The Online Advertising Landscape in 2019 [Data]

March 25, 2019 | 93 views

Advertising is not always the easiest endeavor. We hear it from our customers every day. And one of the biggest pain points we hear among our small business clientele is a sheer lack of healthy modeling. How are my peers and competitors structuring their accounts? In which channels are they allocating spend? Do they have similar goals, and are they experiencing similar roadblocks? Or am I in this alone?

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Data, Technology and Innovation (DTI) is a centralized global practice within Publicis Media, the media-centric solutions hub of Publicis Groupe [Euronext Paris FR0000130577, CAC 40]. DTI drives transformation across Publicis Media’s global agency brands via the provision of a scalable and consistent approach to data and technology.DTI is powered by a leading, global data/tech platform; best-in-class technology management and consultancy services; unified workflow solutions; differentiated products and client solution stacks; and strategic oversight of all major data and technology partnerships. Home to over 700 engineers, data architects, consultants, product managers and a robust project management operation, DTI helps scale innovation worldwide.

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Combat Video Ad Fatigue with Audio Advertising

Article | June 1, 2022

As a marketer, your goal is to create ads that stick in the minds of your audience. You devote extra time and resources to creating memorable graphics, engaging CTAs, and interesting copy that works. You also buy just the right ad spots. But, what happens when your potential customer scrolls right past your ad? Your costly video ad never creates a difference and your campaign fails. Combat this video ad fatigue with audio advertising to effectively influence your target demographic. After the audio content boom driven by podcasts, audio advertising is rising and becoming marketers’ new favorite. Nielsen Catalina Solutions’ 12-month-long study of audio ads on Spotify versus video and display ads found that audio ads were up to 25% more effective than other ad formats. Mostly, audio ads are delivered through podcasts. We’ll dive into this shortly. First let’s look at how audio advertising can influence the buying decisions of your target audience: Audio Advertising: Superpowers Explained Audio advertising uses a broad content category such as background scores, jingles, and branded content apart from audio ads. By fusing audio ads into audio experiences such as ad-supported music streaming or podcasts, marketers can position relevant products and services in front of customers. Here are more of its advantages: Audio Ads Offer Immersive Experience A study done by Lightwave and iHeartMedia showed that one of the biggest benefits of audio advertising was its ability to connect with the audience on a deeper level. Remembering catchy jingles is also a part of this connection. Audio ads communicate emotions, capture the attention of the listeners within seconds and engage them enough to paint a picture in their minds. They achieve this without a big budget or production crew. A strong script and an audio booth are all you need to create an immersive audio ad. They Have a Greater Reach Primarily, audio ads are delivered through podcasts because they can be easily categorized and are widely consumed. According to Statista, almost 60% of all U.S. consumers older than 12 listen to podcasts. Interestingly, 70% podcast listeners do not multi-task while listening to a podcast, so you are catering to alert listeners who might end up retaining your ad (Edison Research). Apart from podcasts, audio ads are also run in locations such as radio, music, and news streams. They Are Insightful and Creative Marketers can use 3D and 8D audio to create soundscapes that offer an immersive experience. Additionally, audio ads create a 1-to-1 relationship. With the help of programmatic advertising, they also collect many layers of data that provide buying insights. Integrating audio ads with voice assistants is a creative approach to entice customers while being interactive. Nars Cosmetics UK used Spotify to offer its customers voice commerce. Upon hearing the ad on Spotify, they could order samples and set up delivery using their smart speakers. Smart Speakers Are Changing the Game Smart speakers are contributing to screen-less moments in American homes. This means your video ad campaigns won’t get the kind of response you expect, but your audio ads just might. The Edison Infinite Dial report found that there is an average of 2.3 smart speakers in each home in the U.S. This number shows that a wide range of people use voice search and will listen to audio ads as a result. Summing It Up Audio advertising drives engagement and conversion through immersive storytelling, catchy jingles, and longer ad retention. It can be a great addition to your digital marketing strategy and refine the way you influence your audience’s buying decisions.

