tag:www.econsultancy.com,2008:/topics/ad-exchanges Latest Ad exchanges content from Econsultancy 2016-07-20T12:30:00+01:00 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 2016-07-01T15:03:21+01:00 2016-07-01T15:03:21+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> 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> tag:www.econsultancy.com,2008:BlogPost/67287 2015-12-07T11:32:47+00:00 2015-12-07T11:32:47+00:00 Eight ways to improve the real-time bidding ecosystem Fiona Salmon <p>Certain agencies are going further, with a goal for 100% of the digital ads they buy in 2016 to have some form of automation.  </p> <p>But while this is a huge change for the industry, more is yet to come. Currently programmatic ads are sold in a four stage priority, very neatly <a href="http://www.iab.net/media/file/IAB_Digital_Simplified_Programmatic_Sept_2013.pdf" target="_blank">set-out by the IAB</a>.</p> <p>First come the “automated guaranteed” or “programmatic direct” systems, which use technology to replicate the favourable pricing and certainty of placement of the industry’s non-programmatic direct relationships. At the bottom of the priority are the open <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">Real-Time Bidding (RTB) auctions</a>.</p> <p>While the US has seen some use of automated guaranteed deals, the UK hasn’t quite been so keen, and few trading desks are demanding it.</p> <p>Moves to integrate the industry’s established ad booking systems with automated platforms could breathe more life into the automated guaranteed market.</p> <p>However, with the greater adoption and improved technology in the RTB markets, we’ve got to wonder – how long will this priority last?</p> <p><em>The real-time bidding ecosystem</em></p> <p><a href="https://econsultancy.com/reports/real-time-bidding-ecosystem/"><em><img src="https://assets.econsultancy.com/images/0006/9732/rtb_ecosystem.png" alt="" width="344" height="383"></em></a></p> <p>RTB systems have already improved to emulate some of the automated guaranteed channel’s benefits in private marketplaces.</p> <p>The more sophisticated RTB platforms are affording ad buyers far greater levels of control over campaign effectiveness, new abilities to define the requisite performance of their chosen ad inventory and great value prices.</p> <p>In fact one of the primary differentiators of the automated guaranteed marketplace is its utility when booking campaigns using non-standard ad creative.</p> <p>Yet RTB systems are also introducing <a href="http://mobilemarketingmagazine.com/vibrant-takes-in-text-programmatic/" target="_blank">more unique formats</a> which challenge even that benefit. Consequently the value of the automated guaranteed deals could be under threat, and they too may fall out of the ad buying priority.</p> <p>Much depends upon which performance criteria are made available through the RTB systems.</p> <p>Here is my wish list, and to learn more on this topic download <a href="https://econsultancy.com/training/courses/programmatic/dates/2797/">Econsultancy’s Programmatic Branding Report</a> or book yourself onto the <a href="https://econsultancy.com/reports/programmatic-branding">Programmatic Training Course</a>.</p> <h3><strong>1. More effective limits on bot fraud</strong></h3> <p>Realistically bot fraud will never be solved regardless of the channel through which the ad space is sold.</p> <p>However, it’s imperative that the fight against fraudsters continues, and the cleanest programmatic platforms should win-out. </p> <p><a href="https://en.wikipedia.org/wiki/Rutger_Hauer"><img src="https://assets.econsultancy.com/images/0006/9733/blade_runner.jpg" alt="" width="399" height="309"></a></p> <p>The simplest tactic to follow is to opt for programmatic platforms that give access to a premium network of reputable publishers.</p> <p>However, greater reporting on the legitimacy of inventory sources, instances of malware, fake impressions and masking of domain names will help the entire industry to end the scourge. </p> <h3><strong>2. More guarantees of brand safety</strong></h3> <p>In terms of brand safety, the minimum requirement for programmatic systems must be to enable ad buyers to select ad space verified by the <a href="http://www.jicwebs.org/current-priorities/brand-safety-online/161-dtsg-seal-press-release" target="_blank">JICWEBS Digital Trading Standards Group (DTSG)</a>.</p> <p>Programmatic platforms that can distinguish ad inventory that both complies with and goes beyond these standards would be extremely helpful.