- Robert Phillips: The 2015 Anthony Howitt Lecture – Who Can You Trust? (17 min read)
- Techcrunch: Adblocking and the End of Big Advertising (6 min read)
- NYT: Sharing Data, but Not Happily (3 min read)
- Nieman Journalism Lab: For news organizations, this was the most important set of Apple announcements in years (10 min read)
- Re/Code: Sling TV’s Web TV Subscriber Numbers Keep Growing, Now Around 250,000 (2 min read)
- FT: Apple rewrites app economics for media (7 min read)
- Techcrunch: The Online Privacy Lie Is Unraveling (10 min read)
- WSJ: Ad Blocking Could Be Coming to Apple’s Mobile Browser (1 min read)
- Washington Post: Apple’s News app might help Apple. It probably won’t help the news. (4 min read)
- Augustine Fou: Free Advice for Brands to Reduce Ad Fraud (4 min read)
Category results for "Perspectives"
DCN’s Recommended Reading: Week of June 11, 2015
How to Use Programmatic Campaign Optimization to Your Advantage
When a national advertiser launches a programmatic ad campaign, they typically start by placing ads across hundreds of sites. Campaign optimization begins almost immediately culling, refining the list of sites, based on real-time response rates. This looks like a lot like a seismograph during an earthquake: a frenzy of peaks and valleys that then quickly diminish. Campaign optimization is surprisingly formulaic and, as a result, can be tracked and deconstructed.
Marketers use programmatic buying to make purchase decisions, based on a set of criteria. For example, if a user doesn’t spend enough time engaging with the site or the ad itself, or click-rates are very low, a site will be cut for the ad schedule. This process is called campaign optimization. Being optimized out is a technical way of say a site has been cut out. Optimized in, conversely, is when a buyer includes your site.
A year ago, we began working on this to see if it was possible to visualize the process of campaign optimization. The results are fascinating and we have some insights to share. The punchline: Closely follow campaign optimization and use it to your advantage to increase your ad sales.
Key Insights
- If you’re being optimized in, raise price. Programmatic buyers dispassionately make buying and selling decisions based on performance. Sellers should do the same, automatically raising price when they’re performing better than their competition. Fearing programmatic buying underpricing their rates, many publishers we know create a minimum floor on price only.
- Convert programmatic buys to direct. If you’re consistently being optimized in, and the advertiser also buys higher CPM units direct, upsell them. You have an authentic, data-based story to explain why an advertiser should be working more closely with you. Use it to your advantage.
- If you’re competition are being optimized out, use this to your advantage. Create a story demonstrating that your brand is being optimized in. This reinforces your audience is an excellent fit, even if direct competitors didn’t make the cut. This is particularly convincing to advertisers because you’re able to establish your leadership over the competition based on the actual optimization results.
- Use campaign optimization to prospect for opportunities. Pull a list of all advertisers where you’re winning deals programmatically. This is a great list to market to. You have a concrete story.
- Identify advertisers optimizing out of your site, and find out what the problem is to put things back on track. Why are you losing these deals? Look for trends. Are all of your opt-outs coming from a particular vertical
- Which deals are migrating from direct to programmatic in your website specifically? Which clients are moving in programmatic, but also how, is the evolution unfolding? Review velocity. Are you being optimized out more than in the past? For you to stay competitive, you need to know what’s happening in the market around you!
Q&A: TheMediaBriefing GM Defines The “Big Four” Issues for the Digital Media Industry
We sat down with TheMediaBriefing General Manager Daniel Williamson to get his take on the major issues he sees for digital media companies today and how his team plans to tackle them at the London-based company’s first stateside event Digital Media Strategies USA, which will be held September 8-10th in New York.
Daniel, please describe the issues and opportunities that you think are foremost on the digital media landscape:
Not surprisingly, the continued development of sustainable business models remains top of mind. VC-fueled new media businesses have led the charge in growing huge audiences and investing in technology, branded content and digital video to monetize that growth. In a digital environment in constant flux, questions remain around whether and how these businesses are building business models fit for long-term sustainable profitability.
