Home Data Nugget DSPs Stole Ad Networks’ Thunder In Q4, At Least On Retail Sites

DSPs Stole Ad Networks’ Thunder In Q4, At Least On Retail Sites

SHARE:

KBS logoLooking at the 2012 holiday shopping season, retailers with ecommerce websites deployed more marketing technologies, including social plug-ins, than in 2011, according to data gathered from Evidon and analyzed by kbs+ Ventures, the investing arm of kirshenbaum bond senecal + partners.

Kbs+ Ventures analyzed 20 retail brands including Best Buy, Old Navy, Gilt, Piperlime, Gap, Disney, Target, Walmart, and Newegg. Of these retail sites, 75% used Google AdWords as an ad network, while 50% used Burst Media. However, there were 51% fewer advertising networks utilized overall by these retailers during the holiday season. Other popular ad networks included Acerno, Netseer, and 24/7 Media.

“While ad networks have not died, many have been weeded out,” said Darren Herman, chief digital media officer for The Media Kitchen and president of kbs+ Ventures, in an email with AdExchanger. “The surge of demand side platforms and trading desks are stealing the ad networks’ share. If they prove to add value…they will continue to steal share into 2013.”

When it came to the DSPs used, there was a 44% increase, from 9 different DSPs to 13 in 2012. Turn was used by 55% of retail sites, with Invite Media and MediaMath close behind, deployed by 50% and 40% of the sites analyzed, respectively.

In the site side optimization space, Omniture was most commonly used, by 75% of retail websites. The next most popular SSO technology, Monetate, was used by only 20%.

One interesting point was that, of the retailers analyzed, all of them had at least one social media plug-in on their site, compared to 45% who did in 2011. Walmart and Best Buy were the most social, and a Facebook plug-in was present on 90% of the sites analyzed.

Social PlugIns

Social media can help increase earned media, Herman noted, and while the earned media ecosystem is still growing, it has become more validated and is starting to mature in terms of measurement.

Audience measurement services also increased in usage, with Target and Newegg leveraging the most services, at 10 each. Quantcast was the most-used audience measurement tool, with 65% of retailers deploying the service, a 117 percentage-point increase from the 30% that used it in 2011.

Audience Measurement

All of this data comes after comScore reported that 2012 US online holiday spending reached $42.3 billion, a 14% increase over 2011. As more holiday spending moves online, these retailers are increasingly leveraging online advertising and social media to help them capture ecommerce dollars.

“It’s a golden opportunity for retailers, as in theory and in practice, marketing technologies help drive conversion which drive sales, which is what retail is all about,” Herman said. “The benefit is better consumer experiences, better conversion rates, and a more modern retail construct.”

Must Read

Independent Ad Tech Is Reframing Itself Around Cloud Hardware

Nowadays, programmatic vendors, and SSPs in particular, are carving new paths of differentiation based on their type of adoption of cloud infrastructure.

Ad Performance Hinges On Kicking Fragmentation's Butt

As performance takes center-stage in more advertising discussions, demands to solve fragmentation and cruddy measurement are reaching a fever pitch.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

AI Off The Rails

A word of caution to digital advertising companies, as they go all in on AI algorithms: They need to build these solutions with ownership, governance and accountability from the start – or AI could sink them with a single mistake.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
square Headshot of Mohammad (Moe) Chughtai, global VP of strategy & partnerships at MiQ, against an orange and yellow gradient background

Better Attribution Makes Live Sports A Performance Play

To squeeze the most juice out of their live sports campaigns, many marketers are adopting programmatic buying and marketing mix modeling, both of which are also drawing more advertisers to the digital live sports cornucopia.

Roblox Opens Up Advertising To Kids Under 13

Roblox is making its under-13 audience available to advertisers for the first time. And it named youth-focused ad marketplace SuperAwesome as its exclusive advertising partner for under-13 users.

Comic: Header Bidding Rapper (Wrapper!)

Outgoing Prebid President Mike Racic On His Departure And The Org’s Next Act

Prebid is turning the page on what might be called its second chapter as the organization navigates some major changes in the digital advertising landscape and within its own ranks.