WEDNESDAY OCTOBER 12th 2022

If you're a CMO, you might want to sit down for this one. Bloomberg Media will stop serving open-market third-party programmatic display advertising on both its website and mobile app, beginning Jan. 1, 2023. In other words, CMOs will have to find another way to reach their target audience through Bloomberg.

Bloomberg's reasoning is that the move will enable it to focus on high-quality journalism and trusted content experiences for its customers, rather than selling ad space to the highest bidder. The company also believes that this will help it win back advertisers who have been turned off by the increasing amount of digital ad fraud, according to their CEO.

In the early days of online advertising, publishers could rely on direct relationships with advertisers to maintain a balance between user experience and monetization. Those were the good old days. Now, as we all know too well, things are very different. The rise of programmatic advertising has made it possible for anyone with a few dollars to buy ads on even the most premium of publisher sites. And while that increased competition can be a good thing for publishers (more demand = higher CPMs), it also comes with some major caveats.

The first, and perhaps most obvious, problem with programmatic is the open marketplace where anyone can buy ads. This includes legitimate businesses and those with less than honorable intentions. A recent study found that nearly one-third of all programmatic ad spending is lost to fraud. That's billions of dollars being stolen yearly by criminals who create fake websites and traffic sources to collect ad dollars from unsuspecting advertisers

But even if we could put a stop to fraud tomorrow, there would still be another serious problem facing programmatic advertising: malware. 

A recent report from White Ops found that malware-infected computers are responsible for nearly 10% of all programmatic ad impressions. That means that users who visit sites with programmatic ads are at risk of having their computers infected with viruses or other malicious software. And since most people don't have anti-virus protection on their computers, the potential for harm is great..

It gets worse however for CTV, the Open Exchanges are basically just fraud. On reason is the SSAI technology. In case you're not familiar with it, SSAI allows ads to be stitched into content streams in real-time. This results in a seamless viewing experience for consumers and makes it difficult for ad blockers to detect and block the ads. That's why many CTV publishers are turning to SSAI as a way to ensure that their ads are seen by consumers.

However, there's a major downside to SSAI: it's incredibly easy for fraudsters to exploit. You see, with SSAI, ad measurement comes from the ad servers themselves. But fraudsters can easily insert themselves into these servers and create fictional viewers that never actually see the ads. This results in brands paying for ads that no one is actually watching.

And unfortunately, detecting SSAI fraud is no easy feat. That's because the same characteristics that make SSAI attractive to brands— namely, the fact that it's hard for ad blockers to detect— also make it hard for detection tools to spot. In Open Exchanges where anyone can buy anywhere and everywhere, the fraudsters do amazing since there is absolutely no transparency where the advertising really goes.

In recent years, private marketplaces have become an increasingly attractive option for advertisers looking to get the most bang for their buck. With high viewability, human engagement, and impressive publication placements, it's no wonder that private marketplaces are growing in popularity

Not sure what a private marketplace is? Don’t worry, you’re not alone. A recent study found that only 8% of marketers said they were “very familiar” with private marketplaces, while 54% said they were “somewhat familiar” and 38% said they were “not at all familiar.”

Here’s a quick rundown: a private marketplace is an invitation-only programmatic ad buying platform that offers premium inventory at scale. In other words, it’s a safe space for brands to buy ad impressions from select publishers at pre-negotiated rates. And because PMPs are powered by programmatic technology, advertisers can purchase this premium inventory using real-time bidding (RTB).

One of the main advantages of private marketplaces is that they offer high viewability rates. This means that your ad is more likely to be seen by actual human beings rather than bots. Furthermore, since private marketplaces only work with well-respected publications, you can be sure that your ad will be placed in a high-quality environment.

Another benefit of private marketplaces is that they offer human engagement. This means that you're more likely to reach people who are actually interested in what you're selling rather than those who simply see your ad and move on.

Finally, private marketplaces offer impressive publication placements. This means that your ad will be placed on well-respected websites that receive a lot of traffic. Consequently, you'll have a greater chance of reaching your target audience and achieving your desired results.

So why aren’t more advertisers doing this, and why are agencies still focusing on heavily fraudulent open programmatic marketplaces? They are lazy and want easy scale.  Agencies are known to complain that in order to get a PMP humming, it takes time and resources—something that many publishers in the “fat middle” struggle with. Additionally, long-lingering Deal IDs can be a problem as they can result in low fill rates.

