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Advertising | Revenue | Supporter Spotlight

Real-time data boosts ad revenue for publishers

Today’s fast-paced digital landscape requires publishers to make critical business decisions faster than ever. Over the past several years, as media executives have sought to streamline their operations and optimize advertising revenue, tech-forward media teams have started leaning into data automation to replace cumbersome manual ad ops processes and resolve common data integration pain points.

However, while leveraging automation to address pain points can improve operational efficiency, automation alone is not enough to stay ahead of the competition and drive revenue. To thrive in today’s increasingly competitive market and sail through the macro headwinds putting pressure on revenue from shrinking ad budgets, inflation, and diversification, publishers need the ability to recognize revenue opportunities and act on them in real time. 

Why real-time data matters

Despite the economic challenges publishers are facing, the global digital advertising market is still expected to grow from $178.29 billion in 2022 to $185.17 billion in 2023 and is predicted to reach $209.43 billion by 2027.

Yes, big data can be used for predictive analytics that allow businesses to anticipate future trends and events. However, Real-time data allows businesses to anticipate, act on, and monetize what is trending right now.

Automation is a great starting point. But it is just the beginning of a publisher’s journey towards efficient and profitable operations. With billions of rows of data being gathered from hundreds of disparate sources, data science teams are becoming increasingly overwhelmed trying to report effectively and reliably on this data. And this leaves business teams unable to capitalize on critical revenue opportunities. 

Real-time data analytics driving revenue operations strategies

By leveraging real-time insights, publishers can drive several strategies that generate more advertising revenue faster. 

1. Real-time advertising inventory management

Identifying fluctuations in demand, audience engagement, and ad performance is critical to optimizing ad inventory effectively.  Without real-time insights, publishers may fail to capitalize on peak demand periods or trends, resulting in missed opportunities to generate higher ad revenue, and placements that could have been highly relevant and valuable may go unnoticed or be underutilized.

2. Targeted ad campaigns

Understanding audience’s preferences, behaviors, and interests in the moment enables publishers to deliver highly targeted and relevant ads to their audience. Without this capability, you may be forced to resort to generic or static ad placements, missing out on the chance to engage users with personalized content at premium pricing and lower overall revenue.

3. Competitive pricing strategies

By monitoring market dynamics and competitor activities in real time, publishers can adjust pricing strategies to optimize rates and ad packages while remaining competitive. Without this real-time visibility, you may struggle to stay on top of pricing trends, changing market conditions, or competitor offers and miss opportunities to attract advertisers who are looking for more favorable pricing or packages.

4. Ad performance optimization

Monitoring ad performance metrics allows publishers to make timely adjustments to improve results. By quickly identifying underperforming ads, publishers can optimize placements, targeting, or creatives to enhance engagement and conversions. Without access to real-time data, it may take longer to identify and address underperforming ads. This can result in wasted impressions, lower click-through rates, and decreased revenue potential.

5. Responsive campaign management

Publishers need to be able to respond quickly to shifts in consumer behavior, market trends, or breaking news. By leveraging real-time insights ad campaigns can be adapted and aligned with the evolving needs and interests of your audience. Media execs who struggle to identify emerging opportunities or react swiftly to changing circumstances may miss out on potential revenue gains that could arise from timely and relevant ad placements.

Best practices for optimizing real-time data analytics

Invest in a flexible, scalable, SOC-compliant platform that can support terabyte scale, with hundreds of native connections and the ability to connect to data warehouses, SQL databases, cloud bucket storage & email reports. 

In addition, a platform with an automated data ingestion process (encompassing both 1st party data and 3rd party data) that also automatically monitors for data quality will eliminate the need for less experienced data analysts to do commoditized manual labor and allow your data team to focus on more strategic value-add initiatives.

Build a suite of reports that focus specifically on your KBIs – from information on billable revenue generated and revenue at risk to specific metrics on campaign pacing and impression/click delivery and discrepancies. 

Leveraging automation and channeling real-time data into a single source of truth will allow you to improve targeting and forecasting accuracy, make rapid data-driven decisions, and continually optimize campaign performance in a dynamic environment.

Foster a culture that prioritizes the use of data and encourages employees across divisions to utilize data insights to make critical business decisions. Building a data-driven culture requires buy-in from leadership and organizational communication that reinforces the significance of analytics and empowers their team.

Get real time

Real-time analytics enable effective decision-making and are a crucial element of publishers’ success across content, advertising, and data-driven initiatives. Publishers who can quickly respond to market trends and ever-changing consumer behavior will have a significant advantage in an increasingly crowded media landscape.

But this is only the beginning of a constantly evolving journey. To maintain a competitive position, publishers must stay up-to-date with emerging data management and analytics trends and invest in the right technology and team to help guide their strategy into the next era of digital transformation.

Advertising | Perspectives | Supporter Spotlight

Media execs can’t afford to sleep on attention 

As publishers and advertisers look for privacy-compliant metrics to help evaluate performance and engagement, everyone’s talking about attention – and for good reason. While it may seem easy to view the topic as just another passing fad, attention is likely here to stay.

A 2021 Microsoft study revealed the average attention span is just eight seconds. It has also been estimated that the average American is exposed to anywhere from 4,000 to 10,000 ads per day. Ads that hold attention for at least 2.5 seconds have been proven responsible for a 50% increase in sales. 

If stats like that aren’t enough to convince you, note that attention metrics can also serve as part of a solution to many of the industry’s ongoing shifts. For example, attention measurement solutions are generally cookieless, which provides an option given inevitable cookie deprecation. Attention metrics can be used to serve more relevant ads, thereby reducing the environmental impact of campaigns. They can also be used to help prove the impact of marketing spend in times of economic uncertainty. 

With attention looking likely to become industry-standard, publishers need to truly understand attention metrics and how best to leverage them. Those who are able to prove the quality of their inventory stand to gain in the short and long term. 

A quick refresher on attention

Traditional metrics like Video Completion Rate (VCR) and Click Through Rate (CTR) no longer provide a comprehensive way to track engagement. Viewability, as defined by the Media Rating Council, only ensures an ad is in the viewable area of a user’s screen for a set duration – typically one second. Attention metrics offer a more detailed understanding of how users interact with ads and provide valuable insights into engagement. 

