emodo Archives - AdMonsters https://admonsters.com/tag/emodo/ Ad operations news, conferences, events, community Thu, 04 Jan 2024 03:53:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 AdMonsters Publisher Playbooks of 2023: Political Ads, Attention Metrics, Bad Ads, Ad Ops Are Rock Stars https://www.admonsters.com/admonsters-publisher-playbooks-of-2023-political-ads-attention-metrics-bad-ads-ad-ops-are-rock-stars/ Thu, 04 Jan 2024 03:53:35 +0000 https://www.admonsters.com/?p=651488 From the ad quality challenges associated with capturing political ad spend, to the targeting and metrics evolution and attention's dominance, to battling bad ads that tarnish consumers' perceptions of media orgs, to helping sales teams take advantage of adops' treasure trove of data to improve monetization strategies — AdMonsters had a publisher Playbook for that. Hurry up and get one.

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There’s a storm a’ coming. Hurry up and grab your raincoat. Or better yet, get yourself a plan. We’ve got a few that will serve you well.

2023 felt like the beginning of the end. It was like the perfect maelstrom.

A recession was forecasted. Oh no, no it wasn’t. Ad spend was plummeting. Oh wait, it started inching back up again.  For publishers, there was just no way to make heads or tails out of the year that was the last before the 3P cookies’ demise.

Political ad spend is on the rise, but there are ad quality challenges for any publisher wanting to jump into that pool. We’ve got a playbook for navigating those waters.  Targeting and metrics are getting a remix and creative could use a facelift. We’ve got a playbook to guide you through attention’s dominance.

What about bad ads, are they tarnishing consumers’ perceptions about your media properties? We surveyed 250 consumers to give it to you straight — along with publishers’ tips for cracking down on those bad actors and making the user experience a priority.

And finally, we took a deep dive into how widely contextualized AdOps data shared with sales and ad product teams. The truth is, AdOps teams are rock stars (party on) but sales teams might not be taking full advantage of their data stardom. We’ve got a playbook for that too. All it involves is making meaningful workflow changes to focus on revenue-generating tasks.

You really should download one of these (if not all of them).

AdMonsters Publisher Playbooks of 2023

AdOps teams are data superstars, sitting on a treasure trove of information that contains rich and nuanced context. Many can say which ad units perform best, by format, section, industry and vertical. Some can accurately predict the ROAS advertisers can expect to see from their campaigns.

This is the kind of data that attracts advertisers, especially during a recession when their budgets are smaller and all focus is on performance and business outcomes.

But are publishers taking full advantage of these amazing resources? Our survey indicates they are not. There’s not enough collaboration between AdOps and the sales, product, and business intelligence teams. This is caused by a combination of tech limitations and interdepartmental inefficiencies.

More worrisome, only 22% of AdOps teams say they have access to a wealth of data and insights, which means the remaining 78% can’t help their colleagues succeed in their jobs to the fullest possible extent.

Now that advertisers are cutting back on campaigns, publishers need to work harder to attract brands to their sites. Detailed performance data distributed to all the teams that need it can help publishers win more business and revenue. As it stands, they’re leaving money on the table. Download this playbook now!

Publishers have always struggled with bad ads. Nefarious players and scammers, who sought to exploit the digital advertising ecosystem to steal money or data from consumers, have been around almost since the first ad was placed.

But as the world became more digitized, and as global wealth (and access to it) went online, bad actors stepped up their game. Online scams beginning with a digital ad are now dizzyingly complex, with fraudsters going to great lengths to appear legitimate to their victims.

Not surprisingly, malvertising is now a major crime, with 46% of consumers saying they, or someone they know, has fallen prey to a scam. According to the FBI, American consumers lost $10 billion to online scammers in 2022, and 2023 promises to be an even worse year for consumers.

Malvertising and malware are upending digital advertising, with the FBI warning consumers to install ad blockers, and the New York Times telling its readers that “if it’s advertised, you probably shouldn’t buy it.”

Programmatic advertising burst onto the scene in the mid-2000s promising better monetization opportunities for publishers and better access to audiences for brands. That promise led to a robust industry; in 2022 global revenues topped $173.74 billion worldwide.

The scales have tipped, and programmatic has become more of a liability than an asset. Last year, Bloomberg News made headlines when it announced it was pulling the plug on open programmatic, citing bad ads and the impact they had on the reader’s experience.

They’re hardly alone. Jared Collett, Sr. Director of Ad Operations and Analytics, Major League Fishing, also said his company changed who they work with as a result of bad ads. “We’ve had to sever relationships with various programmatic partners and ad networks because they couldn’t get control over the bad ads they were sending us. I would rather serve a house ad, or no ads than serve a bad ad.”

Worse, bad ads are eroding consumer trust in publishers. For 77% of consumers, a bad ad is a signal that the publisher cares more about making money than it does about their safety. Another 64% say that seeing a bad ad on a single site tarnishes the entire industry. It’s fair to say we’re at a crisis point.

“This finding is really important. It brings home the point that rightly or wrongly, the reputation of the advertiser and the reputation of the publisher are really tied together. This is something media organizations will need to address.” said Amnon Siev, CEO, GeoEdge. Download this playbook now!

Our survey results reveal that 2024 promises to be a year of rapid innovation, with publishers rethinking what’s possible:

The New Metric: Attention. As the digital advertising landscape undergoes transformations that limit the use of traditional identifiers, publishers are adapting their measurement practices to meet their advertising clients’ expectations. Driven by advertising demand, 82% of publishers said that attention metrics, which evaluate the amount of attention a consumer spends with content, are important or very important to their organizations. We see new metrics emerging, and publishers reporting some success, but new tools and education are still required.

Innovative Ad Formats & Ad Placements. Publishers are realizing that there is a significant opportunity to drive higher attention rates by experimenting with new and innovative ad formats (45%) or ad placements (55%), signaling a new era in which the advertising sector turns its focus from innovating in targeting to innovating in creative and placement.

Targeting Capabilities. While cookie-based targeting was mediocre at best, it did enable advertisers to scale their campaigns and develop proxies for their ideal audiences. Today, however, publishers are seeking privacy-compliant ways to home in on receptive audiences. Key among them: leveraging their first-party data.

Indirect Monetization. Some publishers appear open to granting permission for indirect representation of their inventory, allowing marketers to access approved pathways via ads.txt and other sources, even from non-direct partners. To maintain and optimize the list over time, publishers implement monitoring, regular communication, audits, and data analysis. This ensures a strong ecosystem of indirect partners, maximizing monetization while maintaining control and quality assurance. Download this playbook now!

Navigating Political Ads for the 2024 Season

A staggering $10 billion will pour into the political advertising arena to sway American voters during the 2024 Election cycle. While $10 billion is a boon for digital media stakeholders, that money comes with severe risks.

Navigating misinformation and disinformation will be a key challenge of this election cycle, driven by the widespread availability of sophisticated AI tools. Digital publishers and CTV stakeholders face direct and negative effects on their business, from drops in user engagement to broader societal mistrust.

The proliferation of generative AI, deepfakes, and sophisticated malvertising tactics have empowered fraudsters and foreign governments to distribute deceptive ads via programmatic channels. This alarming trend has forced digital media entities into a rapid and rigorous process of establishing, overhauling, and strictly enforcing political ad quality policies.

