Ad Wars: PMP Deals vs. Open Exchange Who Will Reign Supreme?
The Shift Towards Private Marketplace Deals If you weren't paying attention: the landscape has witnessed significant shifts, from the traditional direct
sales model to the emergence of ad networks and ad exchanges. However, the latest trend that has caught the industry's attention is the growing prominence of Private Marketplace (PMP) deals. The move towards PMPs signals a potential reconfiguration of how publishers and advertisers interact in the programmatic advertising space. Bloomberg Media's decision to shut off open-exchange programmatic demand on January 1, allowing advertisers to exclusively reach its audience through direct deals, has become a significant talking point in the industry. This strategic move not only aims to prioritize user experience but also serves as a noteworthy case study for the entire digital advertising ecosystem. Six months into this transformative shift, Bloomberg Media has observed a slew of improvements, including faster ad-load speed, improved page-load speed, higher CPMs, and increased viewability. These enhancements indicate a positive impact on the publisher's website performance. However, the dip in ad revenue remains a concern that has raised
questions among industry experts. Ben Foulkes, an expert in ID-led digital and integrated marketing, points out that while the move may have potential benefits, removing oneself from the equation entirely could have drawbacks. "If Bloomberg can get its pricing right for high-demand content contextually and sell remnant inventory based on audience data, it could be a win-win situation,"
Foulkes remarks. The challenge lies in striking the right balance between prioritizing user experience and maintaining revenue streams. Julia Beizer, chief digital officer at Bloomberg Media, emphasizes the significance of cultivating trust with their audience. The decision to focus on direct deals is driven by a desire to maintain a brand-safe environment for their readers. "This is a real
moment for us to say to our clients 'hey, we know these users, and they trust us.' So, as a result, we want to cultivate those relationships in a really thoughtful way," Beizer asserts. "We're not just going to share that information all over the ecosystem because that's not what the consumer has in mind." The rise of PMP deals has been notable in the advertising industry, accounting for
nearly 40% of all programmatic transactions in 2022. These invite-only marketplaces allow publishers to exercise better control over their ad inventories and offer them at premium prices to select buyers. Andrew Becks, a digital marketing and advertising executive, points out the transparency that PMP deals provide for both publishers and advertisers. "PMP provides transparency for
both publishers and advertisers. It is a step to illuminate the obscurity plaguing the advertising ecosystem," says Becks. Additionally, PMP deals offer access to premium first-party data, which has become increasingly valuable as third-party cookie data continues to face challenges. The success of Bloomberg Media's data platform, "Audience Accelerator," highlights the potential of publisher-owned data platforms in the future of programmatic advertising. This data platform provides marketers with valuable insights into Bloomberg readers, enabling more targeted and relevant ad campaigns. Seth Hargrave, CEO of Media Two Interactive, sees
opportunities in declining CPMs in the open marketplace. "For media buyers, the declines in CPMs are something they want to take advantage of," Hargrave explains. However, he notes that budget approval delays may have impacted advertiser interest in programmatic ads, potentially affecting overall revenue for publishers in the short term. Despite the evident advantages of PMP deals, some
experts suggest a middle ground that involves utilizing PMPs alongside higher open-exchange CPM floors and PMP deals with Programmatic Guaranteed offers. This hybrid approach could maintain higher viewability while leveraging the advantages of both private and open exchanges. Some experts suggest a potential solution lies in "auction packages," a fusion of the best of both worlds.