By analyzing attention metrics, advertisers can evaluate the effectiveness of different elements within an ad, such as specific visuals, headlines, or calls to action, as well as the probability of a specific placement to capture user attention. This data can inform iterative improvements in creative design, supply targeting, and placement strategies to optimize audience attention and engagement. 

Lab-based methodologies and panel-based eye-tracking technology are two of many approaches used to capture attention metrics. Ultimately, these attention metrics and measurement approaches give publishers and advertisers a more nuanced understanding of audience engagement, ad effectiveness, and brand impact. 

What you need to know now 

Attention measurement allows advertisers to target inventory that generates attention and campaign outcomes. Publishers can use it to guarantee advertisers increased visibility and brand recall, which isn’t possible with traditional clickthrough and impression metrics. 

Some say attention refers to an ad’s ability to: successfully engage a user, measure the quality and quantity of attention, and measure media and creative effectiveness. However, at present, there’s no uniformly agreed-upon definition of attention. 


As a result, no standard measurement methodology exists yet either. Many big industry providers like MOAT, IAS, and DoubleVerify (as well as new grassroots attention measurement providers) have developed multiple KPIs and technologies for measuring attention. While there are many applications and use cases, attention vendors often focus on measuring media quality and predicting which placements (a combination of domain, device, and format) are likely to generate more attention.

However, the IAB recently gathered a group of key stakeholders to focus on the measurement landscape, increasing the chances that attention will soon become the new standard industry metric. 

How publishers can benefit 

It’s true that the attention trend is driven by demand, and mostly delivers buyer-driven benefits. However, media companies can also use attention metrics to benchmark their inventory to understand what’s driving quality engagement to inform pricing to increase revenue and improve the audience experience.

Attention metrics can be used to track the site user’s journey. Time-in-view, scrolling behavior, and mouse-over-data can all be used to determine time spent interacting with page elements – including ads. This allows you to analyze placement on your pages through eye-tracking panels and follow-up questionnaires to determine which ad formats generate more attention and the correlation to brand awareness/purchase consideration.

The findings allow you to adjust your monetization strategies accordingly to charge more for placement generating attention. Being able to prove your media has a direct effect on ad impact and performance will allow you to attract high-quality advertisers. They will be willing to pay a premium for ad placements in environments where users are highly engaged.

Finally, attention metrics contribute to a better ad experience for your audience. Consumers want to avoid sites featuring intrusive or irrelevant content. Understanding the formats and placements consumers prefer to engage with creates a seamless user experience and ultimately builds trust. Performance metrics around contextual advertising have illustrated this, proving consumers will accept additional privacy-compliant intelligence when it is used to serve the most relevant content. 


While it will take time for attention metrics and measurement to become standard, there is potential for an ad attention measurement currency in the future. Publishers who pay attention and start experimenting now will be ready to lead the way when that time comes. 

Advertising | Supporter Spotlight

Why publishers see success in direct-sold programmatic

Advertisers that solely opt to access publisher inventory through the open marketplace (OMP) face significant addressability problems. 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. But as with so many things in life, what’s old is new again and direct-sold strategies are delivering benefits to publishers once again.

Open programmatic no longer serves its purpose

Even with Chrome’s third-party cookies still in play, only 30% of audiences on the open web are targetable. This is because 40% of Chrome’s users make their data unavailable to advertisers and the Firefox and Safari browsers already operate without third-party cookies.

Open web addressability is a big problem: Why would advertisers want to use the majority of their ad spend to reach 30% of audiences? There is also no guarantee of premium inventory and placements as well as a lack of control and transparency in the OMP as a result of ad fraud and third-party targeting that doesn’t deliver on the audience advertisers are trying to reach.

In light of this, publishers are re-evaluating their strategies. For example, one parent and lifestyle publisher made the proactive decision to reduce their reliance on the OMP, not just because it isn’t a reliable source of revenue, but because they can’t control their narrative with buyers in that environment. Working with advertisers directly means they get to highlight non-endemic audiences at a scale they can achieve.

Publishers need to make revenue and ensure they are giving their audience the best possible experience, while advertisers only want to reach the most relevant people within this audience. The lack of addressability in the OMP leads to failure on both fronts.

The building blocks of going direct

Between October and November 2022, the IAB surveyed 223 buy-side ad investment decision-makers and found that 53% planned to increase their focus on ad placements with publishers using first-party data. According to a report by Adweek, brands like Hershey’s, which spend between $350M- 450M annually on advertising, realise they are spending a lot of money and not showing up in premium environments. Hershey’s now has a target of buying 80% of addressable media via private marketplaces (PMPs) and only 20% on the OMP.

Publishers’ first-party datasets—built on authenticated, contextual, declared, and behavioural data—can be leveraged by advertisers directly to activate unreachable audiences. But for this shift to work, publishers must continue encouraging buyers to see the benefits of working directly with them and perhaps even educate an entire population of buyers that have worked primarily with OMP.

To do this, publishers need to satisfy advertiser demand by providing quality audiences from interest, intent, and in-market audiences, provide scale and ensure reach across all relevant platforms and browsers, tell rich and compelling stories about their audiences via deep insights, showcase how audiences are built and be transparent about audience creation, and demonstrate how their first party audiences can help deliver and improve performance mid-flight and achieve advertiser objectives.

Reaping the benefits

Publishers already working this way benefit from using their first-party data to drive direct deals, and buyers are seeing an improved performance. Trusted Media Brands (TMB), whose titles include FailArmy, Family Handyman, Reader’s Digest, and Taste of Home, have been working on their data strategy to ensure they can understand audiences across all browsers, especially in cookie-blocked environments such as Safari.

TMB now delivers direct-sold campaigns 94% of the time using first-party data. The work has resulted in a 140% increase in revenue from deals using first-party data, a 31% increase in RFP win rate when data is on an IO and a 2X increase in deal size when data is present on an IO vs no data.

