Ops in Question Archives - AdMonsters https://www.admonsters.com/category/ops-in-question/ Ad operations news, conferences, events, community Fri, 04 Oct 2024 17:19:12 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 Optable and The Globe and Mail Push for Data Collaboration with New Clean Room Partnership https://www.admonsters.com/optable-and-the-globe-and-mail-push-for-data-collaboration-with-new-clean-room-partnership/ Fri, 04 Oct 2024 17:19:12 +0000 https://www.admonsters.com/?p=661003 Like many mediums in ad tech, privacy-compliant technologies, or more specifically, data clean rooms are becoming oversaturated with solutions. So, data clean room providers must differentiate themselves from one another. Optable partnered with The Globe and Mail's advertising arm, Globe Media Group, to stand out in the marketplace.

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Optable’s partnership with The Globe and Mail aims to demonstrate how data clean rooms can transform audience targeting and campaign performance while ensuring privacy compliance

Like many mediums in ad tech, privacy-compliant technologies, or more specifically, data clean rooms are becoming oversaturated with solutions. So, data clean room providers must differentiate themselves from one another.

Optable partnered with The Globe and Mail’s advertising arm, Globe Media Group, to stand out in the marketplace. Following this collaboration and a successful campaign for VIA Rail, Optable wants the technology to enhance audience targeting and drive revenue growth through advanced data strategies.

For example, in their recent VIA Rail campaign, Optable’s data clean room matched VIA Rail’s customer data with The Globe and Mail’s subscriber base, enabling highly targeted advertising. 

We sat down with Bennett Crumbling, Head of Marketing, Optable, to understand how his approach achieved 3.4 times greater reach and 2.5 times more cost-effective results. 

Andrew Byrd: The ad tech industry has promoted data clean rooms as one of the major privacy-focused solutions, but some publishers seem hesitant to test them out. What would you say to them?

Bennett Crumbling: Like any new technology, there is an adoption curve. Organizations must adapt to fit these new solutions into their processes and find the right ways to capture the value they can create. Many misconceptions about data clean rooms are rooted in the idea that publishers either need loads of 1st party data and tons of engineering resources or give a large amount of money to what I call “ID middlemen” to make data collaboration work for them.

A couple of years ago, many thought DCRs were more of a luxury good used by the Disney & Netflix of the world rather than a core part of any publisher’s monetization strategy. What Globe & Mail has been able to accomplish, which is indicative of the types of success we have seen with tons of other publishers of varying shapes & sizes, is a clear sign that this is no longer the case.

We think data collaboration will become just as embedded in the planning, targeting & measurement stages of advertising as the DMP or the ad server. 

AB: Based on your data, Optable’s data clean room played a critical role in securely matching VIA Rail’s customer data with The Globe and Mail’s subscriber base. Can you explain how the data clean room ensures privacy and security while facilitating such collaboration?

BC: Optable’s data clean room technology ensures privacy by utilizing different  Privacy-Enhancing Technologies, or PETs, throughout the data collaboration process. Depending on the goal of the data collaboration, Optable’s platform provides purpose-built applications that use the appropriate encryption method to achieve these goals.

Whether the goal is to build a securely matched audience directly for targeting and activation or to share insights about audience behavior, we have developed end-to-end workflows that enable publishers and advertisers to easily complete a successful collaboration while always protecting individual identities from either party and ensuring audience privacy.

AB: The VIA Rail campaign achieved impressive results, including a 3.4X greater reach and a 2.5X lower cost per reach. What role did Optable’s technology play in achieving these outcomes, and how did you optimize inventory targeting for this specific audience?

BC: Optable’s clean room was pivotal in helping VIA Rail and The Globe and Mail securely match their data sets, enabling custom audience segments like “Lapsed Travelers” and “Mid-Week Travelers.” Our platform allowed for highly targeted ad placement, ensuring that VIA Rail reached the right people at the right time. Additionally, the lookalike modeling extended the campaign’s scale beyond direct matches, enhancing reach and cost efficiency. This level of precision and scalability is what drove the remarkable 3.4x greater reach and significantly lowered costs per impression.

AB: For publishers like The Globe and Mail, how does Optable’s platform help enhance audience engagement and grow readership through data-driven insights and targeting strategies?

BC: Optable’s platform allows publishers like The Globe and Mail to gain a deeper understanding of their audience by securely combining their first-party data with that of their advertising partners. This enables them to create highly relevant and personalized content and campaigns that engage specific audience segments. By leveraging data-driven insights, publishers can identify patterns in user behavior, tailor their offerings, and strengthen their value proposition to readers, all of which contribute to increased engagement and readership growth.

AB: How can publishers use Optable’s technology to monetize their first-party data better while maintaining a privacy-safe environment for their users?

BC: With Optable, publishers can securely unlock the value of their first-party data by collaborating with advertisers without compromising privacy. They can offer advertisers highly valuable audience packages and insights for targeted campaigns using clean room technology. This privacy-safe approach ensures compliance with data regulations and builds trust with users, who can feel secure knowing their data is protected.

This represents a significant opportunity for publishers to monetize their data through bespoke partnerships and premium advertising deals.

AB: How does Optable help publishers build stronger relationships with advertisers, like in the VIA Rail campaign, and what are the long-term benefits for both parties in this type of collaboration?

BC: Optable’s clean room technology enables deeper collaboration between publishers and advertisers by facilitating seamless, privacy-safe data sharing.

In the VIA Rail campaign, The Globe and Mail provided VIA Rail with unique audience insights based on their rider’s behavior and with Globe & Mail readership insights, leading to more effective campaign targeting. This type of data collaboration not only enhances campaign performance but also strengthens the trust and relationship between publishers and advertisers.

In the long term, these partnerships can evolve into mutually beneficial deals, such as subscription bundling or co-branded offerings, which drive revenue and engagement.

AB: What advice would you give to publishers just starting to explore data clean room solutions? How can they leverage these tools to create more effective partnerships with advertisers?

BC: My advice would be to start small but test ASAP – test clean room solutions on specific campaigns and with trusted partners to understand their value. Clean rooms allow publishers to unlock their first-party data and offer advertisers deeper insights and more precise targeting, which enhances campaign outcomes. Over time, as publishers get comfortable with the technology, they can expand their data collaboration to build stronger, more data-driven relationships with advertisers.

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How PinkNews Leveraged OpenWeb to Boost User Engagement and Data Collection https://www.admonsters.com/how-pinknews-leveraged-openweb-to-boost-user-engagement-and-data-collection/ Mon, 23 Sep 2024 14:15:27 +0000 https://www.admonsters.com/?p=660726 PinkNews, a leading LGBTQ+ news and entertainment platform, partnered with OpenWeb to create a safer, more engaging space for its audience. Together, they are driving deeper user engagement while building robust first-party data. Through this collaboration, PinkNews is strategically expanding its loyal user base.

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The partnership between PinkNews and OpenWeb is driving robust first-party data collection and enhancing civil reader interactions.

PinkNews, a leading LGBTQ+ news and entertainment platform, partnered with OpenWeb to create a safer, more engaging space for its audience. Together, they are driving deeper user engagement while building robust first-party data. 

Through this collaboration, PinkNews is reaffirming its commitment to cultivating a supportive and respectful environment for its readers and strategically expanding its loyal user base. In today’s digital media landscape, publishers must focus on understanding and growing  their audience. 

“Our partnership with OpenWeb has empowered us to build an engaged and loyal readership—a key part of our growth strategy,” explains Sarah Watson, Chief Product Officer of PinkNews.

OpenWeb’s scalable content moderation technology has enabled PinkNews to expand its commenting feature to all visitors, resulting in a 200% increase in new registrations — a significant shift from its previous policy of limiting comments to paid subscribers.

In an AdMonsters exclusive interview, Watson highlights how important it is to listen to your consumer base. 

Andrew Byrd: Can you share more about the strategic decision behind partnering with OpenWeb and how it aligns with PinkNews’ overall growth and community engagement goals?

Sarah Watson: PinkNews has an incredibly vast and loyal user base across its various owned and operated platforms and social channels. Therefore, it was important for us to create a sense of community on our site.

In the past, we’ve enabled our readers to comment on articles and engage with one another, but maintaining a safe environment and keeping conversations civil with man-power alone became more and more of a challenge. By partnering with OpenWeb, we were able to relaunch commenting capabilities and reestablish open discussion and debate on topics and articles that our audience is passionate about. OpenWeb removed the heavy lifting of content moderation, enabling us to spend more time doing more exciting things, like analyzing discussion topics for future articles, joining conversations, and being entertained by our passionate readers.

AB: How has integrating OpenWeb’s AI-powered community experiences transformed how PinkNews engages with its readers?

SW: Given the incredibly high engagement levels we see across our social platforms, we were keen to create a safe space for our readers to interact with one another on the website and apps. Partnering with OpenWeb has helped us cultivate meaningful user engagement, boosting key metrics such as time spent on site, page views, and user lifetime value.

