RSS FeedArchive for the ‘Data-Driven Thinking’ Category

Facebook Advertising: Not For Cheapskate Marketers

david-serfaty“Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by David Serfaty, director of social advertising at Matomy Media Group.

Advertising on Facebook has undergone a dramatic transformation over the last year. It’s evolved from what was primarily an engagement-based platform to one that offers advertisers direct response and, ultimately, sales.

In late 2013, Facebook released a steady drip of more performance-based targeting options for advertisers. It pushed that further this year when it announced several new mobile ad initiatives at its F8 developer conference. And it went full bore with both on- and off-Facebook targeting and measurement capabilities with the relaunch last month of its Atlas ad server.

All of these changes and new advertising product launches point to one thing: Facebook wants to be marketers’ everything and everyday ad platform. Whether your brand wants to reach baseball fans in Kalamazoo, cricket players in Melbourne or dog sled racers in Fairbanks, Facebook is making the case for why it’s the only ad platform marketers need for engaging and acquiring consumers on Facebook or off.

But it doesn’t come cheap. One point seemingly missing from most marketers’ discussions about the power of Facebook advertising is this: You have to pay good money in order to engage with and acquire quality customers or users.


Come Together: How The Advertising And Software Industries Are Converging

louismoynihan“Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Louis Moynihan, vice president of business development at Demandbase.

If you have been in ad tech a decade or two, you’re probably sensing a major sea change.

Online advertising used to be the immature sibling disrespecting traditional logic as it quickly created new processes and revenue models. Less than a decade ago, Adobe was simply a creative software maker, Google did text-based search ads and Oracle was all about ERP.

Online advertising eventually grew up and bypassed many of the traditional channels, creating a whole new set of players. And now Adobe has integrated software with creative, analytics, advertising, data management and marketing automation. Google is the ad standard in display, mobile, video, programmatic supply and demand. Meanwhile, Oracle has ingested so many large software acquisitions that we need a new definition for ERP in 2015.

The ad tech industry should pay attention to how the large software makers are positioning themselves and the acquisitions they are making – not just the ad tech acquisitions. The largest global software companies have invited ad tech to the adult table and the stakes couldn’t be higher.


Retargeting By Any Other Name Is Still Retargeting

justin-petty"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Justin Petty, vice president of global media and partnerships at dunnhumby.

We’ve all done it. Days after browsing a product online, maybe across several different sites, we see it out of the corner of our eye on the screen. “You know you want me. C’mon, just click this ad.”

For many of us, it works. We’re sold.

It’s similar to a friend saying, “You look great in that jacket, just get it.” We might not buy immediately; we‘re uncertain or think we might find it cheaper elsewhere. But we like instant gratification, so typically only wait a couple days at most before breaking down and buying. And that’s one of the reasons retargeting works.

Retargeting has always been a label applied to advertisements triggered by a consumer’s online behavior. In today’s world of big data, the lines are blurring between offline consumer behavior and online ad targeting. In essence, everyone can now retarget, even if it’s not labeled as such.


The Early Word On Snapchat’s First Push Into Advertising

eddarmanin"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Ed Darmanin, chief revenue officer at 140 Proof. 

Ever since Snapchat crashed the social networking scene, the app has made social heavyweights fidget anxiously and spawned a long line of imitators. It recently began the inevitable journey towards monetization, in the only way social platforms know: selling advertising. Its first ad officially ran over the weekend.

This is Snapchat’s shot at becoming the next big thing not just for millennials, but also for the advertisers that want their attention. Does it have to get it perfect right out of the gate? No, and so far it has not, but its experimentation is a good thing. As details emerge about its initial efforts, there are some useful observations we can make from the understandable flaws in the experiment.

Disappearing Eyeballs, Disappearing Advertisers?

Snapchat isn’t dissimilar from Facebook a few years back when it was first pivoting to incorporate advertising. You can expect the audience to be unwelcoming. And so Snapchat is bending over backward to ease its audience into this advertising transition.

The ads will start out nestled within Snapchat “stories,” the 24-hour status updates that users provide friends. While consumers might like the stories function, they’re less apt to actively check in for status updates on the app as stories don’t generate an alert like a regularly received “snap.” The average user checks their account about 14 times a day, but it’s unclear how much users interact with stories, and much less how they might interact with branded stories. All of this means fewer eyeballs for the ads.


OK, You Have Their Attention. Now What?

justin-choi"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Justin Choi, CEO at Nativo.

Engaging consumers through authentic brand content is more important than ever for drawing them into the marketing funnel. And the best measure of successful brand content is attention, the amount of time users spend actively engaged with branded content.

But what does that attention really mean?

Attention provides the opportunity to influence, and influence drives action. Influence denotes how effective a piece of content is in adding value to a customer’s life, affecting brand and purchase consideration and driving word-of-mouth intent.

The formula for creating influential content is actually quite straightforward: less ad messaging, less interruption and more usefulness. Good content leverages a brand’s voice or expertise to add authentic value to customers’ lives by delighting, informing or inspiring them. It is delivered in a non-interruptive way and is contextually relevant.

