The Rise of Walled Gardens: Is the Open Exchange Dying?
The once-porous walls that separated the open exchange from the walled gardens of tech giants like Google and Facebook are solidifying into barriers that are redefining the ad tech ecosystem.
This transformation, driven by a confluence of privacy regulations, technological advancements, and industry dynamics, begs the question: Is this the death knell for the open exchange? Fragmentation and the Walled Garden Surge In
the not-so-distant past, advertisers had a relatively straightforward choice: allocate their digital ad budgets across the expansive canvas of the Open Web or opt for the controlled, data-rich environments of Google and Facebook's Walled Gardens. However, the tides of change, catalyzed by privacy regulations enacted by governments worldwide, have severed the once-thriving arteries
connecting ad tech companies to internet users. In this landscape, publishers have emerged as the gatekeepers to coveted audiences, wielding the power to grant or deny access to advertisers. The result? An increasing number of media companies and publishers have erected their own Walled Gardens, safeguarding their precious first-party data within their digital fortresses. it's apparent that this trend is far from abating. More publishers and media entities are poised to construct their own Walled Gardens, leveraging their first-party data troves to enhance monetization opportunities and offer advertisers a direct conduit to their target demographics. But with this proliferation of walled enclaves comes a double-edged sword: heightened fragmentation and an amplified
challenge in terms of precise targeting and comprehensive measurement. Open Gardens for an Equitable Web Yet, amidst the rampant growth of Walled Gardens, a counter-movement is emerging—one that envisions a balanced, healthy Open Web. The concept of "Open Gardens"
resonates as an alternative to the singular dominion of tech giants' walled domains. In this vision, independent content creators and publishers unite to cultivate a network of interconnected Open Gardens, an expansive digital ecosystem characterized by mutual respect, data privacy, and equitable value exchange. Verified and actionable data takes center stage in this vision. These Open
Gardens leverage open data to optimize efficiency and profitability while prioritizing data privacy and safeguarding against exploitation. To manifest this harmonious vision, independent WebGuardian programs emerge as critical sentinels, protecting the sanctity of user data while ensuring a thriving, open digital realm. Splintering from Open Marketplaces As we navigate these transformative waters, media buyers are recalibrating their strategies in response to evolving landscapes. The embrace of first-party data strategies as a core focus is evident. Prominent publishers, such as the South China Morning Post (SCMP), have already bid adieu to open marketplaces, preferring to forge closer relationships with advertisers and offer deeper insights, controlled
safeguards, and customized targeting. However, this paradigm shift doesn't necessarily spell doom for the Open Web. Smaller players, though faced with challenges, are driving innovation that holds the potential to reshape the digital advertising landscape. These emerging actors must now tackle the formidable task of constructing the infrastructure necessary to handle consumer data
responsibly, adhering to stringent privacy regulations. Data Clean Rooms: A Glimpse of Hope The search for solutions amidst this whirlwind of change has given rise to the concept of data clean rooms. These privacy-enhancing enclaves offer a secure environment for sharing
first-party data among data owners, ensuring compliance with privacy regulations while enriching data profiles. In essence, data clean rooms function as Switzerland-like sanctuaries where competitive rivalry takes a back seat to data enrichment and privacy preservation. The utility of data clean rooms becomes increasingly apparent as we delve into their potential applications. Brands can
collaborate with publishers, combining their transactional data with behavioral insights to yield a more nuanced understanding of their audience's preferences and habits. This convergence allows advertisers to tailor their content to align with readers' interests effectively, generating more impactful campaigns. However, data clean rooms are not a panacea. Implementing these environments
necessitates strong data assets, substantial technical prowess, and a commitment to maintaining a rigorous data strategy. Brands must strike a balance between aspiring for sophisticated measurement and attribution capabilities and pragmatic, incremental steps toward these goals. The Open Exchange's Destiny: Survival or Extinction? As we reflect on these paradigm shifts and evolving dynamics, the question remains: Is the Open Exchange heading toward oblivion? The answer, like the digital landscape itself, is complex. The advent of Walled Gardens and their ascension to dominance does pose challenges to the traditional open exchange model. Yet, the concept of Open Gardens, powered by open data and fortified by privacy-centric principles, presents an alternative
path that can rejuvenate the Open Web. While the open exchange may need to adapt, its demise is far from inevitable. The rise of data clean rooms, the potential for more equitable collaborations between publishers and advertisers, and the determination of smaller players to innovate all contribute to the possibility of an open ecosystem that thrives amidst change. In this evolving narrative, the fate of the open exchange rests on the industry's collective willingness to innovate, adapt, and champion principles that uphold the sanctity of user data and preserve the accessibility and diversity that characterize the digital realm. Only time will reveal whether the open exchange's story concludes with extinction or transformation, but one thing is certain: The tides
of change are shaping a new era in digital advertising. |
All the news you need today, in a format that isn't TL:DR summarized for the busy executive.