AB: Given that comments were previously limited to paid subscribers, what impact have you seen from opening comments to all visitors, especially regarding user engagement and loyalty?

SW: In a recent Reader Survey, which we run regularly, our readers already told us they were keen for comments to be released from the paywall.

They spoke, we listened, and we’re glad we did, as we saw an instant spike in registrations, and engagement with comments has continued to grow WoW ever since.

AB: Building robust first-party data is crucial for publishers. How is this partnership helping PinkNews enhance its first-party data collection, and what benefits are you seeing from this data?

SW: At PinkNews, several features are currently available to readers registering an account with us. These include a hand-curated daily newsletter, the ability to save articles, and now commenting. Our ethos is to only ask for data from our readers if we give something back in return, and the data we collect is minimal.

We want to create a unique and engaging experience for every reader, so by knowing a bit more about them, we can curate our content to suit them and engage with brands that are looking to target specific audiences with specific brand affinities or characteristics.

AB: Could you elaborate on the 200% increase in new registrations since partnering with OpenWeb? What factors have driven this surge, and how do you plan to sustain it?

SW: We have a highly engaged and loyal community, and we could see from our social channels that people were keen to start healthy discussions with one another. By removing the paywall from comments, we saw an instant surge in usage as there was no longer a barrier to entry. The registration process is very simple and straightforward, and there are no limits on how many times people can comment. All we ask for is that our readers keep things civil. 

AB: What specific challenges has PinkNews faced in fostering healthy conversations online, and how does OpenWeb help you overcome these challenges?

SW: PinkNews is not alone when it comes to facing moderation challenges. The vast majority of our audience wants to share opinions and have civilized discussions. Still, there’s a small subset of people and a large number of bots who see an open commenting field as an opportunity to spread misinformation and hate speech.

Through our partnership with OpenWeb, we are using technology to help us differentiate those individuals (whether human or bot) so that we can create a sense of community without alienating or upsetting our loyal readers.

AB: How do you see the partnership with OpenWeb evolving, and what future initiatives or goals do you hope to achieve together?

SW: Our partnership with OpenWeb has empowered us to build an engaged and loyal readership—a key part of our growth strategy. Thanks to their moderation technology, we’ve opened our comments to all users while ensuring conversation remains respectful and productive.

OpenWeb has a number of other initiatives that we’re keen to explore, which align with our goal of continuing to engage our readers and encourage repeat visits to our website and apps.

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AdLib Media Group and Jounce Media Join Forces to Combat MFA Traffic https://www.admonsters.com/adlib-media-group-and-jounce-media-join-forces-to-combat-mfa-traffic/ Thu, 22 Aug 2024 16:36:30 +0000 https://www.admonsters.com/?p=659802 In an effort to guarantee that advertisers focus their media investments on premium publishers to drive real consumer engagement, AdLib is providing agencies with tools to optimize their digital ad spend by connecting Jounce Media's advanced MFA detection technology to automatically block low-quality traffic.

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AdLib Media Group partnered with Jounce Media to enhance programmatic advertising by automatically blocking low-quality MFA sites.

The MFA site traffic craze was a hot topic in ad tech last year. Many questioned: are all MFA sites bad? What exactly distinguishes what an MFA site is? At the time of the craze, MFA sites made up 15% of global programmatic ad spend, but agencies were working to combat them, much like AdLib and Jounce, and are working on them now. 

In a strategic move to enhance the quality and effectiveness of programmatic advertising, AdLib Media Group has announced a partnership with Jounce Media by integrating its MFA detection technology. 

In an effort to guarantee that advertisers focus their media investments on premium publishers to drive real consumer engagement, AdLib is providing agencies with tools to optimize their digital ad spend by connecting Jounce Media’s advanced MFA detection technology to automatically block low-quality traffic. 

“MFA websites are a growing threat to advertiser success. By integrating Jounce Media’s technology, we can safeguard client campaigns against wasted media investment,” said Mike Hauptman,founder and CEO of AdLib.. 

Jounce Media President Chris Kane echoed this sentiment. If the industry proactively blocks low-quality traffic, it ensures that media investments go toward genuine publishers that influence consumer purchase decisions.

Mike Hauptman: The Future of Programmatic Advertising

Andrew Byrd: Why did AdLib partner with Jounce Media specifically to block MFA traffic? What stood out about their solution?

Mike Hauptman: We partnered with Jounce Media because their approach to detecting and blocking MFA traffic is both innovative and reliable. 

What really stood out to us was their ability to dynamically identify and classify MFA sites, ensuring that we’re always one step ahead of the curve. 

They don’t just rely on static lists—they continuously update and refine their detection methods, which is crucial given how quickly MFA sites can evolve. This level of precision and their commitment to transparency made them the perfect fit for AdLib, where our goal is to deliver the highest quality media experiences for our clients.

AB: How does this partnership align with AdLib’s broader mission and strategy within the programmatic advertising space?         

MH: This partnership is a natural extension of our mission to make premium programmatic advertising accessible to all agencies, regardless of size. Our strategy has always been about reducing complexity and increasing transparency in the ad buying process. 

By integrating Jounce Media’s technology, we’re ensuring that our clients can trust the inventory quality they’re purchasing. It’s about removing the guesswork and inefficiencies that have long plagued programmatic, particularly for mid-market agencies that don’t have the resources to tackle these issues on their own.

AB: What impact do you expect this partnership to have on your client’s campaign performance and overall media investment?

MH: The impact is going to be significant. By automatically blocking MFA traffic, our clients will see a reduction in wasted ad spend and an improvement in campaign performance. MFA sites are notorious for inflating metrics without delivering real value, so by eliminating them, we’re ensuring that our clients’ budgets are directed toward high-quality, impactful placements. This not only boosts performance metrics like engagement and conversion rates but also enhances brand safety and reputation. 

AB: How do you plan to further enhance AdLib’s DSP platform with similar integrations in the future?         

MH: We’re always looking for ways to bring best-in-class tools and technologies to our platform. The Jounce partnership is just the beginning. Moving forward, we plan to integrate additional solutions that address other pain points in the programmatic space. Our focus is on building a platform that’s not only powerful but also easy to use, so our clients can focus on strategy and creativity rather than the technicalities of media buying.

AB: What steps will AdLib take to educate and onboard clients about this new feature and ensure they fully leverage its benefits?

MH: The beauty of this integration is that it’s completely turnkey and automatically enabled for all AdLib clients at no additional cost. There’s no setup required—clients will immediately benefit from enhanced ad quality without lifting a finger. We’ll also provide insights through the platform to highlight the positive impact on their campaigns.

AB: Are there any initial testing results to share after Jounce integrated its MFA detection tech into your DSP?

MH: While we’re still in the early stages of gathering comprehensive data, the initial results from our beta testing have been very promising. We’ve already seen a noticeable decrease in MFA traffic, leading to a more efficient ad spend allocation and improved campaign outcomes. We’re excited to share more detailed results as we collect data.

Chris Kane: Accelerating the Shift Toward Premium Supply

AB: We’ve discussed the MFA problem. What is the current state of Made for Advertising sites from your perspective? Has the ad tech industry gotten better at eliminating MFAs?

Chris Kane: Because MFA publishers are highly dependent on paid traffic, the availability of MFA supply is extremely responsive to buyer behavior. As buyers spend more on MFA inventory, those publishers can afford to buy more paid traffic. And as buyers pull back their spending on MFA sites, those publishers can no longer profitably buy traffic. 

The result was a giant run-up in the availability of MFA supply from 2020 through mid-2023, peaking at 30% of all web auctions. But as marketers have implemented MFA blocking solutions, MFA has contracted to less than 10% of web auctions. Still, MFA is a very large share of available supply, and buyers need to actively manage whether they participate in MFA auctions.

AB: Please remind us how Jounce Media developed the technology to accurately identify and block MFA sites. Can you walk us through the process?

CK: We post our criteria for classifying inventory as MFA here. We perform a battery of tests every day on every RTB-traded website to quantify whether each domain meets our criteria for MFA classification. Based on that daily-updating process, we regularly add and remove sites from our MFA list, and AdLib will now similarly continuously modify their default exclusion list to block new sources of MFA supply and re-enable bidding on sites that have retooled their operations to create a premium advertising experience.

AB: How does Jounce Media differentiate between MFA sites and legitimate publishers that might have similar characteristics?

CK: In addition to the process described above, we publish our complete MFA list to all of our clients via dashboards and data feeds on a daily-updating cadence. There are over 3,000 advertising professionals from over 100 companies that have direct access to our data, making our MFA list far more transparent and far more pressure tested than any other solution in the market.

AB: In your opinion, how will this partnership with AdLib impact the broader industry’s approach to MFA supply?