Ultimately it falls to publishers to serve as the final bastion of defense for their audiences. Publishers must undertake the critical task of determining whether specific advertisers and promoters of sensitive, hot-button issues can be permitted to run ads on their sites and under which conditions, while simultaneously ensuring malicious actors are kept at bay.

This Playbook provides a robust framework for an ad quality strategy, essential for setting up robust election advertising guidelines. It delves into the tools available to publishers for increased visibility and control, shedding light on challenges in the upcoming election cycle. The Playbook’s goal is to empower publishers to guarantee that political ads on their platforms are informative and accurate and enhance both user experience and their reputation. Download this playbook now!

 

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Targeting and Metrics Evolution: Are Publishers Ready for Attention’s Dominance? https://www.admonsters.com/playbook/the-targeting-and-metrics-evolution-are-publishers-ready-for-attentions-dominance/ Mon, 25 Sep 2023 16:56:17 +0000 https://www.admonsters.com/?post_type=playbook&p=647951 2024 promises to be a year of rapid innovation, with publishers rethinking what’s possible. From looking at attention as The New Metric to driving higher attention rates with Innovative Ad Formats & Ad Placements to harnessing the power of their first-party data to leaning into Indirect Monetization partners and ensuring a stronger ecosystem of indirect partners, maximizing monetization while maintaining control and quality assurance; the opportunities are endless. Dive into the results of our survey and gain new insights for your business

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Are publishers leaning into Google’s Privacy Sandbox, or are they pursuing other options they deem more favorable to them, their advertising partners and their cookies? More broadly, how are publishers preparing to meet the new challenges and opportunities of 2024? Are they experimenting with creative innovation and ad placements? New targeting tactics? Measurement strategies that demonstrate the value of their inventory?

WITH THE SUPPORT OF Emodo
Emodo helps advertisers and publishers create memorable connections with consumers through more relevant, rewarding and impactful advertising.

To get a sense of publishers’ plans, for a life without third-party cookies AdMonsters surveyed a mix of national and small, web and mobile publishers about a range of issues.

To see the results and gain insights from The Attention Playbook, created in partnership with Emodo, please enter your business email to download your free copy of The Targeting and Metrics Evolution: Are Publishers Ready for Attention’s Dominance? below!

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Community Survey: How Are You Preparing for a Cookie-free World? https://www.admonsters.com/community-survey-how-are-you-preparing-for-a-cookie-free-world/ Thu, 27 Jul 2023 15:49:56 +0000 https://www.admonsters.com/?p=646721 The anticipated cookie deprecation in 2024 is a seismic shift for publishers, including both challenges and opportunities in maintaining user engagement. Tell us about your engagement and goals for the next 12 to 18 months. By sharing your thoughts, you will contribute to shaping strategies that aim to create meaningful experiences for both your users and advertisers. 

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Last May, Google announced that third-party cookie deprecation in Chrome would be planned for the second half of 2023. Google advised the advertising ecosystem to integrate the Privacy Sandbox API’s into their products and transition to more private, cookieless solutions.

Now that cookie deprecation is finally slated for 2024, publishers and advertisers are facing new challenges and opportunities to ensure engagement. To address these concerns, publishers are experimenting with creative innovation, new targeting tactics, and measurement strategies to attract advertisers and demonstrate the value of their inventory.

To better understand the future of advertising, AdMonsters wants to know:

  1. How are publishers preparing for the depreciation of cookies in Chrome next year (the last nail in the ID coffin)?
  2. Which metrics and targeting strategies will publishers focus on as we move into a cookie-free world?
  3. In the face of declining advertising, are publishers allowing indirect representation of their inventory? If yes, how do they select partners, and maintain a list of approved partners over time?

The anticipated cookie deprecation in 2024 is a seismic shift for publishers, including both challenges and opportunities in maintaining user engagement.

Tell us about your engagement and goals for the next 12 to 18 months. By sharing your thoughts, you will contribute to shaping strategies that aim to create meaningful experiences for both your users and advertisers.

Take the survey and be entered to win one of two $100 Amazon gift cards! 

Winners are selected randomly after the playbook is published and are announced privately as well as on AdMonsters social media. 

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Best Practices for Publishers to Survive the New Open Markets: How to Differentiate Your Brand in an Age of Commoditization https://www.admonsters.com/best-practices-for-publishers-to-survive-the-new-open-markets/ Mon, 24 Jul 2023 19:32:08 +0000 https://www.admonsters.com/?p=646674 “In today’s environment, it’s critical to differentiate in some way shape, or form. The consolidation we’ve seen, and the rampant commoditization means publishers and tech platforms need to find a way to stand out,” advised David DiAngelo, Global Vice President of Marketplace Development at Emodo. He recommends the following best practices for surviving in the new open markets.

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In today’s environment of consolidation and commoditization, it’s critical for publishers and tech platforms to differentiate themselves. 

It’s no secret to everyone that the ad tech ecosystem has become highly commoditized. Much of the commoditization stems from the ease with which we white-label technology to spin up an ad exchange. And we’ve seen a proliferation of MFAs — aka websites that are manufactured for advertising (MFA) with the sole intention of engaging in ad arbitrage. This has led to a plethora of low-quality ad units in the open exchanges.

“In today’s environment, it’s critical to differentiate in some way shape, or form. The consolidation we’ve seen, and the rampant commoditization means publishers and tech platforms need to find a way to stand out,” advised David DiAngelo, Global Vice President of Marketplace Development at Emodo.

He recommends the following best practices for surviving in the new open markets.

#1: Think About Your Post-cookie Strategy

Cookie deprecation has been a hot topic since the moment Google announced it would cease to support third-party tracking cookies on Chrome. Several delays later, many publishers and tech platforms have come to believe that a cookie-less world isn’t something they don’t need to worry about. “A surprising number of publishers haven’t formulated a plan. This is a mistake because they need to know how they are going to monetize their business once this identifier finally goes away next year,” said DiAngelo.

In short order, however, publishers will need to find new ways to make advertising relevant to their users, so that it’s not a wasted ad unit. “As we lose data signals, publishers need to give serious thought to what the advertising experience looks like so that it’s still relevant for the consumer and the publisher’s marketing partners.”

#2: Think Native

According to an Emodo study, 76% of publishers that offer native inventory say it delivers better CPMs. Native ads also offer better experiences for the consumer and better performance for the advertiser. Creating native inventory doesn’t need to be a heavy lift for most publishers, as new technologies now allow any display ad to be converted to a native ad at the exchange level. If there isn’t a buyer interested in that native ad, it defaults to a display unit. 

“The benefits to publishers go beyond higher CPMs,” DiAngelo said. “Converting display ads to native means the publisher can offer a far more consumer-friendly ad experience. It will match the look, feel, and function of the website and app, which will drive more engagement.”

This isn’t to say that publishers should only sell native ads, but they should find ways to ensure all their ads have the clean and friendly experience of native ads.

#3: Leverage Generative AI to Improve Ad Experiences Further

Once the publisher (or partner they work with) has created ideal ad environments, the next step is to up the quality of the ads. The combination of generative AI and creative dynamic optimization can lead to captivating advertisements that adapt to individual preferences and optimize their impact. The industry has talked about personalized advertising experiences for decades, but never really delivered it. Generative AI puts the goal within reach.

