Ad Tech Archives - WordPress https://mediaradar.com/blog/tag/ad-tech/ Just another WordPress site Thu, 11 Jan 2024 21:49:43 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 Programmatic Advertising in 2023: Who’s Buying and Why It Matters  https://mediaradar.com/blog/programmatic-advertising-in-2023-whos-buying-and-why-it-matters/?content=ad-tech Fri, 27 Oct 2023 18:46:59 +0000 https://mediaradar.com/?p=11704 Brands are consistently leaning into ad technology to deliver precise, tailored ads to their target audience. But who’s buying programmatically, and why does it matter? MediaRadar’s latest analysis uncovers key trends and insights into the realm of programmatic advertising.

The Rise and Decline of Digital Advertising

2022 was a remarkable year for digital advertisers. Post-COVID restrictions generated an advertising boom, with brands scrambling to capture pent-up consumer demand. As restrictions lifted and the world took baby steps towards normalcy, digital ad spending skyrocketed.

However, fast forward to 2023, and the scene has somewhat changed. Global economic concerns have ushered in an air of caution. Brands are now more deliberate with their ad dollars, meticulously choosing where to place them.

In a landscape where cautious spending prevails currently, one thing remains consistent: programmatic ad buying continues to dominate the digital space.

Digital Ad Trends: The Numbers

MediaRadar’s analysis of ad spending from national digital media outlets paints an intriguing picture. By Q3 2023, national digital advertising was hovering at a colossal $46 billion. Despite this impressive number, digital spending noted an 8% YoY decline from 2022.

Interestingly, this downturn is predominantly due to a slump in programmatic spending, which decreased by 13% YoY. Industries such as technology observed a significant decline in programmatic ad spend by 31% YoY, settling at $3.8 billion.

However, let’s add some context: programmatic ad investments still commanded a large share of the pie, with 74% ($35 billion) of digital spend through Q3 2023 being allocated to programmatic channels. Tailor digital ad sales by understanding which advertisers embrace ad tech along with their buying behavior.

On the flip side, digital publishers should note that direct ad spend has shown growth. Up 7% YoY, direct ad expenditures touched nearly $12 billion. Leading this uptrend are sectors like tech (increasing 7% YoY to $1.8 billion) and home furnishings, which saw a whopping 19% YoY increase, amounting to $924 million. Not to be left out, professional services also hiked their direct ad investments by 6% YoY, bringing their total to $763 million.

Top Programmatic Advertisers in 2023

A staggering 136k companies jumped aboard the programmatic bandwagon by the end of Q3 2023, buying ads for about 208k brands or product lines. This is an impressive 83% of the nearly 165k companies that opted for digital advertising during this period.

Several top companies, including industry giants like Amazon.com, Comcast, Hyundai, and Mondelez, dedicated a whopping 80% or more of their budgets to programmatic spending emphasizing its significance in today’s ad landscape. And when we delve into different advertising categories, eleven out of 27 allocated more than $1 billion solely for programmatic advertising. Leading this list are media & entertainment and retail advertisers, with over 80% of their digital ad dollars flowing programmatically. These along with apparel, food, and beauty are categories to target for ad tech sales opportunities.

However, there are always outliers. The home furnishings category, including furniture, maintenance items, and outdoor products, leaned less into programmatic channels, placing less than 60% of their digital ads through ad tech.

Looking ahead, several brands, such as Aflac, H&M, and Old Spice, seem poised to bolster their programmatic ad spending, with predicted RFPs slated for Q4.

The Future of Programmatic Advertising

The world of programmatic advertising is dynamic, and shaped by myriad external factors. While we’ve noted a YoY decrease, the resilience of ad tech remains undeniable. Companies are still betting big on programmatic, signaling its enduring relevance in the ever-evolving advertising ecosystem.

For advertisers and ad sales professionals keen on staying ahead of the curve, harnessing advertising intelligence is paramount. Ad sales professionals leveraging real-time insights and data can make informed decisions on how to target key brands for success, ensuring their sales efforts yield optimal results.

Why does it all Matter?

MediaRadar’s analysis highlights that while programmatic advertising has seen a slight decline in 2023, it still makes up the vast majority of digital ad investments. Advertisers across industries continue to lean heavily into ad tech to reach their target audiences.