CK: In addition to benefiting their clients, AdLib’s decision to block MFA supply by default will accelerate an industry-wide shift toward premium supply. SSPs feed DSPs what they eat. 

When buyers shift their spending patterns away from MFA supply toward premium publishers, SSPs reshape the mix of ad opportunities that they make available to DSPs. Premium publishers are more available in the bidstream today than they were last summer, and AdLib’s decision to block MFA will accelerate this trend.

AB: What are the next steps for Jounce Media to improve and expand its technology to identify low-quality traffic?

CK: We are continuously researching new sources of supply chain inefficiency and new opportunities to deploy RTB investments more effectively. Among other topics, we are currently studying the landscape of in-stream video, benchmarks on ad density, and the accuracy of user targeting signals.

AB: Can you share any initial testing results after integrating your MFA detection tech into AdLib’s DSP?

CK: In July 2023, MFA bid request volume was at 30% but has since decreased to 10%. Through their partnership, AdLib and Jounce are committed to implementing best practices to reduce this percentage further.

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Deck the Halls With Votes and Direct Mail: Mastering Holiday Campaigns in an Election Year https://www.admonsters.com/deck-the-halls-with-votes-and-direct-mail-mastering-holiday-campaigns-in-an-election-year/ Fri, 16 Aug 2024 21:48:07 +0000 https://www.admonsters.com/?p=659725 Direct mail offers a stable and predictable alternative amidst fluctuating digital ad rates. Unlike digital channels, where ad placements can be unpredictable and subject to rapid rate increases, direct mail provides a consistent and reliable medium. This channel's ability to lock in rates and deliver stable results makes it an attractive option for brands looking to diversify their advertising strategy.

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With the holidays and the 2024 election approaching, Yakira Young, AdMonsters’ Content Manager, sat down with the Postie team to discuss best direct mail practices for brands during this dynamic time.

Digital advertising is becoming increasingly complex, and honestly, this won’t change for some time. While the advertising ecosystem is strategically preparing for the long haul, peak season is upon us and before you know it, summer will be gone.

With transparency and media quality at the top of publishers’ minds, it will be interesting to see how Q4 plays out. External factors such as Google’s decision to maintain third-party cookies are only further complicating things.

For brands, brand safety is a major concern, especially during election season like this one where advertisers are projected to spend over $12B on ads across all channels. With brands opting out of placing ads next to election content, or news entirely, the question arises, what do brands have to be afraid of?

At the recent AdMonsters Publisher Forum in Boston, Jana Meron, the newly appointed VP of Revenue Operations and Data at The Washington Post, challenged the conventional wisdom around news and brand safety. Speaking to a packed room of publishers and tech vendors, she questioned, “Why would you avoid reaching this audience when they’re most engaged?”

A few years ago, an IAB study found that 84% of consumers trust brands they see in the news, which highlights the importance of addressing misconceptions about news content. Yet, despite this trust, Resonate’s Fall 2024 Consumer Trends Report tells us that consumer spending is down, which is no bueno for publishers, brands, and agencies already grappling with declining ad revenue and sales.

“The challenge continues for advertisers trying to navigate trust and brand safety,” said Jonathan Neddenriep, co-founder and CTO of Postie. “This also puts pressure on the large tech platforms to double down on ad and content safety tools, something that isn’t always a popular or easy investment (see the Meta CrowdTangle shutdown, for instance.)”

So, what’s a brand to do during times like these?

I recently moderated a webinar with Neddenriep and Bethany Bollenbacher, Customer Success Senior Team Leader at Postie, where they dropped a ton of jaw-dropping gems to help brands stay afloat. If one thing is for sure, and two things are for certain, brands should definitely incorporate direct mail into their strategies. With Postie, direct mail now offers digital capabilities like real-time reporting, website re-targeting, and targeting that exceeds even digital channels. 

Here are some insights and strategies to help brands navigate holiday and election campaigns.

  • Election Season: The Catalyst for Surging  Ad Rates
    During election years, the surge in political ad spending significantly impacts ad rates on major platforms like Meta and Google. The bid-based nature of these platforms intensifies competition for ad slots, driving up CPMs and CPAs. This situation is particularly challenging for ecommerce brands looking to grow during the holiday season. To navigate these fluctuations, brands should develop conservative forecasts for CPMs and explore alternative channels with more stable performance metrics. Implementing digital campaign levers like cost-capping can also help protect your budget from being drained by the rising cost of ad slots.
  • Leveraging Direct Mail for Stability
    Direct mail offers a stable and predictable alternative amidst fluctuating digital ad rates. Unlike digital channels, where ad placements can be unpredictable and subject to sudden rate hikes, direct mail provides a consistent and reliable medium. Its ability to lock in rates and deliver steady results makes it an attractive option for brands looking to diversify their advertising strategies. Additionally, direct mail’s physical separation from digital noise can enhance brand safety—a key concern during politically charged periods.
  • Develop Strong Personalization and Creative Strategies
    Personalizing direct mail is key to maximizing engagement and conversions. While basic tactics like adding a recipient’s name may have limited impact, tailoring offers relevant to the specific needs of each household can significantly boost engagement. For example, offering loyalty rewards or promoting local pickup to save on shipping can make direct mail more enticing. Additionally, tapping into the nostalgic and emotional appeal of the holiday season in your creative strategies can strengthen consumer connection and drive purchasing behavior. As Bollenbacher puts it, “Keep it warm, fuzzy, and cheesy!”
  • Hone in on Your First-party Data
    First-party data remains a vital brand asset, especially as third-party data faces increasing scrutiny and regulation. By leveraging first-party data, brands can gain deeper insights into consumer behaviors and optimize their marketing efforts. Retail media networks, which capitalize on this data, are gaining traction to support both retailers’ and brands’ growth objectives. This data-driven approach enables precise targeting and personalization, enhancing overall campaign effectiveness. During a session at AdMonsters Ops titled “Retail Media In-Housing: It’s the New Wave,” speakers stressed how crowded the retail media space has become. To stand out, one strategy for RMNs is to tap into direct mail, a far less crowded medium in RMN.
  • Remain Flexible to Keep up With Consumer Habits
    To run effective holiday campaigns, it’s crucial to understand and align with consumer habits. Different industries follow unique seasonal patterns, so your marketing should reflect these trends. For example, gift-giving behaviors ramp up in early Q4 while sectors like home services decline — no one wants to start a home improvement project on Thanksgiving when everyone is focused on eating. Brands can optimize their campaigns by targeting consumers at the right times and revisiting CRM strategies to encourage multiple purchases during the holiday season, boosting lifetime value.
  • Understanding Publisher Concerns
    Publishers are facing a host of challenges, with transparency and diversity in advertising being especially critical for niche publishers striving to stay afloat. Media quality verification remains is also a hot topic, with industry experts debating its effectiveness. At Publisher Forum Boston, Claire Atkin from Check My Ads highlighted these issues, calling for ongoing dialogue and efficiency improvements. In this challenging environment, publishers need strong strategies to maintain and strengthen their market positions.

A Worry-free Approach to Surviving Q4

Navigating holiday campaigns during an election year requires a multifaceted approach, balancing digital and traditional channels, and better leveraging first-party data, while understanding consumer habits. 

Brands and agencies must stay agile and prepare for fluctuating ad rates while optimizing strategies to cut through the political and holiday noise. Direct mail offers a stable, effective alternative, and personalized, emotionally resonant creative strategies can drive consumer engagement. Ultimately, a well-rounded, data-driven approach will empower brands to succeed even in the most challenging advertising landscapes.

Don’t sleep on the power of direct mail. To watch the full discussion click here.

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The Shift to Community-Driven Revenue in Digital Publishing a Q&A with Max Weiss, OpenWeb https://www.admonsters.com/the-shift-to-community-driven-revenue-in-digital-publishing-a-qa-with-max-weiss-openweb/ Fri, 16 Aug 2024 17:00:12 +0000 https://www.admonsters.com/?p=659716 This new era of journalism is sticky for publishers. They are currently faced with revenue loss, layoffs, and much more since tech giants are prioritizing clicks over quality content. To stay afloat, publishers continue to focus on diversifying their revenue streams. From launching e-commerce platforms to fostering vibrant online communities, they are rethinking their strategies to build stronger, more direct relationships with their audiences.

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Publishers are turning to community engagement and diversified revenue strategies to combat the threats of the changing digital media industry and ensure their long-term sustainability. 

This new era of journalism is sticky for publishers. They are currently faced with revenue loss, layoffs, and much more since tech giants are prioritizing clicks over quality content. They invest heavily in creating reliable information, yet the rise of AI-fueled search results threatens to divert traffic away from their sites, potentially cutting off vital revenue streams. 