</p> <h3><strong>3. Combinations of targeting data</strong></h3> <p>Certain ad technologies already enable targeting based on a combination of <a href="http://www.vibrantmedia.com/en/new-large-scale-private-ad-exchange-moves-out-of-beta/" target="_blank">audience and contextual relevance</a>.</p> <p>However, easier compositing of brands’ own (“first party”) data, publishers’ (“second party”) data, behavioural targeting companies’ (“third party”) data, search string data, and the user’s precise and favourite mobile device location data will bring hyper-targeting to RTB systems.</p> <p>As so many publishers are making more ad space available programmatically it should become increasingly possible to combine targeting techniques without compromising the scale of campaigns.</p> <h3><strong>4. More native ad formats</strong></h3> <p>The functionality of ad formats directly impacts campaign performance. Currently most of the ads available through programmatic systems are the ubiquitous and indistinctive IAB banners.</p> <p>Everyone has been using these standard IAB banners for years despite complaints of banner blindness, their inherent lack of creativity, and intrusiveness.</p> <p>As more ad buyers are seeking the best performing ad formats there is a growing demand for non-standard formats which outperform IAB banners – primarily the ever improving programmatic native ads.</p> <p>However, at present most native ads find it difficult to scale across thousands of online publishers to achieve a campaign with sufficient reach across the mobile and desktop web.</p> <p>Even the automated guaranteed deals can struggle with programmatic native ads. There’s just too much offline negotiation and constant customisation for most of these formats to be involved in a truly automated marketplace.</p> <p>However, the choice of scalable, truly native ad formats available programmatically is growing.</p> <p>These are being made available through RTB systems, offering more creative and native placements to positively surprise and engage consumers. There’s no reason to think that other non-standard formats will be excluded from RTB marketplaces in the future.  </p> <h3><strong>5. Deliver viewable ads</strong></h3> <p>Comscore has verified that <a href="https://www.comscore.com/Insights/Blog/Viewability-Benchmarks-Show-Many-Ads-Are-Not-In-View-but-Rates-Vary-by-Publisher" target="_blank">the majority of digital ads never actually have a chance to be seen</a>.</p> <p>This has resulted in viewability becoming one of the fundamental performance criteria upon which ads are now being selected. Organisations such as <a href="http://www.mindshareworld.com/news/groupm-and-unilever-push-better-online-ad-viewability" target="_blank">GroupM and Unilever</a> are leading the way, with the most stringent viewability demands in the industry.</p> <p>There are whispers that certain agencies <a href="http://www.iabuk.net/about/press/archive/iab-lifts-advisory-against-trading-on-viewable-impressions-for-display" target="_blank">will start trading on viewable impressions</a> as early as Q1 2016.</p> <p>Platforms that are trialling viewability performance campaign options have sometimes seen advertisers compromise on the number of impressions they buy, and even the media titles their ads appear on, in return for premium viewability.</p> <p>However, publishers expecting to develop a higher yielding product line from “viewable cost per mille” (VCPM) campaigns in the future are likely to be disappointed.</p> <p><img src="https://assets.econsultancy.com/images/0006/9734/Screen_Shot_2015-12-07_at_11.26.31.png" alt="" width="700"></p> <p>Brands buying ads expect all of them to be seen, and don’t want to pay more for them.</p> <p>What’s more, those platforms trialling viewability performance criteria often do so on a binary basis – i.e. either the ad formats pass the Media Ratings Council’s definition of a viewable ad (“half an ad for one second”) or they don’t.</p> <p>However, that performance criteria and method devalues the performance of a great many ad formats that frequently display far more than 50%+ of every ad.</p> <p>Those ads should not be marketed as being on a par with the lowest acceptable industry standard.</p> <p>If programmatic platforms want to adopt such a binary method for identifying viewable impressions, it’s better to focus on whether 100% of the ads are viewable or not, and back it up by a service level agreement. </p> <p>Alternatively, programmatic platforms could incorporate viewability score data from providers such as Moat, which will show the full spectrum and degrees of viewability, giving essential insight to ad buyers.