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Advertising | Industry-Research | Supporter Spotlight

Surprising revenue opportunities offered by automating Ad Ops

Ad operations (ad ops) involves a complex number of tasks relating to the execution of online advertising campaigns. With the global digital advertising market expected to hit $185.17B this year, the industry is increasingly competitive at a time of reduced consumer spending and economic uncertainty. This boom in digital advertising can be attributed to the ever-increasing consumer demand for online content and the rise of online shopping. With that in mind, companies using automation to streamline processes and supplement the work of ad ops teams could see an increase in revenue.

Automation has emerged as a tool nearly every industry is using, yet ad ops is still a notoriously manual process. From campaign management and reporting to trafficking and optimization, there are a plethora of procedures teams need to follow to ensure success. This manual process hinders productivity considerably and is prone to human error and inefficiencies – ultimately slowing order cycles and delaying revenue growth.

According to a recent study we conducted at Theorem, 69% of surveyed ad ops professionals cite that their company’s digital advertising processes need improvement. And another 79% reported that the tools or solutions they use to try to solve this challenge could be better.

As advertising is a key revenue model for publishers, streamers and media companies alike, this is a big problem. One that — if not quickly resolved — will lead to unnecessary financial burden that no company can afford.

So, what’s the secret? How can we simplify the ad ops process and find revenue in a place far too often ignored or overlooked?

The answer is automation.

Automation eliminates makegoods

Our survey revealed that the number one pain point for ad ops professionals is finding time to complete time-consuming tasks. End to end, the ad ops process consists of many error-prone tasks. Teams input data into spreadsheets, manually check and cross-check targeting, or pull data from multiple sources to manually create reporting.

This leads to companies experiencing high percentages of makegoods, which occur when an advertising campaign fails to deliver on a pre-agreed target number of metrics. Managing makegoods is operationally time consuming as workflows and reporting are adjusted—not to mention that the advertising campaign itself may underperform as a result.

With the stakes being so high, it’s time for businesses to jump on the automation bandwagon when it comes to ad ops. Makegoods have become so commonplace within the industry they are being written into contracts as an expectation. Automation has the power to revolutionize how organizations conduct business by addressing systemic challenges that increase profits while reducing human error. It can also centralize information and establish consistencies across processes that eliminate bottlenecks and minimize makegoods. By making makegoods obsolete and automating ad ops processes, revenue cycles accelerate. Processing a higher volume of work more efficiently allows ad-supported business models to see increased revenue faster.

Automation boosts strategic thinking and creativity

Ad ops teams realize that the benefits of automation extend beyond eliminating makegoods. Theorem found that three in five ad ops professionals agree that their team does not have enough time to be proactive.

Of those surveyed, 62% said automation can be used for generating reports, 59% said it could be used for completing repeatable tasks  and 56% said it could be used for eliminating labor-intensive tasks. Ad ops professionals are able to be more proactive and focus on creativity and the strategic direction of the business with automation performing those tasks.

These professionals are well-versed in a multitude of platforms and are highly organized, detailed-oriented and analytical – making them incredibly valuable to their organizations. Implementing automation and using it as a professional development opportunity adds weight to a business’s career development pathways and can help boost morale and increase employee engagement.

It has long been recognized that a happy workforce is a more productive one. In fact, 90% of survey respondents said they were open to their roles evolving as a result of automation. Essentially, the majority of respondents see automation as a compliment to human efforts, not a replacement. This, coupled with the financial benefits that automation can bring would suggest that the implementation of such technology would have significant benefits to any business.

Ad ops professionals are pivotal to the overall success of an organization, and yet they are often overlooked and underappreciated. Current ad ops processes are archaic and laborious and do not provide the optimal setting for team success. By engaging with automation, businesses can revolutionize their advertising prowess while simultaneously improving the productivity of their workforce. And that is a winning combination that will boost bottom line success.

Advertising | Supporter Spotlight

Advertising has an addressability problem; publishers can help 

The combination of users choosing cookie-blocking browsers and opting out of tracking has led to 70% of the internet being invisible to adtech. The result is a vast addressability problem in the open marketplace (OMP), which has put publisher revenues and advertiser reach in freefall.

Innovative publishers address this head-on by building direct-sold businesses, finding privacy-forward solutions to monetize 100% of their audiences and building deeper and long-term relationships with advertisers. 

Addressing the entire web

The advertising industry is starting to realize that while the OMP completely changed the way media owners and advertisers collaborated, becoming the “path to least resistance” for both buyers and sellers, it is now creating more resistance. 

For publishers, it’s the adtech tax and data leakage that occurs in the OMP. In addition, it’s damaging to the user experience that premium publishers pride themselves on, as they cannot guarantee that their users get relevant ads.

Direct-sold offers both parties the best possible solution to OMP woes. Premium publishers have first-party data sets, which are built on authenticated, contextual, declared, and behavioral data, that can be leveraged by advertisers to reach the unreachable 70% of online audiences.

Premium publishers have strong relationships with their users that have been built on trust. This enables them to tell compelling stories about their audiences – through the first-party data they’ve collected from those users – and provide the insights that advertisers are looking for. Because of the source of the data, publishers are able to be transparent about how their audience segments have been built, and provide real evidence of how connecting with these audiences can help advertisers achieve their objectives.

 Identifying the opportunity

The need to return to more of a direct-sold approach has already been identified by some advertisers, with a growing trend beginning to flourish at the backend of 2022, when publishers saw a 25% drop in OMP revenue and a 37% increase in direct-sold audience revenue, growing to 55% in the first quarter of 2023.

This trend is none more evident than in the US (the largest programmatic market in the world) where there is a clear shift in focus from the OMP toward direct relationships. In fact, according to eMarketer, direct-sold ads will represent 75% of the total programmatic digital display ad market by 2024, with OMP only accounting for 8.5%.