Picture a deal ID that brings together dozens or even hundreds of different publishers, forming a targetable pool of supply that's thoroughly vetted to meet stringent quality standards. This middle market offers giant scale and a diverse inventory, quelling concerns typically associated with open-exchange programmatic. Jillian Tate, senior vp of media at Bounteous, concurs that while open
markets do pose certain risks, strategic optimization can unveil the hidden value within. "It's also about the audience in any auction or bid-based programmatic scenario, making it worthwhile to test multiple inventory sources against an audience while employing the DSP and ad servers to monitor any overlap," she explicates. Tate underscores the paramount significance of viewability and
brand safety standards when judiciously utilizing open-market inventory. For instance, a high-frequency approach on open-market inventory with a high-propensity return visitor audience may outshine opting for PMPs with stringent frequency caps or costlier alternatives. The upshot? Unleashing the inventory's potential as a potent tool for advertisers seeking campaign success, while still adhering to viewability and brand safety benchmarks. As the industry continues to explore new opportunities and approaches in the digital advertising landscape, one thing is clear: the evolution of PMP deals is transforming how publishers and advertisers interact, and the potential benefits are significant. While the future of open exchanges remains uncertain, the industry remains
optimistic, continuously seeking strategies to strike the right balance and maximize the potential benefits in this dynamic advertising landscape. Publishers and advertisers must adapt to this paradigm shift to stay competitive and thrive in the evolving digital advertising ecosystem.
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All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
The U.S. government has filed a lawsuit against Fluent LLC, a New York-based company, for allegedly running a deceptive "consent farm" enterprise that tricked nearly one million people daily into providing personal information and consent for telemarketing calls. Fluent is accused of using misleading ads and
websites to promise free rewards and job interviews that were unattainable, while its true purpose was to sell consumer information as "leads" to telemarketers. These telemarketers bombarded consumers with robocalls, texts, and emails about various products and services. The company is facing civil penalties and an injunction against further violations of federal telemarketing laws. Additionally, the FTC is set to announce a crackdown on illegal telemarketing calls in conjunction with 101
federal and state law enforcers in an operation called "Operation Stop Scam Calls." 📞💼🚫
New research from the University of Alabama at Birmingham Collat School of Business delves into the impact of language on engagement with influencer affiliate marketing posts on social media. Applying the Elaboration Likelihood Model, the study analyzed a vast dataset of influencers' affiliate marketing posts from Instagram using text mining and natural
language processing techniques. The findings reveal that specific linguistic styles within these posts can either enhance or diminish engagement with the content. Factors such as word count and analytical thinking negatively impact engagement, while elements like clout, authenticity, and positive emotion have a positive effect. The study offers valuable insights for brands and influencers participating in affiliate marketing campaigns and highlights the potential of micro-influencers in building
trust with followers and offering authentic brand recommendations. With social media usage on the rise, influencer affiliate marketing is becoming a viable strategy in the social media e-commerce landscape.
Yury Tsoy is an experienced digital marketer who has worked in the IT industry for 11 years. He started his career in e-commerce, selling children's products through email marketing and Google Search. Over the years, he worked with
major brands and marketplaces, witnessing the rapid shift towards mobile devices and software development. Yury's contributions to major IT projects, such as CityMobil, led to significant growth and competition with industry giants like Yandex.Taxi and Uber in Russia. He also played a crucial role in expanding Yandex.Delivery in several CIS countries. Yury's success in overseas markets, like Europe, the UAE, Israel, and Latin America, required smart marketing strategies, extensive channel
placements, and timely activities. Managing multiple projects simultaneously demanded focus, delegation, and a keen understanding of advertising channels. Yury's expertise and achievements have led him to be a member of the Tagline competition jury, recognizing ambitious teams across Europe. His passion for digital marketing stems from its ever-changing nature, providing constant opportunities to experiment and see tangible results.