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ADVERTISER PLATFORMS

Power up Your Mobile Ad Campaigns with These Four Tricks

Article | May 20, 2022

Did you know that there are over three billion smartphone users globally? While browsing through varied content, they see ads relevant to things they explore in their downloaded apps and games. In addition, they receive offers through SMS and see banner ads on websites they visit. These ads are a part of mobile ad campaigns specifically targeting a certain demographic. Some examples of mobile ads include carousel ads, image and text ads on Facebook, Snapchat filters and ads, video ads on YouTube, notifications from downloaded apps, ads that play between videos or games, and Instagram Story ads. Why are advertisers so keen on utilizing mobile ad campaigns? Mobile Ad Campaigns Speak the Revenue Language Marketers understand the power and impact of mobile phones on users’ lives. As a result, U.S. marketers spent a record 120 billion U.S. dollars on mobile promotion in 2020. (Statista). Mobile ad campaigns can achieve tremendous results and bring in revenue for you by creating a connection with the user through personalization and by catering to all kinds of online audience on-the-go. “The mobile device has become our communications hub, our diary, our entertainment portal, our primary source of media consumption, our wallet and our gateway to real-time information tailored to our needs. The revolution is now!” - Nihal Mehta, Founding General Partner at Eniac Ventures Mobile Advertising Covers All the Bases Companies engage in mobile advertising for objectives like lead generation, customer retention through new offers, brand engagement activities like contests, and creating awareness about a product or a service. Mobile ads are the preferred channel for advertising because: They are cost-effective Allow geo-targeting Get a quick response Can be easily tracked Let us look at all the tricks that can help you optimize your mobile ad campaigns. Grab the Users’ Attention Imagine mobile users aggressively scrolling on their phones. Your ad should make them stop and grab their attention enough to make them read it. The goals of your ad campaigns should be clear. If you are looking to redirect the user to your website or want them to click on the ad, your campaign execution should align with these goals. Adding Value Through Your Messaging Pushing your message effectively to the user can ensure the success of your campaign. Your text should be crisp and sharp, interesting yet simple to comprehend. Use popular phrases or buzz words to create a connection with the users. Don’t Underestimate Visual Appeal Visual appeal plays a vital role in the way users react to ads. The image size of your ad, the moving flow, and the options for interacting with the ads can impact your ad’s performance. Ensure that you never interrupt your user’s reading flow when they are browsing and that the visuals of your ad are pleasant and appealing to the eye. Remember, Brevity is the Soul of Wit The content of your ad should be impressive enough to make the users engage with it. Users will respond to clear copy, visuals and your message’s simplicity. Furthermore, make sure that your landing pages are bug-free, load quickly and relate to your display ad so that the users can form a tangible connection between them. Wrapping It Up Mobile advertising helps brands remain connected to their customers around the clock while on the move. It is a personalized and flexible type of advertising that can help advertisers understand the lifestyle of targeted customers to offer them just what they need.