At DMS USA, we’ve invited three “new media” CEOs—Jim Bankoff from Vox Media; Pete Cashmore from Mashable; and Chris Altchek from Mic—to participate in a fireside discussion, moderated by Mathew Ingram. We are looking forward to a truly candid discussion about the challenges facing their businesses. I know Matt plans to cover issues that include how to work with platforms, how to use technology to create competitive advantage and how to unlock new revenue opportunities for your brand. We’ll also be hosting a discussion with Rafat Ali, CEO and Founder of Skift, and Kevin Delaney, Co-President & Editor-in-Chief of Quartz, looking at how media organizations can create value today.
The second big one I see is changing consumption habits. Of course, smartphones are now well-established as a dominant platform for media consumption, but both packaging and monetization present huge challenges for media businesses. Media brands are still figuring out how to create the right experience for users, advertising demand is still lagging far behind consumption, and there is no consensus on what works. Digital subscriptions are even harder to win on mobile than on the desktop and the number of devices and new behaviors continues to grow.
At DMS USA, I think we’ll hit on some of the big issues and opportunities with a range of content: Robert Thompson, Chief Executive of News Corp will present a keynote on how he is transforming the structure and culture of News Corp to crack the mobile opportunity. Benedict Evans, Partner at Andreessen-Horowitz will discuss his most recent findings on the evolving device market and changing consumption habits. And Kinsey Wilson, EVP Product & Technology at the New York Times is presenting a keynote on, among other things, how the New York Times is attempting to bridge the mobile monetization gap for both subscriptions and advertising.
Of course everyone is excited about digital video, which offers a big growth opportunity given the incredible growth of consumption—whether through Facebook, Snapchat, YouTube or directly on media properties. Advertiser demand for quality inventory is high and looks likely to continue growing. Video has never been cheaper to make and is popular on mobile devices. Given this growth opportunity, it seems that practically everyone is investing in video. But really, with everyone getting in the game, it is important to focus on things like: How do you stand out? What should you produce? How produce it cost-effectively and still get scale?
At DMS USA, we’ve invited Alex Wellen, Chief Product Officer at CNN to share his insights from CNN’s journey into digital video. I know he plans to look at how CNN has had to change its approach to content for different audiences, platforms and devices. And, importantly, Alex will talk about what he’s learned about how to effectively monetize digital video and how to meet audience and advertiser demand for quality and accountability.
And while online advertising is a topic that we hear about everywhere, we can’t ignore its significance and the ways in which it is constantly evolving. Programmatic continues to grow, but its promise is yet to be realized, particularly given marketers desires for both efficiencies and quality audiences. Native advertising has opened up new revenue opportunities, but it is becoming harder to differentiate your offering. Viewability, ad blocking and non-human traffic each present a huge threat to digital advertising revenues, but there are no clear-cut solutions. The relationship between brands, agencies and media companies continues to change dramatically.
These issues are front of mind as digital media companies seek to maximize the quality of advertising experiences for marketers and end users. At DMS USA, Peter Spande, Chief Revenue Officer of Business Insider will present best-in-class case study of how he has developed the programmatic strategy and culture at the business. Robert plans to look at talent, culture, partnerships, optimal packaging and intelligent partnerships. We’re also looking forward to offering brand and agency perspectives. For example, Linda Boff from GE, Amanda Rubin from Goldman Sachs and Sarah.Hofstetter from 360i will speak frankly in a panel moderated by Adweek’s Lisa Granatstein about what they really want from media companies. We will also have leading executives from Medium and The Economist discussing what to do about viewability, ad blocking and non-human traffic.
I can’t say that these topics suffice to reflect the many different challenges and opportunities that color the digital media landscape. But from my perspective working with the terrific team here at TheMediaBriefing, I believe these four are among the primary issues we face today and offer an excellent basis for lively debate and actionable insights at Digital Media Strategies USA.
Re/code + Vox: Lessons on Being a Big Fish
There’s an old adage that sometimes it’s better to be a big fish in a small pond rather than a small fish in the ocean. The technology news industry is an example of this. Years ago, during the dot-com boom and thereafter, a slew of tech-focused news sites started making waves in Silicon Valley, including TechCrunch, Ars Technica, Wired, Mashable, Gigaom and VentureBeat (to name just a few).