</p> <p>At an absolute minimum, programmatic platforms have to move away from predicted viewablility scores.</p> <p>The technology and research providers are out there to deliver precise metrics on viewability. Soon there will be no excuse not to guarantee viewability through programmatic platforms. </p> <h3><strong>6. Precise page positions</strong></h3> <p>The precise positioning of an ad impacts its value. Currently, as long as ads are displayed above the mythical fold, most advertisers will be happy.</p> <p>However, an ad placed further down a page can actually have just as much value or more if it displays within contextually relevant editorial at an appropriate point in the consumers’ engagement with the content.</p> <p>Right now, it’s likely that above the fold ad space will command higher prices than those below the fold.</p> <p>However, programmatic platforms that enable ad buyers to choose a range of page positions to display their digital ads will have an important additional control on their campaign budget as well as performance.</p> <h3><strong>7. Optimum site depths for ads to appear</strong></h3> <p>Loyalty to particular publications is dropping due to the ubiquitous sharing of deep-links on social media that take consumers directly to media titles’ articles.</p> <p>Many people will view just one page of a media title before returning to what they were previously doing, or moving onto a different site.</p> <p><img src="https://assets.econsultancy.com/images/0006/9735/Screen_Shot_2015-12-07_at_11.27.45.png" alt="" width="700"></p> <p>This signifies that it’s less important – and arguably less valuable – for ads to appear high up in the media title’s page hierarchy, such as on the homepage.</p> <p>Programmatic platforms enabling advertisers to select the site depth at which their ads should be displayed will give enormous control to marketers.</p> <h3><strong>8. Optimum session depths are different</strong></h3> <p>Just as it’s essential for an ad to appear at the opportune page depth and site depth, it is also important to calculate the timing of an ad’s display within the user’s session.</p> <p>Many ad buyers will typically pay more through direct deals with publishers to have their ads displayed early in a user’s session, implying that they are the premium slots.</p> <p>However, the more engaged consumers are with a particular subject matter generally indicates that they are more valuable to relevant brands.</p> <p>It will depend upon the ad campaign, of course, but it’s very possible that the later an ad is delivered to the user, the more that user has qualified themselves as being valuable to the brand.</p> <p>This could well mean that the ads will be displayed to fewer people, but the fact that they are displayed to a targeted user can in turn qualify those ad impressions as better value for money to the advertiser.</p> <p>If programmatic platforms offered page, site and session depth controls we’d soon find the campaign sweet spots – where ads are displayed at the precise points in users’ sessions to be both qualified and most open to engaging with an ad.</p> <p>Ultimately the programmatic markets will be rationalised into unified platforms. How quickly depends upon how fast new performance criteria and KPIs are made available through RTB systems.</p> <p>Once ad buyers can make ad campaign choices based on more solid data and the actual performance criteria of ad inventory, so RTB systems will enable the purchase of the most premium inventory. </p> tag:www.econsultancy.com,2008:BlogPost/67050 2015-10-14T02:01:00+01:00 2015-10-14T02:01:00+01:00 Programmatic advertising: A brief history & predictions for the future Jeff Rajeck <p>But before we start, I'd just like to highlight that Econsultancy will be hosting a webinar on the subject, <strong>Programmatic: Trends, Data and Best Practice (APAC)</strong>, on 15 October at 10am Singapore / 1pm Sydney time.  </p> <p><a href="https://econsultancy.com/events/programmatic-trends-data-and-best-practice/">Click here to book your spot.</a></p> <h3>Why programmatic?</h3> <p>It's good to know <a href="https://econsultancy.com/blog/67018-programmatic-advertising-in-apac-an-introduction">what programmatic ad buying (or 'programmatic') is</a> and estimate <a href="https://econsultancy.com/blog/67040-how-big-is-the-programmatic-advertising-market-in-apac-stats">how big it will be in the future</a>. But to achieve a deeper understanding of the topic, it's helpful to look at the circumstances which have caused programmatic to exist.  </p> <p>That is, why do we have programmatic buying? Isn't our existing ad infrastructure good enough?</p> <p>To answer that question, we need to go back - way back - and track the evolution of the online advertising</p> <h3>A brief history of advertising on the web</h3> <p>The first banner ad appeared in 1994 on the website Hotwired. And, according to legend, the format was so new and revolutionary that it had a 44% click through rate.  (As a comparison, banner ads today get .06% click throughs - more than a 99% decrease).</p> <p><img src="https://assets.econsultancy.com/images/0006/7951/first_banner_ad.jpg" alt="" width="500" height="67"></p> <p>By 1996, many more people had joined the web and the number of websites grew enormously. Brands, which initially negotiated ad deals with popular sites, found it increasingly difficult to keep track of their banners.</p> <p>Because of this problem, DoubleClick, among others, created 'ad servers' which helped to produce and distribute ads on the web.</p> <p>But as the web kept growing, it became difficult to manage the various relationships required to serve ads across different websites.  So in 1998 the first 'ad networks' were born.  </p> <p>The ad networks helped brands advertise on many websites through one ad dashboard. The media landscape became manageable once again.</p> <p><img src="https://assets.econsultancy.com/images/0006/7952/valueclick.png" alt="" width="218" height="112"></p> <p>But by the late 90s, with the dot-com boom, the web was growing too fast for these networks to keep up. Web crawlers and portals, like Excite and Yahoo, emerged to index and categorize the web, but many felt at the time that the web had become too fragmented for effective advertising.</p> <p>By 2000, though, Google had developed a search engine which, almost miraculously, made the ever-expanding web accessible again.  </p> <p>And then in 2000 Google, the great organizer, launched AdWords. AdWords was sharply different from the ad networks as it delivered ads against just about every site on the web - while the user was searching.</p> <p>It made effective advertising possible again.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7953/adwords-blog-flyer.jpg" alt="" width="235" height="98"></p> <p>Google followed on by developing its own massive banner ad network (AdSense) in 2003, so with relatively simple interfaces brands were able to reach just about the whole web.</p> <p>Video advertising followed in 2006 with YouTube, and soon after Facebook started delivering ads against the social graph.</p> <p>Of course, I am skipping over a lot of details here but by 2007, it looked like things were pretty much under control.  </p> <p>Every time the web became more complex, new technologies emerged to organize the media landscape and help advertisers reach their audience effectively.</p> <h3>And then things changed</h3> <p><img src="https://assets.econsultancy.com/images/resized/0006/7970/iphone-blog-flyer.png" alt="" width="470" height="301"></p> <p>In 2007 Apple launched the iPhone and Google followed shortly after with the Android OS, and over the next four years, the whole game changed.  </p> <p>Have a look at this chart to see what I mean:</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7954/rise_of_smartphones-blog-flyer.jpg" alt="" width="470" height="258"></p> <p>Over the four years or so after the launch of the smartphones, the price of internet-connected devices plummeted, ownership spread like wildfire and internet usage has skyrocketed.</p> <p>And between 2007 and 2011, the number of internet users doubled.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7955/number_of_internet_users-blog-flyer.png" alt="" width="470" height="235"></p> <p>And daily usage grew by 50%.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7956/time_spent_online_2008_2015-blog-flyer.png" alt="" width="470" height="309"></p> <p>And we are not done. Internet users are set to double again this decade, from 2bn in 2010 to over 4bn in 2020. </p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7957/internet_mobile_in_2020-blog-flyer.png" alt="" width="470" height="249"></p> <p>And usage, as we can see above is on an upward trend as well. </p> <h3>How we consume media has changed too</h3> <p>And this proliferation of devices and growth of time spent on the internet is not the whole story. We also consume our media differently now as well.