convergence Archives - AdMonsters https://www.admonsters.com/tag/convergence/ Ad operations news, conferences, events, community Mon, 30 Sep 2024 19:55:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 PROGIO Day 1: The Next Chapter for the Open Internet, Google vs. DOJ Face-Off, and More https://www.admonsters.com/progio-day-1-the-next-chapter-for-the-open-internet-google-vs-doj-face-off-and-more/ Fri, 27 Sep 2024 16:57:18 +0000 https://www.admonsters.com/?p=660858 From the rise of social-driven search and FAST channels to Google's ongoing antitrust trial, ProgIO spoke to many of the challenges facing publishers today. As the industry continues to push for transparency, fairness, and a more open ecosystem, the path forward depends on innovating while maintaining trust with consumers and each other. 

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Publishers and marketers are at a crossroads where technology and creativity must converge to unlock the ecosystem’s potential. On Day 1 of AdExchanger’s Programmatic IO, industry leaders highlighted how balancing innovation and content creation can shift the future for the better. 

Technology is evolving faster than we can blink and it’s becoming clear that it’s time creativity and control were reclaimed. As monopolies and walled gardens dominate and limit access, the balance between innovation and content creation is more crucial than ever. In a rapidly changing ecosystem,  publishers are exploring strategies to navigate an open internet increasingly challenged by distribution obstacles and signal loss.

Once a beacon of free and open access, the open web faces an identity crisis. Media companies that once thrived on direct consumer connection are struggling with the rise of walled gardens. Marketers, for their part, acknowledge their role in building these silos as they increasingly funnel media budgets into tech giants. Reclaiming control of data, creative strategies, and audience engagement is critical to preserving the future for both sides.

Publishers should not look at these shifts as threats but as opportunities to develop new strategies that align with consumer behavior and market demands. 

From the rise of social-driven search and FAST channels to Google’s ongoing antitrust trial, ProgIO spoke to many of the challenges facing publishers today. As the industry continues to push for transparency, fairness, and a more open ecosystem, the path forward depends on innovating while maintaining trust with consumers and each other. 

Here are our top takeaways from Day 1.

Breaking Free: How Marketers Can Reclaim Creativity in a Tech-Driven World

Eoin Townsend, Chief Product Officer at Cadent, talking about convergence at programmatic IO. Photo by Donna Alberico.

Eoin Townsend, Chief Product Officer at Cadent, walked us through industry shifts driven by audience, inventory, optimality, and privacy. He says, “The technology we have today is not the technology we’ll have tomorrow.”

Let him tell it: marketers need more control to move away from monopolies and hone in on new technologies to transform their roles in the industry. Eoin emphasized that marketers spend too much time on tech rather than creative marketing. We are evolving from scale, automation, and walled gardens to a new phase focused on integration, alignment, and collaboration. 

More highlights from his talk:

  • Let AI automate the hard stuff.
  • Take advantage of multi-faceted solutions that integrate third-party data and work across walled gardens.
  • Adopt new technology and legal frameworks to ensure compliance and consumer trust.

Eoin’s main argument is: “Let marketers be marketers” free them from technological constraints!

The Future of the Open Internet Is? 👀

Allison Schiff, Managing Editor at AdExchanger, Ben Hovaness, CMO at OMD, Caval Khan, Chief Growth Officer at Group Black, and Ari Paparo, and CEO & Contributor of Marketecture Media sitting down on stage at AdExhanger's Programmatic IO to discuss the future of the open internet.

Allison Schiff, Managing Editor at AdExchanger, Ben Hovaness, CMO at OMD, Cavel Khan, Chief Growth Officer at Group Black, and Ari Paparo, CEO & Contributor of Marketecture Media discuss the future of the open internet. Photo by Donna Alberico.

What is the open web? The term has gotten lost in the mix, and AdExchanger’s Allison Schiff ensured the panelists revealed the definition from their perspectives early in the session. According to Ari Paparo, CEO & Contributor at Marketecture Media, if you can access a website for free and buy ads freely, it is part of the open web. 

Media companies are losing distribution channels and struggle to connect directly with consumers. What are the biggest challenges of the open web? Walled gardens and signal challenges. Can marketers blame consumers for this mess? Not exactly. Marketers helped create the walled gardens by continuing to invest in and work with them.

“The open internet lost the resources to create the content and do a lot of things that it did to keep the communities it had built,” revealed Cavel Khan, Chief Growth Officer at Group Black. “That’s why we are all seeing the decline over the last three years. Big publishers are going out of business or restructuring.”