The equally important, and often more challenging exercise, is measuring and rewarding content influence, such that the most influential – not simply the most clickable – content gets promoted and replicated.


The Folly Of The Click-Through Rate And Simple Math

laurenmoores"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Lauren Moores, vice president of analytics at Dstillery.

As Advertising Week drew to a close, a colleague of mine who is relatively new to ad tech voiced disbelief that many people still believe in the click-through rate (CTR) as a performance measurement.

“Is it because the math in more accurate methods is too complicated?” he asked.

Unfortunately, CTR is not going away anytime soon, according to AOL’s Tim Armstrong. The click was the metric of choice when he started in the industry 19 years ago, he said in a recent IAB MIXX speech. Although there was skepticism about the click from the onset, here we are with the same metric nearly two decades later.

That’s a tough one to swallow. I tend to agree with Tim that the media industry moves at a glacial pace in this arena – look at our continued reliance on coarse demographic TV ratings, for example – but the notion that we are stuck with simplistic and misleading attribution for the foreseeable future defies the potential and power of digital media.

Do CTR and click attribution models remain because we don’t want to acknowledge how these metrics support a fraud economy that occurs across digital channels?


Programmatic: Great For Direct Response, Bad For Branding

lawrence-herman"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Lawrence Herman, CEO at BlueLink Marketing.

It seems over the past year we’ve heard a number of creative agencies tout programmatic ad buying as the perfect answer to a company’s branding needs, enabling them to save money, create transparency and reach consumers with their message.

But frankly, I have never quite understood this line of reasoning.

Programmatic advertising is still a relatively young market and there are currently no statistics on how much of it is dedicated to direct-response advertising vs. branding.

But whether or not programmatic for branding is more dream than reality, I think advertisers are better off investing their time and effort into programmatic for direct-response advertising and not for branding. Here’s why.


Facebook And Google Are Bringing Walled Gardens Back

timmayerupdated“Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Tim Mayer, chief marketing officer at Trueffect.

Facebook’s ad platform, Atlas, recently relaunched with an entirely rewritten ad server platform, a newly redesigned user interface and the ability to target and measure advertising across devices using the Facebook identity, even for channels beyond Facebook.

The news raises several interesting questions for the industry: How will this impact the ad tech industry overall? Will this new capability drive advertisers to migrate to Facebook from DoubleClick, which has long been considered market leader in the space, or is the market shifting? Should advertisers look beyond these two solutions?

Atlas Goals

In order to understand Atlas’ impact, it’s important to first understand the goal of the platform. With the Facebook identity being the central element in ad measurement and targeting, Atlas solves the “cookie proliferation” issue, which causes huge gaps in ad measurement. This in turn leads advertisers to optimize their campaigns based upon metrics that are magnitudes away from reality.

So what’s behind the issues with cookie proliferation? For one, many platforms and browsers, such as iOS and Safari, do not accept third-party cookies, and security programs typically delete them every seven days on average. And we can all relate to one of the most important issues cookie proliferation raises: people using multiple devices, such as phones, tablets and laptops, with each device being viewed as belonging to a different user in measurement and targeting.


As Programmatic Video Evolves, Publishers Are Just Getting Started

jeremyostermillersellsideThe Sell Sider” is a column written by the sell side of the digital media community.

Today's column is written by Jeremy Ostermiller, founder and CEO at Altitude Digital.

Programmatic video platforms are perhaps the hottest commodity in ad tech right now, with several high-profile acquisitions taking place in the past six months alone. The sale of LiveRail to Facebook and RTL Group’s $144 million investment for a 65% stake of SpotXchange prove that programmatic video is an increasingly important part of the digital media landscape.

A hot market may also be interpreted as the end of an innovation cycle. With a basket of large players suddenly off the market, the ad industry could theoretically move on, turning its focus away from video innovation toward the next big technology play. However, this couldn’t be further from the truth. The growth and innovation in programmatic video is just beginning.

Technological Inefficiencies

The clearest indication that video is far from “solved” lies in the issues publishers still experience. Video CPMs are clearly higher than display CPMs, but not all publishers employ video on their sites.


Please Stop The OUA (Obnoxious Use Of Acronyms)

denisecolella"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Denise Colella, CEO at Maxifier.

I recently listened to a great panel where marketers like Bank of America, Kraft and Dell discussed the big P (programmatic) and its impact on the media landscape. It was nice to finally hear marketers talking, as opposed to the usual vendor-populated panels.

But more importantly, there were only two – yes, two – acronyms used during the entire discussion. For the record, they were B2B and QSR (quick service restaurant). Any ad techies hoping to fill their Lumascape bingo card left sorely disappointed.

So, what in the world did they talk about if not RTB between SSPs and DSPs populated with big data from DMPs and their integration with DFP and PMPs?

Well, they talked about the four Ps – real, classical marketing speak (how retro) – and social. All of the brands expressed concern about competing with consumer marketers – in other words, the general public – who are now talking to large online audiences about their products. They also mentioned that they had to research programmatic before the panel to ensure they knew what they were talking about.