Publishers, having realized that the industry’s direction of travel means that the OMP is largely ineffective, have been driving forward with adjustments to their strategies, particularly when it comes to the use of first-party data. Gumtree, for example, where the use of first-party data in direct deals has led to a 36% increase in click-through rates in the first quarter of the year.

Meanwhile, Trusted Media Brands (TMB) – which is home to titles including Reader’s Digest, FailArmy, The Pet Collective, and People Are Awesome – has reached a stage where the vast majority of its direct-sold campaigns (94%) are using first-party data.

Beneficial for all

Ultimately, the best way for publishers to maximize their revenues is to realize the addressability issue is a very real problem today and for publisher CROs and brands to recognize that the OMP can no longer deliver the effectiveness that it used to.

The answer to the OMP’s shortcomings, and the need for addressability, lies in direct-sold deals and the first-party data that publishers hold to power those deals. 

Direct deals open up audiences for advertisers, ensure transparency and control, and guarantee access to the premium inventory they can’t find in the OMP. It’s up to publishers to show advertisers the access and insights they can get into audiences that will provide them with the ability to accurately target users and achieve the outcomes they are looking for.

The direct-sold strategy means publishers can grow their revenues, users get to see only the ads that are most relevant to them, and advertisers get the most out of their budgets. 

Advertising | Industry-Research | Video

Advertising popular with streamers and consumers

It is becoming increasingly clear that advertising will play a significant role in the streaming ecosystem. As Disney CEO Bob Iger told investors in Disney’s quarterly earnings call, “The advertising marketplace for streaming is picking up.It’s more healthy than the advertising marketplace for linear television. We believe in the future of advertising on our streaming platforms, both Disney+ and Hulu.”

Industry giants are now seamlessly incorporating ad-supported tiers into their streaming options. This shift from the early days of subscription-based, ad free streaming underscores the industry-wide recognition that catering to budget-conscious consumers is integral to achieving sustainable subscriber growth.

New research from HUB, TV Advertising: Fact or Fiction, affirms that most television viewers actively embrace ad-supported offerings. Six out of ten viewers prefer ad-supported subscriptions, especially when presented with the prospect of a reduced monthly fee. Interestingly, those with reservations about advertising remain in the minority, underscoring the widespread acceptance of ads as an primary and tolerable factor of content consumption.

Shifting the paradigm

The transformation in consumer sentiment towards ad-supported subscriptions carries a dual impact. Firstly, it renders ad-supported tiers significantly more appealing to a broader spectrum of viewers, including those who haven’t subscribed previously. Secondly, it reinforces the notion that the quality and diversity of content have a significant influence over viewer preferences. This often outweighs the appeal of a completely ad-free experience. Within the streaming ecosystem, advertising now emerges as a central thread weaving together content variety, affordability, and viewer gratification.

The rising desire for customization

Furthermore, a growing trend in viewer preferences is the desire for enhanced control over subscription tiers. Nearly four out of 10 viewers express a strong inclination towards personalizing their subscription model. They’re searching for a flexible array of choices, ranging from a premium, ad-free encounter to a more budget-friendly alternative featuring strategically placed advertisements. The attraction in customization preferences empowers streaming providers to cater to a broader spectrum of consumer segments.

Entrants that intrigue

Notable platforms like Max, Disney+, and Netflix, which recently embraced ad-supported tiers, are meeting positivity from their audiences. This dispels concerns about potentially hurting your brand in a previously ad-free service due to the introduction of advertisements. Twenty-seven percent of viewers switched tiers. Among them, 60% switched from with ad to no ad tiers, and 46% switched from no ads to with ad tiers.

Enhancing engagement through thoughtful execution

Ensuring a satisfactory viewing experience for consumers creates an environment ripe for advertisers to thrive. When viewers encounter an appropriate amount of advertising content, their engagement levels increase. This principle extends not only to the overall number of ads but also to the duration of ad breaks. Contrary to the notion that advertising detracts from the streaming experience, it possesses the potential to elevate it, capturing viewers’ undivided attention when executed thoughtfully.

The valuable component of ad-supported subscriptions

As viewing sources diversify, ad-supported subscriptions assume a key role within the streaming landscape. Subscribers want the autonomy to mold their subscription expenditure as well as the degree of advertising they’re willing to embrace. In response, streaming platforms offer a dual strategy, presenting ad-supported and ad-free tiers. This shift harmonizes content diversity, affordability, and engagement, shaping the streaming ecosystem.

Advertising | Supporter Spotlight

How media companies can evolve their first-party data strategy

With third-party cookie deprecation looming on the horizon, first-party data is becoming increasingly important for media companies. Advertisers have grown accustomed to the granular targeting that cookies offered and seek solid solutions underpinned by strategy and technology that will deliver attention and engagement from a brand-suitable, high-quality audience.  

At Arc XP’s recent customer conference, Ryan Gladstone, Director of Product Management at Arc XP, and Nick Nyhan, Managing Director and Co-Founder of Upside Analytics, shared strategies that media companies can employ to leverage their first-party data most effectively. Here are the key takeaways:

Why should media companies care about first-party data?

First-party data is considered the highest-quality data available because the information is willingly provided directly from the source: your audience. Unlike second- or third-party data, first-party data is proprietary and more accurate and updated than when it comes through other sources. Moreover, you can use it on a granular level to improve how you serve and grow engagement, even creating bespoke audience segments unique to your market and content. That flexibility, coupled with accuracy and the ability to respond to browser changes and evolving privacy laws, makes first-party data a critically valuable organizational asset.

Strategically, first-party data is particularly important to gather and use to enrich both audience and advertising revenue models. When effectively deployed, the collection of first-party data leads to higher audience conversion rates. Organizations that gather first-party data are more valuable to advertisers and, therefore, are able to charge higher rates. Audiences are also more willing to provide first-party data if they see you as a trusted information source, if they hear it helps them have a smoother login experience, or a more relevant and personalized experience. When explained well, it is a win for you and your audience.