More key points from this session:

  • The cloudiness around Chrome’s plan for cookies makes it difficult for publishers to determine the best strategy to combat signal loss. 
  • Publishers have great tools like WordPress, Beehiiv, and Ghost, along with podcasting, as new solutions for reaching people and monetizing those connections. 
  • When asked what the future of the open internet was, the panelists responded bright, sleek, diverse, and changing. 

TikTok, The Latest to Step In the Search Game

AdExchanger's Executive Editor Sarah Sluis sitting down with Blake Chandlee, President of Global Business Solutions on stage at Programmatic IO.

AdExchanger’s Executive Editor Sarah Sluis sits down with Blake Chandlee, President of Global Business Solutions at TikTok, to talk about the platform entering the search business. Photo by Donna Alberico.

TikTok is the app beating Google as the number one search engine. With data showing significant search activity on the app, we’re learning that rich, social media-driven search results are key for connecting with consumers and influencing their discovery and purchase intent. It’s no surprise the company is investing in bringing advertising to search. 

“There are two key data points that triggered this for us. One is that independent research proves that 55% of people get their search results from social media and video,” said Blake Chandlee, President of Global Business Solutions at TikTok. “It was just a very good box of rich examples. An example might be if you’re planning to travel to Singapore when you visit a traditional search engine, you’d find links to guide you through that process. On the other hand, you go on to TikTok or some other platforms where you’ll get really rich videos of people like you going through the same decision-making with their experience. It’s a very different experience in the back end of this.”

Ads have been part of TikTok’s monetization model for a while now, but the TikTok shop shook up the game when it came to fruition last year. Live-streaming allows creators to earn money by getting “tipped” from their audience, while the TikTok shop facilitates seamless transitions within the app. TikTok’s investment in logistics and the closed-loop shopping experience allows it to fully capitalize on the commerce generated by creators.

More interesting insights:

  • The social media company’s motto: “Don’t make ads, make TikTok’s” works.
  • TikTok caters to its users’ diverse interests, allowing brands to connect with highly engaged audiences.
  • Ensuring that ads are native is key; don’t oversaturate because ad fatigue can be real.
  • TikTok stands out because it is independent and doesn’t rely on partnerships or external links for e-commerce.

Why The Trade Desk is Winning According to Wall Street

Shweta Khajuria, Managing Director of Wolfe Research standing on stage with a green shirt next to the Programmatic IO podium.

Shweta Khajuria, Managing Director of Wolfe Research shared her predictions for the industry from an investor’s perspective. Photo by Donna Alberico.

With the ongoing regulatory scrutiny of Google and the pending cookie deprecation, scale and first-party data are both emerging as leaders in the industry.

Shweta Khajuria, Managing Director at Wolfe Research, dove deeply into The Trade Desk’s success. Partnering with agencies leads to higher retention rates. Product innovations like CTV and UID2 have kept The Trade Desk at the top of the industry. Also, their independence and omnichannel approach allow them to maintain objectivity and avoid conflicts of interest. 

“Trade Desk saw the potential of bidded programmatic and connected TV before most others in the industry,” said Shweta. “As a result, with the head start that they saw, they saw a step change in their growth rates and trajectory.”

Shweta also predicts that Google will spin off one of its ad tech businesses, which could level the playing field. 

Shweta’s other predictions:

  • The Trade Desk’s Open Path and Magnite’s clear line anticipate the convergence of the demand and supply sides.
  • Efficiency gains will be necessary, and pricing pressures might arise as DSPs and SSPs merge.
  • Larger publishers may develop their yield management systems, leading to supply-side consolidation.
  • The demand side might gain an upper hand due to its proximity to ad budgets.

Google on Trial: The Battle for Fairness, Transparency, and the Future

Allison Schiff sitting on stage with Claire Atkin, Co-founder & CEO at Check My Ads and Jason Kint CEO of Digital Content Next.

Allison Schiff talked to Claire Atkin, Co-founder & CEO of Check My Ads and Jason Kint CEO of Digital Content Next about the ongoing DOJ vs. Google antitrust trial. Photo by Donna Alberico.

Google’s monopolistic practices have heavily hindered the publishing industry, and we are all standing on our toes, waiting to see the outcome of this decision. Jason Kint, CEO of Digital Content Next, explained how Google is extracting value that should go to newsrooms and entertainment companies. 

Jason talked about “dynamic revenue sharing,’ where Google manipulates bid prices to maintain its margins, often behind publishers’ backs. With a press box seat at the trial in Virginia, he says Google’s defense strategy is to confuse the market and redefine it to include more competition, like TikTok or TV. Isn’t this what we’ve all been thinking? Isn’t this a weak defense?