</p> <p>With mobile devices, we now access the internet on-the-go and in random places and are subject to constant distractions. We consume media more in the 'stream' of social, messaging apps, or short videos, and less in a nicely-structured HTML page.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7958/mobile_usage-blog-flyer.png" alt="" width="329" height="201"></p> <p>All of this adds complexity and brings us back to an environment that's incredibly difficult for brands to figure out, and means we are less effective at measuring advertising ROI. </p> <h3>What are we going to do?</h3> <p>To see what is going to happen, and what we should do, we need to look back to the history of online advertising.</p> <p>From 1994 to 2007, the web grew and became much more complex just like now, and new technologies emerged to help advertisers navigate the new media landscapes.</p> <p>Ad servers helped serve banner ads more efficiently. Ad networks organized publishers. Google indexed the whole internet - and let us advertise on it.</p> <p>So how might this possibly happen again? How are brands going to reach consumers in such a fragmented media landscape this time?</p> <h3>Here's what we need to do</h3> <p>I believe the answer lies in the programmatic ad buying infrastructure that is being developed right now. If you look at the diagram below (and please read <a href="https://econsultancy.com/blog/67018-programmatic-advertising-in-apac-an-introduction/">the previous post</a> for details), you can see the building blocks for the future of online advertising.</p> <p><img src="https://assets.econsultancy.com/images/0006/7747/programmatic-ecosystem.png" alt="" width="640" height="248"></p> <p>The SSPs will hide the complexity from publishers and the DSPs will do the same for advertisers.</p> <p>Trading desks will deliver the single point of contact experience for those who need it and first and third party data will be managed by DMPs. Analytics and optimization will be available at every node to help with ROI.</p> <p>In short, with such an infrastructure brands can concentrate on the message they wish to deliver and who they wish to reach, and technology will take care of the rest. </p> <p>Now some sites, notably Google and Facebook, have a different approach.  </p> <p>They are attempting to organize the web once again and offer brand marketers simple, yet powerful, access to their network.</p> <p>But if mobile devices, usage, and behavior keep changing at the same rate, I think the distributed programmatic environment is a much more robust solution. It offers a high-level abstraction of the core components necessary to deliver advertising across a complex array of devices, interfaces, and publishers.</p> <p>Whether we have the actual products now is debateable, but the architecture that is evolving does makes sense and, by many accounts, it is set to take over display in the next few years.</p> <p><img src="https://assets.econsultancy.com/images/0006/7883/3.jpg" alt="" width="345" height="321"></p> <h3>So now what?</h3> <p>Well, if you feel like you're late to the game, you're probably not.  </p> <p>As Mary Meeker showed in her 2015 Internet Trends Report, mobile advertising is severely lagging behind other mediums if you consider time spent vs. dollars spent. </p> <p><img src="https://assets.econsultancy.com/images/0006/7960/mobile_under_indexed.png" alt="" width="452" height="337"></p> <p>And as most mobile advertisting will soon be programmatic, according to a <a href="http://www.emarketer.com/Article/Mobile-Programmatic-Display-Ad-Spend-Eclipse-Desktop-Automation-Grows/1013090">recent eMarketer report,</a> if you can capture that time spent on mobile with programmatic advertising you are probably still ahead of most others.</p> <p>If you're wondering where to start, ironically the best place may be on Google and Facebook. I say this because even as they try to absorb the web into their own sites, they now offer 'programmatic lite' ad engines.</p> <p>And by becoming familiar with the vast features and analytics available on those platforms, you will be preparing yourself for more complicated programmatic ad buying in the future.