Similarly, Gumtree is seeing results from using first-party data in direct deals, with a 36% increase in click-through rates in Q1 2023, and a 14% increase in average cost per thousand impressions.

The driving force behind addressability

The best way for publishers and advertisers to maximize their revenue and budgets, respectively, is to focus on addressability. First-party data and direct-sold will be the driving force behind that.

Direct deals deliver quality first-party data and scalable first-party audiences that meet advertisers’ needs, increase transparency, and control, and enable access to premium inventory and ad placements. Working direct also results in insights and reporting into audiences on how they inform an advertiser’s targeting strategy. Advertisers know where their ad spend is going and which audiences they are reaching with more accuracy.

Advertising | Featured Post | Innovation | Perspectives

Take a breath. Ok, now let’s figure out AI

Generative AI has got folks in a frenzy. From excitement about everything it can do to concerns about biased algorithms, plagiarism, and potential job displacement, there’s a raft of optimism and concern around GAI.  

Take a breath. Are you good? Ok, now let’s figure out AI together. 

Sorry, with all the talk and emotion behind generative AI, I thought it may be a good time for everyone to catch a breather. While I understand the concerns, I happen to be a constant optimist. And as a digital media revenue leader, I’m always looking for optimal strategies at the highest level to secure the brightest future.  

In that vein, even though AI in general has been around for some time, generative AI rings my “opportunity” bell – unlike many other developments in recent years. And I don’t think I’m alone. It’s not only because generative AI is the latest trending phenomenon but because it’s a resource that delivers applicable convenience spanning virtually all industries.  

If you’re a curious optimist like me, you’ve noted GAI’s potential cost and time-saving implications by now. If you’re a futurist, you may have already concluded that AI will become mainstream, embedded within corporate culture, and likely governed in one way or another. It will also continue to evolve.  

Yes, I’m fully aware and respectfully conscious of GAI’s prospective danger in infringing upon the authenticity, stylistics, and nature of writing, journalism, and creative arts as we know it. However, glass half full, I’m also confidently optimistic about our ability to address, structure, regulate, and develop solutions for varying segmented conventional concerns.  

That said, AI’s current and developmental beta states still hold colossal potential for new applications, especially for those in leading digital media sales or revenue roles. To unfold the magnitude of what GAI could represent for the digital media industry, I took a step back to understand a broader scope of capability to illustrate how strategies may be developed and actualize its role in digital media organizations. 

What it can do 

If we assume that GAI is here to stay, it would be irresponsible not to consider the ways in which it will impact the revenue side of digital media. What if I told you I’ve seen GAI applications create custom sales scripts in seconds? What If I said GAI could develop cold email communication flows or custom marketing suggestions? Or that it can craft an elevator pitch or presentation about why a prospect should advertise with a specific organization?  

If you can feel your chest tighten, believe me when I say I’m only scratching the surface of the impact GAI will have on the business of media. Take a breath. Are you good? Okay, let’s identify how GAI could help digital media revenue strategies by starting at the highest level and eliminating the noise. 

What could it represent 

A calculator doesn’t diminish the need to understand math; it enhances our ability to output more complex algorithms conveniently. Similarly, as a resource, GAI can improve the output of nearly all matters and tasks related to revenue growth for digital media. Therefore, the most straightforward digital media growth strategy in leveraging it may be to aid digital executives in making more sales.  

GAI can help representatives articulate the benefits and features of products or services custom-tailored to specific businesses and industries. It can also create and send emails or assign process tasks that are traditional time and sales focus deterrents.  

Once you take a step back and begin to digest the immensity and capabilities of GAI, the reactionary credulous grim outlook begins to wane. It is soon replaced by optimism around the opportunity it offers to enhance varying aspects of an organization, which clears a path for future strategies to formulate and blossom. 

What AI’s role could be 

Furthermore, I believe the key to leveraging AI, and generative AI specifically, for growth in digital media is custom automation in higher volumes, especially when it comes to sales. AI epitomizes the evolution of automating the proverbial “sales processes” or even replicating the techniques, communication tactics, and follow-up habits of top sales executives.  

However, it is important to be conscious, balanced, and diligent so that you don’t fall into a silo of convenience alone. Keep an elevated perspective to implement AI tactics that affect and flow seamlessly throughout the entire revenue department.  

The guiding north star in any AI strategy should be to deliver robust, sustainable solutions that enhance all processes and growth opportunities within an organization’s revenue sector and with advertising partners. Add value to products and services by leveraging AI to address advertisers’ specific needs at higher volumes. Don’t send recycled AI-generated communication about the organization’s history to new prospects.  

Actualizing through prompting 

The balance of knowing how to leverage GAI for growth or even enhancing sales communication and output is going to be important to brand value. As prevailing use cases for AI become more established and widespread, so will the need for understanding how to leverage the best prompts or the phrasing used to initiate a conversation or command with various AI technology.  

If adequately equipped and informed, the impact of critical initial engaging touchpoints specific to an advertiser’s needs generated from AI may result in higher close ratios. Prompting may even become a future language or quintessential skill set to propel revenue growth within digital media. This requires the art and creativity in understanding how to position a command or question with AI versus using it to do something just because you can.  

For example, the result generated by prompting an AI chatbot to create an advertising sales script for a local restaurant may seem compelling but needs to be more developed to position an organization as a solution provider. Begin with a prompt asking, “what a restaurant’s most important success metrics are” and then follow it up with a request to create a sales script based on that result. The difference should better convey the organization’s commitment to delivering a solution and not simply selling an audience.  

Opportunity abounds 

Generative AI is still in its early stages and is continuously adapting and evolving because it needs to. Now is the time to begin setting the stage for how digital media can configure and fine tune various applications of generative AI, particularly within the revenue vertical, to support advertising partners, organizations, and communities.  

Certainly, AI is not without its flaws. And, much like the evolution of the internet and search engines, mass adoption will take time. The very existence of AI represents and embodies human creativity and ingenuity, and the optimist in me tends to applaud its boldness and innovation. If you’re concerned, you’re not alone, as I firmly believe in thorough risk assessment and evaluations. However, if fear of the unknown is causing hesitancy about AI, then take a breath, and know that we’re all going to figure this out together.  

