, this makes for a dangerous combination. <a href="http://www.wsj.com/articles/senators-urge-ftc-to-examine-ad-fraud-1468231200">He told</a> the Wall Street Journal... </p> <blockquote> <p>This is a $60 billion industry, and some of the fraud numbers suggest that 10% of that is being wasted. And you’re seeing some of the same tools [we saw] in stock manipulation. This needs to be looked at.</p> </blockquote> <p>Warner likens the ad fraud problem to the 2008 financial crisis, and suggests that "some of the tech community has swept this under the rug," though he admits that he and other lawmakers have a lot to learn about the subject before the possibility of legislation should be put on the table.</p> <p><strong>But is ad fraud really a problem that can legitimately be compared to drug trafficking? That isn't so clear.</strong></p> <p>The industry is <a href="https://econsultancy.com/blog/67660-what-can-prevent-ad-fraud-we-ask-an-ad-tech-ceo">well aware of the issue</a>, and many parties are working to mitigate it.</p> <p>The good news is that digital advertising is one of the most accountable forms of advertising, so prudent advertisers have many opportunities to ensure that they're not being taken for a ride.</p> <p>So what explains the fact that advertisers are estimated to be spending billions on fraudulent ads that aren't being seen by real people? It's simple: in most cases, ad prices reflect advertisers' knowledge that fraud and <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats">ad blockers</a> will prevent 100% viewability.</p> <p>As former brand marketer Rick Webb <a href="https://econsultancy.com/blog/66712-former-brand-marketer-banner-ads-suck-but-they-re-great">explained last year</a>...</p> <blockquote> <p>We’ll spend a million bucks on a literal f**k ton of banners (I mean, just billions of the things, it’s crazy). And then we’ll do targeted brand sentiment and purchase-intent surveys using our internal peeps, online along with companies like Nielsen and Foresee, and offline with a bunch of (really quite awesome) companies you’ve never heard of. Then we’ll see whether the banners moved the needle, and if they did (and they often do), we’re happy.</p> </blockquote> <p>In other words, <a href="https://econsultancy.com/blog/67632-why-chasing-after-100-viewability-makes-no-sense-for-advertisers">100% viewability isn't required</a> to run profitable campaigns, and sophisticated advertisers are more than capable of factoring viewability into their considerations when determining how much they should pay for ads.</p> <h3>The bigger problem?</h3> <p>Obviously, this doesn't mean that ad fraud isn't a problem worth addressing, but the idea that ad fraud, and programmatic ad fraud in particular, is going to create a Wall Street-like crisis that threatens the digital advertising ecosystem seems far-fetched.</p> <p>If anything, lawmakers and regulators should be more concerned about how fraudsters <a href="https://econsultancy.com/blog/67924-is-facebook-doing-enough-to-prevent-fraudulent-ads">are using digital ads to target consumers</a>. Long-term, that is perhaps the biggest threat to digital advertising that publishers and advertisers should be most concerned about.</p> <p><em>Want to know more, why not attend <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a>, Marketing Week and Econsultancy's one-day conference on 21st September in London, to hear from brand and agency experts.</em></p> tag:www.econsultancy.com,2008:BlogPost/67927 2016-07-01T15:03:00+01:00 2016-07-01T15:03:00+01:00 Mobile programmatic is now an established digital channel: Stats Patricio Robles <p>In fact, last month mobile ad platform MoPub declared that mobile programmatic has made the transition "from emergent to established."</p> <p>In its <a href="http://www.mopub.com/2016/05/19/global-mobile-programmatic-trends-report-mobile-programmatic-from-emergent-to-established/"><em>Global Mobile Programmatic Trends Report</em></a> for Q1 2016, MoPub detailed how "event-based and seasonal trends early this year now point to alignment with the most established advertising channels." </p> <p>For example, political advertisers upped their mobile programmatic ad spend around key dates, such as debates.</p> <p>And tax preparation companies did the same as due dates for taxes approached.</p> <p><img src="https://assets.econsultancy.com/images/0007/6287/mopub2.png" alt="" width="630" height="351"></p> <p>MoPub also observed that the mobile programmatic ecosystem was expanding beyond major advertisers.</p> <p>In Q4 2015, over half of mobile programmatic spend was attributed to Fortune 1000 companies, and a third was attributed to the Fortune 500.