To stay afloat, publishers continue to focus on diversifying their revenue streams. From launching e-commerce platforms to fostering vibrant online communities, they are rethinking their strategies to build stronger, more direct relationships with their audiences. This shift not only helps mitigate the risks posed by AI-driven search engines but also enhances brand safety and boosts audience lifetime value. By embracing these changes and prioritizing community engagement, publishers can create sustainable business models that support quality journalism.

We spoke with Max Weiss, OpenWeb’s Chief Strategy Officer, about his work at OpenWeb, how the new era of digital media is affecting publishers, and ways they can thrive in this new norm.  

Andrew Byrd: Can you walk me through the work you do at OpenWeb?

Max Weiss: OpenWeb is on a mission to build a healthier open internet. We do this the best way we know how: by building innovative technologies that turn content creators (publishers, brands) into the hosts of thriving, healthy communities. Our best-in-class moderation tech leverages AI to keep those communities healthy and engaging, bringing data and revenue to publishers. Today, we work with more than 5,000 top-tier publishers, hosting more than 150 million active users each month.

As the Chief Operations Officer, I collaborate with our CEO & founder, Nadav Shoval on our mission to help the media industry thrive on the open internet (simple, right?). On a day-to-day basis, I spend a lot of time meeting with leaders in the media industry and working with my teams (product, partner success and trust & safety most often) to help them solve their problems, from audience retention to addressability.

AB: How has the media industry evolved recently, and what are the main challenges publishers are facing today?

MW: Even for an industry marked by constant change, the past year has been eventful. We’ve seen a lot:

  • Huge advances in AI changing everything from traffic sources to staffing needs.
  • Dramatically falling search and social media referral traffic.
  • Google’s flip flop on deprecating third-party cookies more times than I care to recount. 
  • Slow-moving but advancing government regulations.
  • New social channels for reaching and engaging audiences (which tends to further distract publishers and drain their resources).
  • And more…

All together, this means many publishers face risks to their bottom line. There’s a widespread acknowledgement that they need to diversify revenue streams. That’s where we come in – we believe, as do an increasing number of publishers, that building a strong, loyal community is the best way to push back against the tide.

AB: Can you elaborate on the importance of diversifying revenue streams for publishers and how it can impact their sustainability?

MW: From ecommerce and events to entirely new and productized verticals (like for instance, WSJ’s Buy Side and recipes vertical), publishers are doing so much to diversify their revenue. These initiatives are most successful when they’re built on top of a thriving, loyal community — one that congregates around the publishers’ content, most commonly in the comments sections. That community of users and super users multiply the impact of everything else a publisher does to diversify revenue. After all, if a publisher launches a store, who do you think is buying the t-shirt or hat with the publishers’ logo on it?

To get there, publishers need to change their mindsets. They need to begin to think about their content at the beginning of a conversation and themselves as the host of that conversation, rather than simply posting content to social media or their website. We’ve seen it work countless times. A strong community increases time on site, pages per session and return traffic — and increases revenue.

AB: How is AI influencing search results, and what are the potential benefits and drawbacks for publishers?

MW: AI-powered search is just the latest example of how tech companies are taking publishers’ content, monetizing it, and then keeping that new revenue for themselves.

AI-powered search is an existential threat to publishers as it cuts them off from any form of revenue they would generate from web traffic. 

At worst, this is a zero-sum game: AI results keep traffic on search engines themselves, and away from publishers. But publishers are pivoting and building direct traffic streams to rely less on SEO and more on strategies that use 1:1 relationships with users to bring traffic directly to their own sites. By turning inward, publishers will be able to focus on what they do best – fostering and hosting communities around content –something an AI search summary can never do. 

AB: Can you explain the role of community engagement platforms like OpenWeb in helping publishers build a community of registered users?

MW: OpenWeb provides publishers a tailored and unique community engagement experience. The community is similar to a social media platform, all hosted directly on their properties. OpenWeb fosters engaged conversations around topics that matter, in turn, building loyalty with their readers.

A staggering 88% of online users won’t return to a site if they have a bad peer-to-peer experience. In short: negative interactions can cause readers to completely write off a site, even if they aren’t part of the conversation.

Healthy community drives more registrations by converting passive readers into engaged and registered users. Online, engaged communities can help publishers make more revenue from their readers, by making their site a destination and engaging with users. 

AB: How can publishers balance the need for premium inventory with ensuring brand safety and focusing on audience lifetime value?

MW: Thanks for this question. This is one of the things we at OpenWeb have spent years working on. Publishers can increase LTV and maintain high levels of engagement by hosting a community — starting with comments. That has been known for decades, at this point. But starting in the mid-2010’s, brand safety and suitability were called into question. 

As a result, publishers got out of the habit of interacting with their users on their own properties, and outsourced those community-building efforts to the social platforms. But, with advances in AI and Machine Learning, it is now not only possible but profitable for publishers to host healthy, engaged communities at scale. Quality conversations are one of the best ways to transform casual visitors into loyal users who drive more engagement, spend more time on-site, and are more likely to return over time — that’s LTV.

The post The Shift to Community-Driven Revenue in Digital Publishing a Q&A with Max Weiss, OpenWeb appeared first on AdMonsters.

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What Apple’s Distraction Control Means for Publishers https://www.admonsters.com/what-apples-distraction-control-means-for-publishers/ Wed, 14 Aug 2024 13:26:02 +0000 https://www.admonsters.com/?p=659661 Apple's new Distraction Control feature could reshape digital advertising, affecting how publishers engage users and generate revenue. In this exclusive Q&A, Vegard Johnsen from eyeo explains what this means for the future of online content and advertising.

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Apple’s new Distraction Control feature could reshape digital advertising, affecting how publishers engage users and generate revenue. In this exclusive Q&A, Vegard Johnsen from eyeo explains what this means for the future of online content and advertising.

In June, we had an exclusive sit-down with Vegard Johnsen, Chief Product Officer at eyeo, who predicted Apple was brewing something big with its Web Eraser feature.

Fast forward to August, and Apple officially introduced Distraction Control — an evolution of the Web Eraser concept that’s already sending ripples through the industry.

What Is Distraction Control?

Distraction Control is not just a fancy pop-up blocker. It’s a user-empowerment tool enabling Safari users the power to hide distracting elements on websites. While Apple carefully distinguishes this feature from traditional ad blockers, the implications are clear: publishers and advertisers must rethink their strategies to survive.

The feature has sparked controversy, especially among publishers who rely on ad revenue and subscription prompts to stay afloat. Apple’s quiet roll-out of Distraction Control in the latest iOS 18 beta is a stark reminder that the tech giant isn’t afraid to shake things up in the name of user experience.

In this follow-up Q&A, Vegard Johnsen returns to share his insights on how Distraction Control could affect publishers, advertisers, and the broader ecosystem. Spoiler alert: this is just the beginning of a new era where user experience reigns supreme, and publishers must evolve — or risk becoming obsolete.

The Revenue Impact: Are Subscription Models at Risk?

Lynne d Johnson: How do you foresee Apple’s Distraction Control feature affecting publishers’ ability to generate revenue, especially those relying on subscription sign-ups and mailing lists?

Vegard Johnsen: Subscription sign-ups, mailing lists, and similar mechanisms to generate revenue are a numbers game. Most users ignore or dismiss these messages most of the time. There have always been incentives to reach the right user at the right time, with the right message. But for the most part, the cost of being lazy was low, so many were lazy, deploying spray-and-pray tactics. Now, with Distraction Control, being lazy is going to get more expensive because users will have more agency in removing these elements.

However, I do imagine that some kind of crowdsourcing of user action is on the roadmap in the future. The obvious way to go with this feature is to offer users to opt-in to crowdsourced feature removal. In that case, the impact could be quite significant since it wouldn’t be limited to just the individual user.

But perhaps this is good news for high-quality content creators who engage with the user respectfully, at the right time, and with the right message. It may lead to these “good” publishers standing out with more signal amongst the noise. Ultimately, there would be fewer bad apples (no pun intended) to spoil the bunch.

Ad Blocker or Not? Understanding the Fine Line

LdJ: Distraction Control has been described as not being an ad blocker. How does this distinction affect the broader ecosystem of online advertising and content monetization?

VJ: One could easily imagine this feature evolving to better cover dynamic content. The biggest reason for that development is simple game theory — there will now be an incentive to make ‘everything’ dynamic (i.e., adding dynamic elements to subscription sign-ups and mailing list prompts).

Striking the Right Balance: User Experience vs. Publisher Needs

LdJ: What balance should be struck between enhancing user experience by removing distracting content and maintaining publishers’ needs to engage users with necessary overlays like cookie consent and subscription prompts?

VJ: That balance has always been necessary, of course, but Distraction Control takes it to a new level. Now users have more choices if they are not happy — not just by bouncing off the site but by also taking control and removing elements. For elements where data is available and timing is discretionary (such as subscription prompts), it becomes extremely important to show the right message at a time that works for the user. Failure to do so may mean the dialog is gone forever.