Again, this is because we’ve taught our new generation of media buyers to be lazy and unable to do real media buys like was done for most of the history of advertising. We’ve believed the hype that open programmatic can do all the work, even when study after study shows that its not only fraudulent but highly ineffective.

The time has come for open programmatic buying to end. We need a new system where buyers and sellers can trust that their transactions are fair and transparent. What do you think? Is it time for a change? Let us know in the comments below.

 

TheRundown
At least 10 News Stories you Must Know
(but don't have time to read!)

1.The privacy landscape has shifted underneath the feet of marketers, who are scrambling to keep up with the changing regulations. In August, Sephora agreed to pay a $1.2 million fine for allegedly violating the California Consumer Privacy Act (CCPA). Separately, the data broker Kochava is in a legal tussle with the FTC over a disagreement around selling location data to advertisers. And several states have enacted privacy legislation. These changes have made it difficult for marketers to know what they can and cannot do with personal data. However, there are still some options available to them. For example, marketers can focus on marketing to business customers, who are not covered by many of these new privacy regulations. Additionally, they can use anonymized or aggregate data, which does not require consent under most laws. Finally, they can try to build long-term relationships with customers based on trust, rather than relying on personal data. While the privacy landscape has changed, there are still ways for marketers to succeed.

2. With all the uncertainty in the world, it's no wonder that advertisers are feeling a bit stressed. According to a new survey from the World Federation of Advertisers (WFA) and Ebiquity, nearly 30% of the world's biggest advertisers are planning to cut ad budgets in 2023. That's about the same percentage that said they planned to increase budgets, while the rest indicated that their budgets will remain flat. It's understandable that companies are feeling cautious about spending, but it's also worth considering that advertising can be a powerful tool for boosting sales and driving growth. So even though the future may be uncertain, advertising can still be a smart investment.

3. There's some bad news for traditional television providers: a new survey from Samba TV and HarrisX shows that 49% of registered voters in the United States no longer have linear TV subscriptions

And it gets worse for traditional TV providers: independents, the key swing voter block, are least likely to have traditional TV (42%). In key battleground states, just 39% report having it currently.

So what does this mean for the future of television? It's hard to say, but one thing is clear: the days of traditional television appear to be numbered.

4.Pivotal Research Group has come out with a report saying that Netflix's $23 billion in TV production commitments is based on higher levels of subscriber growth -- and could spell trouble for the big streamer in the near term. Jeffrey Wlodarczak, media analyst for Pivotal, says that there could be additional problems when it comes to competitors continuing to ramping up content spend -- also into the billions -- and taking on big losses. In other words, Netflix is losing its mojo and things are about to get worse before they get better. But don't worry, there's always Amazon Prime.

5. Snapchat is taking an interesting approach to Halloween this year, by enabling users to not only try on potential Halloween costumes via AR in the app, but also, to purchase any outfit that they’ve digitally tried on direct from the display. This year, Snapchat is partnering with some of the biggest retailers in the US to bring these digital costume options to life. So, if you see a costume you like while you’re scrolling through the app, you can simply tap on it and try it on virtually. If you decide you want to purchase the costume, you can do so directly from the app. This new feature is sure to be a hit with those who are looking for a last-minute Halloween costume option. And, it could potentially lead to a whole new way of shopping for Halloween costumes in the future. Who knows, perhaps we’ll all be buying our Halloween costumes via AR in a few years’ time!

6.It's that time of year again! The leaves are changing color, the air is getting chilly, and Burger King is releasing another limited-time Halloween promotion. This year, the fast food chain is adding a "ghost detector" to its mobile app to help get customers in the spooky spirit. The tool uses electromagnetic fields to track potential hauntings, and customers who use it will receive an offer for a discounted Whopper. While the promotion is clearly just a bit of fun, it's also a clever way for Burger King to drive excitement for its new seasonal Whopper. So if you're feeling brave this Halloween, be sure to give the ghost detector a try. Who knows, you might just find out that your home is haunted after all.

