RSS FeedArchive for the ‘Data-Driven Thinking’ Category

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.


Do You See What I See? Probably Not.

keithpieperddt"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 Keith Pieper, director of product management at SpotXchange.

Fraud is a big issue. Quality is a bigger issue. Sadly, both are subjective.

There are a growing number of solutions on the market to help us detect fraud and reduce bad inventory. But what we really need is greater transparency, collaboration and less emphasis on proprietary algorithms.

Without these things, ad fraud will continue to grow.

Escalating Conflict

I’ve seen different solutions report wildly different rates of fraudulent impressions for the same inventory – anywhere from 1% to 23%. These large discrepancies make it nearly impossible for suppliers to comply 100% with the “quality” needs of a buyer.


News Outlets Need Native Ads, Not Paywalls

ted-dhanik"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 Ted Dhanik, CEO at engage:BDR

The news media industry is caught between the traditions of the print world and the experimentations of the digital age.

Their struggle is to make money when information is largely free. To overcome this problem, publishers are debating between growing digital ad revenue, instituting paywalls or both. My contention is that most news organizations need to take an ad-supported approach to succeed in the 21st century.

Some news organizations are erecting paywalls that aim to extract a lot of revenue from a small, price-insensitive audience. This model can’t work for most publications, though, because it cannibalizes ad revenue and requires a high level of prestige.

Instead, the future of the news business belongs to publications that use native ads to elevate the quality and relevance of advertising. By taking a direct role in the editorial direction of native ads, news organizations can preserve their influence and contribution to public dialogue while maintaining a good experience for their readers and viewers.


Beware Of Advertising’s ‘Innovation Tax’

ryanmcconville“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 Ryan McConville, senior vice president of business development and partnerships at Kargo.

Programmatic advertising has slowly but steadily taken hold of nearly the entire digital marketing universe. And while by now you’ve heard of it, tried to understand it and even dabbled in it, brands, publishers and everyone in between continue to debate the true value of advertising automation and its projected influence over the future of media buying.

Agencies, ad tech companies and other parties on the demand side talk about the benefits of machine-driven decision-making, hyperefficiency and data targeting on steroids. Those on the supply side remain concerned about a variety of issues, including data leakage, lower CPMs and slimmer margins due to technology middlemen.

Many have taken to calling this latter phenomenon the “technology tax” – the whittling away of every dollar spent on advertising by a new programmatic supply chain stuffed with media agencies, trading desks, DMPs, DSPs, exchanges and SSPs, all of which take a cut. By some estimates, programmatic parties collectively take 70 cents of every dollar spent by marketers, leaving precious few pennies for the actual media and the publisher.


When Was The Last Time You Delighted Your Customers?

baiju-shah-2"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 Baiju Shah, managing director for strategy and innovation for Accenture Interactive.

The digital revolution is changing the business world as we know it, bringing with it a head-spinning number of new opportunities, challenges and business models.

Companies sitting outside our industry, including Uber, Spotify and Birchbox, have begun to shape customer’s expectations for your services. With its hassle-free check-out process and app that gives customers an ETA for their rides, Uber, for instance, has redefined a standard for transportation services.

With today’s heightened customer expectations, businesses are increasingly aware that they need to provide customers with relevant interactions and seamless experiences across all channels, from mobile to online and in-store, to succeed in today’s digital world. Given the ease with which customers can switch service providers, businesses need more than a new campaign, tactic or technology to hold their interest. To remain competitive, companies should undergo a digital makeover that puts the customer experience at the center of their thinking and strategies.


Sell The Media, Share The Intelligence

anushprabhuddt“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 Anush Prabhu, partner and chief channel planning and investment officer at Deutsch NY.

Almost every brand-related decision a consumer makes today is based on a complex string of devices and influencers. From being persuaded by ads when surfing the web, to researching on their mobile phones while shopping and seeking advice from friends when checking Facebook, each scenario, category and consumer’s decision-making string will vary.

Understanding that string is highly valuable to a marketer seeking to connect with that consumer. It can enable brands to construct seamless and tailored stories, which are more effective at persuading the consumer, successfully and efficiently.

Today, we may be getting a step closer to understanding and, more importantly, acting on these decision-making strings. In what is to be the beginning of a movement toward using login data as an identifier for ad personalization, Facebook relaunched the Atlas Ad Server last week. Atlas will leverage Facebook login data to support a persistent tracking mechanism across devices. It brings a lens to the consumer with their multiple digital devices today, and could potentially illuminate social behavior and influencers in the near future. We can now have a singular perspective on our consumer’s journey, connect with them in multiple scenarios and learn as they traverse through their devices.