📧 Experian's email escapades landed them in hot water! The FTC played referee, accusing Experian Consumer Services of spammy misdeeds. Apparently, sending unsolicited email ads to innocent folks wanting to freeze their credit is a no-no according to the Can-Spam law. Experian's
wallet is feeling $650,000 lighter as part of the settlement dance 💸. Those emails flaunted identity theft protection deals and credit score boosts, all while conveniently forgetting the opt-out party. 🕶️ FTC dropped the mic, calling out Experian's "tough luck" approach. Despite the FTC's finger-wagging, Experian insists they're not guilty as charged, yet now grudgingly showcases an "email preferences center" link at the email's tail 🙃.
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Paris Hilton, the heiress with a penchant for stupidity, has brought her "sliving" mantra to Roblox! Teaming up with 11:11 Media, she birthed "Slivingland" in the metaverse for her 70 million-plus followers. Imagine Hilton-themed content galore: music, podcasts, TV shows, and even early 2000s-inspired fashion collectibles. Fans are invited to a virtual nightclub dance-off and can snag iconic pink accessories, while Paris dishes out promo codes for discounted Taco Bell treats and
declares the digital universe her alternative social hangout. Not new to the metaverse, Hilton previously had "Paris World" and even jammed a virtual DJ set for New Year's Eve. 11:11 Media aims to become the ultimate "mini Disney" in the world of media and consumer products 🌟.
🥤 Quenching their thirst for innovation, Coca-Cola is diving headfirst into the Web3 pool by turning their iconic Masterpiece campaign into blockchain magic ✨.
In a pixelated twist, they're minting digital collectibles, aka NFTs, featuring classic and contemporary artworks on the Layer 2 Ethereum blockchain called Base, nestled under Coinbase's wing. The fizz doesn't stop there – this splashy move is part of Coinbase's "OnChain Summer" campaign, marrying art, gaming, and music in a Web3 whirlwind. This ain't Coca-Cola's first metaverse rodeo; they sprinkled NFTs to celebrate friendship and dished out a dash of magic via Crypto.com. So, raise your
virtual glasses to Coca-Cola's artful sips in the blockchain sphere! 🎨🖼️
🛒 Walmart is giving your inner 90s kid a blast from the past with "Summer Rewind"! Nostalgia vibes are in full swing as the big-box retailer sets up shop in parking lots across 33 U.S. cities, starting in Austin, Texas. This playground for grown-ups is a time-traveling experience, letting folks dive into ball cages, hop into life-sized toy boxes, and even sneak
into a "freezer speakeasy." 🕺📸 From the irresistible allure of a life-sized Barbie box to celebrating the OG emoji (Walmart's Smiley symbol), it's a Gen Z and millennial paradise. Walmart's clever move capitalizes on the Y2K nostalgia trend, roping in those seeking a trip down memory lane while painting Instagram-worthy memories. And as other brands dance to the Y2K tune, Walmart's experiential play aims to beat the summer blues and reignite foot traffic in style. 🌞🎉
🔁 Google's clever dance with naming conventions! After a report indicated that most of its TrueView ads landed on less-than-stellar placements, the tech giant decided to take an unconventional route. Google shifted the name of its "in-stream" ad offering to "skippable ads." The move comes amidst ongoing controversies and a pending class-action lawsuit tied to ad impressions. Not just an attempt to sidestep scrutiny, this name change also aligns with
industry standards and might help Google stay in step with better placement practices. Whether it's a strategic twist or a dance of necessity, Google's renaming could influence the rhythm of future TrueView campaigns. 💃📺
📺📊 The Linear TV Struggle: The uphill battle of reaching viewers via traditional TV gets even steeper. 🏔️ Samba TV's State of Viewership report drops the truth bomb – in the first half of 2023, half of the avid TV
watchers saw a whopping 92% of the TV ad impressions, while the other half got a mere 8%. 📈📉 Despite linear TV's daily reach slightly growing to about 58 million, the heavy viewers were bombarded with over 150 ads daily, while the lighter watchers saw only 14. 📺💥 Plus, repeated ad viewings? Anything beyond two to five times per month, and it's a big turn-off for viewers.