For other messages where timing and/or data is not available to customize (such as cookie consent notices), one could expect to see pre-messages (such as the ones that often precede the IDFA dialog box) warming up the user. But, perhaps this is also going to spur the industry to move away from dark patterns — from asking for consent for 900 vendors and instead towards asking for a more reasonable number, thereby making the UX more balanced.

For sites to get signals on what direction to take, it would be great to see some kind of feedback feature for the content owner. This feature could share details on what elements are being removed, so publishers can learn what users have issues with and what they don’t.

Industry Response: Adaptation or Resistance?

LdJ: Given the concerns raised by industry associations about similar features in the past, how do you think publishers and advertisers might adapt to or resist this new feature?

VJ: One obvious way the industry might resist is to start adding dynamic elements to messages to avoid ‘detection’ by this feature. But, that kind of cat-and-mouse game would incentivize Apple to make the feature more blunt and powerful, so this is not a good path. Given that, at least for now, the feature requires users to actively remove the content.

So, the reasonable path will be to ensure that the elements on the page stay below the activation threshold. By having a good ratio of content to other elements, and by reducing and avoiding distractions and interruptions, users will have no reason to take action.

The Future of Content Monetization: Evolution or Revolution?

LdJ: What long-term implications do you see for content creators if features like Distraction Control become standard across browsers? Could this lead to new forms of content monetization?

VJ: To me, this is simply an evolution of users taking control of their online experience. They have plenty of options today, from choosing a browser to suit their needs to installing extensions and apps to improve their visual, privacy, and data experience. Browsers are a competitive space, particularly post-DMA, so I would be surprised if other browsers did not follow suit, particularly if this feature proves to be popular with users.

Fundamentally, users are happy to support content creators, but they want the balance to be right. Given that I don’t see the need for new forms of content monetization or any special action by content creators, when it comes to those publishers with a good user experience already, this is something to celebrate.

Rethinking Ad Strategy: Opportunities Amid Challenges

As publishers and advertisers grapple with the implications of Apple’s Distraction Control, the focus must shift toward more user-friendly ad strategies. One effective approach could be reducing intrusive pop-ups in favor of smaller, more subtle placements that integrate seamlessly with the user experience. There’s also potential value in publishers seeking direct buys with advertisers, which can ensure higher quality placements than those typically filled by programmatic platforms.

Interestingly, the need for users to actively hide ads creates a unique opportunity, as those ads might attract more attention offering useful insights into user behavior. Still, the key to thriving this new thorn in your side is to prioritize user experience.

The post What Apple’s Distraction Control Means for Publishers appeared first on AdMonsters.

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Transforming Ad Tech: An Exclusive Chat with The COOL Company’s CEO Zack Dugow https://www.admonsters.com/transforming-ad-tech-an-exclusive-chat-with-the-cool-companys-ceo-zack-dugow/ Wed, 31 Jul 2024 18:38:07 +0000 https://www.admonsters.com/?p=659220 The new ad tech company, formed when Insticator recently acquired ADventori, seeks to mend the fractured ecosystem. Founded on the principles of creating a better experience for everyone, their comprehensive suite of solutions is tailored for every sector. Unfortunately, dissatisfaction is everywhere you look in our industry, but the COOL company aims to change all of that.

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The COOL company is on a mission to revolutionize our broken ad tech ecosystem with innovative solutions that transform the entire spectrum. 

The “COOL” Company isn’t just a name; it’s a way of being. 

The new ad tech company, formed when Insticator recently acquired ADventori, seeks to mend the fractured ecosystem. Founded on the principles of creating a better experience for everyone, their comprehensive suite of solutions is tailored for every sector. Unfortunately, dissatisfaction is everywhere you look in our industry, but the COOL company aims to change all of that.

  • Advertisers are unhappy with the results and the lack of transparency in their spending. 
  • Publishers are frustrated with their ad revenue and how to maximize it.
  • Agencies struggle to show results and find effective d channels for their clients.
  • Franchise and other network businesses are frustrated by the gap between national branding and local ad execution.
  • Worst of all, users are dissatisfied with the number and quality of ads they see. 

The ad tech ecosystem is in shambles, filled with too many competing interests, technology limitations, and outdated thinking. The COOL company is tackling this by serving each audience individually while uniting their ideas and tech for a rewarding experience for everyone.

The ADventori acquisition will boost personalization and improve user and advertiser experiences. The ADventori Dynamic Creative (DCO) platform helps brands align ad placements with their specific goals, allowing them to reach consumers effectively.

According to CEO and founder Zack Dugow (C.O.O.L.) stands for:

  • CREATIVE: Respecting great ideas from everyone. 
  • OPTIMISTIC: Solving daunting challenges with a positive attitude. 
  • OPEN MIND: Welcoming innovative concepts and diversity.
  • LEADERS: Tackling industry complications head-on.

We spoke to Zack about The COOL Company’s future and their plans to bridge the gap. Here’s what he had to say.

Impact on Publishers, Advertisers, and Agencies

Yakira Young: How will the ADventori acquisition enhance your capabilities in integrating advertisers, agencies, data, and publishers?

Zack Dugow: Our SSP, Balihoo.com, and COOLmedia.co business units benefit directly from integrating the ADventori technology into the stack, along with the customer cross-sell opportunities that are already underway. ADventori works with some amazing publishers and brands, including Disney, Airfrance, Hyundai, and many others, to which we can now offer other solutions. 

When looking at other DCO solutions in market, they seem very expensive for the value they drive. ADventori has a DCO platform built to serve the right ad to the right person at the right time with the most compelling content and format. Their ads, frankly, just work better. That’s a boon for publishers who live and die by ad engagement, advertisers who just want meaningful results, brands and partners who want to know that their investments pay off, and users who just want to enjoy the web and see relevant, helpful, attractive ads. 

Everyone wins with ADventori. It helps us because it allows us to better serve our clients in all of those roles – everyone gets a better experience through more personal advertising.

Users will see the right ad, with the right content/offer, at the right time, exactly according to the branding guidelines. That helps advertisers achieve better outcomes and return on their investment, and agencies gain greater insights into what works and how to leverage dynamic messaging to serve their clients. 

They can also expect innovation across our entire business, as the DNA of ADventori mixes with that of Insticator, OKO Digital, COOL Media, and Balihoo to foster innovative new ideas. Our publishers benefit from our direct relationships with these big advertisers, and our advertisers benefit from a more direct path to the publishers they serve on as well.  

YY: How do you plan to streamline operations and improve efficiency for your partners through this integration?

ZD: The ADventori technology platform removes the need to create specific ads to suit specific variables, instead drawing off a library of content to dynamically generate just the right ad for precisely the right moment.  That will benefit our partners as we broaden the reach of this technology throughout the US, Australia and the rest of our global operations.  

This is just the tip of the iceberg. We have already identified how many of our team members can help each other cross-functionally and are implementing that cross-functional benefit. It’s early in this union, but we have some exciting ideas on how the crossover of ADventori technology into the COOL company will create amazing results for our partners.

YY: How do you plan to leverage Adventori’s technology to enhance your offerings?

ZD: Our SSP will massively benefit from being able to cut out more middlemen and serve dynamic creatives and formats. We can expand upon our growth in COOL media and Balihoo by having our own DCO solution that more directly integrates with our technology.  

The great benefit of the COOL company is that we have business units dedicated to every element of the modern advertising ecosystem. For example, Insticator has always recognized that users’ experience matters; the more you engage and allow them to participate on your site, the longer they stick around and the more they return. That engagement has to be monetized for the publisher, which (typically) happens through ads. 

ADventori ads perform better thanks to their dynamic content targeting, which makes it easier for publishers to accrue revenue. Meanwhile, franchise businesses try to deliver a consistent national message, but ads are executed/paid for on a local level. ADventori can deliver franchise ads dynamically adjusted to a specific location while reflecting the consistent national brand in a virtual instant. Those are just a few examples of how our partners across the entire spectrum benefit from ADventori integration.

Challenges and Opportunities 

YY: What challenges do you anticipate in the integration process, and how do you plan to address them?

ZD: Obviously, with the immense benefit of a global team come the challenges of time zones, different cultural norms, communication styles, and more. So, it would be naive to think that integration will be easy. However, we carefully partner with people as we build the COOL company.  

Our hires, acquisitions, partnerships, and clients are selected based on compatibility with our values. I can tell you that Pierre-Antoine, Matt, and the entire ADventori team are COOL, so I’m confident we can overcome any hurdles.

YY: What new opportunities do you foresee emerging from this acquisition for your company and the industry?

ZD: There are too many to mention, but as an example, think about what might seem like an outlier in the COOL company, namely Balihoo. Balihoo bridges the gap in franchise and brand network businesses by ensuring collaboration among the national brand and individual locations and the performance of each location in the network.  

