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Is the Open Marketplace Done? The Slow Exodus from OMP to Direct-Sold Advertising
Ah, the digital age – a world where you can have 500 friends yet be terribly alone, and where advertisers think they’re omnipresent until they realize 70% of their audience is in the digital witness protection program. But in an age of hyper-targeted advertising, there’s a plot twist worthy of a classic film noir. The Open Marketplace (OMP) – the trusted intermediary between
publishers and advertisers – seems to be on the ropes. Are its days numbered? Let’s begin by understanding this curious case of vanishing data. Ever since data privacy became the talk of the town, with consumers singing the chorus of “Don’t Track Me, Bro!”, a substantial number of users have opted out of tracking. Combine this with a buffet of cookie-blocking browsers, and we arrive at a startling figure: 70% of the
internet is effectively playing hide-and-seek with adtech. This mass exodus is more than just a slap on the wrist for adtech. It’s turning into a financial migraine for publishers who relied on OMP revenue. Advertisers, too, are feeling the squeeze. Imagine gearing up for a blockbuster advertising campaign and then being told you’ve lost 70% of your audience. Not quite the blockbuster start they had envisioned. Stats Don’t Lie (But They Can Break Your Heart) Don’t just take my word for it; the numbers spell out the heartbreaking story. EMarketer’s projection suggests that by 2024, direct-sold ads will be the leading man in the advertising world, accounting for a staggering 75% of total programmatic digital display ad spend. In contrast, OMP will be playing
a tiny supporting role with just 8.5%. Remember the heady days of January 2020? The average monthly CPM in OMP was $1.45, but by January 2023, it had tumbled to $1.21, a rather ungraceful faceplant. Couple this with the insight that publishers are losing more than 50 cents on every dollar to third-party adtech, and it’s evident why the publisher CROs are starting to look elsewhere. The Green Pastures of Direct-Sold Advertising Enter direct-sold advertising, the knight in shining armor. As the OMP landscape gets murkier, direct-sold gleams with promise. A prime example is Ranker, which by shifting its strategy to direct-sold and leveraging high-intent audiences, has seen a 4x jump in revenue year-on-year. Furthermore, publishers are now positioned as the next-generation data owners. They can offer brands a direct line to 100% of their audience, unlike the paltry 30% reach of the OMP. As such, publishers have the chance to illustrate to brands that there’s an untapped goldmine right under their nose. But let’s not write an obituary for OMP just yet. Yes, it has challenges – the lack of control, transparency, and premium ad
placements, and the ever-looming shadow of ad fraud. The new regulations like California Privacy Rights Act (CPRA) aren’t doing it any favors, either. The act is pulling back the curtains and making sure adtech intermediaries don’t play fast and loose with consumer data. Add to that the mounting concerns about the environmental impact of real-time bidding, and it’s clear that OMP needs a radical overhaul. However, what we’re
witnessing isn’t so much the end of OMP but rather its evolution. We’re moving from a “Wild West” era of digital advertising to a more mature, transparent, and sustainable landscape. OMP can still play a role if it adapts. The Verdict Is the Open Marketplace done? Not quite, but it’s facing an existential reckoning. As the tide shifts towards
direct-sold avenues and publishers reclaim the narrative, the future of digital advertising is being redefined. In this evolving storyline, there’s room for both direct-sold and a reformed OMP. But for now, publishers and advertisers would do well to place their bets on direct-sold. After all, in the unpredictable world of advertising, it’s always wise to go with the sure thing.
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All the news you need today, in a format that isn't TL:DR summarized for the busy executive.