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ADVERTISER PLATFORMS

Podcast Advertising: A Promising Avenue for Result-oriented B2B Ad Campaigns

Article | May 19, 2022

Marketers in the B2B domain have a multi-channel approach to marketing because they target companies as buying groups. B2B marketers are leveraging podcast advertising with the help of advertisers, creators, and publishers for brand building and generating leads. They leverage up-and-coming avenues of advertising, most of which are a part of digital media channels. One such avenue is podcast advertising. Podcast advertising is emerging as one of the fastest-growing digital media channels for advertising. It is estimated to grow to more than $2.13 billion in 2022, according to a study by the Interactive Advertising Bureau and PwC. But, what is driving this growth? Engagement. People are finding podcasts more engaging than ever. Consequently, the demand for podcast ads across all categories is growing. Dynamic Ad Insertion (DAI): The Rise of Automated Ad Tech Dynamic ad insertion is a form of programmatic advertising that uses first or third-party data. This data comes from the device playing a podcast, a device user agent, the device’s IP address, and what episode is requested, to serve ads to a target demographic. The ad server of the podcast hosting platform decides which ads should be stitched into a particular podcast episode. If done well, the audience will never know the difference between a dynamically inserted ad and a baked-in ad, which is a permanent part of the audio of the podcast. Podcast hosting platforms, advertisers, and publishers adopted DAI because it helps brands win contextual relevance and efficiency through granular advertising opportunities. Through custom audio ads that appeal to the target audience, dynamic or seasonal geo-targeted ads, measurable variables, and performance data, DAI gives advertisers good control over podcast ad campaigns. This control allows them to tailor the campaigns based on the marketers’ demands. DAI is evolving and has great potential in transcription-based targeting using AI and machine learning. It also has greater creative interactivity to make audio ads engaging through voice interactivity, personalization, and mobile phone engagement. A podcast advertising example using DAI would be a brand creating multiple versions of pre-recorded audio ads that are served to target audiences on any podcast that meets the campaign criteria. Podcast Advertising Anchors Digital Marketers for Effective Outreach Edison Research’s Podcast Consumer 2017 report found that:  24% of people between the ages of 18 and 54 listen to podcasts monthly  Listeners are almost evenly split between men and women  Listeners tend to be affluent, mainly educated consumers  In the 25-54 age bracket, monthly listening has grown year over year for the past four years These stats demonstrate the growing market for podcast advertising and a very stable demographic that B2B marketers would want to target. Marketers rely more on podcast advertisers and platforms to tap into the potential of podcasts as a media channel. Here are some of the ways in which podcast advertising can enhance B2B marketing plans and bring in more conversions: Listener behavior expansion− By understanding what kinds of podcasts the target audience listens to, marketers can create ads that appeal to them, and advertisers can help them get the perfect spot for the ad campaign to make it more successful. Pivoting messaging is easier− Using different voiceovers, marketers can deliver the same message but elicit a different reaction from their target audience. Recycling old ad files is also a viable option to save time and resources. Human connection− Hyper-personalized targeted ads relevant to the podcast content create a human connection with the audience and can influence their opinion about a brand. Personal influence− Podcast hosts create a personal influence on the listeners so they keep tuning in to the podcast and even listen to the episodes again after a period. Ads on such podcasts receive stronger engagement and response. Additionally, hosts can also relay brand messages to listeners and influence their buying decisions. Regional marketing− Podcasts are a great way to connect with a target demographic residing in a certain geographical area. Geo-targeting is a boon for region-specific marketing endeavors. Effective storytelling− Podcasts can fuse autonomous sensory meridian response (ASMR) for immersive storytelling to impress listeners. The continuity and power of an engaging narration keeps the listeners subscribed and attached, ensuring that any kind of advertising on such podcasts can reach a wider audience. Advertisers Are Helping B2B Marketers Generate Revenue According to a forecast by IAB (Interactive Advertising Bureau), podcast advertising revenue will exceed $4 billion by 2024. Marketers are dependent on advertisers to tap into the podcast advertising potential to generate revenue in the following ways: Demand Generation An estimated 62 million Americans (Source: Edison Research) listen to podcasts, and this number is expected to grow. An interview by a product expert on an industry-relevant podcast can help get leads without wasting any budget on creating awareness, making it cost-effective. It’s no wonder LinkedIn and HubSpot have started their own podcast networks to host business and career-related content. Brand Building & Customer Retention Apart from using podcasts to generate leads, it can also help with brand building. Sponsoring a popular and relevant podcast episode can create a brand’s reputation and trust. It can also help retain existing customers as sponsorships demonstrate a continuous commitment to industry growth and development. Ad Effectiveness 75% of podcast listeners were happy with the purchase they had made from podcast ads (A Study by Voices, the #1 voice marketplace). This goes to show that podcast advertising brings out expected results and conversions without compromising the customer experience or opinion. Podcast as a Medium for Thought Leadership Podcasts are a great medium for B2B thought leadership. They are a free space to express expert industry opinion, talk about the current industry trends, address the pain points of the customers, discuss tech advancements, and create a personal connection with the listeners. Tailored thought leadership content can fuel brand engagement and bring in leads that convert because of brand trust. Feedback gathered through interactive content can help B2B marketers create personalized marketing plans to align their goals with ad campaigns better. Podcast Ads: Taking the First Step Before you step into the world of podcast advertising, make sure you consider aspects like target demographic, podcast ad pricing, industry/brand relevant podcasts, ad purchasing, the reputation of the podcast advertising network, and podcast advertising platforms. Policygenius, a New York-based insurance agency, invested early in podcast advertising through Ad Results Media, an ad agency. Policygenius achieved its ROI goals, and its media spending increased by 10x in two years. You can buy podcast ads directly, through a podcast advertising network, or programmatically. To track the success of your ads, use KPIs like unique listeners, ranking and reviews, subscribers, social sharing, and episode-by-episode metrics. Wrapping It Up Podcasts can be a great advertising avenue for B2B companies to influence their buying groups and create new customers. Its monumental growth as a media channel and its ad revenue over the past couple of years indicate that it is here to stay and should be harnessed for a wider reach and bigger sales numbers. FAQ What is the role of podcast advertising networks? A podcast advertising network is a full-service podcast advertising solution that maintains podcast ad inventory and manages ad campaigns for marketers. How is podcast advertising different from traditional advertising methods? Podcast advertising uses automated ad tech to create dynamic ad campaigns across relevant podcasts, while traditional advertising methods focus on print ads, outdoor billboards, and cable television. Which are some popular podcast advertising platforms? Some popular podcast advertising platforms are Midroll, AdvertiseCast, PodGrid, and Archer Avenue.