AllThingsD, originally a part of the Wall Street Journal, was one of those players. But when veteran tech journalists Kara Swisher and Walt Mossberg launched it as the separate entity Re/code in January 2014, that pond housing all the big fish tech publishers was already expanding, turning into an ocean. When Vox Media announced last week that it would acquire Re/code’s parent company Revere Digital in an undisclosed all-stock deal, Swisher acknowledged to the New York Times what more and more medium-sized publishers, especially in the congested tech news industry, are realizing: “It’s not a secret that being a smaller fish is really hard.”
Rather than leading to a debate about whether it was the right or wrong decision for Re/code and Vox to merge, the discussion that’s evolved has more to do with the hard realities of what’s necessary for journalistic enterprises to stay afloat.
A Size Issue
While Re/code is known for Swisher breaking big tech stories and Mossberg’s distinctive voice on reviews, along with its pricey Code Conference confabs (previously the D conference), the publisher had a relatively small audience, with 1.5 million monthly visitors, according to comScore. That’s nothing compared to behemoths like Vox, BuzzFeed and Vice, which have grown from small fish into great white sharks, with VC funding, audience metrics and their own tech innovations feeding that growth.
Perhaps, as Forbes’ Miguel Helft writes, the Re/code + Vox deal “suggests that the investor fueled frenzy around tech journalism is likely not sustainable.” Indeed, in talking with CNBC about the deal, Swisher and Mossberg explained that Vox had what Re/code was lacking: different revenue streams, a know-how of content management systems, and prowess at navigating the advertising business. That’s in addition to Vox’s “beautiful, powerful and flexible proprietary publishing platform,” Chorus, which “will give us new ways to present our stories to you,” wrote Swisher and Mossberg in a blog post.
The buyout comes against a backdrop of sudden shakiness among tech publishers online, with Gigaom’s shutdown (and rebirth), Verizon’s buyout of AOL (with the media side possibly spun off) and ReadWrite’s crowdfunding campaign to get more stable funding. Plus, Fusion has had a reboot on its mission, and Circa might be sold to Twitter.
“The bottom line (in more ways than one) is that size still matters for media companies,” Fortune’s Mathew Ingram wrote.
A Need for Invention
The problem with tech publications is that there are market forces pushing them to do more than simply remain tech publications. They now need to be actual technology companies if they want to get notice from investors. Hence the buzz around Vox’s Chorus platform. But for all the hype surrounding how much Vox is going to help Re/code, there’s no doubt that Re/code will do a lot for Vox, as Vox Media CEO Jim Bankoff wrote on Vox. Re/code will help Vox with its credibility in the business tech industry; Vox’s The Verge covers consumer tech more so than business. Plus, the folks at Re/code have event management know-how that Vox needs.
So there is a win-win situation at play. Vox may have gobbled up the little fish, but Re/code will also get the nutrients it needs from the Vox diet. The question is, how much can one fish grow inside the tummy of another?
DCN’s Recommended Reading: Week of June 4, 2015
- Pew: Millennials No Less Trusting (or Distrusting) of News Sources (3 min read)
- TechCrunch: Google Photos Reminder: Smile, It’s Free — You’re The Product! (5 min read)
- Nieman: The scariest chart in Mary Meeker’s slide deck for newspapers has gotten even a little scarier (3 min read)
- Reuters: Vladimir Putin’s censorship agenda targets online giants (5 min read)
- Digiday: 5 ways Time Inc. is trying to make paywalls work (3 min read)
- Business Insider: $25 billion in media money just went up for grabs — and nobody can agree on why (6 min read)
- Guardian: Rusbridger’s farewell illustrates the huge changes to the media in 20 years (4 min read)
- Ad Age: 10 Things You Need to Know Now About Programmatic Buying (4 min read)
- AdExchanger: Please Stop Calling It ‘Currency’ (3 min read)
- WashPost: Steve Case: Get ready, the Internet is about to change again. Here’s how. (6 min read)
Member Spotlight: Edmunds.com’s Avi Steinlauf
Q: Tell us a bit about your role and the path that brought you here.
A: I’ve been at Edmunds for almost 18 years. After finishing business school at Kellogg and working as Senior Industry Analyst for Coopers & Lybrand’s Knowledge Strategies Group in New York, I joined Edmunds as the Director of Marketing and Business Development when we had just 20 employees. Now I’m the CEO and our team consists of 600 people nationwide. We had been a book publisher since the 1960s, then came online in 1994 and discontinued the print business in 2005. It’s been fascinating to be a part of the transition onto the Internet and to be involved in the growth that technology has enabled.