I can see the ADventori platform being used to create a level of consistent, compelling, locally personalized, and high-performing ads for franchise networks. Or, as I mentioned before, elevate the performance of engaging users on publishers’ sites serviced by Insticator.  It’s a perfect fit, so the opportunities are limitless – and every opportunity is for the industry and our partners, which will benefit us simply by serving them better and creating that better experience for everyone.

 

Client and Partner Relationships

YY: How have your clients and partners reacted to the news of this acquisition?

ZD: Honestly, it’s been a pretty well-kept secret to this point, so it’s early to comment.  However, we’ve certainly socialized the ‘concept’ of adding a DCO company to our ecosystem, and the response has been overwhelmingly positive.  

Everyone gets it. Advertising connects brands to users but we as an industry execute it through agencies, publishers, and more. No party in that experience doesn’t see the benefit in more dynamic, precise, and effective ads.

YY: What steps are you taking to ensure a smooth transition and continued strong relationships with your existing clients and partners?

ZD: Simple…We won’t; we don’t, RUSH. We’re keeping all of our team members. We hope our existing clients and partners are excited about this addition, but we won’t take action until we can guarantee our ability to implement, scale, and meet the high service standards we’ve set since our inception.  

The biggest thing we’re doing is being cautious, perhaps even a bit ‘slow’; we need to make sure that we don’t bombard ADventori in a way that disrupts their relationships. We want ADventori clients to feel good about this, and that wouldn’t be served by creating a distraction that in any way impacts their experience. So, our first step is to add the resources of the COOL company to ADventori’s disposal.

Team Integration

YY: What cultural or operational changes do you anticipate, and how will you manage them?

Our entire philosophy and existing business respect differences and diversity. We already have teams positioned quite literally ‘around the globe’. We will manage this the same way we did when adopting what is now COOL Media, a company operating in Australia, 14 hours ahead of my most frequent time zone on the East Coast of the US. We respect their clocks, holidays, work/life balance, and their cultural norms. That’s all part of being COOL, decent, empathetic, and human. 

As for operational changes, we don’t want to disrupt anything that’s already working, so our focus is layering in the collaboration at first without disrupting ADventori’s (or our) operations.

Future Plans

YY: Can you share any plans for future technological advancements or innovations resulting from this acquisition?

ZD: It’s still early in our union to get specific, but we have plenty of ideas across our different business units for how the core benefits of ADventori’s advanced DCO platform can inspire innovations across our entire family of solutions. 

I can confidently say that the most profound innovations are almost certainly in areas I’m not currently thinking about. That’s the great part of a global team spanning Europe, Australia, the US, South America, and beyond. Great ideas come from collaboration without borders, and I’m incredibly excited because the ADventori team is COOL and will no doubt spawn great conversations and collaboration. Stay tuned.

YY: What are your primary focus areas for the next 12-18 months following this acquisition?

ZD: Our customers, clients, and partners. We’re big believers in the idea that if you do the right thing by those you serve, the rest takes care of itself. Our one and only focus remains on clients and partners and building the best possible experience for everyone. That may sound evasive or obtuse, but it’s the reality.  

Closing Thoughts

YY: Is there anything else you’d like to share about this acquisition or the future of The COOL Company?

ZD: We’re not done; we’re never done. No matter how many advancements we make toward creating a better experience for everyone in the advertising ecosystem, change will come. Changes in technology, economics, user preferences, etc. Our job is to stay ahead of those changes and continue to adapt. 

I just want our customers and partners to know that we are in this for the long haul and commit ourselves to adapting to serve them throughout whatever comes next. Our industry goes through a massive overhaul every two years, and the companies that win are always preparing for change. 

We hope to be the one partner that isn’t solving a single niche problem or providing a single, siloed service. We have visibility into the entire ad landscape and a dedicated business unit serving every stakeholder – which sets us apart.  

I don’t think it takes a genius to understand our mission and values.

YY: How can stakeholders stay informed about developments and progress as the integration progresses?

ZD: We are active on social media, and you’ll see more from the COOL company on LinkedIn and other platforms. We believe in meeting our partners where they want to meet, which means they engage with whichever COOL company directly intersects their role and connect across all our social, websites, blogs, and directly with their sales/account manager. 

Publishers are naturally served by Insticator and OKO, COOL Media services Agencies, Franchises by Balihoo, Advertisers by ADventori, etc

The post Transforming Ad Tech: An Exclusive Chat with The COOL Company’s CEO Zack Dugow appeared first on AdMonsters.

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Decoding the Legal Shifts: Legal Expert Jason Gordon on Chevron Deference and Its Advertising Fallout https://www.admonsters.com/decoding-the-legal-shifts-legal-expert-jason-gordon-on-chevron-deference-and-its-advertising-fallout/ Fri, 19 Jul 2024 14:17:05 +0000 https://www.admonsters.com/?p=658984 Last week, we published an article detailing how the Supreme Court’s decision to overturn Chevron deference will affect the advertising industry. We spoke with Jason Gordon, partner at Reed Smith in its Entertainment and Media group, to get a more in depth understanding of how SCOTUS’ decision will impact advertising. 

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The Supreme Court’s Chevron decision reduces the FTC’s authority to unilaterally define unfair or deceptive advertising practices, likely increasing legal challenges and emboldening advertisers to contest FTC guidelines, particularly in areas like data privacy and consumer consent.

Last week, we published an article detailing how the Supreme Court’s decision to overturn Chevron deference will affect the advertising industry. The consensus was that it will infringe on regulatory efforts and cause publishers and advertisers to challenge government agency regulations that affect their businesses. 

But what does that mean for publishers and advertisers still waiting for a federal privacy law in the US? What does that mean for the FTC, who makes many of the federal regulations for the advertising industry? 

We spoke with Jason Gordon, partner at Reed Smith in its Entertainment and Media group, to get a more in depth understanding of how SCOTUS’ decision will impact advertising. 

Andrew Byrd: Can you elaborate on how the Supreme Court’s Chevron decision impacts the advertising industry?

Jason Gordon: The Supreme Court decision marks a significant shift in regulatory authority. Before this ruling, regulatory agencies, including the FTC, were given substantial deference in defining and enforcing what constitutes unfair or deceptive advertising practices. As the primary enforcer of advertising regulations, the FTC and other specific agencies could interpret these practices broadly. 

This deference allowed the FTC to develop guides such as the “Made in the USA” guide, endorsement and testimonial guides, and green guides for environmental marketing claims. These guides provided advertisers with clear frameworks but granted the FTC significant power in interpreting what constitutes false or misleading advertising.

Now, the role of the courts has become more central in interpreting vague statutes related to advertising practices, reducing the FTC’s unilateral authority. This shift implies that while the FTC’s interpretations remain influential, they are not definitive. Courts will now have the final say in disputes over what constitutes an unfair or deceptive act, which could lead to more legal challenges against the FTC’s rulings. This change introduces a new dynamic where advertisers might feel emboldened to contest FTC’s guidelines and enforcement actions, potentially leading to a more litigious environment in the advertising industry.

Additionally, this shift occurs amid an environment of heightened regulatory scrutiny under the current FTC leadership, which has adopted a more aggressive stance on enforcement. The FTC’s focus areas, such as artificial intelligence, privacy, and novel concepts like “junk fees” and “dark patterns,” may face judicial scrutiny as advertisers challenge the agency’s jurisdiction and interpretations. 

AB: Since this will affect the FTC’s regulatory power, do you see opportunities for the advertising community to challenge federal regulators, especially in privacy and deceptive practices?

JG: While this might limit the FTC’s unilateral power, it’s crucial to understand that the broader regulatory ecosystem remains robust. Besides the FTC, states have their own statutes against unfair or deceptive acts. This means state attorneys general, competitors, or class action lawyers can still pursue false advertising claims even if SCOTUS curtailed some of the FTC’s power.

Specifically regarding privacy, the FTC’s diminished authority doesn’t stop states like California from enacting and amending laws like the CCPA and CPRA. Similarly, Illinois continues to enforce its biometric privacy law. Therefore, despite a potential reduction in FTC enforcement, state-level regulations and actions will persist, maintaining pressure on advertisers to comply with privacy and data security standards. 

Thus, even if the FTC’s scope of action is restricted, advertisers must still deal with a complex regulatory environment where state laws and other legal avenues remain active. 

AB: Given the shifting power dynamics from federal regulations to the Supreme Court, do you foresee increased scrutiny from the FTC on advertisers and publishers? 

JG: The FTC stated that its enforcement priorities will remain steadfast despite the shifting power dynamics from federal regulations to the Supreme Court. However, the practical implications of this stance will unfold over the next three to nine months. 