</p> <p>But in Q1 of this year, non-Fortune 1000 advertisers upped their spend.</p> <h3>Banner ads are blah, high-impact inventory drives rise of private exchanges</h3> <p>Looking at where that spend went, it's clear that advertisers taking advantage of mobile programmatic are looking beyond the ubiqutious but increasingly lowly banner ad.</p> <p>According to MoPub, competition, which MoPub defined as bid depth, was 36% higher for interstitial inventory, and competition for video inventory was 53% higher.</p> <p>To meet the demand, publishers brought on more interstitial and video inventory.</p> <p>Video inventory alone grew by 32% quarter-over-quarter, and more importantly, publishers are realizing financial gains from this inventory.</p> <p>Year-over-year, revenue from video ads has more than doubled.</p> <p><img src="https://assets.econsultancy.com/images/0007/6286/mopub1.png" alt="" width="629" height="351"></p> <p>Some of the significant revenue growth from high-impact inventory is probably the result of the growth of <a href="https://econsultancy.com/blog/66226-prominent-news-publishers-band-together-to-sell-ads">private exchanges</a>.</p> <p>MoPub says that 88% of spend in private exchanges in Q1 was directed to interstitial inventory, and advertisers paid 77% higher eCPMs for that inventory than in open exchanges. </p> <p>With that in mind, it would not be surprising to see publishers moving to sell more of their premium inventory through private exchanges going forward.</p> <h3>Mobile programmatic goes global</h3> <p>The demand for inventory is global, and MoPub saw rapid growth in both the EMEA and APAC regions.</p> <p>In Q1, EMEA inventory grew 52% year-over-year while spend nearly doubled. In APAC, inventory grew a whopping 127% year-over-year, while spend increased 104%.</p> <p>But while both regions are growing at a rapid pace, there are still significant differences.</p> <p>Video and native ad spend has more than tripled in EMEA, but in APAC, banner ads still account for nearly half (44%) of mobile programmatic supply.</p> <p>That has decreased from 77% a year ago, though, so the trend toward higher impact ad units is evident in APAC too.</p> <p><img src="https://assets.econsultancy.com/images/0007/6289/mopub3.png" alt="" width="629" height="349"></p> <h3>Challenges remain</h3> <p>Despite the fact that mobile programmatic can arguably be called established instead of emergent, challenges remain.</p> <p>In 2014, a study by Forrester <a href="https://econsultancy.com/blog/66930-five-things-marketers-need-to-know-about-programmatic">found that just 23% of marketers understood programmatic</a>.</p> <p>While that figure has almost certainly increased since then, programmatic is still seen as complex if not downright confusing to many marketers and use of <a href="https://econsultancy.com/blog/65197-the-beginner-s-glossary-of-programmatic-advertising">programmatic terminology</a> can produce blank stares.</p> <p>But even for marketers that understand and have embraced programmatic, making the most of it is an ongoing process.</p> <p>Issues like the role of <a href="https://econsultancy.com/blog/67580-creativity-in-programmatic-should-not-be-an-afterthought">creativity in programmatic</a> are the subject of much debate today, and will probably remain topics of discussion for the foreseeable future.</p> <p>That means marketers will have to learn and adapt as they go because as MoPub's data demonstrates, the programmatic train has clearly left the station and it will be difficult for marketers to avoid jumping on board. </p> <p><em><strong>Econsultancy and Marketing Week are hosting <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> on 21 September in London. </strong></em></p> <p><em><strong>Now in its third year, the conference will demystify the most enigmatic topics in programmatic and explore future trends.</strong></em></p> tag:www.econsultancy.com,2008:BlogPost/67931 2016-06-13T14:20:32+01:00 2016-06-13T14:20:32+01:00 Why all the excitement surrounding Facebook’s Dynamic Ads? Lauren Evans <p>Because they're starting to really take off.</p> <p>In fact, the growth in product-focused dynamic ads (originally called Dynamic Product Ads) is believed to be one of the factors that helped spend on social ads jump 86% year-on-year in Q1 2016 according to Kenshoo data (see chart).  </p> <p>And dynamic ads, coupled with growing Instagram advertising, helped push social spend in Q1 2016 higher than Q4 2015, going against the grain of typical seasonal spend patterns.