The way I approach my job is very hands-on and people-oriented–with both employees and clients. I interface regularly with senior level automaker executives as well as car dealers from all over the country–operations that are small and big, urban and rural, private and public. Car dealers are among the most innovative, entrepreneurial people in the business sector, and getting exposure to them is a fascinating part of my job.
Q: What is the biggest challenge for you in your role?
A: At Edmunds, we’ve always had an entrepreneurial spirit and always looked beyond the norm to make a real difference for car shoppers and the auto industry. The larger Edmunds gets, the more challenging it is for us to continually innovate at that level, but that is required if we want to stay at the head of the pack. We have accomplished a lot, but we can never rest on our laurels. Finding new ways to creatively inspire and support employees and our leadership team to help them continually innovate is the toughest part of my role.
Q: What do you think is the most important aspect of your job?
A: We can’t do what we do without our amazing team of talented and dedicated employees. The most important aspect of my job is ensuring that we’re one of the best places to work, hiring and treasuring people with our values who can contribute to building the business for the long run. (I’m very proud to say that we are often acknowledged in this area, as you can see here.)
Q: Describe one of the most unusual or most memorable experiences in your career/current role.
A: One of the most fun elements of my job is getting regular exposure to new cars and trucks. At Edmunds, we test all the new vehicles provided by automakers on a weekly basis, and on our own dime we regularly buy popular cars and trucks for long-term testing, reporting our findings to car shoppers to help make their process easier. One week I’ll be driving a new minivan, the next a pick-up truck, then move into a new family sedan or a sports car. I really enjoy the variety, and I get a kick out of seeing my kids (none driving age yet) get excited about what I’ve brought home on any given day. My kids really love it – but my wife thinks I’m nuts for having to move my stuff from car to car every week.
I’m very proud of our editorial team’s initiative in helping car shoppers, and the reach of Edmunds’ voice. Recently our team tackled a big question: how much would it cost to repair damage done to the aluminum body of a new truck? They took a sledgehammer to a new Ford F-150 to learn the answer, and the video went viral, earning millions of views. Ford’s CEO was even asked about it on the company’s quarterly earnings call. If you haven’t seen the video yet, you can check it out at here.
Q: What are you most excited about for the future of your organization/ the industry?
A: I like to give my team the baseball analogy that even though we’ve hit some home runs, we’re still only in the bottom of the second inning or perhaps the top of the third. I see a tremendous amount of potential for us to grow within the auto industry. We are currently unrolling a new strategy to play a valued role in the used car shopping process. The used car business is four times the size of the new car business, so that alone gives us plenty of opportunities. Also, we see technology continuing to have a major impact on car shopping. Last October we made our first acquisition – the CarCode customer/dealer texting platform – and have found it to be one of the most successful endeavors in our history. (More details can be found here.) As technology evolves, we’ll be busy for generations to come.
Avi Steinlauf, Chief Executive Office of Edmunds.com, directs the company toward the goals of empowering the automotive consumer, maintaining the high quality of the workplace and building the company to thrive for the long term. He joined Edmunds in summer of 1998 as the Director of Business Development and has also headed the company’s marketing and revenue management areas. Previously, he worked for Coopers & Lybrand’s Knowledge Strategies Group. Avi earned an MBA degree from the Kellogg Graduate School of Management at Northwestern University and a bachelor’s degree from Yeshiva College.
Augmented and Virtual Reality Get Real: A Look at Media Applications Happening Now
Augmented Reality and Virtual Reality are getting a whole lot of press lately. From Google and GoPro partnering on a new filmmaking ecosystem for VR to Apple’s acquisition of Augmented Reality (AR) company Metaio and Oculus’ (Facebook) purchase of AR startup Surreal Vision, it looks like this pair of technologies that enhance (or supplant) what content consumers see are entering primetime. In fact, PatentVue recently reviewed the patent landscape and found more than 2,300 US patents with claims related to AR and head mounted display (HMD) platforms and devices.