🍔 Hungry for insights? InMobi's annual survey reveals the secret sauce behind Quick Service Restaurants' (QSR) success. Consumers are scarfing down QSR fare for the convenience it offers, with grab-and-go orders reigning supreme. While mealtimes are taking a hit, the weekly order rate is on the rise, emphasizing the need for a swift dining experience. Loyalty is the name of the game, as QSR apps become the latest
food trend. App downloads have skyrocketed, driven by discounts and promos, with exclusivity gaining traction. Mobile ads are also sizzling, making 39% of consumers hungry for QSRs, up from 31% in 2022. In a world flavored by Gen Z, QSRs are stirring up strategies to dish out the best deals and retain their customer base 📱🍟.
📊 B2B media, once a stagnant backwater, has surfed into a new era. It's no longer just about industry cheerleading,
but a thriving segment with varied business models and direct audience focus. As the media landscape shifts from institutions to individuals, the next wave of B2B media is expert-led micro media. Think industry practitioners providing deep insights to help professionals advance their careers. The newsletter ecosystem plays a role, giving rise to expert-led publications like Lenny Rachitsky's insights for product management or Packy McCormick's business strategy wisdom. The focus isn't
just on reporting news but offering value beyond the surface. This evolution also highlights the challenges and intricacies of running a sustainable media business, a conversation that promises valuable insights into the mechanics of the industry's financial side. 📰💼
📧 Email marketers, brace yourselves: security woes knock on the virtual door. Independent researcher Marcello Salvati has sounded the alarm, claiming email security vendor
MailChannels leaves domains vulnerable to phishing attacks. Allegedly, the flaw lets hackers spoof email addresses without domain ownership verification, potentially exposing around 2 million addresses. Unlike other vendors, MailChannels doesn't demand domain ownership proof from its clients, mainly web-hosting companies that use email for password resets and signups. The perceived weak link is MailChannels' spam detection tools, deemed easy to bypass. Salvati even demoed email
impersonation and shared code that could potentially spoof domains. MailChannels' CEO Ken Simpson responded by acknowledging a DMARC standard flaw, and the company introduced a new security product, Domain LockDown. Despite the uproar, no tangible harm has been reported yet from this exposure. 💌🔐 🏢 Remote work policies are the hot topic as holding companies set their stances.