Start where you are: Crawl, Walk, Run

When developing your organization’s first-party data collection strategy, it can be helpful to conceptualize the journey with a three-level model. You have to crawl before you can walk, and you have to walk before you can run.

Level 1: Crawl

Segments are the key to driving more sophisticated business strategies with your audience. At level one, you’ll introduce some basic segmentation principles and practices to your organization’s data strategies. Start your journey by gathering data and creating easily addressable audience segments that you can use to advance both your audience revenue and advertising revenue strategies.

  1. Gather email addresses: If you’re not sure where to start, this is where to do it. Putting together an email list is a basic priority of first-party data. This single piece of information is the most important piece of data to many systems – from CRM (customer relationship management) to advertising and registration. If you’re going to ask for anything, ask for email addresses.

  2. Set up segmentation: Once a user has provided you with their email address, they’ll be more likely to provide you with other pieces of information, too. You can use this opportunity to ask questions of your audience that will help you begin to create audience segments.

  3. Start connecting the dots: Once you have email and basic survey data collection in place, you have almost everything you need to start creating simple but powerful addressable segments. All you need to do now is start tracking engagement. There are a lot of different ways to do that, but Google Analytics is a great place to start.

Level 2: Walk

When you enter the next stage, you should already have established the basic building blocks of your first-party data collection infrastructure. At this point, you can start to introduce new layers of sophistication to extend, fine-tune, and refine your existing strategies.

  1. Roll out progressive profiling: To extend the number and type of audience segments that you’re able to create, you’re going to need to gather more data. This will help you build out your profiles and get a more complete picture of your audience.
  2. Implement A/B testing: At this stage, one of your main goals should be to refine and optimize the systems you established in the Crawl stage. When considering changes to your website, for instance, it’s a great idea to run A/B tests on your audience to determine the most effective path forward. 
  3. Tailor your offers: The more data you have, the more explicitly you’ll be able to be target. However, you choose to segment your audience, try using the data to share relevant offers.

Level 3: Run

At the Run stage, you’ll be implementing greater levels of sophistication into your first-party data systems and using the information you collect to enable more complex long-term initiatives with more precision.

  1. Personalize your site: With enough data to work with, you may be able to tailor your entire site experience to each audience group. You might opt to show fewer ads to dedicated subscribers. Or you might advertise your own organization through in-house advertising to higher-propensity audience segments, but not others. That can make a huge difference and presents much larger revenue opportunities.
  2. Blend and extend your data: No matter how much you know about your audience, there are always opportunities to learn more. So in addition to progressive profiling, data can be potentially sourced from what is already resident within your CMS system or email systems, adding context about interest areas and times of engagement, further enhancing your knowledge and how to serve different segments.
  1. Share your knowledge: It’s not uncommon for media organizations to enter into an alliance with one another to share their permissioned first-party data. It’s as if you and your peers are each bringing a piece of a puzzle to the table and combining them to make something bigger.

Following these strategies can help you successfully build an audience segmentation strategy that navigates the impact of the third-party cookie deprecation while building a sophisticated approach that delivers advertisers genuine engagement with highly-desirable audiences.

Advertising | Industry-Research | Video

For SVOD success, launch with ads from the start

In the ever-changing landscape of streaming services, media companies constantly explore new strategies to attract and maintain subscribers. One notable approach is the success of the ad-support SVOD tier. In fact, new research from Ampere shows that streaming services launching with an ad-supported tier from the start have a higher proportion of subscribers than those that added it later.

Ampere’s data reveals that SVOD services like Hulu and Peacock, which were early adopters of ad-supported tiers, boast an impressive 90% of ad-supported viewers. On the other hand, latecomers like Netflix, Disney+, and HBO Max struggle to gain significant traction with their ad-supported options. These late starters capture only a small share of their subscriber base. For instance, as of June 2023, approximately 2% of Netflix and Disney+ US subscribers are on the ad-supported tier. Even HBO Max, which launched an ad tier in March 2021, had only 5% of its subscribers on its ad-supported plan before transitioning to Max in April.

Drivers of success

Ultimately, an ad-supported tier’s success depends on several factors, including the service’s pricing strategy, content library, and targeted audience. Launching with an ad-supported option from the start appears to be more effective in building a substantial base of viewers. Late adopters may find attracting a significant share of their subscribers to the ad-supported tier challenging. This is especially true if the service has a strong legacy of being ad-free.

Ad-free service is still appealing

Despite the apparent appeal of ad-supported viewing, most new subscribers across the top seven SVOD services still prefer ad-free plans. According to Antenna data, between January and May 2023, three out of five new subscribers opted for ad-free viewing. Even services that recently introduced ad-supported tiers, such as Peacock, saw a considerable percentage (69%) of new subscribers choosing ad-free options.

However, there are potential changes on the horizon. Netflix has made a strategic decision to remove its Basic plan, which previously served as a mid-range option between the ad-supported and standard ad-free plans. With the elimination of the Basic plan, the price gap between ad-supported and ad-free viewing has increased significantly from $3 to $8.50 monthly. This move might lead more new subscribers to opt for ad-supported viewing due to the cost difference.

Additionally, Netflix’s crackdown on password sharing during June and July 2023 could have also impacted its subscriber base. Free viewers who were previously enjoying content outside of the subscriber’s home are now more likely to sign up for their accounts. For these price-conscious users, the cheaper ad-supported tier could become an appealing option.

However, the trend of traditionally ad-free services attracting more ad-free subscribers might continue to prevail. Peacock’s decision to close the free ad-supported tier to new users. However, they still allow existing subscribers of the free ad-supported to continue using it. This suggests that companies are recognizing the importance of retaining ad-free subscribers.