For ad sales professionals, these insights indicate that programmatic channels remain crucial for prospecting new business. Focus sales outreach on categories investing heavily in ad tech like retail, media, entertainment, and apparel brands. Use real-time data to identify brands increasing their programmatic budgets.

For publishers, direct ad sales present an area of growth to capitalize on. Allocate resources to building direct relationships with advertisers in home furnishings, tech, and professional services. Develop tailored offerings to attract these brands investing more in direct channels.

The programmatic landscape will continue to evolve rapidly. By leveraging timely advertising intelligence and data, ad sellers and publishers alike can adjust strategies to drive revenue and stay ahead in 2024’s digital advertising arena.

Want to stay ahead of the curve? Subscribe to MediaRadar’s insights and get the latest advertising trends, data analyses, and predictions delivered straight to your inbox!

]]>
Publishers and SSPs Rethink Programmatic Ad Tech  https://mediaradar.com/blog/publishers-and-ssps-rethink-programmatic-ad-tech/?content=ad-tech Thu, 13 Jul 2023 20:17:25 +0000 https://mediaradar.com/?p=11592 Not long ago, advertisers balked at the idea of handing their ad dollars over to a robot (READ: programmatic ad tech). 

Luckily, that fear waned as advertisers realized the measurement, performance, and efficiency benefits were too good to pass up. Today, programmatic ad tech is, for the most part, universally loved. In fact, Insider Intelligence predicted that more than 90% of digital display spending last year would be bought programmatically.

MediaRadar Blog Signup

But even the mighty programmatic machine isn’t immune to the retreat in spending amid economic uncertainty—nearly 30% of major advertisers say they’re cutting their ad budgets in 2023.

Publishers and supply-side platforms (SSPs) are feeling it—and they’re evolving quickly to steady themselves on the shifting sands. 

Publishers and SSPs Change Their MO 

In December 2022, Insider Intelligence published an article predicting programmatic spending would slow. While they still predicted a lofty number, the reduction was far from surprising, considering over half of marketers expect a decline in programmatic spending this year

Even Google is feeling the heat. In its Q1 2023 earnings report, Alphabet cited that YouTube’s ad revenue dropped by 2.6% YoY, making it the third consecutive quarter the video giant saw ad revenue dip.  

Understandably, publishers are fighting their way through the turmoil. According to our data sample, 2.3k publishers (down by 5% YoY) used ad tech partners between January and May 2023, investing more than $13.2b across the likes of Google Marketing Platform (formerly DoubleClick and Google), Facebook, Innovid, Twitter, and YouTube.

At the same time, their strategies are evolving. Through May, 66% of publishers (1.5k) partnered with two ad tech providers, down by 21% YoY. Meanwhile, the 430+ publishers (19%) that partnered with three ad tech providers increased by 14% YoY. 

Although the number of publishers spending with 3 (up by 14% YoY), 4 (up by 197%), 5 (up by 267%), and 6 (up by 600%) ad tech partners all increased, the real story lies with those that consolidated their tech stacks. 

Publishers by number of ad tech providers graph

Sam’s Club dives deeper into the battle for retail media dollars

Sam’s Club decreased the number of ad tech partners from three to two through May in what was likely a strategic move driven by the Walmart-owned company’s fight for a larger chunk of retail media dollars. Retail media ad spending is accelerating so quickly that it’s expected to surpass TV spending by 2028. 

At the heart of Sam Club’s strategic move is the freshly launched Sam’s Club Member Access Platform (MAP), which launched in June 2022 to allow advertisers to buy sponsored product ads via a self-service interface and target shoppers based on their search behavior, past purchases, and membership info. MAP also allows advertisers to retarget people off Sam’s Club’s platforms through partnerships with The Trade Desk (TTD), IRI, and LiveRamp. 

More recently, Sam’s Club launched MAP Partners Club to connect advertisers with a “certified network of agencies and technology providers to maximize campaign performance.” 

Other big-name publishers, including Twitch and The Weather Company, reduced the number of ad tech partners they’re working with from three to two through May. 

Yahoo exits the supply-side game

Yahoo! Finance reduced the number of ad tech providers it works with from four to three in the wake of Yahoo’s intensified investment in the buy side of programmatic advertising.  

According to Yahoo CEO Jim Lanzone, “It’s [the shuttering of its SSP] really about narrowing our focus on the piece of ad tech we do best, which is our DSP [and] not spreading our resources too thinly across every part of the stack.” Yahoo also announced it would refine the scope of its DSP to focus on the “premium side of the market, Fortune 500 companies, and top agencies.”