NOWVertical Group Inc. is making major
strides in the digital intelligence realm, with a strategic lineup of revenue partners that includes LiveRamp, FullContact, Hakkoda, and North Labs. These powerful collaborations expand NOW SnowGraph's global reach and enhance its presence beyond Europe, North America, and South America. SnowGraph, the Snowflake Native App, brings graph analytics to various industries, unveiling rich insights for customers in manufacturing, advertising, retail & CPG, media and entertainment, and
healthcare. With the ability to analyze vast data combinations, NOW SnowGraph empowers organizations to optimize activations, enhance audience acquisition, and fuel recommendation engines for next-level modeling and analytics. 🚀💻🌍
Bard, the AI chatbot, is getting an impressive makeover, and who knows, it might even get a beach body soon! With Google Lens integration, users can now upload images to provide more context to Bard's responses. The bot's extensions,
including Google Flights, Maps, Hotels, and others like Instacart, Zillow, and YouTube, promise to deliver enhanced answers tailored to your needs. But watch out, Bard, because Meta's Llama 2 is here, and it's open-source and free for research and commercial use, opening up possibilities for more AI tools and apps. However, ethical concerns are arising, with thousands of authors expressing concerns about AI tools like GPT using their writing without permission or compensation. Let's hope the AI
world finds a balance between progress and ethical responsibility. 🤖💪🏖️📚
Omnicom reported a 3.4% organic revenue growth in the second quarter, slightly lower than the 5.2% growth in the first quarter. Despite missing consensus revenue forecasts by analysts, the company upgraded its minimum organic growth guidance for the year to 3.5% from the previous 3%. CEO John Wren remains optimistic about the
second half of the year, although concerns about the macroeconomic picture persist. Organic growth in the U.S. dipped to 2.4% in Q2, attributed to cutbacks among technology and telecom clients. However, other regions showed varied growth rates. Wren emphasized generative AI investments announced at Cannes, which are expected to boost productivity and generate insights for clients. The company sees AI as a tool complementing human talent and creativity. Organic growth by discipline in the second
quarter ranged from 0.1% for Public Relations to 9.2% for Experiential. Omnicom has adapted to clients' demand for flexibility amid economic uncertainties and remains media agnostic in light of potential Hollywood strikes impacting TV.
🚀 London-based Gravity Global has acquired 9thWonder, a full-service marketing agency known for its proprietary media, data analytics, and creative execution approaches.
This acquisition expands Gravity Global by 40%, accelerating its growth in the U.S. market and enhancing its global, data- and tech-enabled capabilities. Founded by Jose Lozano in 2018, 9thWonder sold its B2B operation to Gravity Global in 2022, with Lozano becoming the US CEO and later President of Gravity Global. Gravity Global's unique marketing consultancy model, utilizing thousands of data points to identify drivers of brand performance and business growth, has been instrumental in its
substantial growth. With the integration of 9thWonder, the company now has more than 500 specialists across 14 locations, working together cohesively to drive transformation. Clients include Embraer, 3M, AkzoNobel, Ameriprise Financial, Honda Powersports, Nemours Children’s Health, Bosley, and others. 🌎💼
🚀 Elon Musk envisions Twitter becoming an "everything app" similar to China's WeChat, with digital payments
and various functionalities integrated. However, TikTok may beat him to the punch. With its addictive algorithm and massive user base, TikTok has won the respect of marketers and brands, and its ambitions go beyond short-form videos. The app is exploring ecommerce through "Project Aquaman," aiming to create a streamlined supply chain similar to Amazon. Additionally, TikTok is expanding its presence in the music industry, challenging rivals like Spotify and Apple Music. While there's
still a long way to go, TikTok's success and global popularity make it a strong contender in the race for the ultimate "everything app."📱💼
📰 Meta's Threads, the new Twitter competitor, has taken the social media world by storm, gaining over 100 million users in just one week. While Meta claims it won't monetize the platform
immediately, brands like Hulu are already testing sponsored posts, hinting at potential advertising opportunities. Brands such as Rare Beauty, Vogue, and Vice are among the early adopters, and some are using incentives to grow their follower bases. With a seamless onboarding process and Meta's advertising expertise, Threads poses a strong alternative to Twitter. However, it still awaits launch in the EU due to data-privacy concerns. Meanwhile, Twitter has received an endorsement from a senior