Advertising | Revenue | Supporter Spotlight | Video

Here’s why publishers should be thinking about CTV revenue

Once again, the media world has found itself in belt-tightening mode. A number of high-profile media companies have announced layoffs, and ad spend has grown more slowly in 2023 than in the previous few years. Publishers are looking for revenue streams beyond subscription packages – and for those who have video content, CTV offers a lot of promise. 

After all, CTV is where the growth is, in terms of ad spend and audience. For publishers that are already monetizing video on desktop and mobile, CTV is the most intuitive next step for diversifying revenue. For those that aren’t monetizing their video content yet, that’s all the more reason to jump into CTV.

In terms of both viewership and the influx of ad dollars, CTV is growing like gangbusters. Streaming CTV ad spend is tracking to reach $23 billion by 2026 – a double-digit increase from today. Streaming video consumption has surpassed linear TV, as experts had predicted, and there will be 3.5 users of over-the-top (OTT) streaming services globally by 2027. 

Right now, the audience growth is coming from ad-supported tiers, which is an ad inventory source so desired by brands that supply can’t keep up with demand. This sure sounds like a field day for the Netflixes and Hulus of the world. But while the largest streaming platforms get the lion’s share of attention in the industry trades, they won’t be – and, considering demand, can’t be – the sole beneficiaries of this influx of ad spend.

Power to the content owners

According to industry experts, more than 90% of CTV ad spend coming through DSPs goes to around 30 streaming platforms. That’s a much larger number than the handful of big names that get name-dropped most frequently in CTV conversations. Not many of these platforms own all, or even most, of their content outright. They source it through deals with other media creators. And those creators have a distinct advantage: They reserve the rights to sell ads on their content. Streaming services don’t have exclusivity in the same way as the publisher who creates the content. 

Clearly, media companies stand to benefit greatly by partnering with CTV services for video syndication. There are two types of publishers who can most easily grab those ad dollars: those that already stream their content on CTV, and those that have video content on their owned and operated properties that they’re not monetizing via CTV yet. 

We’ve heard about leading publishers who have launched their own video apps on CTV services including The Economist, Vox, the Wall Street Journal, and the Washington Post. But across the broader landscape of publishers who produce the high-quality video content advertisers crave, there’s a great untapped opportunity for ad revenue. 

Good news for publishers: The bar for entering the CTV space isn’t nearly as high as it was a few years ago. Free ad-supported streaming TV (FAST) services have democratized access to the streaming ad market, as it’s not nearly as costly as developing a subscription app – the means of access in the days before FAST. 

Publishers who already have the video content can launch their own channels across multiple CTV platforms and devices, at a reasonable cost. For the great many publishers who already have experience syndicating video across social channels, it’s an intuitive move and it opens up inventory that delivers higher CPMs, is more desirable to advertisers than pre-roll on the video players hosted on publishers’ own digital properties, and presents opportunities for advertisers to connect with viewers in a wider variety of viewing environments and viewer mindsets. 

CTV calls for a strong data strategy

Expanding to CTV will be an easier task for publishers who partner with data platforms that offer flexibility and interoperability. The limited availability of actionable, scalable first-party data remains a pain point not only for advertisers, but for publishers looking to get into streaming. This presents challenges in working across streaming platforms and devices, which have their own data but are reticent to share it. To drive the most revenue, publishers will want to be able to connect their data with any of their ad partners who need it for campaign optimization. That means the ability to solve for identity, and to provide interoperability, are essential pieces of the puzzle.

A solid, well-applied data strategy opens up key advertising functions like cross-platform targeting, frequency capping, and personalization at scale. Publishers don’t have to consider themselves out on their own in sourcing the necessary data, though. Streaming device makers are one place to look, although publishers may need to match the device makers’ proprietary IDs for actionable cross-platform insights. Using IP as a proxy (common in CTV) enables measurement in CTV, although IP may not be the best proxy in other digital environments, or for targeting at the individual level. Demographic, location, behavioral, and other data from data providers will enable programmatic buying, and incentivize advertisers that want the scale and efficiency of programmatic. 

To get the most value from CTV, publishers benefit from having a capacity to break down data silos and unify all identifiers (and the data signals used for ID enrichment). This opens up access – access to inventory for buyers, and to new revenue for publishers. It also allows for targeting across the broader ad ecosystem, while limiting wasted spend. 

A strategy that unifies data from relevant sources, and the ability to solve for identity, enhances a publisher’s value proposition to advertisers in CTV. It presents a great revenue opportunity for publishers. And delivering the value of actionable data insights is central to deepening long-term relationships with advertisers.

Making the most of the opportunity

At this stage of the CTV marketplace’s growth, there’s a real opportunity for any creator with quality video content. Therefore, publishers should be taking advantage of their video libraries. To fully capitalize on those advantages, they’ll need to be able to access and fully leverage the data that advertisers are looking for. 

Publishers who can bring both to CTV will be in a better position to weather economic unpredictability that may come to the digital media marketplace in coming months and years. Resilience hinges upon the ability to vary revenue sources, reach new audiences, and capitalize on an ever-expanding viewer base. And a strong data strategy, based on bringing together data from all relevant sources, will be key to truly realizing the revenue potential CTV holds. 

About the author

For over a decade Hunter has held and managed a variety of sales, consulting, and partnership positions in Advertising/Marketing Technology (#MADtech) throughout the US, Southeast Asia, and Australia. Currently based in Baltimore/DC after six years in the Asia Pacific, Hunter leads Lotame’s Connected TV initiative focusing on household graphing, viewership data partnerships, and data enrichment throughout various supply and demand channels.

Prior to his current role, Hunter led Lotame’s Global Solutions Consulting team solving leading marketer and publisher challenges through identity resolution and data enrichment methods. Additionally, Hunter has helped expand the Lotame Sales and Account Management teams in their Singapore and Sydney offices during his tenure in APAC.