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SOCIAL MEDIA ADVERTISING

Netflix Opens Doors to Ads After Subscriber Count Takes a Nosedive

Article | May 11, 2022

Netflix Takes an Unexpected Route Popular streaming giant Netflix’s subscriber count plummeted for the first time in a decade. After it announced the loss of 200K subscribers in Q1 of 2022, its stocks dipped more than 35%. In addition, a shareholder recently sued the platform for violating securities law after its subscriber growth reached an all-time low and the stock value crashed, making the picture bleaker. It’s not surprising that the platform had a change of heart about bringing advertising to its platform. The decision puts the platform in the same category as its competitors, HBO Max, Amazon’s Freevee, and Disney+, who want to offer cheaper, ad-enabled content to consumers. It also addresses the company’s issue of slow revenue growth. “Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription, But as much as I’m a fan of that, I’m a bigger fan of consumer choice.” co-CEO Reed Hastings What Do Advertisers Think? The advertising community had mixed reactions to the announcement. Long commercials are not an option on streaming platforms like Netflix. The ads run only for a few minutes every hour to retain the viewer experience. Despite this, advertisers are excited to target Netflix’s rich audience of over 200 million. There is no clarity on who will sell the ads and how the campaigns will be managed. Only time will tell how Netflix’s move will affect its subscribers and the advertising market. The company will keep ad-free tiers for subscribers who wish to enjoy high-quality ad-free content. It may change its subscription plans to offer low-cost plans with ads and minimize password sharing. There is no set timeline or regions decided for implementing these plans. The company hopes that this “consumer choice” to choose a cheaper plan will revive its subscriber growth graph. What Comes Next? Though Netflix has done the unexpected, it is giving well-established ad-funded broadcasters and streaming platforms a reason to worry. As of now, the potential for a low-cost VOD service equipped with ads is huge for advertisers. Once the plans are introduced, new audience profiles will emerge. Advertisers will want to understand and target them. As an ad platform, Netflix’s performance will only be understood through testing and learning.

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Spotlight

VivaKi

Data, Technology and Innovation (DTI) is a centralized global practice within Publicis Media, the media-centric solutions hub of Publicis Groupe [Euronext Paris FR0000130577, CAC 40]. DTI drives transformation across Publicis Media’s global agency brands via the provision of a scalable and consistent approach to data and technology.DTI is powered by a leading, global data/tech platform; best-in-class technology management and consultancy services; unified workflow solutions; differentiated products and client solution stacks; and strategic oversight of all major data and technology partnerships. Home to over 700 engineers, data architects, consultants, product managers and a robust project management operation, DTI helps scale innovation worldwide.

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MOBILE ADVERTISING

PubMatic and IAB Europe Reveal the State of Online Video Advertising Today and Predictions for the Year Ahead