🚀 Link Previews: X's New Look 🤔 Elon's app X is tossing headlines and text previews from its link previews, preferring to flaunt just that snazzy header image 🖼️ (with a domain tag, no less). Why? Maybe he's hoping you'll post original stuff directly. 🤷♂️ Makes sense if you're
trying to stifle external links, but let's be real, social media maestros live for leading clicks back home. 🏠💼 Sure, we can paste the old preview in the post itself, but it's a whole new ballgame. 🔄 And FYI, our Aussie pals 🦘 might see this update a tad late, so keep an eye out! Oh, and verdict? The new look isn't exactly winning any beauty contests. 🙈 Stay tuned! 📻💌 🌍📺 SeenThis partners with Latin American media giant, Grupo Clarin, introducing adaptive streaming for eco-friendly digital advertising. Using SeenThis technology, Clarin offers instant-load, high-definition ads, cutting out unnecessary data transfer and reducing carbon emissions 🌳💡. So far, they've dodged around 20 tons of CO2 emissions over 160 million impressions. SeenThis streaming technology improves the
viewer experience and promotes sustainability by minimizing data waste. Clarin, championing green innovation, has been using this eco-conscious advertising solution for two years. Both companies aim to combine ad goals with environmental ones, showcasing a forward-thinking approach in the industry. 🍃🎥📉. 🎥 Cannes Lions in the Spotlight! 🦁 Big moves afoot! MediaLink 📊 and Hyve Group 🎉 are teaming up in hopes to nab the iconic Cannes Lions fest from Ascential's portfolio. 🛍️ While MediaLink eyes the Lions and some cool assets like WARC, Hyve has its sight set on the fintech fiesta, Money 20/20 💸. Ascential's been mulling over some major biz decisions, from asset sales to maybe spinning off Flywheel and Hudson MX 🌀 on the US stock market. Fun fact: MediaLink was once an Ascential gem 💎
until 2021's sale to the Hollywood bigwig UTA. And guess who's still investing in Ascential-backed ventures? MediaLink's dynamic dad-son duo, the Kassans! 🚀 The plot thickens, but will the sale seal? Stay tuned to the biz soap opera. 🍿🎬
🕊️ ADL & X's Dance of Diplomacy 🕺💃 The Anti-Defamation League (ADL),
world-renowned anti-hate crusaders, have resumed their ad waltz with social media sensation X. 📱 Despite a bit of a tiff with big boss Elon Musk 🚗 and some pesky antisemitic posts, the ADL's giving props to X for trying to clean up its act. 👏 In a plot twist, the ADL squashes rumors that it caused X a financial freefall. 📉 And oh, Musk's fiery tweets didn't help the relationship; from hinting at a defamation lawsuit against ADL (oh, the irony!) to blaming them for ad revenue
nosedives. 📊 Musk also waded into dicey waters with some, let's say, "contentious" posts. 🌊 But ADL's endgame? A spiffed-up X. And they're watching, ready to cheer or jeer as needed. 👀👏👎 #DramaAlert 🍿🚨.
Facebook's Traffic Turmoil: Facebook's
newest algorithm "oopsie" 🤖 is causing quite the kerfuffle among publishers. While Meta promised a quick return to normalcy after a referral traffic drop 💧, it's been months, and publishers are still playing the waiting game. Remember when we liked things simple? Those were the good ol' days. Meanwhile, publishers are left peering into their crystal balls 🔮, hoping for a return of those elusive traffic numbers. Maybe it's time to swipe right ➡️ on other platforms. 🤷♂️ Target's Toyland Teaser: 🎯🎄 Target's leveling up its digital game with an all-toy 360° virtual room where shoppers can "ooh" and "aah" over Barbies and Play-Doh from the comforts of their couch. In a festive play, Target's also decking the halls with nearly 140 toy treats co-designed with FAO Schwarz 🧸, and most come with a budget-friendly tag under $25. On the list? Everything
from makeup kits to Marvelous Marvel toys! And for those Disney devotees, get ready to sing Hakuna Matata as Target's celebrating Disney's 100 years with a limited-edition collection 🎉. So, while Amazon, Walmart, and Best Buy are sounding their holiday trumpets 🎺, Target's making sure you get more bang for your buck, without even stepping foot in the store! 🛍️💻🎁
Shopify +
WPP = Ecommerce Evolution: 🛍️🚀 Shopify and WPP are joining digital hands in a global partnership, aiming to ride the wild wave of ecommerce changes. This isn't just about chasing e-trends; they're plotting to overhaul commerce infrastructure, sprinkle in some custom solutions across sectors like fashion and health 🩺👗, and elevate the game for brands navigating the ecommerce maze. And while WPP's busy certifying 300 Shopify whizzes in-house 🎓, they're also putting coins in the
commerce piggy bank with past buyouts of agencies like Diff. Bonus: They're all-in on Shopify's goal to empower a whopping 1 million Black-owned businesses by 2030. WPP's CEO? He's all eyes on the expansive ecommerce horizon and sees this alliance as a key to unlocking more brand potential. 🌐🤝📈
🎨 Colossal: More Than Just Paint on the Wall 🏙️: Remember squinting at billboards
and thinking, "Is that paint?" Enter Colossal Media, the Michelangelo of modern-day murals, redefining cities with hand-painted wonders since 2004 🖌️🌆. Started in Brooklyn with a dream of breathing life into the fading art of sign painting, they're now in 85 U.S. locations, gracing walls for brands like Coca-Cola, Delta, and a ritzy Gucci spot in Manhattan 🥂. Through a unique apprenticeship program, Colossal transforms everyday folks into 'wall dogs', teaching them the magic of
traditional sign painting (sans Sistine Chapel ceilings). Their murals, known for stunning photorealism, can cost anywhere from $30k to $200k, and while that may sound pricey, it's all about that "stop-and-stare" factor 📸. Beyond being Instagram-worthy, these murals integrate tech elements like QR codes and AR for a multi-dimensional experience 📲. As they approach two decades in business, Colossal isn't just painting ads; they're crafting cultural landmarks and keeping a rich tradition alive.