Advertising | Revenue | Supporter Spotlight | Video

5 ways the writers’ and actors’ strike will impact advertising

On May 2nd, the Writers Guild of America (WGA), an alliance of over 11k film, TV, news, radio, and online writers went on strike demanding fair contracts and pay stability. They also stated numerous concerns surrounding artificial intelligence. In June 2023, 65k actors from the Screen Actors Guild (SAG) cast their votes to join the strike in support of their colleagues and to protest how technology has affected their wages as well.

There is much talk about the impact the current entertainment industry strike will affect advertising. The truth is, we are just starting to see its influence. This is mostly due to the timing of the strike. Many scripted shows are on hiatus during the summer and typically advertising is purchased well in advance of their run dates. As the strike drags on, the impact will be keenly felt across much of the media industry. 

Here are five ways we will likely see the strike impact advertising’s bottom line.

A short strike may be a win for broadcasters and streamers

In the short term, broadcasters and streamers are likely to see a boost in their profits. While that may seem surprising on the surface, if the strike lasts under four months it’s a real possibility.

Broadcasters and streaming companies have already sold the advertising that will air during these months. Additionally, contractor and personnel costs declined sharply during the early months of the strike. Hopefully, these early profits are reinvested to buy up the rights to movies and content available for sale – as a way to shore up their audiences regardless of the strikes’ duration. 

However, broadcasters and streamers should be prepared with new inventory, so they don’t lose out to social media if the strike continues until early 2024, as many predict it will. They will want to avoid airing reruns instead of new content, since that will affect viewership and in turn advertising revenue will be lower.

Broadcasters will be hit hardest if the strike goes beyond six months

If the strike lasts only a few months, changes in ad spend may be limited. In the short term, we haven’t seen much of an impact on ad sales. However, if the strike goes beyond a few months, the largest TV broadcasters could be hit hardest. Relative to streaming channels, TV broadcasters have more content that’s prepared “just in time.” 

Unscripted television, like variety shows, reality shows, and game shows have not been impacted by the strike too much. However, we do see a hit to lucrative late-night talk shows, which have already been off the air for a couple of months. This programming relies on writers who have been on strike since early May. 

Prime time advertising is estimated at $13.1 billion during the first half of 2023, which makes up 50% of all national TV ad spend. If the strike is prolonged, we could easily see some weekly prime-time TV shows off the air after a few months of their Fall debuts, as a result of new episodes not being completed.

Media & entertainment advertising will suffer across media

Movies, streaming services, and TV shows (along with others that support the industry) invested over $3.9 billion from January through June 2023. This represents 39% of the total ad spend from media and entertainment advertisers ($10 billion). This estimated advertising investment reaches beyond just TV, to over a dozen media formats. Since the start of the strike, we saw a dip in May YoY (4%). However, in June this segment was already down 26% YoY.  As the strike continues, advertising to promote movies, shows, and streaming services will likely continue to decrease and shift in investment. 

A prolonged strike may even prompt the largest U.S. firms to move more English-language production outside the U.S., to work around the problem entirely. Many countries have none of the protections offered to SAG members in the U.S., offering a viable alternative to production companies. 

Streaming and social platforms may experience a resurgence due to the strike

Streaming channels have significant material pre-recorded, “in the can.” This gives them the  ability to release movies, mini-series, and documentaries. If they have new content while broadcasters are struggling to recreate fall lineups, streamers will benefit. Netflix’s CEO has already said they’ve been preparing for the strike for some time and will stretch out their new releases.

In the event of a longer strike, streaming channels can easily dub content from outside the U.S. and show it here. We saw this during the pandemic. For example, Netflix saw great success airing the South Korean survival drama, Squid Game in the US. Another example, and a personal favorite of mine, was the HBO produced sci-fi flick, Beforeigners. This show  was originally produced in Norway and was dubbed and placed in their U.S. lineup. 

We are also likely to see social video platforms like YouTube, TikTok, and Instagram benefit from a prolonged strike. Their content producers are independent and non-unionized so these platforms will not see a pause in content creation. Viewing hours could easily surge as they did during the pandemic, which will drive more advertising dollars away from traditional broadcasters and toward streaming and social platforms.

Sports and news content will be sold at even more of a premium

Broadcasters with sports rights could do well in this environment because sports content is likely to be one area that isn’t negatively affected by the strike. Broadcasters will likely lean into more active coverage of sports. And they can use the strike as ammunition to defend the high price of sports licensing fees. 

We also predict that news broadcasters will sell advertising at a premium as well. News broadcasters are covered by SAG, but they have their own separate contract. As a result, news programming and advertising supporting it will continue and may even expand. Media like CNBC, NPR, Bloomberg, etc. will be mostly unaffected.

While the full impact of the writers’ and actors’ strike is still very much uncertain, it is expected to result in notable alterations and realignments of advertising investment in the upcoming months. While some may experience short-term advantages due to reduced costs and pre-sold advertising, the long-term impact could profoundly impact advertising investment across media.

Advertising | Supporter Spotlight | Video

Tune in to CTV viewers advertising expectations

TV no longer occupies one screen. Viewers have redefined “TV” to encompass long-form, streaming, on-demand content consumption. Along with this shift comes a transformation in the audience’s advertising expectations. 

Capitalizing on the connected TV gold rush

With global revenues from ad-supported video on demand (AVOD) projected to reach $91 

billion in 2028, the allure of free ad-supported streaming has captivated more than half of US TV viewers. In this landscape, Connected TV (CTV) shines as the jewel of the advertising world, fueling the open programmatic CTV ad spend with its 31% year-on-year growth.

Boasting larger screens, higher resolutions, and sound quality, CTV empowers viewers to curate their content consumption- offering the ultimate viewing experience.

Although industry stakeholders acknowledge CTV’s potential, you can’t help but wonder: Do they fully understand the impact of poor advertising experiences on CTV? And is the industry prepared to safeguard brand integrity and guarantee high-quality ad experiences?

