Brand safety has suddenly become a hot topic. Because America, the world’s largest advertising market, has been divided into two camps by the 2016 election, the news industry and the nature of its content have taken center stage. Suddenly brands are concerned again about where their ads appear — a concern that had seemed to […]
It looks as if the phone company formerly known as Verizon is taking some steps to bring itself into the digital world in more than name only.
Verizon is the fifth largest ad spender in the US, and controls about a quarter of the wireless industry’s total spend. Most of its spending is on traditional TV, however, over on the ZEDO blog we discussed its use of augmented reality in ads for its phone service. The carrier commissioned the building of a cellular network within the game of Minecraft, which allowed players to make phone calls from within the game. And now Verizon’s AOL media platform is experimenting with new video ad formats for 2017.
On Thursday at CES AOL rolled out several non-intrusive formats in line with the IAB’s L.E.A.N. standards for combatting the rash of ad blocker downloads that have characterized the past few years. One of them is an alternative to pre-roll, which is simultaneously one of the most coveted ad buys in digital video, and one of the most hated formats by consumers. Traditional pre-roll holds the viewer back from the video for 15, 30, or 60 seconds and measures in terms of completions. But AOL’s new PlayerUp
is a suite of consumer friendly ad experiences that provide an alternative to preroll and consists of 3 primary ad experiences: 1. Bumper – Short 3-7 second, non-disruptive preroll video that sets the stage before quickly transitioning to the publisher video content 2. Watermark – Consumer-friendly experience offering advertisers the opportunity to extend their brand’s exposure beyond preroll by displaying an interactive overlay during playback of publisher video content. The Watermark unit can also be interactive and may expand upon click/tap to reveal a suite of interactive content while pausing the underlying publisher content. Upon closing the expanded Watermark, publisher content resumes playback 3. Pause – Advertisers have the option to incorporate subtle brand messaging each time the publisher video content is paused by the consumer.
In addition, Verizon has not said it will withdraw from its deal to buy Yahoo, although it has commented that it will try to get a better price on the deal. Yahoo still has a billion monthly users, and in is effort to become a digital media player, both Yahoo’s technology and Yahoo’s customers could be instrumental. And last summer, Verizon bought Complex Media in partnership with Hearst. Complex Media owns properties that can deliver millennial men to Verizon’s other businesses.
So Verizon is positioning itself for the shift to digital advertising, the commoditization of data pipes, and the slowing growth in cell phones by becoming a platform that can produce a large audience and some interesting ad formats to serve that audience.
It’s been a pleasure for us finally to see the rise of programmatic direct in 2016. It means media planners are more certain of what they want to buy and they want to be sure they’re able to buy it at the right price and the right time. They’re not leaving as much to chance (or rather automation) as they did when they were first buying programmatically. We think programmatic direct will be the future of video ad buys.
Why? Because this form of buying takes advantage of automated work flow, but allows the targeting of specific premium audiences — for example, New York Times readers, or Car and Driver visitors.
Historically (and it’s difficult to believe this has already become part of history) if you bought programmatically, it was from an open exchange, and it was done through RTB (real time bidding), an auction system that drove digital ad prices through the floor and convinced many premium publishers not to participate, except with their remnant inventory. In addition, RTB meant that buyers didn’t really know what they were buying, and were often victims of fraudsters.
Now we’re trying to take the best of the programmatic environment — its ability to target carefully, to scale, and to digitize media buying work flow — and extend it to more careful buying. In the past, we were more of an open exchange, while now we’re more into header bidding, Deal ID, and programmatic direct.
You will want to buy programmatic direct when:
1)you want to eliminate the possibility of fraud and malware
2)You want to guarantee the inventory you receive
3)you want to ensure brand safety
4)you still want the efficiencies of buying through an exchange.
Michael Kuntz, Senior VP of Digital Revenue at USA Today captures this change:
I think lots of clients have woken up and they’re saying, ‘We understand there are efficiencies in buying through an open exchange, but I’m not so confident my ads are showing up in the right environment,” Mr. Kuntz said. “I think the pendulum is starting to move away from just buying the right eyeballs in real time to, ‘Yeah, we want to do that, but we also want to make sure our ads are showing up on the right content and in an environment we’re comfortable with.'”
One of the problems slowing the acceptance of programmatic direct is uncertainty about semantics. Digital advertising is full of terms that have been invented to describe small changes in supply or demand side technologies that are supposed to make things easier for the buyer.