</p> <p><img src="https://assets.econsultancy.com/images/0007/5969/facebook_dynamic_ads.png" alt="" width="464" height="233"></p> <p><img src="https://assets.econsultancy.com/images/0007/5970/facebook_dynamic_ads_2.png" alt="" width="464"></p> <p>So what is behind the increasing interest in this ad format?</p> <p>Here are three important things you should know about dynamic ads.</p> <h4>1. They were designed to make advertising easier for retailers who have a large product inventory</h4> <p>Dynamic ads were introduced in early 2015 to give retailers an effective, automated way to promote large numbers of products on Facebook.</p> <p>To use this ad format, advertisers have to connect their online product feed to their Facebook ad accounts.</p> <p>This allows Facebook to dynamically generate ads for individual products and show them to relevant audiences.  </p> <p>Product IDs, names, descriptions, landing page and image info is automatically pulled from the feed to build the ads, hence the ‘dynamic’ in the name.</p> <p><img src="https://assets.econsultancy.com/images/0007/5971/facebook_Walgreens_ad.jpg" alt="" width="800"></p> <p>Dynamic ads can support thousands of products and as long as your feed is up to date, any items that are out-of-stock will never be shown.</p> <p>You can choose to display a single product image or video per ad, or showcase a carousel of up to ten products within a single ad unit.</p> <p>You might use the carousel format to show a pair of shoes in several colours for example, or a selection of jeans in a specific price range.</p> <p>Typically we’ve found that between three and five related products in a carousel produces the best results.</p> <p>To date, more than 2.5bn unique products have been uploaded to the dynamic ads for Facebook format.  </p> <p>And as of April 2016 dynamic ads have also become available to advertisers on Instagram.</p> <h4>2. Retargeting and personalisation are a key part of their success</h4> <p>You can target dynamic ads at people’s interests, likes or demographic profile, as well as to <a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences/">custom audiences</a> extracted from your customer database or email lists.</p> <p>And what’s been really effective, is retailers using this ad format to retarget those who have visited their website or app.</p> <p>Facebook provides a custom audiences pixel which tracks the product pages a visitor has viewed, which products they’ve added to shopping baskets and what they’ve purchased.</p> <p>This allows advertisers to show people personalised ads based on their behaviour and interaction with their products online.</p> <p>So a retailer can, for example, target someone who’s looked at a specific product page and show them ads displaying different versions of the same or related products or offer incentives to help them convert.</p> <p>This kind of intent-based retargeting makes ads less intrusive.</p> <p>And is one of the reasons why we’ve seen clients generating click-through rates of 1.7% in Q1 of 2016, outperforming the overall social average of 1.0%.</p> <p>Facebook recognises the value of personalised behavioural targeting and has added new options to retarget based on stronger intent signals - such as when a visitor has gone to the same page a number of times or spent a certain amount of time there.</p> <p>You can also retarget based on the value of their last purchase.</p> <h4>3. They’re now available to travel advertisers</h4> <p>Facebook now believes that dynamic ads can appeal to more than just product advertisers.</p> <p>So in the first instance it has started making them available to travel advertisers to run more personalised retargeted ads.</p> <p>Initially a select number of travel advertisers are able to retarget hotel ads to online visitors who have browsed hotels or bought flights from their sites.  </p> <p>The ads can be dynamically updated with hotel availability and pricing for the booking window and the location someone has shown an interest in, for example.                                               </p> <p>Looking ahead you can quite clearly imagine other travel services that could be advertised in this way aligned to purchase intent.  </p> <p>For example car rental ads could be retargeted based on time and location that someone has browsed.</p> <p>And it would not be a big leap to envisage this type of dynamically retargeted ad working for other verticals besides travel.</p> <p>The danger with any kind of advertising is that it can seem invasive and an unwelcome interruption.  </p> <p>Dynamic ads are showing that it’s possible to sidestep this with high performing automated social campaigns that make ads meaningful and relevant to the audience.</p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67924-is-facebook-doing-enough-to-prevent-fraudulent-ads"><em>Is Facebook doing enough to prevent fraudulent ads?</em></a></li> <li><a href="https://econsultancy.com/blog/67879-facebook-s-busy-may-2016-provides-new-opportunities-for-marketers"><em>Facebook’s busy May 2016 provides new opportunities for marketers</em></a></li> <li><a href="https://econsultancy.com/blog/67603-what-marketers-need-to-know-about-facebook-s-livestreaming-push/"><em>What marketers need to know about Facebook's livestreaming push</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/67554 2016-03-01T15:48:00+00:00 2016-03-01T15:48:00+00:00 2016: the year of programmatic creative? Glen Calvert <p>However, far less attention has been paid to the innovative element of this automated buying and selling of digital media – the creative.</p> <p>And herein lies the seed to the <a href="https://econsultancy.com/blog/67574-has-programmatic-advertising-killed-creativity-in-marketing/">merging of programmatic and creative</a>; which is the next wave of disruption and innovation to impact the digital ad industry – <a href="https://econsultancy.com/events/creative-programmatic/">programmatic creative</a>.</p> <h3>So, what is programmatic creative?</h3> <p>The software powered, automated, algorithmic approach to media buying, enabling pinpoint accuracy of people-based targeting with advanced optimisation is half the story.</p> <p>Programmatic creative is the enabling of intelligent creative, where each person is exposed to a brand’s message that adapts, changes and is personalised to them, regardless of the device or site they’re on.</p> <p>Programmatic creative enables the content of an ad to be programmatically manipulated so it’s more relevant and personal to the person it’s being served to, with a continuous feedback loop for optimisation.</p> <p>The same application of <a href="https://econsultancy.com/blog/64743-predictive-analytics-machine-learning-and-the-future-of-personalization/">machine learning algorithms</a> to decide who to target, when and on what site, will be applied to the creative messaging as well.</p> <p><strong><em>How will Programmatic Advertising impact the role of marketing professionals?</em></strong></p> <p><iframe src="https://www.youtube.com/embed/k93THhdXIIw?wmode=transparent" width="615" height="346"></iframe></p> <p>Programmatic creative optimisation enables the ad elements to adapt from various data points – such as the user’s previous surfing behaviour, their location, the time of day etc. – to change the message, font or colour in an ad.</p> <p>Programmatic creative also (and more interestingly) utilises user-specific data to enhance the messages themselves for that very individual.</p> <p>For example, showing the exact product they may like, and changing the price and offer based on who they are.</p> <p>In short, programmatic creative enables the intelligent manipulation of the creative based on what you know about that cookie ID, and the automated use of live data inside the creative so it’s increasingly personalised for the individual.</p> <p>It’s important not to confuse programmatic creative with serving dynamic ads via programmatic channels or dynamic creative optimisation.</p> <p>Programmatic creative goes beyond serving dynamic ads programmatically, it has the potential to adapt messages to individuals in real time on an on-going basis for true one-on-one communication, compared to delivering dynamic creative that is served to user segments that are predefined by the marketer.</p> <p>The critical benefit of programmatic creative is that it’ll be the only way to truly 'talk' to millions of people individually, and reach that previously mythical land for advertisers of "mass personalisation."</p> <h3>The ramifications</h3> <p>Software that can automatically build ads, optimise and personalise them, will have significant ramifications on the entire advertising value chain. It means traditional owners of marketing communications need to be prepared.</p> <p><strong><em>Has Programmatic Advertising killed creativity in marketing? </em></strong></p> <p><iframe src="https://www.youtube.com/embed/7fEj3_hG5mc?wmode=transparent" width="615" height="346"></iframe></p> <p>It’s not going to be easy. It’s a pretty well-known fact that creatives – the people designing the ad – don’t talk with the programmatic delivery teams and, therefore, don’t know if their work was effective or not.