PubMatic, IAB Europe | March 17, 2022

PubMatic (Nasdaq: PUBM), an independent technology company maximising customer value by delivering digital advertising’s supply chain of the future, in partnership with IAB Europe, today released an industry report titled “The State of Online Video Advertising in Europe”. The report highlights media buyers’ appetite to continue to increase investment in video advertising, in particular connected TV (CTV). Over 140 online video buyers from agencies and advertisers across 31 European markets took part in the survey-based research generating key insights such as: On average, digital media buyers are investing 36% of total ad spend in video advertising (excluding TV formats) The most frequently bought video advertising is mobile web with one-quarter of media buyers investing more than 61% of their digital budget in this channel Two-thirds of digital buyers are investing in CTV, albeit at a lower percentage of the total budget. “Media buyers are excited about the potential of CTV advertising as it offers a cost-effective way to reach audiences that are viewing far less traditional TV. This is appealing to big brands, while also opening an opportunity for smaller brands to invest in TV advertising without the big price tag attached to linear TV,” said Hitesh Bhatt, senior director, CTV/OTT, EMEA at PubMatic. “Media buyers are excited about the potential of CTV advertising as it offers a cost-effective way to reach audiences that are viewing far less traditional TV. This is appealing to big brands, while also opening an opportunity for smaller brands to invest in TV advertising without the big price tag attached to linear TV,” said Hitesh Bhatt, senior director, CTV/OTT, EMEA at PubMatic. The study also found that when media buyers find the same programmatic video inventory available via multiple sell-side platforms (SSPs) - which is often the case - almost half say performance KPIs are the most important factor in deciding which SSP to work with. This is followed by cost (26%) and data activation (16%) “This focus on KPIs as a deciding factor in SSP selection highlights the importance of maximising audience addressability – a known driver of better performance. Combining brand and publisher-owned first-party data, and independent ID solutions help better predict consumer behaviour and thus maximises the size, and accuracy of addressable audiences across the open web,” said Bhatt. “Today, A/B testing different addressability strategies is one of the best ways to establish which partners can deliver the best performance. Early tests show that a portfolio approach delivers the best performance,” said Bhatt. The deprecation of third-party cookies has changed buyers’ approach to online video advertising in browser environments, however, despite previous reliance on third-party cookies, programmatic remains strong with two-thirds of respondents allocating the majority of budget to programmatic channels. The key to driving more revenue into digital video will be solving a lack of cross-screen measurement cited by 46% as the biggest barrier, and 57% actively seeking more measurable formats. Despite measurement being a significant challenge, almost one-quarter (23%) of digital media buyers are planning digital campaigns as cross-screen including TV in that definition. Marie-Clare Puffett, senior manager, marketing & industry programmes, IAB Europe commented on the research: "IAB Europe and PubMatic's The State of Online Video Advertising study provides a view into the direction of travel in Europe for this growing advertising market. The findings will help advertisers, publishers and the broader digital advertising industry plan ahead, and make the most of the opportunities on offer. This report shows that advertisers view online video as a strong channel for brand building. However, there are also clear concerns around cross-device targeting that will need to be addressed for the value of online video advertising to be realised in full. Given the aptitude for innovation in the digital advertising sector, I have every confidence these concerns will be overcome and online video will continue as an important channel for brand building."

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PROGRAMMATIC ADVERTISING

Preparing for a Cookieless Future with Contextual Advertising

Seedtag | August 24, 2021

Albert Nieto, co-CEO of Seedtag, explains why advertisers should invest in contextual targeting as the end of third-party cookies edges closer. Google recently announced that it is delaying its plans to phase out third-party cookies in the Chrome browser until 2023, a year later than it originally planned. However, while the announcement may feel like a backwards step in the battle for consumer privacy, the wider industry continues to press on with plans to deprecate the use of third-party cookies. Apple launched changes to IDFA (ID for Advertisers) as part of its iOS 14.5 update, which requires apps to ask users to grant permission to collect and share their data. What’s more, Mozilla and Firefox have already stopped the support for third-party cookies to track users on their browsers. Nevertheless, with Chrome accounting for 60% of all web traffic in the UK, this announcement still marks a seismic change for third-party cookies. This all leads to online advertising being pushed to adapt to a more privacy-driven web, giving end-users better control over their data. The 2022 timeline was always very ambitious, meaning this additional time has been welcomed by advertisers and publishers, as it provides them with more time to adapt. However, the transition to a cookieless world will not be a one-off switch, but an ongoing process for advertisers that is already underway. Removing the reliance on cookies In digital advertising, third-party cookies are widely used by ad tech companies to identify users on desktop and mobile devices for the purposes of targeting and reporting. Based on changes in consumer preferences on how their data is collected or used, brands will be forced to sever their dependence on cookies, shifting towards a future that meets new privacy standards. Businesses in the space can use this new era as an opportunity to solve some of the underlying issues linked to cookies, such as slow-loading and a lack of control over Publisher data for Editorial Groups, or cookie matching between different platforms for Advertisers. Furthermore, the reliance on cookies has made many marketers focus excessively on their targeting strategies, seeing them rely on questionable attribution models and embrace standard ad units pushing for a commoditisation of advertising. More often than not, some companies in the sector forget that the very reason why advertising exists is to create positive emotions in anyone that interacts with the brand. Contextual is the best answer and the only one available at scale While walled gardens will remain an option for advertisers to interact with their potential customers using first-party data, the big question is what will happen in the open web without cookies. Companies in the ad tech sector have two options: substitute cookies for an alternative technology that allows them to keep addressability on the web; or switch to privacy-first targeting options like contextual advertising. The ad tech industry is still in the early days of identifying an optimal solution for a post third-party cookie world. The problem with the cookie is not its technology, but its lack of privacy. With privacy concerns well and truly entrenched, no technology that fails to respect users will prevail. Contextual targeting using NLP (Natural Language Processing) and AI algorithms is not only available and workable at scale, but is also proving to be as effective as audience targeting was. The ability for brands to understand the content that the user is consuming at the time of the ad delivery will become a new and as-effective identifier for the target audience and their preferences. Contextual targeting combines relevance with the scale, precision, and seamlessness that is championed by programmatic media. Ensuring consumers’ privacy In terms of privacy, contextual advertising permits targeted marketing in highly relevant environments without requiring data from customers. It concerns itself with the context and meaning of advertising environments, not the behavioural patterns of online users. Therefore, it presumes that the user is relevant to the advertisement without ever relying on their historic behaviour. With real-time updates, the company’s contextual targets will automatically refresh to include new and relevant environments for the adverts, driving improved results and conversions. Another strategic advantage is that it enables advertisers to deliver messages to consumers when they are most receptive to brand messages. For instance, when a user is browsing content about a specific topic, it might imply their interest to make a related purchase. Overall, the ability for ad tech companies to target customisable contexts is essential, especially when operating in highly specific or niche markets. The future of ads With the ad tech industry on the path to a cookieless world, it’s now time to adapt and make sure that consumers are able to provide privacy-driven, digitally savvy end-users with better control over their data. As contextual targeting has proven to be effective with real-time updates and personalisation, many marketers are seeking it out as an alternative to third-party cookies. Many industries have successfully adapted to key defining moments and have ended up becoming larger and more profitable as a result. The creation of the internet, for instance, created global opportunities for travel agencies and those who embraced the change evolved from local or national companies into global businesses. Those who resisted the change, and didn’t put their clients first, probably don’t exist today. The advertising industry is not an exception and businesses must define their strategy backwards. Consumers want privacy in the same way they want to book their holidays online – if this is granted then new, exciting opportunities will arise for everyone