For example, at ZEDO we use a private platform to serve our ZINC ads. This makes it secure end-to-end, and allows us to do programmatic direct deals as well as header bidding with our premium supply. On the publisher side, we carefully choose the publishers that are on the white lists of major brands. We may refer to our deals sometimes as programmatic direct, or we may just say we’re a secure private end-to-end platform.
At the end of the day, all the vendors who are trying to clean up the industry are going to be doing somewhat the same thing, despite the often confused nomenclature.
Facebook may get coal in its Christmas stocking this year.
It may take Facebook a while to begin to suffer visibly, but we predict, and have written in our ZEDO blog, that we’ve passed peak Facebook. This is the third time Facebook has had to admit to brands that its numbers were off: the first time was in estimating how long visitors viewed video ads on the giant social network; the second was in calculating how many monthly visitors saw a brand page, and the third is in estimating the audience size for new campaigns.
There is also speculation that Facebook may be taking too much credit for app installs.
How many times can Facebook admit errors before brands lost faith in it as an advertising platform? Although it is tempting for a marketer to feel that there’s a single solution to media buying, it’s also possible that such solutions, like most anticipated panaceas, are just too good to be true.
Facebook certainly seems like one of those cases. Facebook has now begun to allow MOAT and Integral Ad Sciences to examine some of its numbers, but when advertisers lose trust, it’s tough to win it back. Moreover, Mark Zuckerberg, Facebook’s founder, recently sold a major stake in the company, supposedly to free himself up to go on to the next event in his own life, which is rumored to be government.
Some publishers have already drawn back from their all-but total commitment to the platform, concluding that they are not getting the revenue they were promised and yet were giving up too much of their brand.
Especially since the US election, consumers have also express distaste for Facebook, holding it somewhat responsible for distributing fake news. Although we haven’t yet seen a consumer survey, there is anecdotal evidence that people burned out by political polarization, vitriolic attacks from friends who disagree, and the evidence that Facebook may bear some responsibility for fake news without being willing to take responsibility have begun to spend less time on the site, withdrawing to other news and networking sources.
A sophisticated marketer can see this coming, and has already begun to cover her bets by buying in niche publications where she knows the audience will retreat after Facebook burnout. The combination of better programmatic marketing tools such as header bidding and developments in the world at large may have made Facebook less desirable as the only digital spend.
Strap on your safety belts, digital advertising will be very different in 2017. The IAB is in the process of creating new formats for online ads, reflecting both the LEAN principles it introduced last year and new aspect ratios that take into account cross-device campaigns. The new formats are in response to the shift to mobile, the demand of brand marketers for cross-device integrated campaigns, and new technologies such as mixed, augmented, and virtual reality, which debuted this year and will take over the market in fall 2017 when Apple releases its rumored tenth anniversary iPhone.
One other change that is suggested by these guidelines: we’re not going for scale and reach in the future. We are going for precise targeting that can be measured for attribution. Even in branding, we’re after the right customer, not just random eyeballs.
The draft is open for public comment until Nov. 28 and can be downloaded here. ZEDO has worked with the Online Trust Association to comment on the draft from a privacy, security, and malware perspective.
The following IAB Tech Lab member companies were part of the working group that created this draft: Aarki Grey Advertising Sizmek ABC TV Network GroupM Spongecell AdCade Gruuv Interactive Startapp Adelphic, Inc. Havoc Sublime Skinz AdGear Technologies, Inc. Ipsos TapAd Ansible J. Walter Thompson U.S.A., Inc. Team AOL AOL Kargo The New York Times Company AOL Platforms Mashable The Walt Disney Company Beachfront Media MediaCom The Weather Company, an IBM Business Bloomberg Merkle Inc Undertone CBS Interactive Micro Cube Digital Limited Unity Technologies Celtra Microsoft Advertising Unruly Cox Media Group MING Utility & Entertainment Group USATODAY.com Cyber Ideas Monotype Vertebrae Dow Jones & Company (The Wall Street Journal) Flexitive Vibrant Media ESPN.com Ogilvy Xaxis Flashtalking PageFair Yahoo Flipboard PGA TOUR YieldMo Flite PointRoll Zillow Forbes Media R/GA Gannett Responsive Ads Google Saatchi & Saatchi NY .
Among many other changes, the new Dynamic Standards vary according to weather and geography, as well as demographics. Also, pixels are gone, replaced by aspect ratios, so the ads can be used across screens.
Developed by the IAB Tech Lab, the revised portfolio is based on HTML5 technology and comprised of flexible display ads, mobile ads, video ads, native ads, and introduces guidelines for new content experiences like virtual reality and social messaging ads.
The IAB also expects ads to contain emojis and stickers. Guaranteed will be user choice according to the LEAN Principles of lightweight, encrypted, AdChoice supported, and non-invasive advertising.