</p> <p>Some of the blame for this lies with marketers who could do more to teach creatives how their work is impacted by programmatic media plans, and the potential benefits ad tech provides without impinging on the creative process.</p> <p>Much of the focus of start-ups and innovation with digital advertising has been focused in the infrastructure, the plumbing hidden beneath that no one sees. However, with the increasing need to thwart <a href="https://econsultancy.com/blog/67076-the-rise-and-rise-of-ad-blockers-stats/">the threat of ad blocking</a>, 2016 will see much more focus on how technology can impact what we actually see, that which is delivered to consumers.</p> <p>Relevance and usefulness, without overstepping the delicate privacy line, is the key to a viable and successful online ad model.</p> <p>The impact on our industry will be huge and creative agencies should be the first to be prepared.</p> <p><strong><em>Tickets are currently on sale for Econsultancy and Marketing Week’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> conference.</em></strong></p> <p><strong><em>The event takes place in London on September 21st.</em></strong></p> tag:www.econsultancy.com,2008:BlogPost/67517 2016-02-11T11:08:00+00:00 2016-02-11T11:08:00+00:00 How to embrace creativity in the programmatic age Maeve Hosea <p>These personas include an understated man who wants to look stylish but not fashionable, ‘aspiring fashionistas’ and ‘extreme fashionistas’.</p> <p>Tom Lancaster, senior creative manager at <a href="http://www.topman.com/">Topman</a>, oversaw the development of multiple creative executions, which then ran in parallel media placements online. The one that attracted the most interactions became optimised.</p> <p>“Programmatic allows you to run segmented work that will appeal to all of your audiences – it then optimises the creative to the version that best suits a media channel’s audience,” comments Lancaster.</p> <blockquote> <p>Taking the creative programmatic route gives you a much bigger brief and a lot more work to do, but the benefit is that when you are building that creative you can make it the right kind of thing for each target audience.</p> </blockquote> <p><a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">Programmatic advertising</a> is currently gaining momentum because of the attractive promise to brands of data-led real-time relevancy and accuracy in who they can target.</p> <p>By leveraging the capacities of programmatic display advertising, Topman not only targets people on key demographics such as age and profession but has found a relevant way to reach consumers on publisher and lifestyle sites beyond the usual fashion media.</p> <p>However, although creative programmatic strategy is a part of the ongoing picture for Topman, it has its limits.</p> <p>The first is the cost factor: “You have to think how much of your budget you want to spend on your creative versus your media buy,” explains Lancaster.</p> <p>“And obviously your media buy has to be sizeable enough to want to spend money on all those additional creative executions.”</p> <p>It is not only about the budgets for individual campaigns either: if a brand is taking a programmatic approach, it has to make sure it has a tailored experience to take them through to post click.</p> <blockquote> <p>If you capture someone with quite understated style but then take them to somewhere where there isn’t any of that available to them, then you may have acquired someone but you might not be showing them something that converts them.</p> </blockquote> <h3>Topman</h3> <p>Looking ahead, Lancaster sees a considerable untapped opportunity in the creative programmatic sphere. He would like to exploit the ability to embed live text with an advert, updating the copy for each type of customer and their lifestyle habits.</p> <p>He also sees the potential for serving different creatives in relation to the weather at a given IP address.</p> <p><img src="https://assets.econsultancy.com/images/0007/1698/Screen_Shot_2016-02-11_at_11.02.16.png" alt="" width="800"></p> <p>“It is all the sort of things people have wanted to do for a really long time and if you had this granular level of media buying and creative production then you would do it,” says Lancaster.</p> <p>“However, the challenge is having all those matrix of options at the same quality level: getting that ‘hero creative’ finish lots and lots of times.”</p> <h3>Right Time, Right Place</h3> <p>While some fear the implied threat to creativity that the automated nature of programmatic brings, Nicolas Roope, founder and creative director at Poke London sees it as timely.