Advertisers might react by adopting more aggressive strategies, believing they have a better chance in court. Trade organizations could also start challenging the FTC’s authority, leading to potential legal battles. If advertisers contest FTC actions in court, they will rely on precedents like the Lanham Act, which governs false advertising disputes between competitors. This act requires proving both the falsity of the advertising and its material impact on consumer decisions, setting a high bar for legal challenges.

AB: In your initial introduction, you mentioned that some in the advertising industry view specific FTC rules as lacking evidentiary support. How does the industry address concerns about these perceived gaps in evidence?

JG: When the FTC updates its rules, it follows a notice and comment period, allowing for public feedback before finalizing conclusions. However, there have been puzzling decisions. For instance, when the FTC updated its endorsement and testimonial guides, it included FAQs advising businesses and influencers on permissible practices. While FAQs aren’t law, they can signal enforcement intentions.

For example, when Facebook introduced influencer disclosure tools to help disclose connections between influencers and advertisers, the FTC updated its FAQ a week later, stating that these tools wouldn’t necessarily be a defense and that the overall message context matters. The FTC provided no evidence for this stance, reflecting a broader issue of issuing guidelines without substantiation. The FTC’s mandate to prevent false advertising should include evidence-based requirements, but such support is often lacking, leading to industry frustration and confusion.

To address these concerns, industry stakeholders engage in dialogue with the FTC, provide feedback during the comment periods, and sometimes seek legal clarification on ambiguous guidelines. They also invest in compliance training to ensure they adhere to the evolving standards, despite the frustration with some of the FTC’s seemingly unsupported mandates. 

AB: How might SCOTUS’ decision affect the FTC’s focus on data collection practices and consumer consent? 

JG: I foresee two primary reactions from the industry. First, trade organizations and data collectors may argue that the current practices are neither deceptive nor unfair and that if Congress wants to impose stricter data privacy laws, it should do so through new legislation rather than through the FTC’s existing framework. They may contend that the FTC is overstepping its authority by trying to impose these new standards.

Second, if the FTC enforces new data privacy measures, some companies may challenge these regulations in court. They could argue that the FTC lacks sufficient evidence or legal basis for such stringent controls. This could lead to significant legal battles as companies seek to protect their current data collection practices and avoid the operational disruptions that new regulations might entail.

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The Rise of AI-Driven MFA Content: Insights from DoubleVerify’s Global Report https://www.admonsters.com/the-rise-of-ai-driven-mfa-content-insights-from-doubleverifys-global-report/ Fri, 28 Jun 2024 12:00:40 +0000 https://www.admonsters.com/?p=658213 Discover how generative AI is driving a near-20% increase in "Made for Advertising" (MFA) sites, and learn from DoubleVerify's Chief Innovation Officer, Jack Smith, how to navigate this evolving trend.

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Discover how generative AI is driving a near-20% increase in “Made for Advertising” (MFA) sites, and learn from DoubleVerify’s Chief Innovation Officer, Jack Smith, how to navigate this evolving trend.

When it comes to ad tech, Jack Smith is no stranger to innovation. With over 25 years of experience and seven patents in AI and machine learning, DoubleVerify’s Chief Innovation Officer knows a thing or two about navigating the digital wild west. In DoubleVerify’s latest Global Insights Report, they uncovered a nearly 20% surge in MFA sites, fueled by the rapid rise of AI-generated content.

The report reveals that MFA impression volume increased by 19% in 2023, with a staggering 73% jump in “Low-tier” MFA impressions. These sites, which blend MFA and non-MFA characteristics, are reshaping the internet faster than a Netflix show drops spoilers.

Using advanced AI technology, DoubleVerify analyzed over three dozen “High-tier” MFA websites, finding numerous instances of likely AI-written content, including examples like HeroInvesting’s Clint Eastwood aging article and Noteabley’s Best Steakhouses list. These sites often bombard users with ads, making the user experience as pleasant as navigating through a maze of pop-up ads in the early 2000s.

In this Q&A, Smith breaks down the complexities of distinguishing high-quality AI content from the low-tier junk flooding the internet. We dive into DoubleVerify’s sophisticated blend of AI and human review and explore how advertisers can protect their investments amid the explosion of MFA sites.

Join us as this ad tech luminary shares his insights and strategies for staying ahead in the ever-evolving world of AI-driven ad tech. Whether you’re an advertiser looking to make the most of your budget or a publisher striving to maintain quality, this conversation is packed with valuable takeaways.

Lynne d Johnson: Your report touches on the surge in MFA sites. However, the digital landscape often sees legitimate sites misclassified as MFAs due to their ad strategies or content distribution tactics. Can you explain DoubleVerify’s criteria for distinguishing true MFA sites from legitimate content sites that might superficially appear similar due to high ad-to-content ratios or aggressive monetization strategies?

Jack Smith: This is a great point, and thank you for raising it. When it comes to MFA content, we believe nuance and surgical categorization — not blunt, one-size-fits-all lists — are key to safeguarding advertiser investments and supporting quality publishers and, more broadly, the open internet.

We were the first verification vendor to really define MFA content in an effort to create a common yardstick from which to evaluate. While we have a clear overall definition — DV defines MFA sites as those whose sole purpose is to deliver advertisements — our definition also considers nuance. MFA sites can be identified by analyzing several factors across their ad monetization activities, ad traffic sources, and approach to content creation. That combination of criteria needs to be robust to properly distinguish content in a way that’s fair and equitable for content creators. 

With that in mind, DV’s approach allows for the deepest and most nuanced level of analysis, preventing miscategorization and false positives. For example, a website may feature a significant number of ads while still registering high rates of direct and search-enabled traffic. In this instance, the publisher would not meet our definition of MFA. For sites we do classify as MFA, we have a tiered system of high (more egregious examples), medium, and low. Advertisers can then make decisions on the tiers and how they best fit or don’t fit into their campaigns. For DV to classify a site as MFA, it really needs to consistently show high signs of arbitrage both in terms of heavy reliance on paid traffic and arbitrage traffic.

For DV to classify a site as MFA, it really needs to consistently show high signs of arbitrage both in terms of heavy reliance on paid traffic and arbitrage traffic.

Also, just as an inclusion or exclusion list-only approach doesn’t allow for nuance in categorization, we don’t solely rely on AI for classifying content. Algorithms can be biased just like people and are not infallible. To ensure protection and support publisher monetization, we blend AI with expert human review to help ensure that sites that don’t ultimately qualify as MFA content, including those owned by underrepresented groups or news publishers, are not incorrectly flagged. We also regularly audit our categorization criteria, which is critical as the space evolves quickly.  

As a result, publishers have embraced and supported our MFA solution. We also developed it with feedback from the community to ensure responsible and thoughtful categorization.

LdJ: With the report highlighting a 19% increase in MFA sites largely driven by AI-generated content, how does DoubleVerify differentiate between low-quality AI-generated content and high-quality AI content that might also be prolific in ad placements? Are there specific markers or technology you use to make this distinction clear?

JS: AI-generated content is an interesting topic because there is often a rush to judgment. Just as many rush to say all MFA content is fraudulent or bad, we’ve seen the same about AI content. Ultimately, AI-supported content can range from high to low quality. We’ve seen trusted publishers in the financial space, for example, rely on AI for quality reporting for years. AI can be an additive tool for quality journalism. 

At DV, for these reasons, we don’t automatically or bluntly label AI content as “bad.” However, we do believe it’s problematic when AI is used to create low-quality content at scale, while coupling that with a heavy reliance on paid and arbitrage traffic to take in ad dollars that would otherwise go to quality publishers. For instance, DV has found some sites that publish in excess of 1,000 pieces of content per day, powered by AI. That level of output usually comes at a cost to quality. We factor these considerations into our evaluations of MFA and quality more broadly.

As new Gen AI tools have emerged, tracking AI content can be a difficult task given its growing volume. To help us with this process, we built our own proprietary AI to detect and analyze replicated and AI-generated content across the web. In doing so, we also gain so much more data and signals to help better understand the use of AI in MFAs, but also fraud and other areas.

LdJ: Given the significant growth in ‘Low-tier’ MFA impressions, could you elaborate on the real-world impact this surge has on publishers and advertisers? How do these ‘Low-tier’ MFA sites specifically dilute the efficacy of digital advertising campaigns, and what measures can advertisers take to safeguard their interests?

JS: The growth of low-tier MFAs really speaks to the earlier topic you raised about nuance and categorization. What we classify as “low-tier” covers sites or sections with a blend of MFA and non-MFA content — for example, sites where only a section or a subdomain exhibits MFA content or characteristics. These publishers make up the highest percentage of MFA publishers, which highlights the need to have different tiers so they can be treated differently. 

Ultimately, we classify, and it is up to the advertiser to determine if MFA inventory aligns with their own performance outcomes and is suitable for their brand. However, by having this nuanced categorization, brands have the freedom and tools to decide if and to what extent they want their ads to be served on MFA sites.