Now, isn't that colossal? 🌟🖼️👏
State Farm's Matchmaking Mastery: Amid the chorus of Taylor Swift love ballads and the roaring crowd of an NFL game, State Farm pulled a cheeky marketing stunt by seating Jake, their iconic "guy in khakis", beside Travis Kelce's mom, Donna. With past visuals of
T-Swift herself beside Donna, this move was nothing short of a touchdown in the rumor mill. Call it strategic marketing or just a playful nudge to the Swift-Kelce whispers, one thing's for sure: State Farm knows how to play the game both on and off the field. 🏈❤️🎶 Gen Z is spritzing up a storm, redefining
the fragrance game, and couldn't care less about what you smell like on the internet. 😌🌬️ According to Circana, they're using fragrances differently, with 83% of them opting for regular scent-sations, ranking highest in heavy usage. TikTok, or #PerfumeTok, is their scent-sational influencer, driving up fragrance sales and prestige fragrance revenue by 13% in 2023. While classics like Chanel No. 5 aren't going extinct, Gen Z's darlings are indie digital brands like Phlur and Glossier's
You, and they're making fragrance a social media sensation. Fragrance uplifts their mood, enhances wellness, and offers instant gratification, making it their go-to self-expression tool. 🌸💁♀️ And forget the old notion of fragrances for seduction; for Gen Z, it's all about creativity, wellness, and self-expression, not attracting a partner. 🎨🧘♂️ #ScentedGenZ Well, it seems like we're in for a crossover episode! Google has joined forces with X, allowing Google Display Network advertisers to strut their stuff on X's feed and get cozy with the platform's user data. 🤝 This surprising partnership comes hot on the heels of X CEO Linda Yaccarino's announcement that advertisers are making a comeback, predicting a profitable 2024. 📈 But was this deal part of her grand plan? We're not sure,
but one thing's for certain: it's big news, and it could shake up your Google Ads strategy in a few ways. You'll soon be able to showcase your Google Ads on X's feed, without having to run X Ads or rely solely on Google's algorithm. 🌟 This might open up full-funnel opportunities, as users often discover new things while browsing X. 🕵️♂️ On the flip side, X's less regulated ad landscape, which drove some advertisers away, could mean your ads end up in more sensitive company. 😬 How this
impacts your advertising depends on how Google and X decide to share their data, and for now, the deal's details remain a mystery. So, get ready to weigh the pros and cons, because it's a whole new advertising world out there! 🌍💼 #AdCrossover 😼 The cat has leapt from its hiding place! Rumors whispered 🤫 of Google's naughty antics 🤭, allegedly tinkering with queries and
rankings to pile up the cash 💰 before year-end! Now, an email 📧—like a stray arrow 🏹—has landed in the public realm. The sender, none other than Google’s VP of advertising 🕴️, plots to “inject” queries and boost ad revenue 💵 by altering rankings and raising auction prices. This could lead to the SERP being more ad-laden and organic content taking a backseat 🌿🚗. Suspicion lingers over the authenticity of the requests and their implementation. In other news, the ad lawsuit against
Google? Poof! Vanished 🌬️! It’s a mystery 🕵️ why advertisers retreated. As for those fretting about AI 🤖 language models sneaking around your websites, a simple tweak to your robots.txt 🤖📜 will keep the “Bard” at bay. Quite a rollercoaster, isn’t it? 🎢 Keep your hats on! 🎩
Bidding on Blind Spots? 🤑💡
Bid shading, a lovechild of programmatic advertising born out of the first and second price auction tussle, might just be burning a $6.6 billion hole in advertisers' pockets annually. Yep, that's right! Aaron Andalman of Cognitiv's on the mic, breaking down how this supposedly savvy tool has advertisers relinquishing bid control. 🎤🔥 Andalman, rocking an MIT PhD in neural networks, isn't just here to throw shade; he's promoting inventory forecasting powered by AI and deep learning.