The shuttering from Yahoo is yet another chapter in SSP’s recent story that’s seen the rapid commoditization of the technology, EMX (an ad tech company) going out of business, and Magnite laying off 6% of its staff. 

For Daily Mail, a publisher that previously monetized with Yahoo, the closure of its SSP was surprising, but they don’t plan—at least at the time—to partner with another SSP. Publisher ad management platform, CaféMedia, shared that sentiment. That shared sentiment could foreshadow how other publishers will respond to the consolidation and commoditization of SSPs. 

At the same time, Food Network partnered with two ad tech providers through May, down from five during the same time last year, while Fortune and TheCHIVE went from four to three ad tech partners.  

What’s Next for Publishers and SSPs?

SSPs and publishers are evolving. Havas recently agreed to a deal with Freewheel to improve its CTV advertising capabilities, while Horizon teamed up with OpenX’s SSP. And despite layoffs, Magnite bought SpotX and Telaria. 

While the rapid evolution may seem sudden for such established ad tech, the writing has been on the wall for some time. First, header bidding made it easier for advertisers to buy inventory. Then supply-path optimization (SPO) simplified the overly complex process. Eventually, SSPs started competing on price

These shifts are forming a new foundation in which fewer, but likely larger, SSPs exist, giving publishers access to a smaller playing field. Most industry experts see this overall shift as a positive move forward for the programmatic industry. 

As publishers navigate the consolidation and fight for ad revenue during the economic uncertainty—the New York Times’ digital ad revenue fell by nearly 9% between January and March—they’ll source revenue elsewhere.

For the New York Times, that means increasing the price for 1.5mm subscribers and using promotional pricing to attract new ones.

“Our bundle strategy is gaining momentum, engagement metrics are strong, pricing initiatives are taking hold and we are slowing cost growth,” said Meredith Kopit Levien, CEO of The New York Times Company.

For other publishers, branded content studios, i.e., in-house services that allow advertisers to create native-like ads that engage the publication’s niche audience, will be in the cards as an extra revenue stream and a way to insulate themselves in a world without third-party cookies.  

For more insights, sign up for MediaRadar’s blog here.

]]>
How Specialized DSPs Are Shaping Connected TV (CTV) Advertising https://mediaradar.com/blog/how-specialized-dsps-shape-advertising-for-connected-tv/?content=ad-tech https://mediaradar.com/wp-content/uploads/2019/08/dsps-for-connected-tv-blog-hero.jpg Mon, 30 Jan 2023 12:00:00 +0000 https://mediaradar.com/?p=6629 The streaming wars reflect the plot of Infinity War (or Star Wars… it’s not a perfect metaphor). The growth of over-the-top television (OTT) continues unabated.

The number of OTT users across Netflix, Disney+, HBO Max, Hulu, and other platforms is expected to reach 4.2b by 2027.

Source: Statista

Connected TVs (CTV) are seemingly more commonplace than toasters. As of February 2022, there were around 117mm CTV households in the U.S.

This leaves advertisers and media brands asking: Where are programmatic ads headed?

Programmatic advertising is certainly in the cards for brands, both large and small. And programmatic TV advertising continues to make headlines and big promises. 

But one thing is certain: The popularity of ads across streaming services is growing as the industry figures out measurement, inventory and growth.

By 2026, ad revenue is projected to surpass $32b.

MediaRadar sales tips recent ad creative and more

How OTT Is Shaping Programmatic Ad Tech 

With the streaming giants’ rapid expansion — fueled by Silicon Valley’s mantra of ‘move fast and break things’ — ad tech had difficulty keeping up with the shift from traditional TV to OTT. 

Programmatic advertising fits individual web properties and Internet-native video platforms. A native ad on a publisher’s site feels natural. So do ads across major social media platforms, including Facebook, Instagram and Snapchat.

But applying the same ad tech to OTT (particularly with live programming) proved difficult. 

“Early adopters are finding that pairing digital data with connected TV and OTT ads isn’t a simple plug-and-play exercise,” wrote eMarketer’s editorial board. “Those hoping to benchmark connected TV and OTT performance against standard digital video advertising metrics are also finding this a complex task.” 

Programmatic advertisers in OTT have faced the unique challenge of translating the metrics of traditional TV and data-driving digital ads. 