Early practical developments for AR have ranged from manufacturing and engineering to retail and medicine. And brands such as Heinekin, Toyota, Dominos and Ford have already embraced AR as a way to advertise, demo products and ease the path to purchase.
Virtual Reality (VR) is also making a big splash with the marketing community, with Forbes calling it “the next big advertising medium,” pointing to the work Hearst-owned Elle Magazine did with denim designer 7 For All Mankind. Spirits brand Patron offers educational seminars and retail consumer VR experiences to provide an immersive look inside the Hacienda Patrol distillery.. And Marvel teamed up with Samsung to promote the latest Avengers movie by giving people a taste of what it is like to be a superhero.
Not surprisingly, media companies are also experimenting with ways in which AR and VR offer new ways to tell stories.
Here are a few recent examples of how media companies are jumping into the VR fray:
- Gannet Digital leveraged virtual reality in its coverage of the 2015 FIS Alpine World Ski Championship. Not only could ski fans read about the events, they could don an Oculus headset and experience heart-pounding runs with some of skiing’s greats.
- NBC used VR to give fans the experience of being in the star-studded audience at the Saturday Night Live 40th Anniversary Special.
- Vice Media released a documentary at Sundance “VICE News VR: Millions March” which takes viewers inside the December 13 rally in New York in which 60,000 protesters gathered to demand greater police accountability.
- The Weather Channel has just launched live VR weather which ”takes viewers in, and through, the science and wonder of weather.”
- At this year’s New Fronts, Conde Nast announced that it has two original virtual reality series in the works.
- ABC Family leveraged VR to market its new sci-fi program “Stichers,” by creating a smartphone app that promises fans an immersive experience.
- Turner Broadcasting-owned Adult Swim also released an app-based VR experience this month called Virtual Brainload, which boasts a somewhat more psychedelic experience.
Here are some examples of the ways in which media outlets are leveraging AR:
- National Geographic was early to experiment with AR—notably with its 2011 shopping mall experience that allowed shoppers to interact with dinosaurs. More recently, National Geographic has begun to leverage AR for educational experiences that enhance explorations of natural places.
- Disney also offers an “edutainment” application of AR with its Disneynature Explore app, which offers kids a way to take adventures in their own backyards while learning more about nature along the way.
- Disney-owned ESPN had an augmented reality-capable camera in use at this year’s NFL Draft and the company has leveraged AR in its broadcast media for some time.
- Conde Nast Traveler uses GPS data location and augmented reality in its iPhone Apps to allow travelers to find things and learn more simply by pointing their phone in a given direction.
- Conde Nast is also among several media outlets—including Time Inc., The Wall Street Journal and Warner Brothers Interactive—that are working with Shazam, which can scan physical objects for augmented reality and other enhanced content.
Virtual reality headsets and content will be “the next mega tech theme” and a market worth more than $60 billion in a decade, according to investment bank, Piper Jaffray Cos. And as we increasingly see, mega tech themes quickly become mega media themes, as the two are intertwined in the minds—and devices—of consumers.
4 Tips for Improving Programmatic CPM
The premise that the rise of automated buying and selling through programmatic technology would have a negative impact on a publisher’s’ ability to increase—or even maintain—their CPM rates is continuing to erode. Many were surprised to learn that the 2013-2014 CPM trend for social, mobile and display across programmatic ad platforms was one of growth, not decline.
As the click declines from its position as the metric of prominence, contextual data, viewability and high impact opportunities for engagement have become increasingly valued and sought after by brands. Today, marketers increasingly realize that “you get what you pay for” but they expect that price tag to come with the same scale and efficiency programmatic technology delivers. So how can publishers use data and technology to command premium pricing for the premium experiences brands want—and consumers expect?
Here are four strategies publishers can adopt to not simply survive, but thrive, in a programmatic world.
- Make your audience and contextual site data available and visible to buyers. Move beyond offering standard cookie-reliant targeting with contextual technology. Real-time, page-level contextualization of your content increases the likelihood that a person sees an ad that’s relevant to them—delighting your audiences and the buyers who want to reach them. Contextual analysis at the page-level will enable you to offer audience segments interested in that content at greater scale, beyond 1st party and 3rd party cookie pools. Contextual data can help increase yield and revenue by showing the value of inventory buyers would normally overlook.