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MOBILE ADVERTISING

According to IAB Australia Data, Digital Advertising has Maintained its Strong Growth

IAB Australia | May 24, 2021

The Australian digital advertising market has maintained its high growth rate, rising 25.8% year on year to $2,883 million in the March quarter of 2021. According to the data from the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC, retail advertising is on the rise, while classified advertising is on the rebound, reflecting the general health of the Australian economy and growing customer trust. “Digital advertising continues apace, and we're seeing a diversification of the spend into a wider spectrum of opportunities through diverse digital offerings,” said Gai Le Roy, CEO of IAB Australia. There is no question that the Australian economy is recovering, but there is still plenty of space for expansion, with hopes that as borders reopen and supply chains improve, both the travel and automobile segments will increase investment in digital advertising.” All categories saw double-digital growth in the March quarter of 2020, with search and directories up 26.5%, general display up 28.9%, and classifieds up 18.5%. Although retail advertising has maintained a record share of display advertising investment over the last two quarters, it has continued to expand, now accounting for 16.4% of display advertising investment and leading video advertising investment. Finance advertising has also grown in popularity, and real estate has climbed to the top five industry sectors. Travel advertising has begun to recover as a result of the increase in domestic tourism, with both it and automotive advertising slightly higher than in previous quarters. Total video advertisement spending dropped marginally to $572 million in the March quarter, following a record $645 million in the December 2020 quarter. Meanwhile, programmatic trading of content publishers' video inventory rose in the March quarter, reaching 61% of total spending, compared to 34% bought through agencies. As an independent industry association with more than 150 members in Australia and approximately 9,000 globally spanning media owners, publishers, technology providers, agencies, and advertisers, the IAB aims to unite industry stakeholders to develop solutions to market issues and standards that are essential for the operation of digital advertising.

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MOBILE ADVERTISING

PubMatic and IAB Europe Reveal the State of Online Video Advertising Today and Predictions for the Year Ahead