About the author 

Richard E. Brown is a News/Media Alliance Rising Star recipient, the former director of renewals and digital sales strategy at LPi, and the former director of digital operations and sales of the Milwaukee Journal Sentinel. He recently served as the head of digital subscriber churn for Gannett | USA TODAY NETWORK and is now the senior director of retention for The Daily Beast. He is also a member of the board of directors for the Wisconsin Newspaper Association Foundation.   

Advertising | Research | Video

Streaming continues to overtake TV

In recent years, the traditional television and streaming video industries have undergone significant transformation due to the expansion of digital platforms and changing consumer preferences. To gain insights into these changes, Adtaxi conducted an extensive study, 2023 TV & Video Streaming Survey, exploring the evolving landscape of TV and video streaming with more than 1,000 U.S. adults.

According to the survey, streaming services have solidified their position as the primary mode of video consumption for most viewers. More than 80% of respondents report subscribing to at least one streaming platform, with Netflix leading the pack. The convenience of on-demand content, the wide variety of choices, and the absence of advertisements were cited as the primary reasons for the popularity of streaming services.

Preferred choice

Streaming services are the preferred choice of video consumption for a significant portion of adults, surpassing cable (31%) and broadcast (11%) options. Approximately 42% of adults now opt for streaming services, with 35% accessing streaming content through their TV sets and 7% using personal devices. Roku predicts that this trend will persist and that an estimated 50% of all U.S. households will cut the cord by 2024.

Cord-cutting continues

The research also reveals that the cord-cutting trend shows no signs of abating. A staggering 75% of respondents report that they canceled their traditional cable or satellite TV subscriptions in favor of streaming services. The flexibility, cost-effectiveness, and customizable nature of streaming platforms have made them attractive alternatives to traditional TV providers.

Original content and exclusive deals

In the battle for viewership dominance, original content has emerged as a key differentiator among streaming services. The Adtaxi survey found that 68% of respondents subscribed to a streaming platform specifically for its original programming. Netflix, Amazon Prime Video, and Disney+ were identified as the top platforms known for their high-quality original shows and movies.

Moreover, exclusive deals and partnerships have become important strategies for streaming services to attract subscribers. This includes securing exclusive rights to popular sports events, partnering with renowned creators, and signing contracts with top-tier production companies. These tactics not only help streaming platforms stand out but also provide viewers with unique and diverse content options.

The battle of ad-supported streaming

While subscription-based streaming services dominate the market, the survey highlights the growing popularity of ad-supported streaming platforms. Almost 40% of respondents report using ad-supported services, indicating a willingness to endure ads in exchange for free or lower-cost access to content. This trend should encourage more advertisers to invest in digital advertising within the streaming space, presenting new opportunities for brands to reach their target audiences.

The 2023 TV & Video Streaming Survey sheds light on the ever-evolving landscape of entertainment consumption. The dominance of streaming services, the ongoing cord-cutting trend, the importance of original content, and the rise of ad-supported platforms all point toward a significant shift in viewer preferences and behavior. As the industry continues to evolve, it will be interesting to see how streaming services adapt to meet the demands of their subscribers while providing a seamless and personalized entertainment experience. The future of TV and video streaming looks promising, offering consumers a wide range of choices and content options that cater to the consumer’s interests and preferences.

vector of human head with transparent overlay of earth and data
Advertising | Innovation | Supporter Spotlight

Afraid of AI? Start with ad optimization

There is perhaps no greater trend in the tech world right now than artificial intelligence (AI). Specifically, generative AI, which can produce content based on prompts, is garnering a lot of attention from – and even causing fear within – media companies.

Generative AI makes content creation far easier, so media companies likely feel that they have to dive head-first into a future of AI-generated articles and TV shows.

The truth is that there is a far easier, even safer way for the media industry to dip its toes into the AI waters and prove out that it’s a worthwhile investment. The best place to start is with using AI to optimize advertising across media, whether that’s a website, an app, a CTV channel, streaming platform, or linear TV network.

A quick start with AI

It’s not breaking news that media companies need to adapt to remain competitive and constantly find new ways to create efficiencies and cut costs while remaining adaptable to industry trends. AI is getting attention because it promises to be an incredibly effective way for media companies to accomplish these goals.

Ad optimization is probably the easiest, fastest way to a return on your AI investment, largely because there are so many different ways that AI can be applied to the advertising process. These are just a few of the use cases for AI across a media business.

Personalization

When machine learning algorithms analyze user behavior and preferences, they can determine the ideal ad placement based on factors such as user demographics, interests, and browsing history. This personalization can lead to higher click-through rates and conversions for inventory, which allows a media company to charge a higher price and therefore drive more revenue. Similar models can be used for ad supported TV and CTV to optimize pod placement of advertisements in a TV show.

These same data signals can also fuel content recommendations, giving your audience a customized experience and driving longer interactions with a media brand.

Flexibility

Another application of AI is to track and analyze ad engagement. Ads that draw more interest from consumers are likely to perform better. Armed with this knowledge, media companies can adjust ad placement and content in real-time for maximum impact.

Insights

AI can analyze user-generated content, such as comments and reviews, to better understand user sentiment. This provides intel on whether ad placements need to be tailored to improve a negative experience.

Automation

AI’s greatest strength is automation, which can dramatically reduce the amount of time media companies spend running A/B tests on their ad formats and placements. Using AI, a company can run tests quickly and efficiently, helping determine the most effective strategy for their platforms. The ad creative itself can also go through a model to determine which ads will resonate with certain audiences.

Each of these use cases should excite media companies that are looking to increase efficiency and drive greater revenue. But the question still remains – where, exactly, should a company start? There are two key steps every operation should take.

1. Prioritize data collection

There’s an old saying, “garbage in, garbage out.” Even the most advanced AI is only successful when data is accurate and viable. In fact, we’re seeing hot consumer-facing AI products come under scrutiny because they generate inaccurate answers.