“Depending on the user and the scenario, we can start to do things like bring in animations to an ad if we see signals that the user would be open to it,” DiAngelo explained. “We can think about adding a pulsing call to action, or a different logo treatment, based on the individual user who sees the ad.”

#4: Know Your Audience

For decades we’ve talked about the importance of knowing your audience, but all too often those discussions addressed the needs of the consumer only. However, it is equally important for publishers to consider marketers as their audience. “The consumer experience and value of the content is obviously the publisher’s top priority, but that doesn’t mean that we can’t think about what would be valuable to marketing partners. The idea of creating engaging, high-quality content that your core audience appreciates and loves and understanding what is valuable to marketers does not have to be a mutually exclusive endeavor. Great and relevant advertising can enhance the reader experience,” said DiAngelo.

#5: Lean into Seller-Defined Audiences

Speaking of the consumer, publishers have a great deal of first-party data and knowledge of their audience demographics, interests, and behavior, and they should use that insight to create target segments. These segments will help their advertisers reach their desired audiences effectively.

Another interesting option is geo-location signals or location as intent. In other words, we measure engagement as intent, but there’s a big difference between visiting a website for an auto manufacturer and visiting a dealership. Location data — i.e. the presence of a mobile device at a dealership — is a stronger indication of intent.

#6: Update Your Partner Evaluation Process

Many publishers continue to evaluate partners based on relevant criteria from five or ten years ago. But the commoditization of the open markets means publishers need to work harder to find premium buyers, and that means they need to differentiate. Ask: can this partner help us differentiate our property? Are they offering innovations that will attract premium advertisers? Are they curating marketplaces that will drive CPMs and reduce fraud? 

“We see a lot of SSPs that are plugged into the same DSPs, which means they’re not offering differentiated demand. Partners are instrumental in building audiences. If they’re not helping build audiences, they’re not helping the publisher to succeed in the post-cookie world,” said DiAngelo.

One final consideration: Does the SSP have a sales organization that is actively sourcing differentiated demand for the publisher? If not, find one that does. Collaboration in the new open markets is essential. If a publisher’s partner isn’t willing to work through problems with them, who will?

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Memorability Matters: The Role of Creative Innovation in a Post-cookie World https://www.admonsters.com/memorability-matters-the-role-of-creative-innovation-in-a-post-cookie-world/ Tue, 04 Jul 2023 16:07:55 +0000 https://www.admonsters.com/?p=646245 As publishers and advertisers contemplate the realities of a post-cookie world, many see attention metrics as a viable currency for evaluating inventory and assessing campaign success. Emodo teamed up with Persuasion.Art to create a new attention metrics methodology, called Creative Attention Effectiveness. This methodology allows advertisers to measure the impact of both ad slots and creative formats on ad effectiveness.

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As publishers and advertisers contemplate the realities of a post-cookie world, many see attention metrics as a viable currency for evaluating inventory and assessing campaign success.

To date, however, “attention” has been thought of as site placement + ad unit. Should the creative format itself be considered in attention calculations? What is the impact of creative innovation on critical attention metrics, such as brand recall, ad recall, and attention rates? 

To answer these questions, Emodo teamed up with Persuasion.Art to create a new attention metrics methodology, called Creative Attention Effectiveness. This methodology allows advertisers to measure the impact of both ad slots and creative formats on ad effectiveness.

Let’s dig in.

The partners began by testing the effectiveness of animated ads and found they delivered strong performance on key metrics:

Digging deeper, the researchers tested the animated ad format against static units across three different ad sizes. The animated format outperformed static ones across all units.

Next, the researchers tested the impact of creative format by site category, looking at four categories: gaming, news, weather, and productivity properties. 

The chart below shows that animated ads consistently did better on all Attention and Memorability metrics, across the site categories. The highest lifts were seen on brand recall (61.8% lift) and ad recall (56.4% lift) in the News category.

Ad Format vs. Site Selection: Which Affects Campaign Performance More?

Current attention metrics tend to focus solely on the impact of site and ad unit, not the actual ad format. This, according to the researchers, misses a critical opportunity to drive campaign performance with innovative creatives.

The chart shows that site selection had a modest  impact on performance, as there were small variations across site categories:

Next, the researchers compared the best and worst performing creatives and the best and worst performing sites. The results show that creative formats play a critical role in optimizing all metrics.

“Our tests conclusively show that creative has an impact on attention and memorability, often more than site. Optimizing only for ad slots, not creative, is a missed opportunity. While optimizing creative formats boosts performance, the real opportunity to drive Memorability and compound effectiveness lies in a combined optimization of creative and media,” said Megan Saunders, SVP of Global Marketing & Growth at Emodo.

The Connection Between Attention and Memorability 

Finally, the researchers wanted to explore a potential correlation between attention and memorability at an ad and campaign level. Unsurprisingly, the study found that the more time a consumer spent looking at an ad, the greater the likelihood of recalling the brand.

The data showed a consistently positive correlation between attention and memorability at a campaign level. Specifically:

  • We see a strong 0.6 correlation between time spent on an ad (attention) and brand recall (a key measure of Memorability) across all 9 tests at the campaign level 
  • We also see a 0.52 correlation between attention and ad recall.

This means that by driving attention, advertisers will consistently drive better brand metrics. Even if the lift itself is modest, such as when the creative format is held constant (as the chart above illustrates), it is consistent. When optimizing to creative formats that are more attention-grabbing, however, the lift in recall is far higher.

Learn More

Download the complete report here.

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Why Aren’t Publishers Concerned about Supply Path Optimization (SPO)? https://www.admonsters.com/why-arent-publishers-concerned-about-supply-path-optimization-spo/ Wed, 28 Jun 2023 12:56:29 +0000 https://www.admonsters.com/?p=646005 Earlier this year, Emodo surveyed advertisers and publishers about their top concerns. Predictably, the economy, the growth of attention metrics, and cookie deprecation are top worries for publishers. What is surprising is just how low supply path optimization (SPO) is on their priority list. Only 30% of publishers say it’s important for them. Despite less than a third of marketers ranking it high in priority, some see SPO as more of a concern for a buyer than a publisher.

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Earlier this year, Emodo surveyed advertisers and publishers about their top concerns.

Predictably, the economy, the growth of attention metrics, and cookie deprecation are top worries for publishers. What is surprising is just how low supply path optimization (SPO) is on their priority list. Only 30% of publishers say it’s important for them.

Despite less than a third of marketers ranking it high in priority, some see SPO as more of a concern for a buyer than a publisher. “SPO is a buy side issue and publishers are concerned about how it’s impacting them but the other issues are bigger concerns, SPO will always be there,” explained Jana Meron, the founder of Lioness Strategies and seasoned digital media monetization and data strategy leader. In other words, SPO is a persistent, but low-grade issue.

But others believe publishers have a vested interest in promoting SPO. The open programmatic markets can be convoluted at best and, for buyers keen to stay within a specific price range, they may be dissuaded from purchasing quality inventory if it has multiple intermediaries demanding a piece of the CPM paid. And all those commissions mean that publishers collect a smaller percentage of revenue for their inventory. 

WITH THE SUPPORT OF Emodo
Emodo helps advertisers and publishers create more memorable connections with consumers through relevant, rewarding and impactful advertising.