PubMatic, IAB Europe | March 17, 2022

PubMatic (Nasdaq: PUBM), an independent technology company maximising customer value by delivering digital advertising’s supply chain of the future, in partnership with IAB Europe, today released an industry report titled “The State of Online Video Advertising in Europe”. The report highlights media buyers’ appetite to continue to increase investment in video advertising, in particular connected TV (CTV). Over 140 online video buyers from agencies and advertisers across 31 European markets took part in the survey-based research generating key insights such as: On average, digital media buyers are investing 36% of total ad spend in video advertising (excluding TV formats) The most frequently bought video advertising is mobile web with one-quarter of media buyers investing more than 61% of their digital budget in this channel Two-thirds of digital buyers are investing in CTV, albeit at a lower percentage of the total budget. “Media buyers are excited about the potential of CTV advertising as it offers a cost-effective way to reach audiences that are viewing far less traditional TV. This is appealing to big brands, while also opening an opportunity for smaller brands to invest in TV advertising without the big price tag attached to linear TV,” said Hitesh Bhatt, senior director, CTV/OTT, EMEA at PubMatic. “Media buyers are excited about the potential of CTV advertising as it offers a cost-effective way to reach audiences that are viewing far less traditional TV. This is appealing to big brands, while also opening an opportunity for smaller brands to invest in TV advertising without the big price tag attached to linear TV,” said Hitesh Bhatt, senior director, CTV/OTT, EMEA at PubMatic. The study also found that when media buyers find the same programmatic video inventory available via multiple sell-side platforms (SSPs) - which is often the case - almost half say performance KPIs are the most important factor in deciding which SSP to work with. This is followed by cost (26%) and data activation (16%) “This focus on KPIs as a deciding factor in SSP selection highlights the importance of maximising audience addressability – a known driver of better performance. Combining brand and publisher-owned first-party data, and independent ID solutions help better predict consumer behaviour and thus maximises the size, and accuracy of addressable audiences across the open web,” said Bhatt. “Today, A/B testing different addressability strategies is one of the best ways to establish which partners can deliver the best performance. Early tests show that a portfolio approach delivers the best performance,” said Bhatt. The deprecation of third-party cookies has changed buyers’ approach to online video advertising in browser environments, however, despite previous reliance on third-party cookies, programmatic remains strong with two-thirds of respondents allocating the majority of budget to programmatic channels. The key to driving more revenue into digital video will be solving a lack of cross-screen measurement cited by 46% as the biggest barrier, and 57% actively seeking more measurable formats. Despite measurement being a significant challenge, almost one-quarter (23%) of digital media buyers are planning digital campaigns as cross-screen including TV in that definition. Marie-Clare Puffett, senior manager, marketing & industry programmes, IAB Europe commented on the research: "IAB Europe and PubMatic's The State of Online Video Advertising study provides a view into the direction of travel in Europe for this growing advertising market. The findings will help advertisers, publishers and the broader digital advertising industry plan ahead, and make the most of the opportunities on offer. This report shows that advertisers view online video as a strong channel for brand building. However, there are also clear concerns around cross-device targeting that will need to be addressed for the value of online video advertising to be realised in full. Given the aptitude for innovation in the digital advertising sector, I have every confidence these concerns will be overcome and online video will continue as an important channel for brand building."