Publicis means business, mandating three in-office days weekly, with remote-only hiring off the menu and salary exchange for WFH a no-go. Omnicom joined the back-to-office choir, expecting three days a week in-office, except for designated remote employees. Dentsu embraces flexibility, taking cues from employees' well-being surveys. WPP's policy landscape remains elusive, while IPG supports hybridity but leaves agency-specific choices. Stagwell splits the difference, requiring full-time
in-office for executives and three days for corporate staff, with agency autonomy in tow. Havas introduced a three-day office minimum in 2021, but its current stance stays mum. As holding companies navigate this work revolution, the shape of the future workplace dances on. 💼🏠
🛍️ Back-to-School Marketing Strategies: As the back-to-school season gains momentum, brands are
working to engage Gen Z shoppers by tapping into nostalgia and value-driven messaging. American Eagle, for instance, has launched a '90s-inspired clothing collection created in collaboration with Gen Z sister duo Maddie and Kenzie Ziegler, incorporating elements from fashion icons of the past. Other brands like Amazon are focusing on "spend less" messaging, aiming to resonate with price-conscious parents facing macroeconomic challenges. Although the back-to-school spending outlook may
seem dampened due to budget constraints, brands are adapting their marketing strategies to capture consumer attention and align with changing shopping behaviors, especially within the Gen Z demographic. 🛍️👕🎒
Prudential's Chief Brand Officer, Richard Parkinson, attributes the brand's improved advertising efficiency and consistency to its in-house media team. The
company shifted from sporadic campaign-focused spending to a more stable and even approach, aided by its 15-person in-house media team. This team is part of Prudential's larger in-house setup, which includes around 80 members working on brand strategy, creative, and content marketing. While embracing a hybrid in-housing model by collaborating with external agencies like McCann, the brand's primary focus is on maintaining a consistent and long-term approach to media buying and planning. This
approach has contributed to increased ad spend, which emphasizes a diverse media mix and tailored messages to specific audiences, including both business-to-consumer and business-to-business messaging. Parkinson believes that this combination of in-house and external agency expertise enables agility, speed, and effective execution in Prudential's advertising strategy.
Despite widespread pullbacks in discretionary spending by U.S. consumers, both Columbia Sportswear and The North Face report healthy global sales increases. VF Corp., The North Face's owner, faces bigger issues as its Vans division and workwear sales decline. VF's revenue dropped 8% to $2.1 billion in Q1, with losses growing to $57.4 million. The North Face saw sales rise 12%, while Vans revenues dropped 22%, Timberland
declined 6%, and Dickie's workwear fell 20%. Analysts predict continued growth for The North Face due to product innovations and brand extensions, while Timberland and Dickies face challenges. Columbia Sportswear's net sales climbed 7% to $620.9 million in Q2, demonstrating strong interest in outdoor activities. Marketers embrace ethical targeting, harnessing first-party data
🎯🔒 for privacy-friendly campaigns. Using robust consumer segmentation tools, they craft ad-buying personas without revealing customer information, enhancing reach and minimizing waste. Proprietary scoring systems remain confidential through cross-referencing with segments. Positive targeting for traditional media and negative targeting for digital channels ensure efficient reach. Campaign success measured through evidence-based testing, showcasing its potency compared to other
methods. Ethical targeting offers a cookieless solution, ensuring privacy compliance while maximizing the impact of personalized marketing strategies. 📊🛡️
🤝📊 In a Q&A with Ellen Learmonth, program manager at Safe Affiliate Programs, the focus is on ethical affiliate marketing. Learmonth explains that
Safe Affiliate Programs provides a secure platform for affiliates to collaborate and find programs that prioritize a safe and transparent environment. The program's exclusivity ensures integrity, and the team offers practical support and resources to affiliates for successful partnerships. Learmonth emphasizes the importance of research, hard work, and compliance for newcomers in the affiliate marketing industry, particularly in the iGaming sector. Regarding AI, Learmonth acknowledges
the potential benefits for content creation but cautions against blindly trusting AI-generated content, suggesting careful fact-checking and supervision. 🤖💼 Facebook's creator earnings are in a perplexing whirlwind: some creators received account restriction alerts without rule violations; a recent glitch inflated earning estimates, followed by dramatic payout reductions; and
an earlier fluke showed creators wildly exaggerated billion-dollar earnings estimates. Meta cited anti-fraud measures for the first issue, promised fixes, and admitted to errors causing the other glitches. The creator economy on Facebook is facing an erratic earnings ride. 🎢💰