What’s more, by focusing on SPO, publishers have more direct access to gaining insights into the demand for their inventory, potentially improving transparency in the bidding process.  All of this begs the question: why aren’t more publishers dedicating resources to ensuring the exchanges have direct access to their inventory?

Why Aren’t Publishers Concerned about SPO?

Another possible interpretation of the survey results is that SPO means different things for different types of publishers. Discussions of SPO tend to focus on unintended consequences, such as publishers losing access to buyers if an ad exchange opts to eliminate suppliers as part of its SPO initiative. 

But according to Scott Messer, ​​Principal and Founder of Messer Media, legitimate publishers shouldn’t worry about that as supply path optimization is a correction coming first for the most egregious of publishers.

For instance, In early April, Digiday ran a series of articles about declining prices in the open RTB markets due to ad tech vendors reducing the number of auctions they “listen to.”  At issue: low-quality publishers were initiating an excessive number of concurrent auctions for the same impression, hoping to get the best possible price. Wary of competing against themselves, advertisers flocked to the safe havens of private and curated marketplaces.

“Complicating your supply path is a tactic to drive higher yields,” said Messer. Reputable publishers with genuine value propositions have little need for ploys, which is why he believes publishers are moving towards curated marketplaces. “The average publisher on the good side isn’t worried about SPO because, if anything, it will actually drive more dollars into their pockets. Closing cluttered paths make it harder for the less worthy.”

Messer is an advocate of curated marketplaces, and deal creation as a service (DCaaS). In these scenarios, platforms create a custom marketplace for an individual buyer, one that is free of the low-quality publishers that exist for the express purpose of selling ads.  In this respect, curated marketplaces offer buyers a faster and more transparent path into SPO.

The survey data, however, was surprising when considering Messer’s perspective. The survey found, in fact, that large publishers are more than eight times more likely than small publishers to report having at least 10 monetization partners. And high CPM publishers, perhaps the best proxy for what Messner refers to as “reputable”, tend to have more monetization partners than low CPM ones.

Another theory behind why publishers may not be prioritizing SPO: they simply lack the resources to do more than acknowledge its importance. “I believe that Supply Path Optimization is one of those catchphrases like the cookieless Future.  We are all talking about it, but no one has really figured out what to do about it,” explained Terry Guyton-Bradley, a programmatic strategist who co-founded MediaZinc and spent many years working for multiple publishers running their programmatic operations.

“Unfortunately, most publishers don’t have the resources or time to truly analyze their programmatic partners in order to make meaningful changes to their programmatic stacks. As you can see from the survey results, the economy is having a significant impact on our industry and causing drastic cuts to investment in technology and personnel.” 

Guyton-Bradley warns his partners not to make any business decisions without data to support their assumptions. In his view, the benefits of SPO to publishers are still a hypothesis. Things may change once there’s real data to back up the SPO advocates claims. 

SPO is a Hot Topic for Many

Although Emodo’s survey found that only 30% of publishers consider SPO a hot topic, it’s still a top priority for companies like Emodo, which sees it as much more than simply cutting out middlemen to find the shortest path to inventory. “What it really means is eliminating redundancy by offering unique value and providing the most direct route to that value,” Damian McKenna, COO at Emodo, told Street Fight

Emodo also aligns with Messer’s point about curated marketplaces as an essential strategy for buyers and publishers and has a team dedicated to actively creating and optimizing Emodo Curated Deals.

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Emodo SSP Survey Says Marketers Crave Innovation https://www.admonsters.com/emodo-ssp-survey-says-marketers-crave-innovation/ Thu, 11 May 2023 16:28:22 +0000 https://www.admonsters.com/?p=644942 The status quo for SSP protocol is no longer working. According to a new survey from Emodo, marketers crave more innovation and keener targeting and measurement skills from SSPs. 

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Supply Side Platforms are an integral part of the Real-Time Bidding process. They enable publishers to sell inventory at scale to fill available inventory and ensure they maximize the revenue from impressions.  

But, the status quo for SSP protocol is no longer working. According to a new survey from Emodo, marketers crave more innovation and keener targeting and measurement skills from SSPs. 

SSPs are beginning to reassess their practices, especially after Yahoo shut down its SSP and other major ones filed for bankruptcy. There is clear evidence that SSPs need to evolve with the times, but how do they make it happen? 

“We’ve been hearing a lot of commentary about the commoditization of supply and demand and how brands and agencies have been struggling to understand the value SSPs truly add to the supply chain,” said Damian McKenna, Chief Operating Officer at Emodo. “This survey underscores the key focus areas for SSPs to remain competitive and deliver value for buyers and sellers. While we are focused on all of the above, Emodo is doubling down on innovations around optimization, especially as it relates to targeting, innovative formats, and unique inventory.”

Innovation Over Efficiency

Andrew Byrd : Emodo recently released a study stating that 56% of marketers are demanding SSP Innovation and 53% want enhanced targeting and measurement. Why did you decide to create this study? Were the results what you expected? Did anything surprise you?

Damian McKenna: There’s a fever pitch surrounding Supply Path Optimization (SPO) to the point where it’s almost talked about too much. We agree that eliminating redundancies and focusing on quality supply is incredibly important, but marketers want more than improving efficiency and removing redundancy. Most marketers we hear from want to deliver something unique, something impactful, and something that speaks to the consumers we are trying to reach, and that’s why we did a study.

Interestingly, this study shows that marketers defined SPO as less critical to them than innovation and enhanced targeting and measurement. If you read the trades and generally talk to people at conferences, SPO always comes up. But innovation, especially related to new formats and targeting, is a place where smaller, more nimble companies like Emodo can stand out as an SSP. Efficiency is essential, but it is half as crucial as innovation to reach your audience. 

AB: I’m curious about the shift to focusing more on innovation and not efficiency, especially when it relates to how generally SSPs are doing within the industry. Evidence shows that a lot of SSPs are struggling right now and are starting to reassess their business practices. What are the issues and is the industry starting to remedy them? 

DM: It’s the battle between scaling innovation and the rapidly expanding space. If you look at the market data over the past 15 years, the expansion of the programmatic marketplace was incredible. It’s hard even to put it on a chart and quantify it. So much of the innovation in the first decade of programmatic was simply curation. The value of SSPs was the curation and connecting of the content to multiple formats.

As the market continued to expand, innovation became lost amid rapid expansion. If you think about the share of spend, publishers over the last few years probably felt a little lost and not heard. At the same time, there were so many intermediaries in the middle. Publishers wanted to find new and unique monetization opportunities, and they wanted that percentage of brands and DSPS. The SSPs and these intermediaries in the middle were trying to catch up with other mediums, over-indexed on scale and availability, and under-indexed on innovation.

Additionally, there are changes in how people listen to programmatic opportunities. There’s a focus on supply path optimization, which forces these SSPs to reevaluate how they operate, the partners they keep, and how they add value and differentiate. At  Emodo, we’re in a unique position because we have a two-sided marketplace. Our managed service team deals directly with large holding companies and marketers. We also have an SSP, and we can offer publishers unique demand and opportunity and not be lost as just a part of the value chain. We can see the whole thing, and our managed service team has helped us understand the needs of that marketer and the agency’s needs.

Cutting Out the Middleman 

AB: You mentioned cutting out intermediaries in the supply chain and that is a sentiment I’ve heard from publishers and advertisers. Do you think cutting out the intermediaries will be hard for SSPs in the future? Will it hurt or help them?