Read More

PROGRAMMATIC ADVERTISING

Preparing for a Cookieless Future with Contextual Advertising

Seedtag | August 24, 2021

Albert Nieto, co-CEO of Seedtag, explains why advertisers should invest in contextual targeting as the end of third-party cookies edges closer. Google recently announced that it is delaying its plans to phase out third-party cookies in the Chrome browser until 2023, a year later than it originally planned. However, while the announcement may feel like a backwards step in the battle for consumer privacy, the wider industry continues to press on with plans to deprecate the use of third-party cookies. Apple launched changes to IDFA (ID for Advertisers) as part of its iOS 14.5 update, which requires apps to ask users to grant permission to collect and share their data. What’s more, Mozilla and Firefox have already stopped the support for third-party cookies to track users on their browsers. Nevertheless, with Chrome accounting for 60% of all web traffic in the UK, this announcement still marks a seismic change for third-party cookies. This all leads to online advertising being pushed to adapt to a more privacy-driven web, giving end-users better control over their data. The 2022 timeline was always very ambitious, meaning this additional time has been welcomed by advertisers and publishers, as it provides them with more time to adapt. However, the transition to a cookieless world will not be a one-off switch, but an ongoing process for advertisers that is already underway. Removing the reliance on cookies In digital advertising, third-party cookies are widely used by ad tech companies to identify users on desktop and mobile devices for the purposes of targeting and reporting. Based on changes in consumer preferences on how their data is collected or used, brands will be forced to sever their dependence on cookies, shifting towards a future that meets new privacy standards. Businesses in the space can use this new era as an opportunity to solve some of the underlying issues linked to cookies, such as slow-loading and a lack of control over Publisher data for Editorial Groups, or cookie matching between different platforms for Advertisers. Furthermore, the reliance on cookies has made many marketers focus excessively on their targeting strategies, seeing them rely on questionable attribution models and embrace standard ad units pushing for a commoditisation of advertising. More often than not, some companies in the sector forget that the very reason why advertising exists is to create positive emotions in anyone that interacts with the brand. Contextual is the best answer and the only one available at scale While walled gardens will remain an option for advertisers to interact with their potential customers using first-party data, the big question is what will happen in the open web without cookies. Companies in the ad tech sector have two options: substitute cookies for an alternative technology that allows them to keep addressability on the web; or switch to privacy-first targeting options like contextual advertising. The ad tech industry is still in the early days of identifying an optimal solution for a post third-party cookie world. The problem with the cookie is not its technology, but its lack of privacy. With privacy concerns well and truly entrenched, no technology that fails to respect users will prevail. Contextual targeting using NLP (Natural Language Processing) and AI algorithms is not only available and workable at scale, but is also proving to be as effective as audience targeting was. The ability for brands to understand the content that the user is consuming at the time of the ad delivery will become a new and as-effective identifier for the target audience and their preferences. Contextual targeting combines relevance with the scale, precision, and seamlessness that is championed by programmatic media. Ensuring consumers’ privacy In terms of privacy, contextual advertising permits targeted marketing in highly relevant environments without requiring data from customers. It concerns itself with the context and meaning of advertising environments, not the behavioural patterns of online users. Therefore, it presumes that the user is relevant to the advertisement without ever relying on their historic behaviour. With real-time updates, the company’s contextual targets will automatically refresh to include new and relevant environments for the adverts, driving improved results and conversions. Another strategic advantage is that it enables advertisers to deliver messages to consumers when they are most receptive to brand messages. For instance, when a user is browsing content about a specific topic, it might imply their interest to make a related purchase. Overall, the ability for ad tech companies to target customisable contexts is essential, especially when operating in highly specific or niche markets. The future of ads With the ad tech industry on the path to a cookieless world, it’s now time to adapt and make sure that consumers are able to provide privacy-driven, digitally savvy end-users with better control over their data. As contextual targeting has proven to be effective with real-time updates and personalisation, many marketers are seeking it out as an alternative to third-party cookies. Many industries have successfully adapted to key defining moments and have ended up becoming larger and more profitable as a result. The creation of the internet, for instance, created global opportunities for travel agencies and those who embraced the change evolved from local or national companies into global businesses. Those who resisted the change, and didn’t put their clients first, probably don’t exist today. The advertising industry is not an exception and businesses must define their strategy backwards. Consumers want privacy in the same way they want to book their holidays online – if this is granted then new, exciting opportunities will arise for everyone

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MOBILE ADVERTISING

According to IAB Australia Data, Digital Advertising has Maintained its Strong Growth

IAB Australia | May 24, 2021

The Australian digital advertising market has maintained its high growth rate, rising 25.8% year on year to $2,883 million in the March quarter of 2021. According to the data from the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC, retail advertising is on the rise, while classified advertising is on the rebound, reflecting the general health of the Australian economy and growing customer trust. “Digital advertising continues apace, and we're seeing a diversification of the spend into a wider spectrum of opportunities through diverse digital offerings,” said Gai Le Roy, CEO of IAB Australia. There is no question that the Australian economy is recovering, but there is still plenty of space for expansion, with hopes that as borders reopen and supply chains improve, both the travel and automobile segments will increase investment in digital advertising.” All categories saw double-digital growth in the March quarter of 2020, with search and directories up 26.5%, general display up 28.9%, and classifieds up 18.5%. Although retail advertising has maintained a record share of display advertising investment over the last two quarters, it has continued to expand, now accounting for 16.4% of display advertising investment and leading video advertising investment. Finance advertising has also grown in popularity, and real estate has climbed to the top five industry sectors. Travel advertising has begun to recover as a result of the increase in domestic tourism, with both it and automotive advertising slightly higher than in previous quarters. Total video advertisement spending dropped marginally to $572 million in the March quarter, following a record $645 million in the December 2020 quarter. Meanwhile, programmatic trading of content publishers' video inventory rose in the March quarter, reaching 61% of total spending, compared to 34% bought through agencies. As an independent industry association with more than 150 members in Australia and approximately 9,000 globally spanning media owners, publishers, technology providers, agencies, and advertisers, the IAB aims to unite industry stakeholders to develop solutions to market issues and standards that are essential for the operation of digital advertising.

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