The first step any media company should take to effectively implement AI is to collect data on its audience. Most media companies already have this intelligence in spades, so the step becomes gathering it together in a usable fashion. Often, data can be siloed across different groups. It’s important to get buy-in across the company on any AI initiatives, so that the models have access to as much data as possible.

For most media companies, this data is generated by the users themselves, in the form of activity across the media properties, subscription sign ups, and ad interactions. This good, clean data provides insights into the types of ads audiences respond to, what times they’re most receptive to seeing an ad, and how they choose to react.

2. Select and apply algorithms

Armed with information about the audience, the next step is to use it. This is where media companies need to roll up their sleeves and better understand AI and Machine Learning. There are many different types of algorithms that can be used for ad optimization purposes, and media enterprises need to select the model that works best for their business and their goals.

These algorithms utilize historical data from previous campaigns as well as current campaign performance metrics in order to predict future performance based on similar past conditions. They learn over time, so with more data and time the models become more accurate at predicting future outcomes. Of course, most media companies don’t have the resources to build a model that specifically adheres to their business goals. Outsourcing teams to build models can further speed up adoption.

Again, AI for making content is getting all of the headlines, and it’s certainly valuable, but that’s not the place to start for most media companies. Ad optimization is an easy way to get started, and an easier way to start driving revenue and justify the costs of outsourcing algorithm development and technological updates. Now is the time to get on board. The next best time was yesterday.

Advertising | Revenue | Supporter Spotlight

Pathway to driving incremental branded content revenue

In a previous post, we predicted that there would be a rapid expansion of brand content with the adoption of generative AI and discussed how publishers can utilize this adoption to fuel growth. I wanted to expand on some strategies publishers can implement to start the conversations with brands and agencies about using the content they have already invested in to drive brand consideration.

Publishers can leverage a brand’s non-promotional content and powerful storytelling to drive new and incremental revenue. Consumers across different mediums are actively engaged with long-form content, increasing brand recognition. Here’s a pathway for publishers that want to help brands use content in order to optimize the revenue potential for their businesses.

Content: A vehicle for influence

Before we jump into the strategies, why should you care about prospecting with content? Here are some numbers to help convince you that consumers rely on content to make purchase decisions:

  • According to Content Science, 70% of consumers prefer to learn about products and services through content rather than traditional advertising.
  • According to Nielsen, the average time spent on sponsored content is two minutes and thirty seconds. That’s roughly the same as purely editorial content.

In today’s digital age, consumers are inundated with display and video advertisements. But when it comes to product and service information, branded and sponsored content takes a backseat to these traditional digital formats. The data suggests that consumers are looking for authentic and informative content they can engage with rather than being sold to. 

Long-form branded content allows brands to tell their story, provide helpful product and category information, and ultimately guide consumers to make an informed purchase decision on their terms. As a result, companies are changing their marketing strategies to focus on creating content that informs consumers throughout the purchase journey. And publishers are the ideal partner to repurpose, optimize, and scale a brand’s content to connect with a brand’s audience.

Content sells itself

Content marketing has proven to be a game-changer; according to HubSpot, 70% of marketers are actively investing in it. Still, only a few industry partners offer solutions to scale this content outside the brand’s owned channels. The increase in investment in content marketing reflects the fact that marketers not only build trust by providing valuable and informative content but that it also positions them – and the brands they represent – as industry leaders. 

Tested tactics to drive revenue 

Repurposing content opens up a unique opportunity to create impactful prospecting strategies. One tested method is to pull content from brand marketing channels and create proactive mocks that showcase their content on a publisher’s site. 

The best outreaches we have seen involve a multi-touch approach to showcase brands’ content within a publisher’s environment, utilizing content sourced from Facebook, Instagram, blogs, ebooks, whitepapers, transcribed videos, and podcasts. These mocks can be used for prospecting new business or encouraging existing clients to invest in incremental budgets. This outreach allows brands to see how their content can be repurposed for maximum engagement.

Pro tip: streamline the process

The most impactful way to showcase the power of a brand’s content presented in the context of your site is to show marketers what that would look like. Most methods require publishers to do that directly from their CMS requiring development and design resources to create a mockup without actually pushing it live. Alternatively, publishers can use native ad servers to do this work. This way, publishers can upload the creative and content, and generate a preview link. Some platforms include content ingestion tools, which will help streamline this process further. The link can then be shared directly with the client or included as a screenshot in slides.

An alternative method would be to build a mock template in PowerPoint or another design software and copy content into the template. The problem with this method is it requires the manual and time consuming process of finding the content, pasting it into your template, and making design adjustments.

In conclusion

Content is emerging as a critical driver of influence in today’s digital world. Writing content and promoting it on different platforms builds trust and creates an authentic relationship with consumers. But creating quality content is a major investment. Taking the time to repurpose that content and automate the process correctly can help publishers partner with brands so that they can more readily scale their content and drive brand consideration. 

Advertising | Featured Post | Perspectives

Will tech’s “signal loss” be our opportunity?

In media, “signals” have long driven the business, whether for must-see entertainment or brand-defining journalism. Unfortunately, these signals, which convey value, meaning and relevance, are becoming harder to distinguish amidst the increasing noise of modern digital media. Yet the ability to distinguish between signal and noise is just as important, if not more so, in the age of digital media given the abundance—and velocity—of information.

Today, there are fewer and fewer high-value signals that can cut through the noise without interference. Brands invest upwards of seven million dollars for a 30-second commercial during the Super Bowl or six figures to run a page in the September issue of Vogue so that they can send a signal to a large and focused audience, not only about their product, but also make a statement about the significance of their market position. In other words, “we have so much confidence in our offering that we can spend this kind of money to tell you about it.” There is very little noise surrounding these types of advertisements. The message is clear. And everyone makes bank.

However, there are also high-value signals that must compete with endless noise. To see this in action, just take a stroll through Times Square in New York City, one of the busiest and noisiest places in the world, with a constant barrage of sights and sounds competing for attention. Amidst all this noise and the tens of thousands of people rushing about their days, one might think it would be challenging for any brand to resonate. Yet countless companies do just that by spending millions to share their message in this hub of entertainment and commerce. With their brand messages broadcast on LED screens hundreds of feet wide, or plastered on buildings that stretch to the sky, they send an unambiguous signal of value and importance.