DM: The shift in header bidding happened because publishers are running from current auction practices. They are vying for the same impressions at the same time as ad tech vendors or intermediaries, and on the buy side, ad tech is trying to reduce the number of auctions they have to sit through because the cost is too high. That puts pressure on pure-play intermediaries. Analysts say they will pressure intermediaries, but that’s a natural evolution. 

In some cases, advertisers are unknowingly bidding against themselves and subsequently driving up the prices. They pay because of too many intermediaries, and that needs to change. Continued pressure will be on any intermediary that doesn’t provide incremental added value or efficiency by having their stake on both sides or a differentiated solution.

The Automation of the Supply Chain

AB: SSPs automated the process where an ad publisher would manually assign specific ads to spaces through negotiations with human media buyers and sales teams. Do you think some of the kinks have developed because the process has become automated? 

DM: When I started in the industry in the 90s, digital media promised that technology would make buying and advertising more efficient. It’s more efficient than it was, but we’ve also had to look at programmatic buying and recognize some severe complexities now. There are inefficiencies that innovation has brought, and that’s natural in some ways. 

For example, publishers are doing publisher-initiated auctions that move through fewer ad tech pipes as intermediaries disappear. So publishers are trying to get the maximum opportunities to bid further on their inventory. So there’s a tension between efficiency and effectiveness on the buy side. 

Publishers need to maximize the opportunity and quality they can bring to their users. Simply put, there’s a need for increased simplicity and control in the buying and selling process. Sometimes we get too complex for our own good.

Stand Out From the Crowd

AB: What final advice would you give SSPs to improve the results of the service? 

DM: When we launched the survey, we expected SPO to be at the top of the list of concerns for marketers. The results showed that SPO is half as important as innovation and value. I advise you always to listen and build for your customer’s needs. You also have to understand what the buyers want and what publishers need.  

Our job is to be the intermediary, the curator, and also to provide unique, differentiated value, and we have to deliver value to both sides. It’s incumbent upon us to do that. We have to lean into innovation and differentiation. If we can’t confidently clarify where we’re innovating, bring value to both sides, and differentiate ourselves, then we must look hard at what we’re doing.

 

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International Women’s Day: Women In Ad Tech Talk About the State of Gender Equality https://www.admonsters.com/international-womens-day-ad-tech-2023/ Wed, 08 Mar 2023 21:45:47 +0000 https://www.admonsters.com/?p=641995 According to Jessica Cortapasso, SVP of People, Digital Remedy, women are “seeking meaningful and sustainable progress toward gender equality and are not afraid to seek new avenues.” Whether they transition to a more inclusive company or branch out to start their own, professional women are fighting for the next generation of women. Yet, it is not all doom and gloom. With organizations such as She Runs It, Chief, and Female Quotient, women are afforded opportunities to network and learn from each other. They are working towards closing the wage gap, increasing the number of women in leadership, and creating a healthier work culture.  

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Despite all major industries rallying for diversity and inclusion initiatives, research shows that women leaders leave their companies at the highest rates we’ve ever seen. 

Why is this the case? 

According to Jessica Cortapasso, SVP of People, Digital Remedy, women are “seeking meaningful and sustainable progress toward gender equality and are not afraid to seek new avenues.” Whether they transition to a more inclusive company or branch out to start their own, professional women are fighting for the next generation of women. 

Yet, it is not all doom and gloom. With organizations such as She Runs It, Chief, and Female Quotient, women are afforded opportunities to network and learn from each other. They are working towards closing the wage gap, increasing the number of women in leadership, and creating a healthier work culture.  

Best Piece of Advice 

Lorin E. Bona Head of Analytics & Revenue Optimizations, News & Media Holding Companies, News Partnerships, Google.  “While I did not receive this advice, I would offer this to women in ad tech: focus on your value and be your own best advocate. Success in this industry is driven by curiosity, agility, transferable skills, and a growth mindset. When you focus on your strengths and achievements and speak up for yourself and business needs, you will be better prepared to navigate and attain personal and professional growth.” 

Lashawnda Goffin, CEO, Colossus SSP. “Ad Tech is ever evolving so be prepared to consistently learn. Having a mentor is also critical so you’re not navigating alone.”

Olha Paramonova, VP, Ad Tech, Sigma Software. “Leadership is not related to any domain. A true leader is THE Leader in anything. Starting my career, I had to find my place by myself. My environment, at that time, was short on women leadership. At work, we all had to match the man’s world, being supportive, agreeing, covering for any need, and having a low voice on important things. I did not ever get any advice. However, I had a very good “man” friend who sent me the book as a hint (“What Men Don’t Tell Women About Business: Opening Up the Heavily Guarded Alpha Male Playbook”). The book depressed me very much; I think I was too young to see the real thing. It was an ugly dish served to the table, but still very refreshing. I wish we all had a good friend to send us this book as career advice.”

Katie Cladis, VP, Product, Digital Remedy. “It’s evident larger industry norms are slow and hard to change. Therefore, I advise women to hone in on key metrics like the percentage of females on the board or in leadership positions when searching for jobs. In other words, find a company with a history of hiring and elevating women to maximize your potential and the opportunity to thrive in a work environment that supports your career growth. Don’t waste time in places that don’t value diversity and inclusion. Progress is happening, but not enough. We must band together to create the change we wish to see.”

Best Practices: What Broad Steps Should We Take to Ensure Gender Equality?

Alex Theriault, Data & Customer Solutions Expert & GM, Spherical at Lotame.  “There’s a great need for support systems to help women get back on their feet, even for women still in the workforce who wish to elevate their career prospects. While there are established networks and organizations that focus on women’s empowerment in the workforce, many have high membership fees, which, for many women, are unrealistic with today’s strained economy. Not only do women need better support systems and opportunities, but they also need them to be affordable and feasible. Just as companies help pay for college loans for young professionals post-graduation, companies, and organizations can help contribute to membership fees for their female employees.” 

Jessica Cortapasso, SVP of People, Digital Remedy. “Hiring more women in the workforce is not the end goal but the launch point. Companies need to prioritize their growth and retention once they hire women. This involves training managers to support their teams, flexibility to support a healthy work-life balance, company commitment to well-being and DEI, and fostering a mutually-beneficial, purposeful work environment. Workplace preferences and needs are changing rightfully, so listening to and considering employee feedback is critical to improvement. All employees should feel comfortable sharing their thoughts and ideas.” 

Rachael Ferranti, VP of Corporate Marketing, Foundry. For this year’s International Women’s Day, Foundry is supporting the “change the narrative” campaign by CPB London that challenges the unconscious gender bias in the workplace by donating ad space on our owned and operated editorial sites to ads that encourage viewers to consider the gendered words they use for males and females exhibiting the same behavior. Along with elevating women internally and externally and ensuring equal pay, this is the type of provocation of thought that companies need to support to continue breaking down the barriers between men and women in martech, technology, and across the workplace in all industries.

A Seat at the Table: The Future of Women in Leadership 

Gabrielle Turyan, Director of Product Marketing, Digital Remedy. “The shape of leadership is rapidly evolving alongside the martech industry. Thanks to pivotal organizations like SheRunsIt and inter-organizational mentor groups, women like myself have a seat at the table. Being a part of this journey into a leadership role has taught me to advocate for myself and other women to take part in senior roles, speak out, and have a voice. I look forward to watching these incremental changes come to fruition.” 