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DOUBLEVERIFY: REIGNING SUPREME IN THE BATTLE FOR ATTENTION METRICS Let’s make this clear: traditional identifiers are fading away and consumers are
scattered across various channels. Attention metrics have emerged as the new gold standard. Enter DoubleVerify, a trailblazing force that is redefining the way advertisers measure and optimize their campaigns through attention metrics.Made for Advertising Sites have shown “viewabiltiy” can be easily scammed, and easily fooled. Advertisers and marketers are now shifting their focus towards a more sophisticated and insightful
measurement: attention metrics. These metrics, often referred to as the “next-gen KPIs,” provide a deeper understanding of consumer engagement and interaction with advertisements, transcending the limitations of mere viewability. READ MORE
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The old world of advertising with its trusty compass, the Gross Rating Point (GRP) currency, provided a sense of direction to advertisers for decades. But as the digital storm rages on, we must embrace a new currency, the impression-based metrics. This sleek, modern approach allows for precise targeting, granting us the power to reach our desired audience with laser-like accuracy, like daring buccaneers navigating
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TECH BEHEMOTH GOOGLE FACES BILLIONS OF DOLLARS LAWSUIT OVER DECEPTIVE AD PRACTICES In a shocking revelation, Google, the tech giant known
for its search engine dominance and online advertising prowess, is facing a monumental class-action lawsuit alleging that it has defrauded advertisers of billions of dollars through misleading practices surrounding its proprietary TrueView video advertisements. The 26-page lawsuit, filed on July 26, has sent shockwaves through the advertising industry and has raised serious questions about the credibility and ethics of Google’s advertising platform. READ ENTIRE STORY
YOGURT’S GOT A NEW GURU: CHOBANI SCOOPS UP MARKETING MAESTRO THOMAS RANESE We all know Chobani, the foodie trailblazer known for its heavenly Greek
yogurt and a fresh outlook on snacking! They’ve just unveiled their secret weapon as Chief Marketing Officer: Thomas Ranese, the marketing maestro who’s conquered the branding world at Uber and Google. Chobani’s CEO, Hamdi Ulukaya, gushed about their quest to serve up “better” everything – from ingredients to quality, nutrition to business practices. And guess what? They’ve found their brand wizard in Thomas. His superpower?
Making a difference for humanity through good food. Talk about a match made in yogurt heaven! READ MORE NOW
SCHILLER’S SHOWTIME: A MEDIA MAVERICK’S INSIGHTS UNVEILED As we sat down with the media maverick himself, it quickly became evident that Schiller’s sharp wit and encyclopedic knowledge of
the industry were a match made in heaven. We had wanted this interview for a while. Why? He can effortlessly traverse the complexities of digital media, technology, data, and monetization while vividly portraying the future of advertising and media consumption. I only wish I had asked more and better questions. In our first tête-à-tête, we explored Schiller’s insights into the evolution of technology and its impact on the media
industry. “Technological innovation is the catalyst for change,” Schiller remarked with a knowing smile. “In the entertainment and media business, we’ve witnessed how technology has consistently unlocked new consumer behaviors since the dawn of media. The problem, however, is that our industry often moves at the speed of a snail on vacation. We saw it with the advent of streaming, from the Napster days to YouTube. Ever tried
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THE FUTURE OF IN-GAME ADVERTISING: A TRANSFORMATIVE SPACE FOR BRANDS As the gaming industry continues to evolve,the next years promise to be a pivotal
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monetization models to co-creation with gamers, the rise of AR gaming to the potential of streaming platforms, brands are discovering innovative ways to immerse themselves in the gaming universe. READ THIS ARTICLE
HOW REPETITIVE ADVERTISING IS RUINING THE CTV SPACE Where content is abundant and viewers have endless choices at their fingertips, a new menace has emerged that threatens to tarnish the
reputation of brands and the streaming platforms themselves: repetitive advertising. A recent ad effectiveness test conducted by Magna Media Trials and Nexxen, an ad-tech platform, shed light on just how damaging these repetitive ads can be to both the viewers and the advertisers. READ MORE
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FUTURE OF AI IN ADTECH: OPPORTUNITIES AND SPECULATIONS AI has become a transformative force in various industries, and Adtech is no exception. With the potential to revolutionize advertising,
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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 |
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