The Super Bowl offers one of the year’s must-watch experiences—both on the field and in the ad breaks. The pages of September Vogue overflow with lush photos and unparalleled fashion coverage with ads deftly woven into the fabric. Times Square is one of the most exciting, chaotic, and sense-stimulating places on earth. In every case, the context provides a signal boost: What you see here has value.

In the world of digital media, the rise of the tech giants has allowed them to suppress signals and amplify noise. Amidst the endless content scroll are interchangeable commodities and it’s hard to differentiate between much of anything on these platforms. In many ways, they’ve turned the world upside down by turning traditional signals into something else altogether through their black-box algorithms.

Often these secret signals happen below the surface shrouded in mystery, as seen in the case of the Google search engine. This tool was built in a revolutionary way, using “signals” to sort all the world’s information. This grand innovation offered a way to create structure by ranking a site’s ability to collate high value links around the web. Fortunes have been won and lost in how Google values those signals. Over time, Google matured and evolved into using authority and other proxies to value sites across search and YouTube. The signals favored by this search superpower frequently recalibrate, but we know they are there under the surface, controlling what people see.  

Amazon has built the world’s largest retail store where its Prime signal, in a classic flex of monopoly power, has arguably become the most important indicator of whether the customer will buy a product or not. Sure, there may be dozens of vendors offering nearly identical products, but a single signal undeniably tilts the scale.

However, we have also seen that signals can be “lost.” Facebook built what is arguably the most powerful targeted advertising business in history by mining and exploiting data across the web and mobile app ecosystem. Targeted ads have consistently comprised more than 97% of the company’s revenues for more than a decade. This was never clearer than in 2021: When Apple stepped up its privacy efforts, Facebook lost nearly half of its market value, which the company’s CFO attributed to “signal loss.” That loss continues to haunt the company’s fortunes as the company scrambles for a new moat to protect its empire. 

The value of signals amidst the noise is also key to the rapid-fire (and controversial) development of large language models, such as those used by Google’s Bard and Microsoft’s Bing to train generative AI. The value of an answer engine will undoubtedly lie in the quality of its results. Therefore, such models must differentiate between things learned through Financial Times versus Reddit, Washington Post versus Twitter, and so on. Although they may claim to treat all domains generically, there is little doubt the source matters. All content is not equal.

As digital technology continues to advance, distinguishing between signals and noise becomes ever more challenging. Like Times Square, the noisiness of the digital world can be stimulating and provocative. However, with so much noise, signals that can convey meaning and relevance to a broad audience have more value than ever.

Media companies must focus on developing strategies that allow them to differentiate themselves and their messaging, so they can send signals that cut through the noise and resonate with their target audience.  And they must seek out platforms, partners, and technology companies that fully recognize and fairly compensate these valuable signals as they launch, thrive, and grow into maturity.

Amidst the nearly infinite access to content created by anyone and everyone—from influencer-ally or trusted brand to bot armies and monetizers of disinformation, signal has never been more valuable. Ultimately, the ability to differentiate between signals and noise is essential to success in the digital age, and those who can do so effectively will have a significant advantage, and that advantage will be one shared by the audiences they serve.

Advertising | Supporter Spotlight | Video

Do advertisers fully understand the impact of streaming video?

Streaming video has seen explosive growth and isn’t yet showing any signs of slowing down. As audience habits change and evolve, are advertisers and media platforms prepared to take full advantage of the new paradigm? Whether it’s the shift from third to first-party data or ad formats designed uniquely for the streaming experience, there are plenty of cutting-edge trends and technologies that advertisers would do well to understand – and embrace.

Streaming audiences are booming

One of the biggest trends in streaming video is the rise of streaming-first networks. These networks, such as Netflix, Hulu, and Amazon Prime, often produce their own content and offer it exclusively on their streaming platforms. This model has proven to be successful, with many streaming-first networks producing critically acclaimed shows and movies that have gained a loyal following.

According to recent data, at least 85% of US households are subscribed to at least one video streaming service. The popularity of streaming-first networks has disrupted the traditional TV model, which relies on ad-supported cable and satellite networks. As more people switch to streaming platforms, advertisers are having to adapt to the new landscape and find ways to reach their audiences through these platforms.

Netflix, the world’s leading streaming service, for a long time publicly opposed advertising and relied on a subscription-only model. However, in 2022, CEO Reed Hastings announced that the company was opening the door to advertising, signaling a sea change. Hastings cited the success of Hulu and others in monetizing their streaming platforms through advertising. And, to back this up, a survey by MAGNA found that in 2021, U.S, linear TV ad spend is projected to decrease by 7.5%, while connected TV ad spend is projected to increase by 36.5%.

Self-serve advertising: targeted and brand-safe

Many streaming platforms, including Roku and Hulu, offer self-serve advertising options that allow brands to create and target their own ad campaigns. This gives advertisers more control over their campaigns and allows them to reach specific audiences in a brand-safe way. Self-serve is considered an effective compromise between the requirements of brand safety and scale; a system that is both automated and tightly controlled by the publisher.

Through self-serve advertising, brands can choose the ad format, ad placement, and target audience based on first-party data. Advertisers can also set their own budget and optimize their campaigns based on real-time performance data. Self-serve advertising platforms are built on the availability of first-party audience data.

First-party data: the key to targeting and personalization

Another trend in streaming video is the use of first-party data. Streaming platforms collect data on their users – including what they watch, when they watch it, and on what device. This data can be used to create more targeted and personalized ad campaigns. For example, if a streaming platform knows that a particular user is a fan of action movies, it can serve them ads for action movies or related products.

First-party data can also help advertisers understand their target audience better. By analyzing user behavior and preferences, advertisers can gain insights into what types of ads are most effective and adjust their campaigns accordingly. For example, if data shows that users are more likely to engage with ads that feature humor, advertisers can create ads that use humor to capture the viewer’s attention.