Imagine this: it's like foreseeing similar auctions in the future and adjusting bids accordingly, all backed by machines. 🤖🔮 But let's not skip the drama; the ad world's divided on bid shading's role. Some see it as a bid adjuster; others, a sneaky fee-adder. As the ad realm grapples with transparency issues, it might be time to question: is the current programmatic approach delivering clear value or just cloudy promises? 🌫️🤷♂️📉 📅 As Q4 kicks off, media giants 📺 are banking on a deluge of holiday ads 💰 to balance their books. Despite analyst Brian Wieser's prediction of a record Q4, 2022's soft performance might skew results. GSTV's CEO, Sean McCaffrey 🚗🎥, reveals that the dynamic ad landscape, with its in-quarter bookings, makes predictions challenging. Add COVID's accelerative impact and an ever-busy sales cycle 📈, and it’s clear why forecasting feels like reading tea leaves 🍵. Meanwhile, as
retail media heats up 🔥, discerning it from commerce media is vital. Simply put? Retail media is the product; commerce media is the practice.🛍️📊
🛑 The FTC’s noble quest 🏰 to slay the dragon 🐉 of fake reviews has hit a snag! 🤺 Advertisers say, “Hold on, this could muzzle 🤐 legitimate commercial
speech!”. They argue that the FTC should stick to their old ways—guidance and individual prosecutions 🏹, rather than legally binding regulations. ANA adds its voice 🗣, fearing that true and honest speech could be silenced 🙊. They believe incentives for positive reviews, if transparent, are no evil deed 🌿, and that the presence of deceptive reviews is not as widespread as presumed 🌐. On the contrary, Mozilla, armed with Fakespot ⚔️, supports the FTC, claiming the online world is
indeed tainted by misleading praises and criticisms 🌐👾. What’s to unfold in this saga of truth and deception 🍿? Keep your quills ready 🖋! 👓 Snapchat is snapping shut 🚪 its AR Enterprise Division, but fear not, AR tools aren’t disappearing into the digital sunset 🌅! Instead, they’re promising a treasure trove of AR tools to advertisers 🌟. They’re reshuffling the
deck, hoping to deal a winning hand 🃏 to advertisers and enhance the user experience with augmented reality marvels 🦋. It seems Snapchat is pivoting, orchestrating a symphony of change 🎶, where augmented reality and advertisers dance in harmonious sync 🕺💃. Keep your lenses polished and stay tuned for the unfolding AR symphony 🎵!
💰 X, the artist formerly known as Twitter
🐦, is showering its creators with gold, claiming to have sprinkled nearly $20 million 💵 upon them, as declared by CEO Linda Yaccarino 📢. “Create, Connect, Collect!” is the new mantra, as X endeavors to be the economic benefactor of the creator realm 🎨. Elon Musk, the wizard 🧙♂️ behind X, initiated the bounty, lowering the entry barriers and the payment gates 🌉. Since then, the pool of wealth has swelled from $5 million to $20 million in merely two moons 🌜🌛! It’s a game of
amplification 🔊, where creators joust for attention 🤺, sometimes by wielding the sword of negativity 🗡️. Whether $20 million is the true treasure or a siren’s song 🎶, it beckons one to the lands of X Premium 🌌. Will you embark on this journey 🚀?