- Upgrade your site to support more advanced ad functionality and cross-screen delivery. Large-format, high-impact ad sizes are designed to help brands get their ads noticed and have been shown to improve interaction rates, increase time spent and improve brand recall. The IAB recently released research showing that consumers find Rising Star ads more engaging and more informative than standard units. This makes them especially valuable to brands, who tend to bid higher on these formats. With an estimated 60% of web traffic coming from mobile, it goes without saying that your site should be mobile optimized. It’s worth spending the time and money to upgrade your site internally, or many technology partners can help you integrate new ad formats and optimize for mobile experiences quickly and easily.
- Understand how much of your content is viewable—and make sure you can deliver against it. Viewability is moving from “nice-to-have” to “must-have” in a buyers mind. Make sure you know how much of your inventory is viewable and provide transparent reporting against that number to clients. Publishers who can offer a pricing model that incorporates viewability (e.g vCPM) will emerge the winners, as brands will pay a premium for guaranteed viewable inventory. An easy way to get started is to ask your monetization partners if they have viewability-tracking and reporting tools to layer on your current offering—some even offer this as a value-add service.
- Adopt a “test and learn” approach to programmatic partners. Don’t accept the status quo from your current monetization partners. As the programmatic landscape matures, earlier pain points of integrating new technology partners are starting to subside as onboarding and operational processes have become standardized. There’s no such thing as a “one size fits all” programmatic partner, so don’t be afraid to test multiple providers concurrently to compare performance; leverage the real-time nature of programmatic to find the right solution that will help ensure a premium for your unique audience and content.
This isn’t the first time publishers have been forced to evolve alongside major industry change, and it most certainly won’t be the last. By 2018, more than 80% of display ad dollars will be transacted programmatically. Publishers that adapt to this new way of doing business and embrace the innovation it spurs will be the ones to reap the benefits.
Darline Jean is the Chief Operating Officer for PulsePoint, responsible for shaping product strategy focused on enhancing the company’s premium programmatic and content marketing solutions. Before joining PulsePoint, Darline was President and Chief Executive Officer of The About Group where she was responsible for the strategic direction of the business unit of The New York Times Company that includes About.com, CalorieCount.com and ConsumerSearch.com. During her tenure as President and CEO, she significantly increased the company’s revenue and led the sale of About.com from The New York Times Company to IAC in 2013. Darline has also held the title of Chief Operating Officer of About.com and Senior Vice President, Chief Financial Officer of the About Group.
Prior to The About Group, Darline held various financial leadership positions with Thomson Media, a division of Thomson Financial. She began her career with Saatchi & Saatchi Advertising in New York.
Verizon/AOL Deal Focuses on Mobile, So What About Content?
Something about AOL and buyouts always brings a strange sense of déjà vu. It takes us back to the glory days of the first dot-com era when then-upstart AOL bought media giant Time Warner for $164 billion in 2000. Fast-forward 15 years, and the shape of AOL’s identity is much more about ad technology—and popular content with Huffington Post, TechCrunch and Engadget—than it is about dial-up Internet (though it still has 2.2 million of those subscribers too).
Last week, Verizon announced its plans to purchase AOL for $50 a share, in what amounts to a $4.4 billion deal. Some observers have noted that these numbers are pretty small for a company like Verizon, and that AOL continues to remain a major player online, especially when it comes to the future of online advertising: mobile and video. In fact, these are attributes Verizon is banking on to help it grow in mobile and video advertising as it builds its own mobile content collection as well.
What AOL stands to gain, however, may necessitate some soul-searching on its identity—or rather, how other parties view its services, and what those services have come to mean in our modern media environment. AOL owns several global brands such as Huffington Post, TechCrunch and AOL.com. Just like media giants Facebook and Google, it’s in the business of helping brands use sophisticated technology for online advertising. It’s also invested heavily in online video.
Spinning Off Content?
But will Verizon want to keep those content sites that have in the past been critical of the cell giant? The big rumor is that AOL has been in what Re/code calls “advanced discussions with a number of parties” to spin off the Huffington Post brand. It would bring in more money for Huffington Post, which has been expensive for AOL to maintain and monetize, especially against feisty competitors such as BuzzFeed and Business Insider.