</p> <p>“It is newly available inventory coming together with concepts that already have personalisation and contextuality built in that makes programmatic exciting now,” comments Roope.</p> <blockquote> <p>Programmatic is a natural extension of storytelling in the digital space: always about some degree of interaction, some degree of personalisation, some degree of contextuality and timeliness.</p> </blockquote> <p>With creative programmatic, those key principals of time, place and context can be applied at scale, giving mass reach to personalised advertising.</p> <p>Essentially, it allows brands to get more relevant and creative and Roope sees that creativity flourishing in the work of Unilever’s Axe brand in Brazil.</p> <p>The brand recently leveraged programmatic adverts to serve online viewers with up to 100,000 variations of its “Romeo Reboot” advert.</p> <p><iframe src="https://player.vimeo.com/video/131929702?color=fcfbfa&amp;title=0&amp;byline=0&amp;portrait=0" width="615" height="346"></iframe></p> <p>Those variations in soundtrack, setting and plotline were part of a personalisation drive that allowed for changes to six out of the eleven scenes in the advert.</p> <p>“Fundamentally programmatic is interesting,” says Roope. “Because it highlights how limp, unintelligent advertising in a digital interactive space just doesn’t make any sense.”</p> <p>If successful, he argues, it delivers compelling creative, connecting people with the brand at the opportune moment. Roope also cites Google’s work with billboards as a valuable example of an inspiring creative approach to programmatic.</p> <p>Google trialled its DoubleClick ad technology last year, allowing premium billboard ads to be bought programmatically and passers-by to see the most relevant adverts for the time of day and location.</p> <p>“The real time quality of weather, sports and travel news was quite a surprise and interesting for people,” comments Roope. “That contextuality can be really powerful.”</p> <h3>Affinity and Desire</h3> <p>The antagonism with programmatic tends to come when you examine the formats used in most programmatic deals, which are currently much more constraining than the formats used in broadcast media.</p> <p>Within creative programmatic, you need to have very quick, low-cost adaptability for the best campaigns to work. This may call for a hundred different versions of a very similar idea and so the construct tends to be more limited and more mechanical.</p> <p>Programmatic has its place for Charles Vallance, co-founder and chairman of integrated agency VCCP, but it shouldn’t be at the expense of building a brand in full view.</p> <p>He argues that brand values and brand affinity are inextricably linked to bigger budget brand awareness campaigns.</p> <p>“We must value the advantages and efficiencies of programmatic,” he says. “But we must not have that at the expense of the colossal value of building a brand and building affinity that is shared and appreciated by a broader audience.”</p> <p>Vallance says that there are two things that communication can do: the short-term goal of selling things and the longer terms one of creating an environment of ‘buyability’ around a brand.</p> <p>“If I only ever communicate to people with the precision of programmatic, I might never make them want to buy,” he cautions.</p> <blockquote> <p>The two go hand in hand: you need broadcast or mass communication to create a collective sense of why this brand is desirable, what this brand means, what this brand stands for, and then programmatic can harness and exploit that.</p> </blockquote> <p>Shared real-time experience will never go out of style and is arguably much more valuable than automised, fragmented ones, however accurate they may be.</p> <p>“There is nothing very programmatic about Star Wars,” offers Vallance. “You don’t want 100 different versions: you want the one version that everyone is talking about.”</p> <p><strong>Creative Programmatic Conference</strong></p> <p>Charles Vallance, Tom Lancaster and Nicolas Roope will be speaking on a panel debate at Econsultancy’s <a href="https://econsultancy.com/events/creative-programmatic/">Creative Programmatic</a> event on 2nd March.</p> <p>The session will examine the opportunities and challenges of harnessing programmatic in the creative process.</p> <p><em>Please note that this article was <a href="http://www.marketingweek.com/2016/02/08/how-to-embrace-creativity-in-the-programmatic-age/">originally published on Marketing Week</a>.</em></p> tag:www.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>