LdJ: As AI technology evolves, so too do the strategies for generating and monetizing content on MFA sites. What are DoubleVerify’s plans for staying ahead in this technological arms race, particularly in terms of improving detection mechanisms and helping advertisers avoid these pitfalls?

JS: We heavily invest in R&D at DV, more than any other verification provider, and most other technology companies in our space. This emphasis on innovation has given us a substantial lead in the market, providing an edge over tech advancements that may negatively impact advertiser investments and transparency. This strategic focus ensures we anticipate future developments and adapt quickly.

Beyond the tech, the arms race in AI isn’t just about countering the technology itself — it’s also about aligning with a brand’s preferences for how advertising is incorporated into an environment. Effective policy plays a critical role in maintaining this alignment, ensuring that our solutions continually meet the evolving needs of advertisers.

LdJ: With the proliferation of MFA sites and AI-generated content, what are the broader ethical implications for the digital ecosystem? How does DoubleVerify envision the future of online content quality, and what role do you believe regulatory bodies should play in curbing the growth of low-quality, ad-centric platforms?

JS: This is a great question. AI-generated content is already subject to some regulation, and it’s inevitable that more regulations will emerge. As the technology improves, the regulatory landscape is likely to evolve and expand, which we support to help ensure the safety of the Internet.

Interestingly, these regulations often focus on end-consumer protection and enhancing transparency rather than directly curbing the creation of the content. This means that AI-generated content will continue to proliferate within the digital ecosystem. Even if it’s labeled transparently due to new rules or standards implemented by large tech companies, we, at DV, need to help advertisers navigate this growth. Our role is to support their ability to advertise safely and effectively alongside and around this content, but really any content, whether AI-created or not.

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Jack is responsible for ensuring alignment between DV’s commercial and product organizations. He manages senior level product relationships with key customers, identifies new client-driven product opportunities and supports sales efforts. Prior to joining DV, Jack served as Global Chief Product Officer, Investment at Group M, where he developed products and platforms that empowered teams to make better decisions about where to invest over $80 billion of media spend. Previously, Jack co-founded the machine learning company Solariat, which was acquired by Genesys. He brings over 25 years of experience in executive strategy, technology, client and market insight to his role as Chief Innovation Officer. Jack holds seven patents in AI and machine learning for signal detection in natural language and the prediction of consumer media consumption.

The post The Rise of AI-Driven MFA Content: Insights from DoubleVerify’s Global Report appeared first on AdMonsters.

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In-Store Retail Media Strategies Reimagined with Paul Brenner From Vibenomics https://www.admonsters.com/in-store-retail-media-strategies-reimagined-with-paul-brenner-from-vibenomics/ Thu, 27 Jun 2024 12:00:25 +0000 https://www.admonsters.com/?p=658170 If you're a retailer looking to maximize shopper engagement and campaign efficacy, Paul Brenner, SVP of Retail Media & Partnerships at Vibenomics, emphasizes leveraging advanced targeting and in-store technology.

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If you’re a retailer looking to maximize shopper engagement and campaign efficacy, Paul Brenner, SVP of Retail Media & Partnerships at Vibenomics, emphasizes leveraging advanced targeting and in-store technology.

Developed with insights from industry leaders like Paul Brenner at Vibenomics, the IAB and its partners designed the 2024 Digital Out-of-Home (DOOH) & In-Store Retail Media Playbook to enhance the execution of DOOH and in-store retail media strategies. The playbook serves as a guide for retailers and brands to navigate and implement these media channels effectively. It focuses on practical applications, advanced targeting methods, and leveraging retailer data to optimize shopper engagement and campaign success.

Brenner tapped into Vibenomics’ tailored approach to retail media to shape his insights for the Playbook. As a leader in providing in-store digital advertising technology and services, Vibenomics focuses on aligning with retail media owners’ business models, providing technology and infrastructure that respect ownership and operation dynamics. 

We chatted with Brenner about the roles of retail media, shopper marketing, and category teams in modern merchandising. Our conversation also explored advanced data targeting methods to understand shopper behavior and outline strategies for measuring the success of DOOH and in-store campaigns. Brenner provides insights into leveraging retailer data and in-store technologies to create a cohesive, dynamic shopping environment that bridges traditional merchandising with innovative retail media strategies.

Andrew Byrd: What is the primary focus of the 2024 Digital Out-of-Home (DOOH) & In-Store Retail Media Playbook?

Paul Brenner: At a high level, it’s crucial to understand the distinction between digital out-of-home (DOOH) and in-store media. The IAB faced difficulties because many mistakenly believed that DOOH included in-store media. 

After a thorough discussion, we concluded that DOOH ends at the venue’s entrance. The retailer and brand can achieve the most attributable results inside the venue. This is because in-store media is owned and operated, allowing for more direct control and measurement of impact. 

In contrast, DOOH is a third-party solution that operates independently of the venue’s internal media strategies. This fundamental difference in operation and attribution is why these two types of media are categorized separately and viewed through different lenses.

AB: What role did Vibenommics take in working on the Playbook and what perspective do you bring to the retail media space? 

PB: Vibenomics is designed explicitly for retail media, ensuring that our partnerships with various retail media merchants respect their ownership and operation of the media. We provide the technology and physical infrastructure, aligning our strategy with their business model for venue operations. 

This approach differs from digital out-of-home advertising, where the focus is on investing in signage and seeking foot traffic. Instead, we follow the lead of retail media owners, ensuring our financial models, operational methods, approval processes, and creative control align with their rules of engagement.

As part of Vibenomics, I focus on ad tech and advertising within Mood Media. I leverage my experience working with numerous retail media networks to understand the diverse approaches to building retail media spaces. I bring insights from our current brand partnerships to refine our playbook and advance the industry.

AB: How does the playbook envision using disruptive in-store technology to enhance the shopping experience?

PB: Over the past five years, I’ve observed the evolution of retail media from within the stores, especially on the periphery of the retail media landscape. This shift has seen omnichannel strategies integrate on-site and off-site elements as retail media companies have the freedom to design webpages and leverage data and shopper insights as they see fit. Shopper behavior has predominantly been a digital experience, whether through apps or online interactions. Now, there’s a need to merge this digital experience with the physical world, considering new approaches to privacy and delivering what consumers truly need for better preparation.

The challenge lies in transforming traditional, static signage—like cardboard stands and paper shelf tags—into more cohesive and engaging elements that offer consumers a seamless digital-to-physical experience. Instead of simply navigating around static signs, consumers should encounter dynamic, noticeable, helpful promotions that drive their behavior and enhance their in-store discovery and exploration process.

AB: What roles do retail media, shopper marketing, and category teams play in the context of merchandising within the retail sector?

PB: Retail merchandising professionals must now incorporate insights from Retail Media Networks. This shift means traditional trade deals and merchandising strategies, like shelf placement and promotional value, can no longer be considered in isolation. 

Instead, retail media, shopper marketing, and category planning merge into a single, integrated conversation. Brands increasingly need to allocate more of their budgets to retail media, drawing funds from traditional merchandising investments. This necessitates closer collaboration between teams, a focus we specialize in. 

To create a cohesive strategy, we aim to bridge the gap between traditional merchandising and retail media by controlling the environment, creative aspects, context, and store mobility.

AB: What types of data are emphasized for advanced targeting in the playbook, and how can they be used to understand shopper behavior?

PB: The current playbook focuses on execution, providing insights for brands, retailers, and service providers leveraging retailer data and in-store technologies for maximum shopper benefit. The initial version mainly covered retail media standards with a brief in-store section, reflecting the evolving nature of in-store experiences. 

This playbook now addresses utilizing retailer data and technologies to enhance the shopper experience. It differentiates between online (one-to-one audience) and in-store (one-to-many audience) advertising, highlighting the challenges of demographic variability in stores. 

By analyzing shopper transaction data, retailers can adjust in-store strategies to improve spending and category share, integrating first-party data into the broader shopping experience. For instance, mature retailers can evaluate how creative impacts spending per trip, household, and category share across both digital and in-store environments, aiming to translate online insights into in-store successes.

AB: What methods does the playbook suggest for measuring the success of digital out-of-home and in-store retail media campaigns?

PB: There are two approaches to consider. One is a straightforward control test, which is easier to execute. For instance, we could test a campaign with a major home improvement customer by isolating a test group from a larger control group. We would then analyze pre- and post-campaign effects on shopping behavior using statistically relevant data.

The second approach, announced with Microsoft last year, involves taking a brand’s media plan and extending the control test to in-store activities. This includes examining product listing ads, search strategies, and in-store tactics. We then determine which tactic or combination of tactics drives greater lift or increase.

In essence, we perform both isolated and combined tactic tests. By comparing in-store tactics alone with combined on-site and in-store tactics, we can assess their impact on category share and lift. This dual approach has provided valuable insights into optimizing the integration of online and in-store shopper data.

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