It was great seeing Claire Atkin again doing her best: exposing the real. According to Claire, Google plays a huge role in monetizing misinformation and lacking transparency. Smaller businesses suffer since they don’t receive funds or adequate support from Google when campaign issues arise. Claire argues for log-level data transparency and know-your-customer laws to ensure fair practices. 

Other important highlights:

  • Judge Leonie Brinkema is skeptical of Google due to evidence purging, which impacts the credibility of Google’s witnesses. 
  • The trial is part of a broader antitrust movement against major tech companies, and breaking them up could lead to more opportunities and fairness in the industry. 
  • Both speakers hope to see a future where advertisers can better track and verify their ad placements, leading to more accountability and fewer fraudulent practices.

FAST is Moving Fast

Katie Barrett, Head of Strategic Sales at LG Ads Solutions on stage at AtExchanger's Programmatic IO with a tan blazer infront of an orange background.

Katie Barrett, Head of Strategic Sales at LG Ad Solutions talks the future of FAST at AdExchanger’s Programmatic IO Day 1. Photo by Donna Alberico.

Several factors are contributing to the rise of FAST, such as subscription fatigue and evolving audience behavior. On a daily basis, consumers are shifting their mindset from avoiding ads to accepting them if they come with free content. 

“We see that 53% of our consumers are spending at least 2 hours a day in FAST, and the average time of the session is 73 minutes,” said Katie Barrett, Head of Strategic Sales at LG Ad Solutions. “Eighty-seven percent of FAST users have free streaming channels they watch regularly. This shows high levels of habitual viewing. Eighty-one percent believe that FAST streaming channels offer high-quality content. This is important because this perception of fast being low quality is being challenged here.”

Contrary to popular belief that FAST viewers are less engaged or loyal, Katie argues they are developing strong followings due to curated content. The stereotype that FAST viewers are solely budget-conscious is false, as the data shows a diverse and affluent audience.

Other Factors of FAST:

  • The median income of FAST users is $85,000, with an average of $110,000, and 43% earning over $100,000 annually. 
  • FAST is popular among family units, with a high percentage of users owning homes, being married, and having children, underlining its family-friendly nature.
  • FAST is a valuable platform for brands aiming to reach key demographics.

On the Horizon: A New Era for Publishers and Marketers

Publishers and marketers are standing on the brink of significant change. With walled gardens tightening their grip and signal loss challenging traditional methods, publishers are redefining their approach to audience engagement, while marketers are pushing for more autonomy in how they reach and connect with consumers. 

From publishers exploring innovative content distribution methods to marketers reclaiming creative control, the next chapter is about pushing beyond the familiar and embracing new opportunities. 

The journey doesn’t stop here. Day 2 included more revelations and strategies, so stay tuned for our Programmatic IO Day 2 wrap-up on Monday. We’ll dig deeper into the discussions, highlighting key takeaways and what lies ahead for publishers and marketers in this fast-moving space. 

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#OPSPOV: Meet the NewFronts, Same as the OldFronts https://www.admonsters.com/opspov-meet-newfronts-same-oldfronts/ Mon, 04 May 2015 18:48:20 +0000 http://beta.admonsters.com/opspov-meet-newfronts-same-oldfronts/ “I’ve had a lot of people ask, ‘is Hulu digital video or television?’” quipped Peter Naylor, SVP of Sales and repeat AdMonsters keynote. “Well, as a sales guy, I’m inclined to respond, ‘I’m anything you want me to be, wink.’” The buyers at the Hulu NewFront got a kick out of that, filling NYC’s Hammerstein […]

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“I’ve had a lot of people ask, ‘is Hulu digital video or television?’” quipped Peter Naylor, SVP of Sales and repeat AdMonsters keynote. “Well, as a sales guy, I’m inclined to respond, ‘I’m anything you want me to be, wink.’”

The buyers at the Hulu NewFront got a kick out of that, filling NYC’s Hammerstein Ballroom with laughter. Upfront presentations are an enjoyable way of showing advertisers that media companies are malleable, and happy to dance and sing for some brand budget. And despite the digital video revolution including streaming video, advertisers still want TV, which explains why Naylor went on to definitively claim that Hulu is TV and that we were all attending an Upfront, not a NewFront. 

That announcement seemed strange after attending CIMM and Cynopsis conferences where brands, agencies and media companies were in agreement that video is the ubiquitous media format. But of the streaming video-on-demand (SVOD, which will always sound awkward) providers, the Hulu experience is probably the closest analogue to TV. Sure, the audience skew younger than TV, but users mainly watch long-form (20 minutes or more) video and ads are typically served in pods. 

Hulu then is almost like floaties to get advertisers ready to swim in the on-demand, all-the-time waters. This seemed cemented when Jerry Seinfeld trotted onstage after it was officially announced that all nine seasons of his eponymous sitcom would be streaming in their entirety on Hulu in June. 