Trust builds strong relationships

In addition to self-serve advertising and first-party data, it’s important for advertisers to consider the relationship between viewers, streaming brands, and trusted advertisers. As streaming platforms have become more popular, they have also become an important source of trust for many viewers. This means that advertisers who partner with trusted streaming brands and create ads that align with their values and aesthetics are more likely to be successful.

Brands that are perceived as intrusive or irrelevant can quickly lose viewers’ trust and negatively impact the reputation of the streaming platform. To build and maintain trust with viewers, advertisers must focus on creating compelling, authentic, and relevant ad content that resonates with their audience.

One way to achieve this is through sponsored content. Streaming platforms increasingly offer sponsored content as a way for brands to reach audiences in a non-intrusive way. Sponsored content can take the form of branded entertainment, product placement, or native advertising. By partnering with streaming platforms and creating sponsored content that aligns with the platform’s values and aesthetics, advertisers can reach audiences in a more organic and engaging way.

Another important factor in building trust is transparency. Advertisers must be transparent about how they collect and use data, as well as how they target and deliver ads. By being transparent, advertisers can build trust with viewers and create a more positive advertising experience.

Connecting the dots with CTV

In addition to these trends, another important factor for advertisers to consider is the growing importance of connected TV (CTV). CTV refers to televisions that are connected to the internet, allowing viewers to access streaming content directly on their TVs. Already, a full 80% of U.S. households have access to a connected TV. With CTV viewership on the rise, advertisers have the opportunity to reach audiences on a larger screen and create more immersive and engaging ad experiences. Advertisers can also use CTV to target specific households and individuals, based on first-party data and other targeting methods.

As the streaming video and CTV landscape continues to evolve, advertisers must navigate new challenges, such as ad fraud. Ad fraud refers to the practice of generating false ad impressions or clicks to defraud advertisers. Advertisers can work with media platforms and ad tech partners to implement fraud prevention measures and ensure their ad spend is used effectively.

Closing thoughts

One simple saying appropriately describes the advertising impact of streaming video: the medium is the message. Streaming video isn’t just linear in a new, on-demand format. It’s a fundamental shift in the way that viewers experience media, create relationships with brands, and ultimately make decisions as consumers. There are a host of new challenges and opportunities, all of which will impact advertisers now and in the future.

The best way for advertisers and publishers to adapt to streaming video is to embrace it. And it will help to seek out expert partners to help navigate these new waters. In many ways, we will need to forget what we think we know about video media and open our minds to a new and exciting reality that is more audience-focused, personalized, and fast-changing than ever before.

Advertising | Research

Is behavioral advertising good for consumers?

Most of today’s digital display advertising is sold programmatically. The process is automated from buying to displaying ads and determining which ads are shown to which users. Programmatic advertising uses behavioral ad targeting and relies on extensive online consumer tracking, which raises important privacy concerns.

The benefits are often the counterargument to privacy – asserting the strong economic value consumers derive from targeted ads. But is this really the case for consumers? Do the purported positives – such as oft-touted “better effectiveness” and “ad relevance” – outweigh or offset the impact on consumer welfare?  Further, how is the product’s quality viewed in targeted ads compared to other vendors, and how do the prices compare?

New research, Behavioral advertising, and consumer welfare: An empirical investigation from Eduardo Abraham Schnadower Mustri, Idris Adjerid, and Alessandro Acquisti, answers these questions. The findings show little consumer benefit in seeing targeted ads. In fact, respondents are less aware of vendors displayed and perceive products of lower quality, and at a higher price.

Study details

The research encompasses two studies. Study 1 included 489 participants across two phases. Phase One asked participants to browse randomly across selected websites using a Chrome browser on their computers. If they clicked on an ad, URL of the ad was captured. The research team then used automated scripts and the Google search engine to find competitive products of the advertised brands. They collected several pieces of information for the competitive analysis; landing pages, the product image, price, description, brand, and name of the website that sells the product. 

Approximately one week later, respondents return for Phase 2.  The researchers show nine product photos randomly to participants.

Respondents assessed all nine products:

  • three products from the ads they viewed (ad condition),
  • three competitive products from the organic search results (search condition), and
  • three randomly selected products from ads served to other participants in the study (random condition).

Study 1 included objective metrics in the analysis, like price. The study also included self-reported metrics such as participants’ assessments of purchase intention, product quality, price fairness, relevance, and novelty of product type, brand, and vendor. This design captured participants’ perceptions and purchase intentions independent of their vendors’ perceptions.

The second study replicates the first. However, it includes third-party objective data vendor rankings from the Better Business Bureau and SiteJabber. The researchers share the vendor ratings with the respondents before asking about their purchase intent.

Findings

The research shows that participants’ intention to purchase products in targeted display advertisements is low but still higher than for random products. Notably, Study 2 finds that higher purchase intentions and higher relevance in the ad condition are driven by participants having previously searched for the advertised product.

The findings also state that, on average, products in targeted display advertisements are only somewhat relevant to respondents. However, while participants appear to benefit from the pricing of targeted products, search results can offer better prices and higher-rated vendors.

The researchers only find one major difference in the direction of the results between Study 1 and Study 2.  Study 1, without vendor ratings, shows significantly lower purchase intention. Study 2, including vendor ratings, shows a higher purchase intention for higher-rated vendors. Therefore, vendor quality is a relevant factor in consumers’ purchase decisions. 

The research results offer insight into understanding the complexities of measuring the impact of targeted ads on consumer welfare. These two studies take a new route and look beyond ad effectiveness and click-through. Using objective and self-reported metrics across three conditions – ads, search, and random, results in low awareness, low-quality, and high-priced vendors. This new empirical study further questions the benefits of behaviorally targeted advertising.  

Advertising | Research | Supporter Spotlight | Video

5 Ad trends to know for Upfront and Newfront season

The largest TV networks and media companies are busy presenting their upcoming programming and ad inventory for the year ahead. A large portion of advertising budgets are typically allocated to TV advertising, so advertising shifts among top brands will impact the whole marketplace. In this article, we’ll explore some of the latest advertising trends and insights to keep in mind during the Upfronts, NewFronts, and beyond.