CTV viewers ad experience expectations 

CTV stakeholders can learn from past web/in-app programmatic pitfalls. According to our research at GeoEdge, 56% of consumers admitted that they immediately leave the site or close the app when they encounter a bad ad. Moreover, 73% of consumers claimed they would not recommend a site or app to their friends and family after encountering a bad ad. 

Audiences have made their needs clear: they demand a streamlined and non-intrusive ad experience. One of the reasons that viewers prefer CTV over traditional linear TV is because of the quality experience. Unlike web or in-app ad experiences–where users have grown accustomed to being bombarded with ads–CTV viewers approach the platform with a different mindset. They expect few, if any, ads. And they certainly don’t want to see offensive or disruptive ones. Oh, and they will quickly abandon ship if their expectations aren’t met.

CTV delivers what viewers desire, from the ability to skip ads to shorter durations and reduced ad frequency.

A lack of focus on programmatic transparency and brand safety could turn CTV advertising into a minefield of offensive and intrusive ad experiences. Sabotaging the viewing experience, instigating disengagement, negative brand perception, and even outright alienation from the platform. To secure viewer loyalty, it’s crucial to maintain the quality of ads and ensure they align with viewer preferences.

The complexities of co-viewing and shared screens

Addressing the complexities of shared screens and co-viewing poses a significant challenge when delivering relevant and engaging advertisements. The diversity in viewers’ preferences and age groups also introduces intricacies related to content restrictions and enforcing industry guidelines. The suitability of an ad for an individual viewer might not align with a diverse audience.

Inappropriate ads are not confined to X-rated content featuring explicit material. Ads showcasing distressing global news, natural disasters, contentious political content, or pharmaceutical promotions have the potential to disturb viewers. 

To preserve ad-supported experiences, it’s essential to maintain creative control, especially within the context of a shared screen. Preventing offensive content, explicit material, and sensitive ads is crucial to maintaining an environment suited to a wide range of audiences, including cross-generational and family-safe.

The playbook for engaging CTV ad experiences

Creating a safe and dependable ad environment that viewers can trust is tricky but certainly not impossible. By taking lessons from past mistakes in web and in-app ad experiences, CTV can not only ride the wave of growth but cement its foothold. Here are some guidelines that should help:

  • Implement strict filters for sensitive and controversial ad content.
  • Ensure compliance with child privacy laws and provide age-appropriate video content for younger viewers.
  • Carefully consider media specifications, such as ad duration and sound quality.
  • Secure the post-advertisement journey to keep a safe environment for viewers. For instance, interactive ads that use QR codes necessitate safety protocols that extend beyond the ad itself.

To maintain the integrity of the CTV viewing experience, it’s crucial the industry aligns with audience expectations for the ad experience. It’s time to think like a viewer. 

Advertising | Supporter Spotlight

4 ways media execs can turn the death of cookies to their advantage

After what seems like an endless amount of anticipation, Google will begin phasing out third-party cookies in Chrome in six months, and fully within the next year. 

At this point, today’s media executives have spent years being told that they need to prepare themselves for the deprecation of third-party cookies in Chrome. They’ve been assured that the significant limitations of third-party cookies mean their demise is no great loss in the first place, and they’ve been given step-by-step instructions for transitioning away from third-party cookies altogether. 

The assurances are true. And the bits of advice are practical. But there’s more to the story—and it’s time for us to mentally take the next step on the journey to a cookieless digital ecosystem.

What if—just what if—the loss of third-party cookies is actually an opportunity for publishers to strengthen themselves for the long haul and position themselves for growth, rather than mere survival? While so many in the online ecosystem are busy calculating the anticipated downside of third-party cookie deprecation, there’s an opportunity for future-minded media executives to be flipping the narrative and telling ad buyers why cookieless targeting will be a boon to their campaigns.

Let’s take a look at four points that media companies should be emphasizing to buyers as our industry transitions toward cookieless targeting tactics.

Reinvigorating appreciation for quality 

Moving forward into a cookieless reality, the publishing industry is going to see renewed energy being put into contextual targeting, richer and more content-focused ad formats, and publisher-powered insights around user behavior, personas and people’s affinity toward content and brands. In other words, the value of content is coming back to the foreground, and that’s incredibly good news for today’s publishers. 

Media execs that lean into what they know about their visitors—who engage with certain content, including native articles and who have a high propensity to click on native display or interact with brand content and sites—are going to be able to offer unique targeting options to advertisers. Moreover, they’re going to be able to demonstrate the quality of their audiences as a result of the quality of their sites, enabling them to assign higher value to their inventory. 

Driving greater return on ad spend

Those that lean into cookieless targeting are also going to be able to demonstrate greater CPA and CPC performance for advertisers. That’s because certain cookieless targeting options, particularly ones that leverage publisher data to predict user behavior and directly connect buyers and publishers based on expected results, are able to eliminate third-party data fees. Media companies can promote to advertisers the added price efficiencies on non-cookied inventory, which results in higher win rates at lower clearing CPMs.

Offering more-efficient campaigns

Going one step further, cookieless targeting built around the power of publishers and their insights means advertisers can save the time and expense associated with onboarding data. That’s a big selling point for publishers that embrace the cookieless ecosystem and the value of their audience data. Furthermore, these publishers can help advertisers find new users to build retargeting pools, while also obtaining greater reach and reduced latency by serving Safari and iOS users (i.e., users lost within cookie-driven campaigns). 

Moving consumers from consideration to action

Finally, let’s talk outcomes: By reprioritizing content and content-driven ad formats within the advertising ecosystem, cookieless targeting lets advertisers find new prospects in the consideration phase and drive them to their site to increase click-through conversions and strengthen retargeting tactics. In other words, publishers can help their advertisers get a much better handle on their mid-funnels and ensure these high-value consumers are given every incentive to take action. 