Michelle Harmon-Madsen, CMO of SponsorUnited. “It is more critical than ever for women to feel supported in the workplace for companies to ensure they maintain female leadership and knowledge. Unfortunately, our industry is losing women disproportionately, and we must safeguard against that. Companies prioritizing a balanced corporate culture are attracting and retaining the best and brightest women and talent – and other companies should follow suit. 

Jennifer D’Alessandro, Head of Ad Sales & Marketing, HappyKids. “Women leaders in the ad tech and CTV space are the quintessential example of tenacity – an unshakable focus and drive in the face of seemingly insurmountable odds. We cannot let anyone tell us that we can’t do something or don’t deserve a “seat at the table.” By advocating for ourselves and collaborating with our colleagues through continued learning, and building, we rise above competitiveness and open doors for women throughout the industry. We need to continue the industry’s progress in recognizing strong, intelligent women to better the way for future leaders. Mentoring the younger generation is crucial to continue the path of inclusiveness and bring up strong, intelligent women.”

The Next Generation: Leading By Example

Rachael Ferranti, VP of Corporate Marketing, Foundry. “At Foundry, we both serve marketers and are marketers, so we are intimately familiar with the industry landscape. We prioritize elevating women and female voices across our global organization because we know that is the only way to represent a female-dominated industry. 5 out of 7 of our Marketing Leadership team members are women, and across Foundry, women lead in sales, HR, strategy, development, and operations. Our popular technology events have long promoted women in the IT space on some of the most high-profile stages in the industry, including the CIO 100 and CSO50. Our executives—especially those that came of age during the “old boy’s club” order—examine our makeup continually, with an ongoing commitment to diversity, equity, and inclusion.” 

Megan Saunders, SVP, Global Marketing, Emodo. “Emodo is committed to elevating and empowering women through its first ERG, Elevate, launched in Q1 2022. The ERG kicked off last International Women’s Day and has since had sessions on creating meaningful connections in the workplace, advocating for yourself, preparing for performance reviews, and discussing Roe v. Wade. This year on International Women’s Day, Elevate will host a session on how women and allies can better support each other in the workplace. I’m incredibly proud to be part of a company’s leadership team that respects, promotes, and develops women in the ad tech industry.” 

Elizabeth Herbst-Brady, Chief Revenue Officer, Yahoo. “While professional women still face significant gaps in opportunity and outcomes compared to men, there has been remarkable progress in advancing career opportunities. On the heels of the global pandemic, which the data shows particularly strained women, there has been great importance put on creating an inclusive work environment that empowers more women to join and succeed. In the ad tech space, it’s clear that diversity and inclusion drive innovation and better decision-making, giving companies a competitive advantage.”  

Ana Martinez, Chief Technical Officer, Uberall. There are many tangible steps companies and leaders can take. For example, when reviewing salaries and performances, there needs to be a constant focus on whether there are any disparities between gender, and if so, find out why. Empower women to oversee many of these review processes to help reduce biases when making hiring and promotion decisions. Also, there should be consistent self-examinations within every company and department to ensure that gender-discriminatory practices are discovered and weeded out swiftly.

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That’s So AdMonsters: 6 Ways We Predict Ad Tech and Digital Media Will Evolve in 2023 https://www.admonsters.com/admonsters-6-ways-we-predict-ad-tech-will-evolve-in-2023/ Wed, 04 Jan 2023 21:59:27 +0000 https://www.admonsters.com/?p=639835 Reflection is essential to moving into the new year, and the ad tech industry has much to reflect on from 2022. From the ad spend slowdown to potential federal privacy regulations, the ecosystem must work in overdrive to prepare for all that 2023 has to offer. Here are AdMonsters 2023 ad tech predictions.

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Reflection is essential to moving into the new year, and the ad tech industry has much to reflect on from 2022. From the ad spend slowdown to potential federal privacy regulations, the ecosystem must work in overdrive to prepare for all that 2023 has to offer. 

It begs the question, what do we predict will happen this year? NFT’s took the world by storm. Retail media and ID solutions revolutionized practices around privacy-centric data. How will these practices evolve further in 2023? 

At the beginning of 2022, AdMonsters published our predictions for the year. With the help of industry professionals, we predicted that brands would triple down on first-party data, the changes in Google’s privacy sandbox, and the CTV boom. Will the predictions be spot on this year? Let’s look forward together to see how we predict the new year will pan out. 

Big Tech

The walled gardens have always been a major influence on the ad tech ecosystem. In fact, Google and Meta (the duopoly) captured 85% of ad spend. 

Since they’ve monopolized revenue and inventory, any significant change they implement will affect the ad tech industry. For example, the announcement of Google’s third-party cookie depreciation sent ad tech into a tailspin because Chrome dominates traffic. 

This year, some experts predict a new king is in town. Amazon is gaining ground on Google’s empire and the game of thrones persists. 

Amazon will 1-Up Google. “Amazon is the new (and improved) Google. While the latter holds its death grip firmly on the ad products side of the business, Amazon not so quietly builds up an ever-growing tech stack to cover all marketing needs. Talk at its Unboxed conference celebrated its clean room capabilities. As the leading Retail Media Network, there’s ample cause to celebrate. The question remains whether these moves will put it in the antitrust crosshairs or if they can keep flying under the radar of government scrutiny, unlike their compatriots at Meta, Twitter, and Google.” Eliza Nevers, Chief Product Officer, Lotame

Economic Shifts Will Rattle Big Tech Into More Rounds of Layoffs. “Industry dynamics are seeing tectonic shifts. The pandemic created unusual dynamics and may have delayed a reckoning, but the digital giants finally got too big and overshot the surrounding market dynamics. As a result, all of the major players, with the possible exception of Amazon, are already doing layoffs – we’ve seen announcements from Amazon, Meta, Twitter, Snap, Microsoft, and even Disney. When it comes time to cut the digital fat, the first cut is rarely enough. We’d expect to see more layoffs next year, some from the same players who have already announced a first pass. In the surrounding recessionary environment, startup and growth capital is scarce and more expensive. Some young companies in the industry won’t be able to secure funding. So we also expect to see numerous close shops or seek a quick sale. How hard and how many? Hopefully, we won’t know next year until we see green shoots. One thing we can predict with relative certainty: Elon Musk will be one of the three remaining Twitter employees by the end of Q1.” – Mike Woosley, COO, Lotame

Meta will Flake on Metaverse Investments. “The handwriting is on the wall for the Metaverse based on Meta’s last earnings report. Facebook “invested” $9B on this metaverse thing – and every drop of that $9B came from its profits. Its VR service has just 200,000 users. As a digital property that puts its traffic somewhere between “Catster” and “The Fluffy Kitty” in the public interest.  Advice to Meta: if you want to expand in VR, be like Microsoft and buy a gaming company for $75B. Meta will drastically curtail its investment by the middle of 2023.” – Mike Woosley, COO, Lotame

Privacy and Identity Solutions 

Privacy was the talk of the town in 2022, and the ad tech industry could barely keep its name out of their mouths. Some predict the conversation around privacy will change in 2023, and others think the discussion will be less prevalent. Here’s what industry experts think: 