Taliban official for its "freedom of expression" and "credibility" in comparison to Meta's politics.🚀🗣️ |
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SCHILLER’S SHOWTIME: A MEDIA MAVERICK’S INSIGHTS UNVEILED
In this exclusive two-part series, we dive deep into the world of media and advertising with industry luminary Scott Schiller. With an illustrious career at the forefront of media giants like NBCUniversal and Glam Media, Schiller's strategic insights and innovative thinking have shaped the landscape of programmatic advertising. As an Adjunct Associate Professor at NYU Stern School of Business and an Executive-in-Residence at Progress Partners, he continues
to mentor the next generation of talent and advise companies on navigating the ever-evolving digital terrain. Join us as we uncover Schiller's vision for the future of media, the rise of Connected TV (CTV), and the transformative potential of Shoppable TV. Get
inspired by the wit and wisdom of this media maverick, and discover how his expertise continues to drive innovation in the dynamic world of advertising and media consumption. Start with Part One only on
ADOTAT.com
THE RIGHT WAY TO MEASURE MEDIA
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
The quote, from retail magnate and marketing pioneer John Wanamaker, is over 100 years old. Despite digital media’s promise of accountability, many retailers still struggle with this attribution conundrum. We’ve written this paper because we’ve witnessed first-hand the misleading results of ham-fisted and sometimes lazy models. At Undertone, we offer unique High Impact digital circulars,
recipe ads, and more, all personalized through a slew of AI- driven selected variables that drive sales lifts leading to 15x to 19x ROAS. These state-of-the-art products can stymie old and tired media models. This is because, in some retailer attribution models, high-impact display is treated with the same modeling considerations as boring, small, and entirely missable standard display ads. READ MORE OF THIS WONDERFUL ARTICLE
UNRAVELING THE EFFECTS OF MEDIAMATH’S BANKRUPTCY ON THE ADVERTISING ECOSYSTEM The recent Chapter 11 bankruptcy filing of MediaMath, once celebrated as a leading player in programmatic advertising, has sent shockwaves throughout the advertising ecosystem. With substantial debts owed to a vast array of ad tech businesses and creditors, the collapse of MediaMath is expected to have profound implications for various stakeholders within the industry. This comprehensive article delves into the financial
turmoil faced by MediaMath, the extent of its creditor obligations, and the far-reaching effects of its bankruptcy on the advertising ecosystem.
READ THIS IN-DEPTH STORY
INSIDE THE GOOGLE VIDEO AD SCAM
It’s bad. It’s actually worse than everyone was saying. Google may owe advertisers
billions of dollars and face huge lawsuits after scamming advertisers. For years, many people, including myself, have questioned the ecosystem of online advertising, particularly Google’s enormous advertising growth that seems to be backed by junk and scam sites. Now, new research reveals that Google has violated its promised standards when placing video ads on other websites, raising serious concerns about the transparency and integrity of the tech giant’s online ad business. READ THE FULL EXCITING STORY
THE FUTURE OF PROGRAMMATIC: MATT BARASH DEFENDS THE SSP.
In an exclusive interview with VideoWeek, Matt Barash, Vice President at IndexExchange, provides valuable insights into the ever-evolving programmatic advertising landscape. With over 20 years of experience, IndexExchange has transformed from an ad network into a formidable exchange model, helping publishers monetize their assets. Barash highlights the seismic shifts witnessed in the industry, emphasizing the rise
of quality and video as paramount factors driving change.
READ THE INTERVIEW
CRITEO’S COMPLIANCE WOES: REGULATORS SHOW THEY MEAN BUSINESS In a stunning turn of events, adtech firm Criteo has found itself in hot water with regulators, facing a hefty penalty of 40 million euros (U.S. $44 million) for multiple alleged violations of the General Data Protection Regulation (GDPR). The French data protection authority, CNIL, recently announced the fine, which sent shockwaves through the industry and left Criteo employees feeling like their yacht had suddenly transformed into a funeral barge, with no
explanation for this colossal punishment.
READ MORE NOW |
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