According to Re/code’s Kara Swisher, the most serious talks were with German media company Axel Springer, as well as private equity firms. Her sources put a price tag of $1 billion on the Huffington Post group, but she couldn’t get a public confirmation of talks from CEO Tim Armstrong or others at AOL. “Sources said Verizon was far more focused on advertising tech and video and that some kind of spinoff or joint venture was far more likely for the Huffington Post,” Swisher wrote.
Ad Tech the Golden Goose
Indeed, AOL’s advertising business is showing positive signs: It’s reported a seven percent growth rate in this year’s first quarter, and as Trefis, a company which analyzes stock prices, noted, much of this growth came from its programmatic platform across the third-party advertising network. Trefis also estimated that third party display advertising made up nearly half—42.2%—of AOL’s value.
All of that is very good for Verizon, especially if it wants to take on giants such as Facebook and Google and plant its footprint more heavily in mobile advertising. As Farhad Manjoo wrote in his column for the New York Times, together those two online behemoths “control more than 55% of the $42.6 billion worldwide mobile ad market, according to eMarketer.”
All of that is very good for AOL as well. AOL honcho Armstrong said in a memo to employees after the acquisition announcement, “If there is one key to our journey to building the largest digital media platform in the world, it is mobile.” And Armstrong deserves all the credit in the world for turning around an online has-been into a digital powerhouse commanding a premium payoff.
So should AOL now be known for its brand, or for its platform? Another lingering question is what mobile advertising itself should mean now. Ads on a mobile device mustn’t just try to get a person to buy something; they must also utilize data and key information about that person to create a custom advertisement for that specific individual. As Manjoo put it, “People in the ad-tech industry said that in buying AOL, Verizon’s immediate goal may be to marry its data about customers to AOL’s capacity to serve ads to increase this sort of relevancy.” And data mining is what Facebook and Google already do so well.
Ultimately, this deal might be less about the booming AOL content business and a lot more about ways to serve mobile and programmatic ads into a lot more content.
DCN’s Recommended Reading: Week of May 21, 2015
- Washington Post: How the battle for the future of the web is shaped by economics (5 min read)
- Digiday: Kraft: Digital advertising has a serious data quality problem (20 min video)
- Folio: TheStreet Experiments With A Freemium Model For Its $50-Million Subscription Service (2 min read)
- MediaPost: It’s Not TV, It’s VAB: Trade Bureau Drops Cable, Television Too (2 min read)
- WSJ: Belgian Watchdog Raps Facebook for Treating Personal Data ‘With Contempt’ (4 min read)
- AdWeek: With Facebook’s Instant Articles, Publishers Contemplate a Social-First World (4 min read)
- Ad Age: Behind All Good Ad-Tech Is Data — and Verizon, AOL Have Lots of It (4 min read)
- WSJ: With Facebook’s Instant Articles, Publishers May Find 70 Cents Is Better Than a Dollar (4 min read)
- Jeff Jarvis: I, for one, welcome our new newsstand (9 min read)
- AdExchanger: Fraud And Data Ruptures Could Spark a Consumer Revolt (5 min read)
Making Sense of Media Acronyms with NBCUniversal
ODCR. TVE. VOD. OTT.
Doesn’t it seem like this year’s Upfront presentations were filled with way too many acronyms, making it harder and harder to make sense of them? Playing House’s Executive Producers, writers and stars Lennon Parham and Jessica St. Clair break down what they all mean and how they illustrate the innovation taking place at NBCUniversal.
3 steps you can take now to make the digital ecosystem safer
We’ve all seen the headlines and statistics:
Advertisers will lose $6-10 billion to bots in 2015.
More than half of ad impressions are not seen.
A quarter of all video impressions are fraudulent.
Brands are not safe from bots and invalid traffic.
As an experienced digital auditor, the Alliance for Audited Media goes behind the scenes to examine the sources and systems of the underlying issues plaguing the digital advertising ecosystem. In a new white paper series, we delve into the issues of viewability, fraudulent and invalid traffic, and brand safety and transparency. All from a side you might not have read yet—the auditor’s perspective.