Privacy Switches Focus. “Brands and publishers are building on their first-party data capabilities and ID alternatives. Still, these tactics alone will not solve the tightening of privacy regulations and the deprecation of third-party cookies. While personalization does not equal identification, the industry has long conflated the two. 2023 will be the year that marketers shift their strategies from ID-based personalization to creative-based personalization.”  – Alistair Goodman, CEO, Emodo

Shrinking Identity Landscape: Learn to Walk the Cookieless Walk. “Despite urgency doubling around the need for identity solutions, 2023 will bring little to no progress as Google continues to kick the can down the road. As long as cookies exist, marketers will use them. Even those with mandates to target only first-party data won’t realize their identity partners rely on cookies. With zero real use cases to prove those aforementioned in-market cookieless solutions work, the most exciting development in 2023 will be far fewer companies in business. The identity landscape will continue to shrink over coming quarters from more than 100 transactable IDs to a top four or five.” Eliza Nevers, Chief Product Officer, Lotame

Privacy Will Lose Its Importance. “Privacy, although hugely important, will become less of a focus for marketers this year. We are hearing that it is still a consideration but differs from the focal point it has been in the past. Google continues to punt changes opening up questions about when and if it will begin to deprecate cookies. Additionally, new regulations have shown exactly what limitations are on the horizon, so some uncertainty has been removed around what changes will take place and when.” – Matt Sotebeer, Chief Strategy Officer at Digital Remedy 

Data Fraud and Misinformation 

The industry has created systems to stop the increase of ad fraud, but that does not mean the practice has died down. Bad actors became more creative with sneaking misinformation and scams into ads.  

We saw that in our 2023 Malvertising preview, which noted that every aspect of the supply chain was affected. We also saw it with the increase in political ad fraud during the midterm elections. 

The industry must work together to educate themselves and consumers on how to detect and block ad scams. The more publishers understand the origins of these attacks, the more they can do. This will allow publishers to put better security in place to protect themselves and the consumer.

Mis/disinformation. “Our research finds that 68% of consumers globally are worried that levels of mis/disinformation are growing. This poses a huge threat to brands as 3 in 5 (61%) consumers would be less likely to purchase from a brand that appears alongside mis/disinformation. In the face of economic uncertainty in 2023 and beyond, brands must ensure advertising spend is driving strong ROI. Ads appearing alongside false or misleading content is a form of wastage—with the added risk of creating reputational damage. In the year ahead, we’ll see a greater emphasis placed on solutions that ensure ads appear in brand-safe environments. AI-driven tools that leverage semantic science—such as deep learning, machine learning, and ontology—will provide confidence and clarity to advertisers and publishers looking to defund mis/disinformation and reinforce the authenticity of their brand values.” – Dan Slivjanovski, CMO of media measurement company, DoubleVerify

Mobile

What does the future of mobile advertising hold? The consensus is that mobile advertising brands will expand into new partnerships and develop privacy-centric strategies. 

New privacy changes and tech advances forced app publishers to re-evaluate how they drive their ad ARPDAU. AdMonsters recently hosted a webinar “The Future of Monetization,” that spoke to the future of mobile monetization. One of our panelists, TK  Krishnamurthy asserted that brands should prioritize users’ needs before considering revenue. Creating a great user experience will boost revenue at the end of the day. 

An opportunity for growth. “Global macroeconomic changes reshape how businesses think about growth demands and create opportunities for those who are willing to adopt. As the mobile ecosystem evolves, advertisers will continue to get pushed to experiment with new channels to remain competitive. Mobile-first businesses will go beyond mobile inventory to new forms of audience reach that are novel for mobile performance, such as Connected TV. Measurement is also evolving as it takes a broader set of tools and methods – from media mix modeling to up-to-date platform support – to have a holistic view of channel portfolio performance.”– Andrey Kazakov, VP of Demand, AppLovin

The Integration of Digital Marketplaces into Mobile Games and Apps. “The opportunity and monetization that can be unlocked by integrating digital marketplaces into mobile games and apps are vast. After all, there are already billions being spent annually on digital items across every other gaming platform. As a partner of AppLovin, Lion Studios integrated an NFT in-game event into Match 3D and saw strong engagement and an increase in Average Revenue Per Daily Active User (ARPDAU).This led to a significant increase in in-app purchases and drove a new and meaningful revenue source through royalty fees generated from users trading their assets on the marketplace. Looking at recent years, mobile game developers that invested in new monetization methods early are the ones who gained advantages in the market. For developers looking to unleash their user engagement potential in 2023, the time to invest is now.” – Rafael Vivas, General Manager of New Initiatives, AppLovin

Web3: The Digital Landscape

Many believe Web3 capabilities won’t impact how business is run in the ad tech ecosystem on a major scale but is this truly the case? Industry sentiments are mixed. 

Awareness around Web3 grew immensely in 2022 with the rising popularity of NFTs and metaverse in ad campaigns. For example, TMB and Pet collective launched an NFT campaign that sold out in seconds. Their partnership proved that Web3 capabilities are profitable and a creative way to engage with your audience. The key is creating an experience that connects with your audience’s needs. 

Web3 capabilities are also a potential solution to the new privacy regulations because it promises to give consumers control of their data. In Web3, a small monopoly of owners won’t store consumer data assets. Instead, the consumer will control their own data and decide if they want to sell it or not.  

NFTs Represent the Evolution of Digital Item Ownership. “Digital marketplaces are widely accepted amongst gamers worldwide, and billions of digital items are transacted through them annually already. We believe that NFTs are an evolution of digital ownership. They present a new opportunity for users to re-sell their earned or purchased digital items and drive incremental revenue for developers. Previously, if you wanted to see whether a user truly owned an item, you had to log into that game and interact with that user inside of it. Now, with NFT technology, you can easily identify someone’s digital ownership of assets on a public ledger and easily exchange that ownership. Digital marketplace monetization should be at the forefront of developers’ minds when aiming to keep users engaged with new creative games.” – Rafael Vivas, General Manager of New Initiatives, AppLovin 

Web3 will Continue to Climb, but not Without Hurdles. “The recent FTX collapse has sparked a lot of uncertainty and fear within the crypto/NFT market. However, despite this, we are still seeing a lot of interest from brands to launch Web3 activations. Because the Metaverse’s focus is on community, brands will find different and new ways for consumers to interact with them and each other digitally. One of the Metaverse’s greatest strengths is its ability to build community. The rise of the Metaverse won’t occur without hurdles though. We can expect to see challenges in adoption and use cases. We will need elevated virtual reality technology and much more robust avatar standards and architecture.” – Jack Cameron and Billy Huang, the co-founders of Insomnia Labs

Web3 Breaks New Ground for Brand-Consumer Relationships. “With the recent surge in privacy laws, Web3 could be the answer brands and businesses are looking for in the future. Within Web3, we see NFTs as a brand loyalty program that could identify and curate a closer group of consumers than ever before. Also, DAOs will allow people to have a stake, enticing them to participate actively in the community. Wholistically, Web3 provides technology to build new things and empowers brands to communicate with their consumers more intimately than ever before. Consumers can now connect and interact with the brand more intimately and with other fellow consumers who share the same passions and interests. Web3 will unlock new opportunities for brands to become more “cool” and connect deep, long-lasting relationships with their consumers.” – Jack Cameron and Billy Huang, the co-founders of Insomnia Labs

Further Experimentation in the Ad Tech Space

Revenue diversification is essential in the era of the ad spend slowdown and a possible “ad recession.” 