</p> <h3>The future of programmatic</h3> <p>Of course there are many other challenges for programmatic. It's facing big issues from <a href="https://econsultancy.com/blog/67019-12-alarming-ad-blocking-stats-that-reveal-the-size-of-the-problem/">ad blocking</a>, ad-free messaging apps, and privacy concerns. </p> <p>But keep in mind that the web has always seemed a difficult place for advertisers. New technology has organized the chaos before, though, and it seems likely that it will do it again.</p> tag:www.econsultancy.com,2008:BlogPost/67020 2015-10-13T15:31:00+01:00 2015-10-13T15:31:00+01:00 Why Instagram should be the channel of choice for marketers Stephanie Carr <p>Are digital marketers witnessing a watershed moment for Instagram? 200 countries have access to <a href="https://econsultancy.com/blog/66689-how-brands-are-using-instagram-ads/">Instagram ads</a> and further international expansion is expected.</p> <p>By completely opening up its ad platform to all marketers and third party platforms, Instagram is marking a profound shift in its advertising model.</p> <p>This is a fantastic opportunity for advertisers to easily reach an engaged and fast growing community of 400m users.</p> <p>The benefit for Instagram is clear. The move will help it tap into potential ad revenue. But what does it mean for marketers, brands and importantly Instagram’s users?</p> <p>Below, I’ve outlined the key takeaways for each of these groups. </p> <h3><strong>Marketers</strong></h3> <p>Marketers with access to Instagram’s Ads API will now have unprecedented control over their social budgets.</p> <p>Previously, marketers would have to buy advertising space via an Instagram sales representative, which was a slow process and has held back <a href="https://econsultancy.com/blog/65677-a-super-accessible-beginner-s-guide-to-programmatic-buying-and-rtb/">programmatic buying</a> through the platform.</p> <p>Now, this is very much a possibility and marketers can optimise and manage their campaigns more effectively.</p> <p>The easy access that marketers now have to Instagram’s valued community is ground-breaking. Instagram is being treated as a targeting placement option for Facebook ad sets.</p> <p>So with just a click of a button, marketers can replicate their existing Facebook ads on Instagram.</p> <p>This means marketers can use the <a href="https://econsultancy.com/blog/64845-seven-dos-and-don-ts-of-custom-audience-targeting/">audience targeting capabilities of Facebook</a>, removing the guesswork and friction of launching on a new publisher.</p> <p>This tailored approach means marketers will more easily ensure KPIs are met.</p> <p><img src="https://assets.econsultancy.com/images/0006/7730/NET-A-PORTER_LONDON_FASHION.JPG" alt="" width="796" height="592"></p> <h3><strong>Brands</strong></h3> <p>Brands that use a platform with access to Instagram’s Ads API have the opportunity to engage directly with their fans in real time.</p> <p>For example, Helen McGee, Head of Marketing International at Net-A-Porter commented:</p> <blockquote> <p>The Instagram Ads API allows us to target a very specific European audience within 24 hours of our events.</p> </blockquote> <p>Net-A-Porter can now drive better brand awareness, and importantly share exceptional fashion content with its customers.</p> <p>By using just one interface to manage ads across various platforms, brands can significantly improve the speed of ad deployment.</p> <p><strong><img src="https://assets.econsultancy.com/images/0006/7731/NET-A-PORTER_INSTA.JPG" alt="" width="916" height="596"></strong></p> <h3><strong>Users</strong></h3> <p>Finally, perhaps the greatest impact of a more open advertising structure is on Instagram’s users themselves.</p> <p>Brands have a responsibility to use this opportunity to deliver a positive user experience and keep the audience engaged, especially as advertising on the platform is still a relatively new concept. </p> <p>This can be achieved by using rich visuals and considering other creative options such as image format (square, portrait, or landscape) and the viability of using the same creative across audiences and platforms.</p> <p>Marketers that target users effectively with relevant content will inevitably be rewarded.</p> <p>While Facebook will continue to dominate the budgets of advertisers to great effect, this shift by Instagram now provides an attractive alternative.</p> <p>With Instagram revenue expected to equal a tenth of Facebook’s total ad revenue by 2017, by maximising the options available and diversifying spend, marketers will increase the efficiency of their ad placement. </p> <p> <img src="https://assets.econsultancy.com/images/0006/7740/Instagram_s_5th_Birthday_infographic.png" alt="" width="1000" height="500"></p>