“You could have just put the DVD in, but I guess no one wanted to do that,” Seinfeld joked, playfully portraying himself as an out-of-touch fuddy-duddy. But no, he had a clue, mentioning that his kids would actually watch the show now: “They say, ‘It’s on when? I don’t care when you think I should watch it; I’ll watch it when I want to watch it.’”

Yes, the grand finale of an event supposedly devoted to celebrating new and original programming was the announcement of an exclusivity agreement for a TV show whose final episode aired 17 years prior. Seinfeld even mocked the age of it – “That was a long time ago,” he cracked after a trailer. A Daily Dot article suggested Netflix dropped out of the bidding because the show hasn’t aged well and binge-watching favors serial programs (comedies and dramas) with developing plots and characters, not a show about nothing that goes nowhere.

I disagree on the former charge – I have several friends my age (34) and younger who still enjoy reruns regularly on syndicated TV (via antennas, oh my!), and I too was kinda excited about rewatching my favorites in my preferred style – on demand. The latter claim has merit – as Jerry and the gang would say, “Seinfeld” is best for noshing, not binging.

Previous NewFronts I’d attended from Aol and Microsoft really heralded the Internet style of their programming – more DIY and shorter form. But as the digital brainchild of three broadcast networks, Hulu really is “evolved TV.” A main reason for having the Hulu subscription service was access to older television shows not on Netflix. Indeed, Director of Programming Craig Erwich listed all the deals Hulu had synched with networks like Bravo, Turner and AMC (especially new series, “Fear the Walking Dead”) for streaming exclusivity on upcoming content.

“Our competitors may have some of their libraries, but we have all of their futures,” he said.

Even the new programming had something familiar to classic TV – James Franco (looking a little less stoned than when he hosted the Academy Awards) and JJ Abrams (who was probably pondering why he didn’t steal a toke off Franco) talked about their limited-run series “112263,” based on the novel by Steven King. Remember that guy? The broadcast networks always turned his books into nice miniseries like “The Stand” and “It” that garnered good ratings back in the day.

When Jason Reitman and Zander Lehmann claimed their new series “Casual” set out to be a completely different TV show, “Difficult People’s” Billy Eichner (“Billy on the Street”) retorted, “Hulu is built on already existing TV shows!” and claimed his program would be exactly like every other one. Cheeky, but maybe a subtle (unintentional?) nod to an audience seeking stability during tumultuous times?

The most Internet-esque invasion came from Freddy Wong and RocketJump, the team behind YouTube hit Video Game High School. In his introduction, he highlighted his excitement at moving from digital to the big, expensive world of TV, which seemed like an odd statement. The RocketJump show also looked the most undercooked – even the title seemed to be pending.

But just because Hulu was extending a ramp for old TV buyers to wheel their way aboard the digital video cruise didn’t mean flashy digital tricks were in short supply. 

Naylor boasted that Hulu was guaranteeing GRPs on 100% viewability – on completed views at that. Naylor also claimed that its viewability partner Moat found its metrics to be 80% better than other site benchmarks (an obtuse description that probably puts Hulu’s average viewability in the 90% range, likely based on the MRC video standard). And dealing with ratings on Hulu is simpler because you knew the programming and advertising was viewed then and there.

“No more C7 or C3 – it’s always C now,” Naylor said.

Even bigger, he announced that Hulu was opening up inventory to programmatic channels, meaning buyers could target digital inventory (desktop, mobile, tablet, OTT) on exchanges. That is a true bridge between linear and digital, an easy introduction for TV buyers into the programmatic morass.

Finally, Naylor brought out what appeared to be a native unit – “What if I told you there was a way to create a commercial together?” – for Hulu called Custom Integrated Commercials (CIC). How this unit actually worked (or was native) wasn’t clear, as the highlighted clip showed a woman eating Lays’ potato chips while watching programming on Hulu. Hopefully more details will be forthcoming, but perhaps it was less native and more “co-branding.”

New shows and original content seemed to take a backseat at Hulu’s NewFront/Upfront/WhateverFront; instead the company was happy to give TV buyers comfort programming they knew and loved. And this doesn’t seem like a bad strategy to secure a spot in an increasingly crowded SVOD universe. It’s a way to differentiate from shorter-form content on Aol and YouTube, and pull alongside CBS’ streaming business with a more robust portfolio. It does seem like a temporary strategy: Netflix’s success suggests that programming will eventually have to outshine the platform. 

But of course, Netflix isn’t ad-supported. Hulu might be the better model for watching how a digital content provider can put advertising revenue to work at scale in the converged environment.

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