Consequently, the ecosystem is forced to evolve and experiment with new mediums to help drive revenue and user engagement. Whether that means experimenting with Web3 or augmented reality, creativity is key to standing out in the crowd. 

Creative Ad Monetization. “The gaming industry has always thrived on creativity and experimentation. The current economic downturn is forcing us to double down on this even more. As launching new gaming hits has become more difficult, we are seeing more and more developers take risks and be open to changing their previously winning formula. We currently see and predict that we will continue to witness the game industry developing in its monetization strategies. Whether it’s adopting hybrid monetization, with IAP partners integrating ads and ad-based developers trying to crack IAPs or new ad formats such as app open or native, I expect to see a lot of new and creative monetization strategies emerge in 2023.” – Daniel Tchernahovsky, VP of Global Business Development, AppLovin

Augmented Reality and AI. “Augmented reality is gradually growing out of its infancy and could soon become an indispensable part of a digital marketing strategy. More and more brands have started integrating AR features into their apps and online campaigns. Consumers are trying out AR and experiencing upgraded customer journeys – think of using Google Lens to translate restaurant menus or trying on make-up and glasses virtually. Whoever scores with the most creative and intuitive implementation this new year can set new standards and secure a long-term competitive advantage.” Florian Hübner, CEO and Founder at Uberall

“Augmented reality is already making its way into online campaigns and setting the first benchmarks in the hybrid customer experience. The beauty chain Douglas, for example, recently launched an AI-powered digital tool for analyzing customers’ skin types and offering tailored product suggestions. Personalized customer experiences like these will continue to evolve rapidly in the coming year and beyond, further changing the standards in digital marketing. Success with customers and the competition will be determined by the actual benefits of these tools and the creativity with which they are implemented.” – Florian Hübner, CEO and Founder at Uberall

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The Negative Effects of ID Loss on Advertiser KPIs https://www.admonsters.com/effects-of-id-loss-on-kpis/ Tue, 13 Dec 2022 22:43:15 +0000 https://www.admonsters.com/?p=639561 Emodo Institute took a deep dive into the wonderful world of marketer KPIs to showcase just how dramatically they were affected by cookie and ID loss. Most notably, the study uncovered that out of all the metrics advertisers use to measure campaign effectiveness, only engagement and attention appear to be the least impacted. So maybe there’s something to the argument that attention metrics will be a key measure for advertisers once the cookie finally takes its final breath.

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By now, we are all well aware of the drastic effects that mounting privacy regulations have on the ad tech industry.

For advertisers, the loss of identifiers and signals has significantly altered their campaign outcomes and KPIs. We all know this to be true, but maybe just not how much. 

Thankfully, Emodo Institute took a deep dive into the wonderful world of marketer KPIs to showcase just how dramatically they were affected by cookie and ID loss. Most notably, the study uncovered that out of all the metrics advertisers use to measure campaign effectiveness, only engagement and attention appear to be the least impacted. So maybe there’s something to the argument that attention metrics will be a key measure for advertisers once the cookie finally takes its final breath.

In a three-part study, Emodo focused on targeting and the impact of ID loss on creative. And finally, they challenged the industry to rework how they determine campaign success. In short, KPIs will need to change because measurement, attribution, signal loss, and device IDs have evolved. Here’s what the report highlights: 

  • The door is open for brand categories’ KPI priorities to see severe impacts.
  • The types of creative formats marketers are utilizing to achieve each KPI. 
  • The effect of ID changes on agencies vs. in-house agencies. 
  • The at-risk KPIs marketers have already seen affected by ID loss and more.  

“Many marketers are starting to grasp the significance of ID loss, but much of the focus tends to be on targeting,” said Megan Saunders, SVP of Global Marketing & Growth at Emodo. “The impact on measurement is potentially even more severe, but that element is not as widely understood. Advertisers need to rethink how they evaluate their campaigns’ success.” 

ID Loss’s Impact on KPIs

Emodo’s research found that marketers whose primary KPIs are online conversion, brand lift, or brand safety are more likely to experience less campaign effectiveness due to ID loss. In theory, this happens because each step requires a double opt-in. 

According to the study, “consumers have to be ID’d on the ad impression, and then subsequently on the transaction, store visit, or another measured event. Then those two events need to be matched to attribute the action to the ad impression. That means if an opt-in rate is 20%, then the double opt-in rate could be as low as 4%.” 

On the other hand, campaigns that rely on upper-funnel KPIs like reach experienced less of a negative impact due to ID loss. Only 32% of marketers measuring by reach cited impact because of ID loss. 75% of marketers measuring performance with contextual adjacency like Brand Safety cited impact due to ID loss. 

Reach: Less Effect Does Not Mean No Effect

As mentioned above, marketers who focus on reach as a KPI assert that they are less likely to experience the impact of ID loss. Yet, if you take out the magnifying glass and examine it closer, findings show that reach data is sometimes logged inaccurately. Campaign reach often looks larger than it really is because ID loss misrepresents some impressions as incremental reach. 

Reach might not be as protected as it seems because “Without ID data, impressions from the same device can’t be mapped back to each other, resulting in duplicative impressions that are inaccurately interpreted as incremental reach, creating a false sense of scale.” 

Accuracy is key and any remnants of duplicate impressions should be accounted for. Lack of precision will negatively impact your campaign and it is important that duplicated impressions are discounted. It ensures “you are using a more accurate figure for the amount of valid impressions served.”

The effect, albeit minimal, should still be examined if reach is one of your major KPIs. 

Marketers reported using reach as a KPI the most: CPG, Telecom, Consumer Electronics, and B2B.

Viewability and Brand Safety: The Effect of Companion KPIs 

KPIs like viewability and brand safety might not require an ID for measurement purposes, but they are often linked to a KPI impacted by ID changes. 

For instance, marketers focused on viewability usually have one other companion KPI, such as attention or reach. Even brand safety, a KPI that does not require a double opt-in, reports a high adverse effect of campaign quality due to ID loss because of its companion KPIs. 

Here’s what the study found:

  • Viewability: 84% of agency marketers who rely on viewability say they are NOT experiencing any ID-related changes in the effectiveness of their campaigns. 
  • Brand safety: 88% of brand direct marketers who rely on brand safety say they ARE experiencing ID-related changes in the effectiveness of their campaigns.

Further Considerations: There is Still Hope with ID Loss

The loss of IDs and cookies does not mean your campaigns will not be as effective as they used to be. It means it’s time to evolve how you measure campaign effectiveness. 

The Emodo study suggests three tactics to increase your opportunities: 

Flatten the funnel: Emerging formats like augmented reality and adaptive native ads work at multiple marketing funnel stages. 

Leverage engagement and attention: Marketers focused on engagement and attention are the least likely to say ID loss affects their campaign scale or effectiveness. 

Consider ID-independent audiences: ID-independent audience models, such as AI-powered predictive and contextual audiences, can be precious in combination with ID-based targeting. 

“Each advertiser should look past the surface of their campaigns to make sure that ID loss doesn’t have a greater impact than they realize,” suggests Emodo. “It’s important to note it’s in the interest of measurement providers to project that ID loss is having minimal impact, even when that might not be the entire story.” 

You can read the full study here

  

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