In some ways, getting rid of pixels will make it easier to create one piece of creative and deploy it across screens. Although we already support this capability, we’re in the process of getting absolutely every piece of this IAB guideline into our product roadmap so we’re ready for it when it comes. Because we are known for fundamentally better advertising, we want to continue to lead the market.
Yesterday at the Digiday Agency Summit, Valter Sciarrillo, Head of Product Marketing at Quantcast, gave a talk for agencies called “Differentiating Yourself Through Programmatic.” This presentation highlighted how far behind the times agencies really are. Indeed, some are so far behind rapid industry change that they risk extinction as the industry moves past them.
Sciarrillo mentioned that only 6% of agencies actually felt comfortable buying programmatically. Indeed, 60% of agencies felt they didn’t even have a good definition of what programmatic actually is. And that’s despite the past five years of rapid growth and diversity in programmatic potential.
The problem is that when programmatic was first introduced, it was used for remnant. So a third of agency execs still think that’s what it’s for.
Not true. Programmatic is just a workflow solution, through which you can buy anything. When you use a secure private platform like ours, you know exactly what you are getting. Our network is only premium publications, highly targeted. Especially since the introduction of header bidding, media buyers can know exactly what they are buying and they can use programmatic for branding.
Because it will take time for agencies to catch up, those who adopt programmatic for branding early have a competitive advantage in building the agency’s brand, as well as that of its clients.
The biggest complaint in the advertising industry as we drop further into Q4, its busiest season, is the lack of video inventory. Everybody wants to run video ads, because video completion rates are higher than the CTRs on banner ads. Especially on mobile, consumers seem to have more patience with video ads than display ads. However, when they speak about video inventory many brands still mean content on high-trafficked video sites like YouTube on which they can run pre-roll. There is indeed a scarcity of that.
However, pre-roll is not the best way to achieve results with video ads, as many other companies have already discovered. The unfortunately- named “outstream,” video ads on text sites are the best performers.
In this department, ZINC is the market leader, having been the first to market with this format. We launched what we called inArticle video almost three years ago, before the term outstream even existed, and we also initiated the term “polite” for these ads, because they only came into view only when a reader scrolled down to them, and they were also easy to close or scroll past. As a result of the precautions we take, our ads are not intrusive.
Not only that, we never have used auto-play sound, another reason we feel comfortable calling these ad formats “polite.”
We constantly win buys away from our competitors (and there aren’t many), because we get higher viewability scores with resulting higher rates for publishers. Even the competitors are asking us how we win so many good buys.
Here’s how: we have a better format, better technology, and a better premium publisher network. We have tested our viewability with third parties, and we’re at 93%. To be a market leader, you not only have to be a technology leader, you also have to be cognizant of consumer attitudes, and you have to run on only premium publishers. That’s us.
Yes, this is a self-serving post. Every once in a while we have to sneak one in, because not enough people know what we do.
The biggest new trend in digital marketing for 2016 in the Data Management Platform (DMP). It’s not new, but it has finally become an object of consideration as advertisers hope to reverse the trend toward blocking unwanted ads. One of the remedies for this would be to make the ads more “wanted,” or better tolerated, and better data is seen as the way to accomplish this.
The DMP aggregates information from across all the marketers’ channels and helps to make more granularly targeted online advertising more possible. The hope for this new tool is that it will lead to fewer and better ads with higher ROI.
From a sell-side perspective a data management platform might be very valuable to collect and monetize data from web properties. A publisher could decide to sell this data (to end clients or to data providers) or think about a more sophisticated approach where the data is used to enrich available inventory and sell a package to clients that consists of both media and data. This is of growing importance as more and more publishers get their traffic from Facebook and other referral traffic that isn’t Google. The aggregated audience data from the publishers should then match up better with the cross-channel customer data from the brand’s own DMP.
From the ad buyer’s perspective, consolidating data from multiple sources (e.g. a DSP, data provider or custom data source) allows an agency to make better media buys. For example, in an advertising campaign for a retail advertiser, an agency or brand manager can collect relevant on-site data by adding segment and conversion pixels to the advertiser’s website and store this information in a data management platform. Then data from a data provider that provides demographic or contextual data can help build more detailed audiences. Based on the campaign results, you create an audience with website visitors that actually made a purchase. You can then use this new audience for another ad campaign. That’s very valuable, but still pretty basic for most of the DMPs.
At the next, more sophisticated level, media buyers can use the data to model similar audiences based on user characteristics in the original audience and find other users in their DMPs who will match these characteristics. Ultimately these actions should lead to an increase in advertising effectiveness and the DMP can be a vital element to realize this.