The final push into a cookieless digital ecosystem is approaching fast, and given the headlines of the past three years, it’s understandable that most publishers are feeling trepidation. But the reality is that cookieless tactics and solutions are precisely what today’s online publishers need to realign their advertising offerings around the true value and quality that they can deliver. Ultimately, for the publishers that embrace it, the move to a cookieless world will be what drives long-term sustainability. 

Advertising | Supporter Spotlight

Empowering advertisers: The rise of self-serve platforms

As companies grow and expand, employees are often expected to be more productive despite having less time and resources available to them. Whether it is a small business, programmatic trader, or large agency, these groups can all benefit from using a self-serve advertising platform to streamline the process of executing digital campaigns and alleviate employee workload, allowing them to focus on other essential tasks.

What is self-serve?

Self-serve advertising platforms are becoming increasingly popular in the digital advertising world. However, “self-serve” has been a regular part of our daily lives for quite some time. Various self-serve services are available, such as ATMs for withdrawing or depositing money, self-checkout at grocery stores, pumping your own gas at gas stations, and kiosks at airports for printing luggage tags. These services have one shared characteristic: they eliminate the need for a middle person, resulting in increased efficiency and savings in both time and cost. Let’s break it down.

A person arrives later at the airport than they had intended and needs to check their luggage before heading to security. But lines for the airline agent are longer than lines for security, and this will cause the person to miss their flight. Luckily, the airline has kiosks available where the person can pay for their checked bag, print their luggage ticket and boarding pass, and allow them to bypass the queue. The kiosk has acted as an effective and efficient self-serve service for the traveler by performing tasks usually completed by an airline agent, allowing both the traveler to make their flight and the airline agent to accomplish more important tasks. 

These examples of self-serve systems in our daily lives parallel advertising because self-serve advertising platforms address the ongoing need of businesses asking to achieve more with less time and resources. 

Self-Serve in addition to DSP

Marketers utilizing DSPs for their media strategies can also benefit from including self-serve technology in their plans. Self-serve advertising platforms used in addition to DSPs can support businesses by providing direct access to a publisher’s inventory without any friction. While DSPs operate in the programmatic space, self-serve provides a tactical solution for automating direct sold guaranteed media execution to build the closest relationship possible between the buyer and publisher. Additionally, there are many other advantages to incorporating self-service options into campaigns.

Benefits of implementing self-serve

One major advantage of self-serve advertising is its user-friendly nature. We are all familiar with booking our own travel, purchasing products online, and entering our credit card details during checkout. Self-serve advertising is simply an additional tool that simplifies our daily tasks and enables advertisers to create campaigns with just a few clicks.

Another advantage of self-serve advertising is that it is cost-effective. Self-serve advertising is a more accessible option for businesses of all sizes. Advertisers can create and manage their digital advertising campaigns, bypassing intermediaries and avoiding hiring third-party professionals, making it an ideal solution for small businesses. With self-serve advertising, businesses can take complete control of their advertising campaigns, leading to more media spend allocated directly within the ecosystem. The ad budget with fewer intermediaries provides more media value to advertisers and allows publishers to earn more. Additionally, self-serve advertising platforms often have lower transaction fees, which can further help businesses stretch their advertising budgets.

Self-serve advertising also offers flexibility. Advertisers can choose their own targeting options, ad formats, and pricing models. This level of customization allows businesses to tailor their advertising campaigns to their specific needs, which can lead to better results. For media-buying professionals seeking to establish a campaign rapidly, self-serve can be an ideal solution. This platform allows for swift and easy setup and procurement of media campaigns, with the option to pay via credit card or invoice. Additionally, self-serve provides the benefit of avails forecasting and the ability to generate line items without the necessity of waiting for an insertion order or RFP response.

Furthermore, self-serve advertising platforms offer transparency. Advertisers have complete visibility into their campaigns, including where their ads are being shown and how much they are paying for each impression or click. This transparency allows businesses to make informed decisions about their advertising campaigns and can help them optimize their results.

Final thoughts

Self-serve advertising will appeal to businesses looking to take control of their advertising campaigns and optimize their results. It is easy to use, cost-effective, flexible, and transparent, making it an accessible option for businesses of all sizes. While DSPs and managed services have their own advantages, self-serve advertising platforms are strong additions to current media strategies to execute and manage advertising campaigns. 

Advertising | Perspectives

What publishers miss about brand safety and corporate values

Publishers need to keep pace with the evolution of marketing. One such evolutionary step has been the emergence of values-based marketing. This approach appeals to consumer values and ethics, and expresses a brand’s values as part of its marketing message.

As just one indicator, the rise of values-based marketing can be measured by looking at the S&P 500 over the last decade or so. In 2011, Corporate Social Responsibility (CSR) involvement among the S&P 500 sat at under 20% according to the Harvard Business Review. By 2019, that number soared to over 90%. It took only eight years for the overwhelming majority of some of the most influential companies on Earth to embrace a more value-centric marketing approach.

One of the key motivators behind this sweeping philosophical shift is something that’s governed most public-facing company decisions since time immemorial: consumer opinion. According to Accenture, 63% of online customers surveyed around the world prefer companies and brands that share their own values. Our research found that a comparable 69% of customers stated that they agreed with the statement, “Companies that are genuine and authentic appeal to me.”

However, obvious consumer interest and strong advertiser adoption doesn’t mean there aren’t gaps. Brands should consider how all aspects of their marketing strategy might impact their values-based marketing goals–in particular, when it comes to brand safety and suitability.

The connection between brand values and brand safety

Brand safety and suitability controls enable advertisers to reduce reputational risk by avoiding content that might clash with a brand’s desired message, and this can differ greatly from advertiser to advertiser, campaign to campaign. At the same time, brands want to work with publishers that offer a voice and audience that align with their objectives and values–which means looking beyond the individual pieces of content an ad might appear alongside.