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FEAR OF FINDING OUT VS. FEAR OF MISSING OUT: PROGRAMMATIC DILEMMAS In the ever-evolving landscape of programmatic advertising, where issues such as transparency, trustworthiness,
and economic feasibility persist as ongoing challenges, one figure emerges as a guiding beacon of insight. Tom Triscari, the CEO and Founder of Lemonade Projects, an advisory firm dedicated to shedding light on programmatic ad tech practices, offers a unique perspective. In this extensive conversation, we delve into Tom’s insights, spanning from the intricacies of programmatic economics to the revelations uncovered in the ANA’s
programmatic transparency report. READ MORE
THE MEDIAMATH DEBACLE: IS THIS AD TECH’S THEATER OF THE ABSURD? In the tumultuous world of business, where the unexpected often becomes the norm, the recent acquisition of MediaMath by
Infillion has sent shockwaves rippling through the industry. It’s a move that’s ignited more debates than a late-night political talk show. The burning question on everyone’s mind: Has Infillion just pulled off a brilliant coup or taken an audacious gamble with a hefty side of risk? It’s a high-stakes poker game, and we’re all spectators, wondering whether we’re witnessing a grand adventure or a fool’s errand. Once upon a time,
MediaMath was the undisputed champion of the ad tech arena, striding confidently amidst the digital advertising giants. However, the tides turned, and MediaMath found itself drowning in a sea of debt that could give even the most financially astute among us heart palpitations. Yet, here comes Infillion, wading into the fray, determined to breathe new life into this beleaguered behemoth. READ THE FULL ARTICLE
ADTECH’S SECRET SAUCE: IT’S NOT ALL ABOUT THE CODE If you're anything like me, it's all too tempting to get caught up in the glitzy allure of cutting-edge software and groundbreaking products.
Adtech companies, often driven by an unwavering belief in their innovative solutions as the ultimate game-changers, have been swept away by the irresistible current of technology. As the adtech industry continues to grow, it is becoming increasingly important for companies to differentiate themselves from their competitors. According to Joe Zappa, the Founder of Sharp Pen Media, the key to this differentiation lies in the
quality of service and caliber of individuals backing the product. Adtech companies often place a steadfast faith in their software or product, but this can lead to a focus on features and functionality rather than the overall customer experience. By prioritizing customer service and investing in top talent, adtech companies can set themselves apart in a crowded marketplace. READ FULL STORY
FORTNITE: THE ULTIMATE PLAYGROUND FOR BRANDS AND GAMERS There’s a war going on, and it’s not just between the players. It’s a war for attention, for loyalty, for hearts and minds. It’s a war that brands are waging on the virtual battleground of Fortnite, the colossus of gaming that has captivated millions of fans across the globe. In this article, I reveal the secrets of Fortnite advertising, the psychology behind its appeal, the tactics employed by savvy marketers, and the fine line between enchantment and annoyance. READ THIS STORY
LEAD GENERATOR FACES MILLIONS IN MONETARY PENALTIES FOR ALLEGEDLY VIOLATING FTC’S TELEMARKETING SALES RULE On September 1, 2023, an Illinois federal court ruled in the matter of Federal Trade Commission v. Day Pacer LLC, et al. (N.D. Ill. Sept. 1, 2023) that Day Pacer (f/k/a EduTrek) and company executives violated the Telemarketing Sales Rule (TSR) by allegedly making millions of calls to telephone numbers on the National Do Not Call Registry. The court also ruled that they violated the TSR by providing “substantial assistance” to a third-party marketing partner
while allegedly knowing that the marketing partner was calling telephone numbers on the DNC registry. READ MORE
Nandini Jammi: The Woman Who Cost Breitbart 90% of Its Ad Revenue and Exposed Pubmatic’s Support for Hate Speech and
Disinformation Nandini Jammi is not your typical activist. She doesn’t march on the streets, hold up signs, or chant slogans. She doesn’t even have a catchy name for her cause. She just has a laptop, a Twitter account, and a mission: to stop the flow of money from advertisers to
publishers of hate speech and disinformation. Jammi is the co-founder of Check My Ads, a non-profit organization that helps brands regain control of their ad placements and avoid funding bad faith publishers. She is also the co-founder of Sleeping Giants, a grassroots movement that exposed how thousands of advertisers were unwittingly supporting Breitbart News, a far-right website that promotes white nationalism, misogyny, and
conspiracy theories. READ FULL ARTICLE
EMILIE COTTER TAKES THE HELM AS AUDI’S CHIEF MARKETING OFFICER In a pivotal move signaling Audi of America’s
determination to navigate the ever-evolving automotive landscape, the luxury automaker announced the establishment of a groundbreaking brand marketing team. Leading this visionary endeavor is the seasoned Emilie Cotter, who has been appointed as the Head of Brand Marketing and Communications, holding the esteemed title of Chief Marketing Officer. This strategic restructuring is set to harness the power of integration, aligning
brand strategy, marketing efforts, and external communications with a singular aim: to accelerate growth and propel consumers toward an electrifying automotive future. READ FULL HIRING ARTICLE
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