7. The pandemic has been a challenging time for everyone, and it's certainly not over yet. We've all had to develop new skills and adapt to a new reality. Among the most important things we've learned are empathy and transparency. These are the two qualities that SMBs have reminded us are most important to consumers. If we want to continue to survive and thrive in this period of uncertainty, we must lead with these values intact. Empathy and transparency will help us preserve the trust of our community, and that's essential if we're going to make it through to the other side. (TotalRetail)

8. Channing Dungey’s Warner Bros. Television Group was the hardest hit unit during Tuesday’s expected round of layoffs as part of Warner Bros. Discovery's efforts to find $3b in post-merger cost savings. Sources tell THR's Lesley Goldberg that Dungey’s division has reduced its workforce by 26 percent. Included in the tally are 82 employees (19 percent) who were laid off Tuesday as well as 43 vacant positions (7 percent). All told, 125 positions have been eliminated at the studio. The story. While this is certainly a blow to the Warner Bros. team, it is important to note that these layoffs come on the heels of an unprecedented merger between two major corporations. In times of upheaval like this, it is natural for there to be some restructuring in order to ensure the long-term viability of the newly combined entity. We’re confident that Warner Bros. will emerge from this process as a strong and prosperous studio, and we wish all those affected by these cuts the best in their future endeavors.

9. Major League Pickleball is adding another sports GOAT to its roster of owners. Seven-time Super Bowl champion Tom Brady is part of an ownership group of an expansion team that will begin play in the 2023 MLP season. Brady isn’t the only big player getting in on the hottest new professional sports league, which will see its ranks expand from 12 to 16 teams before next season. Also in on the action are NBA All-Star Steph Curry, NFL Hall of Famer Jerry Rice, and NHL legend Wayne Gretzky. While these big names add some serious star power to the league, they’re also bringing with them a lot of pickleball experience. Brady is a well-known pickleball enthusiast, and even has his own line of pickleball paddles. Curry is no slouch either, having grown up playing the sport. With such a strong group of owners, the future of Major League Pickleball looks very bright indeed.

10.  It looks like TikTok is getting serious about its shopping ambitions. The company recently posted job openings on LinkedIn to help them "build an international fulfillment system." This comes after TikTok announced plans to open fulfillment centers across the US. So what does this mean for the future of TikTok? Well, it looks like the company is positioning itself to be a major player in the e-commerce space. And with its huge user base and vast amounts of data, TikTok could give Amazon a run for its money. So if you're looking for your next online shopping fix, you might want to check out TikTok.

11.It's no secret that consumers love a good discount. Just look at the success of stores like TJ Maxx and Ross, which are known for their bargain prices. But according to a new study, there may be some cause for concern this holiday season. The study, titled "Holiday Shopping Habits 2022," found that many shoppers are worried about inflation getting in the way of their ability to find bargains. In particular, respondents cited concerns about the cost of living, the price of food, and the stability of the economy. While it's understandable to be worried about these things, it's important to remember that discounts can be found if you know where to look. So don't let inflation ruin your holiday shopping plans – start looking for deals now, and you're sure to find them.

12. Netflix has always been at the forefront of innovation. First, they disrupted the traditional TV model by allowing people to binge watch their favorite shows on their own schedule. Then, they upended the movie industry by releasing original films that could be streamed directly to your living room. Now, they’re shaking things up again with their new ad-supported tier. And to make sure that those ads run smoothly, they’ve scooped up DoubleVerify and Integral Ad Science (IAS) as measurement partners. People familiar with the arrangement told AdAge that Netflix picked those companies to ensure ads will run where they’re supposed to and that they conform to industry standards. So if you’re one of the many people who have been curious about Netflix’s new ad-supported tier, you can rest assured that you won’t be bombarded with a bunch of random ads. Instead, you’ll only see ads for products and services that are actually relevant to you.

13. More than half of Gen Z consumers say they would be more likely to engage with a brand or company that uses interactive live videos and experiences to connect with audiences, according to a new survey. Gen Zs are known for their love of technology and social media, so it's no surprise that they would prefer brands that use these tools to connect with them. Live video is particularly effective at engaging young audiences, as it allows them to feel like they are part of the action. And interactive experiences such as polls and quizzes are also great ways to get Gen Zs engaged with your brand. So if you want to reach this important demographic, make sure you're using interactive live video and experiences to connect with them.

14. There's no need to worry, the Grinch hasn't stolen Christmas. But things are slowing down: According to Adobe, this year's overall online holiday spending will grow a mere 2.5% - the lowest in seven years. Why? Many reasons: Retailers have started discounting products early, thanks to bloated inventories, miscalculations, inflation, and so on. So instead of panicking, take advantage of the situation and grab some great deals! After all, 'tis the season of giving - not spending.

The Watercooler
Impress your Co-Workers with these useless facts about marketing

31.3% of US Based TikTok Users are Aged 40yo+ 
The 40+ Age Group of TikTok Users Has Grown 5.5x since Q1 2021
53.8% of TikTok Users in the US Have INCOMES of $75k+
Video gets 70% MORE ENGAGEMENT Than Images

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