Sumner Redstone once presided powerfully over the large media conglomerate Viacom, and the TV network CBS. Now, at 93, he is losing his faculties and has been forced to step down from the boards of both organizations. His decline marks the end of an era, and comes at the same time that Viacom itself finds its existence threatened. Shane Smith, Vice Media CEO, has said that he expects Viacom to “implode” in the next year, and perhaps take Time Warner and Fox with it. Smith said, “We’re the largest new media company, and we’re going to become the fourth-largest or fifth-largest, or maybe the third-largest [mainstream media company]. I don’t think it’s any secret that you’re going to see a bloodbath in the next 12 months of digital, mobile and terrestrial.”
This is big talk from upstart Vice, but it may well be true. Vice is the essence of a new media company in every sense of the word. It produces 7,000 pieces of content in a day, a completely different model than traditional print or TV. Its method for getting that content produced and online has been likened to a sweatshop, but it’s really more like the pressure of a tech company. And, like tech companies, it is staffed largely by people who in a traditional media company would be the interns. There’s very little adult supervision, Smith admits.
I don’t know a lot of stuff we’re doing. The answer is you have to have editors and writers that you trust. The majority of Vice people are coming straight out of college and rise up. So I know each one in each country is a Vice person and I know that most of my people are Vice people. There’s a lot of stuff that gets published out there that I don’t like or agree with necessarily because a 23-year-old will write it, but that’s the brand. The brand isn’t me anymore. The brand is a sum total of many voices and I think the greatest success of Vice is that we revamped the brand, giving it over to the interns and said, “Have at it.” Sometimes that’s unpleasant or not pretty.
Like Buzzfeed, Vice is convinced that the next generation of media businesses will be on all platforms. Vice itself is on HBO, has just started its own cable network, and owns not only the Vice news site, but also Motherboard, a tech site.
The primary threat to Vice isn’t traditional cable, like Viacom or Time Warner, but Facebook. Smith voices the opinion almost every publishers has about Facebook:
This is the biggest problem of the world: Facebook has bought two-thirds of the new media companies out there without spending a dime because they own a majority of their mobile. That’s great for Facebook, but bad for their platform. That’s why we’re trying to get on all platforms because we can monetize on all platforms then we can get away from the patrimony of Facebook.
It will be interesting to follow the future of Vice as it moves from a scrappy new media company full of interns to a full-fledged “mainstream” media company over the next few years. To us, the way Vice confronts the same problems faced by all other publishers will send a signal about the future of ad-supported media.
Saturday Night Live has decided to eliminate 30% of its ad slots next year, giving more time for show content and introducing six spots for branded content. SNL is not the only publisher to make a decision like this. For almost ten years, publishers have toyed with the idea that fewer ads could produce the same or higher revenue without alienating audiences. Now, because of ad blockers, the idea seems finally to be taking hold. Several premium publishers have re-designed their sites with fewer ad units, hoping to create higher revenue by featuring ads that are more visible and more enticing to consumers who have downloaded ad blockers.
That’s not only because publishers want to survive, but also because they have found out that ad blockers, like everything else in the world, have unintended consequences. They not only block ads, but also airline check-in pages and retail check-out carts. And in doing their work, they throw off error messages to ad blocking consumers who don’t understand why the sites aren’t available. So now, suddenly, everybody cares about cleaner, more visible layouts and faster page load speeds.
We’ve been saying for a long time that one of the reasons for low CPMs was the infinite supply of digital ads. It’s simple economics; constraining supply raises the demand and prices should rise. Now this has finally seemed to be happening. Last month on our ZINC platform we achieved record high CPMs.
But we also have long held the opinion that one day digital ads could be the same quality as TV and that seems to be coming as well. Some of the most successful TV shows, like Empire, have ads that feature members of the cast (Pepsi’s comes to mind), and on successful podcasts like TWIT.tv hosts and guests describe their nights on Casper mattresses or their latest Audible reads. For the advertisers, host reads yield higher ROI, and for the hosts, higher ad rates.
With fewer ads and more branded content, digital advertising could once again be watchable. There is one other piece missing from this mosaic, and that’s targeting. With the capabilities we now possess to target potential and existing customers, there’s little reason to buy for nothing but scale and spam people who aren’t interested in your ads. When Facebook ads work, they work because the Ads Manager allows for very fine-grained targeting of specific interested niche audiences, not because the advertisers reach for the largest possible audience.
Consumers know when they’re not the intended target of an ad, and now they wonder why advertisers don’t know the same thing.
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