But there can be a disconnect between a brand’s values-based marketing goals and their brand safety strategies. This gap creates operational and revenue challenges for publishers as well as hindering advertisers’ ability to effectively reach the right audiences. For example, a brand’s keyword list might include words or phrases that are unintentionally limiting placements next to the content that aligns most with their desired audiences.

Bringing audience and brand values into the brand suitability conversation

As brands put more focus on their values-based marketing strategies, publishers have an opportunity to showcase how they can support those goals and help clients find the right balance with brand suitability. This starts with both sides understanding the available tools and how to work them into an optimized strategy. It ends with informed collaboration around the unique aspects of the particular publisher, brand and audience.

In the keyword example above, the brand might consider transitioning away from a keyword-based approach, which only considers what is contained in the URL-string of a page and not the context, tone or meaning of the content on that page. In most cases, a content category offers more streamlined and comprehensive protection than a keyword list while avoiding the pitfalls of excluding valuable opportunities to reach their target audience.

This points to the importance of building a nuanced and individualized brand suitability strategy that balances brand protection and brand values.

Moving the conversation forward: best practices for publishers

So, what can publishers do? Whether used in programmatic or direct environments, education and advocacy are critical to reaching mutually beneficial partnerships. For example, a publisher might consider asking to be added to an inclusion list if there is alignment between their voice and a brand’s values.

When brands strike the right balance between protection and values, they can reach larger audiences and feel safer spending more. Publishers that are empowered with an understanding of brand suitability tools and how they work can help advertisers align their settings with their values and marketing goals. And that’s a win for everyone.

Advertising | Industry-Research

Programmatic advertising has a quality problem

In the ever-evolving world of programmatic advertising, marketers’ quest for transparency and efficiency is paramount. The 2023 ANA Programmatic Media Supply Chain Transparency Study found that marketers have major concerns about the quality of programmatic buying. The report identifies that approximately 15% of programmatic spending and 21% of impressions appear on low-quality made-for-advertising (MFA) websites. And while marketers include 4,500 MFA sites on exclusion lists, few provide inclusion lists of quality sites for their advertising campaigns.

The study also reveals that the main problem centers on accessing and analyzing data log files. In fact, only half of the 67 initial participating advertisers (52%) owned direct DSP data access through their contracts. For the remaining advertisers (48%), their access to DSP data was mediated through their agency’s DSP contracts.

As background, 67 ANA member companies agreed to participate, but 46 encountered legal issues or could not access their log data from DSPs, SSPs, and Ad Verification providers, effectively barring their participation.

The research identifies additional issues and recommends a more transparent and efficient open web programmatic marketplace. It is based on log-level analyses across $123 million in spending with 21 advertisers and 35 billion impressions and supplemented with 35 qualitative interviews with supply chain intermediaries.

Recommendations

The report observes several operational challenges in programmatic practices. It also offers corrective steps to get more value from the programmatic ecosystem.

Information asymmetry and waste

The study identifies information asymmetry as a significant roadblock to achieving transparency in the programmatic supply chain. Advertisers often lack crucial information about the quality of media inventory sold in auctions, leading to overpayment, inefficient decision-making, and wasteful media investments.

To address this issue, advertisers must demand access to comprehensive and reliable information about the media inventory they purchase.

Data access challenges

Despite the growing interest in data-driven marketing, many companies struggle to access log data from demand-side platforms (DSPs), supply-side platforms (SSPs), and ad verification providers. This lack of data access creates transparency issues, inefficiency, and wastage.

Advertisers should establish direct data access contracts with primary supply chain partners to maximize transparency and gain control over their media campaigns.

Misaligned incentives

The study reveals that advertisers often prioritize cost over value in purchasing programmatic media. Chasing cheap cost-per-thousand-impressions (CPMs) may seem attractive initially, but it often leads to downstream issues in ad quality.

Advertisers must balance cost and quality to avoid wasteful investments and focus on the value their media buys deliver.

Website overabundance

The study shows that campaigns utilized an average of 44,000 top-level domains, raising concerns about fraud, viewability, and brand safety.

Advertisers should streamline the number of websites used while ensuring fairness for small or minority-owned service providers. By reducing the number of websites, advertisers can concentrate on high-quality inventory and mitigate the risks associated with excessive website usage.

Low-quality made-for-advertising websites

The study highlights that low-quality made-for-advertising (MFA) websites, which are created simply to generate ad revenue through sensational headlines and subpar content, accounted for 21% of impressions.

Advertisers must evaluate the suitability of MFA inventory for their brands and consider their tolerance for including such sites in their campaigns. Striking a balance between reach and brand safety is crucial.

Sustainability concerns

Programmatic advertising has a notable environmental impact due to its energy-intensive nature.

Advertisers can contribute to sustainability efforts by making more productive and non-wasteful media buys. Certain website types, especially MFA sites, generate higher carbon emissions. Advertisers should prioritize sustainability in their media buying strategies and opt for environmentally conscious platforms and vendors.

Importance of log-level data (LLD) analysis

The study emphasizes that improved data matching and analysis can significantly reduce the “unknown delta,” which refers to unattributable ad spend.

Leveraging log-level data allows advertisers to achieve a zero-percent delta, gaining valuable insights into their ad spend and performance. Analyzing log-level data empowers advertisers to make data-driven decisions and optimize their media investments effectively.

Manage the supply chain

The ANA report emphasizes the importance of properly managing the programmatic supply chain. This enables advertisers to make informed decisions based on transparency and data-driven insights. Further, it allows advertisers to analyze ad impressions’ impact on consumers and evaluate the financial transaction between the publisher and the overall value delivered to the target audience. This way, advertisers can optimize their campaigns and publishers can improve the ad placements and enhance the overall effectiveness of the advertising.

Effective advertising is not simply a question of reach. While programmatic advertising allows for efficiency and scale, marketers must manage the supply chain in order to make the most of their investment.

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