Based on our research, there are steps that all industry players – media buyers, vendors and publishers – can immediately take to make the digital ecosystem a safer place. Here are three takeaways that you can put to work today:
1. Prepare for 100 percent viewability
On the surface, viewability is a logical goal that seems readily attainable. Publishers should serve ads that can be seen by a human. Reality is far more complicated, of course. Different publishers work with different vendors. And different vendors—even those that are accredited—can use different measurement methodologies. Add in issues with browsers, screen sizes, ad delivery mechanisms and things quickly get very complicated. The industry is working toward solutions, but in the meantime, here’s what you can do now to prepare for 100 percent viewability:
Media Buyers: Know where your ads are going and where they ran: Work with reputable publishers and networks. Talk with vendors about measurement methodologies to better understand discrepancies. Demand audited systems and data to ensure you’re able to transact with trust and transparency.
Vendors: If you’re considering an MRC accreditation against the viewability standards, schedule a pre-audit engagement – now required by the MRC – with an independent third party to cost-effectively prepare your technology and processes for compliance with industry standards.
Publishers: Evaluate the advertising real estate on your pages and optimize placement for the best opportunity to be measured and seen. Disclose to clients which viewability solutions you employ and prepare them for possible discrepancies and reconciliation methods.
2. Recognize that not all invalid traffic is fraudulent but all fraud is invalid
There are several very good reasons a website may have for generating invalid traffic including internal traffic or test environments. But there are many more ways a site can generate fraudulent traffic, here’s what you can do to combat it:
Media Buyers: Ask your media partners how they detect invalid traffic. Only use vendors and technology partners certified to industry guidelines. Agencies should take the additional step of following the IAB’s best practices for workflow, campaign set-up, site tagging and measurement processes.
Ad Networks and Exchanges: Vet your inventory and continuously monitor it for changes. Provide advertisers with site-level information about where ads are running and who is seeing them. Become certified to IAB guidelines. Build brand safety technology into the ad server or domain engines that participate in RTB.
Publishers: Use internal controls to monitor traffic increases and implement ad tech solutions that are certified to industry standards. Perhaps most importantly, become certified against the IAB Quality Assurance Guidelines, which offer a framework for brand safety and trust throughout the industry.
3. Eliminate the bad players hiding behind good technology
Programmatic media buying has allowed advertisers to more precisely target audiences while helping publishers sell more inventory. It’s also created another avenue for potential fraud in the digital ad supply chain. Here’s what you can do to stop fraud:
Media Buyers: Only use exchanges that work with legitimate, validated publishers and take steps to refuse buying low-quality inventory. If the price seems too good to be true, it probably is.
Vendors: Get audited to IAB guidelines. Those vendors that comply with IAB measurement guidelines believe in providing accurate, reliable and consistent measurements every day.
Publishers: Avoid the temptation of buying undesirable traffic to fulfill commitments to advertisers. “Cheap” and “quality” traffic rarely go together.
The fact is that there’s no single answer to the issues facing digital advertising—but accountability and transparency are the foundation of any solution. Know your vendors and media buyers beyond just a name on a screen. Have a conversation and reach an understanding before a campaign begins. Support the work of the Trustworthy Accountability Group (TAG) to add background checks and weed out the bad actors before they gain entrance.
Each of us can and must play a role in bringing transparency to the digital media ecosystem. If all sides of the industry come together against those that are infecting the system, we’ve got a real chance of creating a safe marketplace where everyone can transact with trust. Read AAM’s entire digital white paper series to learn more about the industry initiatives at play and find your role.
Guenther is vice president of digital auditing services at AAM. As a founding partner and vice president of ImServices Group—an Alliance for Audited Media company—he has more than 25 years of experience in digital technology auditing. Guenther has been instrumental in helping develop many of today’s key standards and practices for the interactive advertising marketplace including the IAB’s Quality Assurance Guidelines, various IAB Measurement Guidelines (including the MRC Viewable Impression Guidelines) and the IAB’s Ad Campaign Measurement Process Guidelines to name a few.
In 2014 AAM and ImServices merged. Guenther leads the integrated digital audit team in helping clients address fraud detection and prevention, ad delivery verification, viewability and brand safety through platform certification audits, independent validation through the IAB’s Quality Assurance Program (QAG) and MRC accreditation support that includes pre-audit assessments, a step now required by the MRC.