1. Digital takes the top spot

In 2022, nearly $144 billion was invested in digital, print and TV advertising. While TV still makes up 41% of total ad spend, digital was the top ranking format making up 47% of all buys. Over $68 billion was allocated to digital formats. These formats include display, online video, native, and paid social among other formats. This marks an opportunity for continued growth in digital media sales. 

2. Top categories investing in TV are also top buyers of digital 

Four out of the top five categories buying TV ads are top digital buyers as well. Not surprisingly big spenders from finance, media & entertainment, retail, and tech brands drive digital ad sales.  TV investment for these, with the exception of media and entertainment, is down YoY. 

However, each of these categories are up YoY in digital ad sales. Their combined digital investment still exceeds $36.6 billion and made up 53% of all digital spend. This represents a shift in the market towards digital advertising among top segments.

3. Few advertisers entering the market bought national TV spots

Only 1% of advertisers entering the market bought national TV spots. Despite looming recession concerns, MediaRadar observed 52k new advertisers (nearly 80k brands) entered the market in the second half of 2022. Not all of these advertisers purchased TV spots (530), but over 36k invested in digital display, video advertising and other digital formats. 

4. Online video advertising is up 

Online video advertising is increasingly more important to advertisers as it rose 86% YoY. A study by Hubspot says, “91% of marketers surveyed say they find video important to their advertising mix and 92% of them say online video produces a high ROI.” These feelings are likely contributing to the continued growth of video ad sales across media formats. 

MediaRadar observed 31.1k advertisers spend an estimated $28.2b in video advertising during 2022.  Top three categories advertised via online video during 2022: software ($1.9 billion), pharma ($1.4 billion), and film promotion ($1.4 billion). Combined spend nearly reached $4.8 billion, this is only 17% of total online video spend.

5. OTT investments increased despite concerns 

Just a few years ago, new OTT streaming platforms were being launched regularly and consumers were anxious to embrace them. Now, platforms struggle to match growth of 2021 and prior. To overcome challenges groups, like Disney+ and Netflix, have introduced ad supported versions at a reduced cost to mixed reviews. Despite the challenges, 5.7k brands increased their investment in streaming platforms YoY. Together their buys were nearly $1.3 billion. Most notably LinkedIn, eHarmony, Kohl’s, and Febreeze contributed to this YoY increase. 

While the Upfronts and Newfronts are an increasingly important time for large networks and media conglomerates, it is also an important time for all media sellers to understand the shifting marketplace and carve their niche into the new year. There is much opportunity to capitalize on the changing advertising landscape and continued digital growth. 

Advertising | Supporter Spotlight

How publishers can reclaim their audience relationships

Today’s advertising experience can feel like a daily exercise in pain and frustration as users navigate bizarre offers and deceptive ads promoted by shady advertisers.

The digital media industry faces mounting obstacles in building audience trust, largely stemming from deceptive and intrusive ad experiences. For media professionals, trust isn’t just another buzzword – it holds tangible monetary value. To regain trust and prevent any further damage, publishers must weed out deceptive ad experiences that threaten their readership. 

Dangers of false advertising in the digital age

According to GeoEdge research, misleading product offers and financial scams have become the primary tools for fraud. Publishers’ sites have been saturated with clickbait ads in recent months. 

In 2023, one in every 170 ad impressions in the U.S. contains a malicious ad. Due to daily run-ins with these ads, audiences approach digital ads – and content – with a healthy dose of skepticism. Frustrated readers who become annoyed with bad ads leave the site and seek out alternatives, which can spell disaster for publisher monetization. The fallout includes reduced engagement rates, fewer click-throughs on ads, and ultimately, diminished ad revenue. Additionally, the reputational damage may lead to declines in traffic over time.

What digital media gets wrong

The media industry started building a house by installing the latest and greatest programmatic technology, only to realize they forgot to lay a sturdy foundation of audience experience. Since then, advertising has become increasingly bizarre and dangerous as programmatic pipelines are susceptible to nonexistent products, counterfeit goods, and unrecognizable gadgets. 

Navigating ad experiences is a hurdle for many publishers. What does digital media get wrong?

  • Passing the responsibility of ad quality to upstream partners.
  • Treating the ad experience as separate from the user experience.
  • Failing to utilize technology to identify and remove misleading or clickbait ads.

So, the big question is: Who bears the blame for lousy ads and shoulders the responsibility for eliminating them?

How digital media can course correct  

Publishers must acknowledge that ad experience and user experience are intertwined, with one influencing the other. A negative ad experience can detract from the value of content, or prevent audiences from ever reaching publishers actual product: their content. 

Despite the high stakes involved, digital media professionals tend to shift the responsibility of ad quality onto Ad Tech partners up the chain, leading to a false sense of security. Relying solely on upstream partners to weed out harmful ads is wishful thinking. Publishers cannot depend on tech giants as gatekeepers for ad quality since they are often the same culprits responsible for delivering them.

GeoEdge analyzed ad quality ranking and malicious ad trends over the last 90 days by tracking impressions from the top nine global SSPs. The results revealed that 87% of all scam ads originated from just two SSPs. Yes, Google was one of them.  

Luckily, publishers aren’t in an unwinnable programmatic trench war. Implementing publisher-centric ad quality control allows them to prevent misleading ads from appearing on their sites. By filtering out clickbait ads, publishers can protect their audience from ad scams involving fake products or questionable cryptocurrency schemes.

The Journey of Responsibility 

The junk ad epidemic undermines the entire digital media industry, posing a significant threat to its sustainability. If digital media professionals continue to ignore the impact of clickbait ads, they risk driving away audiences and losing their credibility in the process. By implementing technology that prioritizes user protection and experience, publishers can regain control over the audience relationships. 

Failure to take action can trigger a chain reaction, starting with a decrease in ad clicks, followed by reduced engagement, eroded trust in content, and ultimately, far-reaching negative consequences for the wider ad supported media industry. 

The ads appearing on trusted sites must offer a guaranteed, risk-free experience. Publishers’ ad quality values must demonstrate that the customer’s content experience, which includes advertising, is their highest priority.

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