According to a 2022 survey, 48% of respondents said measuring incremental reach across streaming platforms and publishers was challenging for CTV advertising. Meanwhile, 43% pointed to managing ad frequency across platforms and publishers as a hurdle.

But the challenges don’t end there.

Another survey found that 85% of respondents said they were “very” or “somewhat concerned” over ad fraud.

Buying digital ad space for OTT and CTV is still difficult, but more laser-focused DSPs have popped up to support the demand. 

“Comcast-owned FreeWheel is introducing a one-stop shop for buying commercials in these emerging forms of TV,” writes Jeanine Poggi at AdAge. “The suite of new ad products will allow buyers to access inventory from FreeWheel’s clients, which include more than 60 of some of the top TV networks and publishers that are being served on platforms like Roku, Amazon Fire, Google Chromecast and Apple TV, among others.”

Similarly, Adobe acquired TubeMogul, a DSP aimed directly at programmatic video. 

The Trade Desk, one of the world’s most popular DSPs, has also invested in CTV advertising.

TTD’s solution not only helps advertisers “maximize reach to increasingly digital audiences, wherever they’re watching,” but the company’s relationships with top networks and content providers give it an edge.

TTD also positions itself as an “all-in-one” DSP, which gives advertisers a more streamlined way to scale their CTV ads across inventory, including video, audio, native, and OOH.

It’s DSPs like these that will allow programmatic video ads built for CTV and OTT to scale in a meaningful way.

Specialized DSPs Are Expanding Opportunities for Programmatic 

But that doesn’t mean it’s suddenly a straightforward affair. 

Tal Mor is the CTO of Tremor Video, a DSP purportedly meeting these new demands. “Just because programmatic video is everywhere doesn’t mean it’s easy,” writes Mor. He says that programmatic video — and especially Connected TV or OTT — requires the right balance of ad tech to prove effective: “It requires access to the right audiences, unique targeting abilities, channel-specific inventory, reporting/optimization abilities, and fraud detection/prevention methods.” To drive this home, Mor writes that the lack of industry standards makes it particularly difficult to navigate the nuanced space. 

That said, movement in OTT services is driving growth in programmatic video ad spend.

Automation and measurement are improving.

For example, DoubleVerify launched a solution that can verify a CTV ad’s viewability, allowing advertisers to determine if an ad was actually seen. The launch marks the first viewability measurement solution to hit the market.

“As CTV impressions continue to be sold at a premium, brands need insight into which platforms and environments offer the best viewability rates,” said DoubleVerify CEO Mark Zagorski. “To that end, we’re excited to launch this first-of-its-kind solution and continue to lead in measurement and innovation for CTV buyers.”

Targeting is getting more precise.

Ad formats are innovating.

Case and point: Samsung Ads is tapping into Clinch’s ad tech platform to “deliver personalized and dynamic programmatic campaigns across FAST service Samsung TV Plus.”

Clinch CEO Oz Etzioni said, “Samsung has established an incredible global footprint, fueled in part by their commitment to providing innovative consumer experiences. Through this partnership, we are able to bring a new level of real-time personalization to millions of Samsung connected devices with superior automation and efficiency.”

Metrics and benchmarks are also catching up—and consumer demand only continues to rise, aided by increased mobile consumption.

All of this translates into scalability and a better advertising ROI. 

Mor, the DSP tech leader, writes that video-specialized DSPs have the best hope of capturing this value. Within their specialization, they can focus on ad formats and creative, inventory and execution, and (maybe most importantly) measurement. 

The benefit is clear: Reach a more engaged audience for less than it costs on traditional TV.

“OTT program producers focus on developing video programs for targeted, highly enthusiastic audiences instead of broad-based fare,” writes Barry Levine at Marketing Dive. 

Programmatic video is a natural way to take full advantage of this benefit — and DSPs are starting to meet demand. 

For more insights, sign up for MediaRadar’s blog here.


]]>
https://mediaradar.com/blog/how-specialized-dsps-shape-advertising-for-connected-tv/feed/ 0
Google Chrome Privacy Sandbox: What Is It and Why Does It Matter? https://mediaradar.com/blog/google-chrome-privacy-sandbox-what-gives/?content=ad-tech https://mediaradar.com/wp-content/uploads/2019/09/google-privacy-sandbox-blog-hero.jpg Fri, 27 Jan 2023 12:00:00 +0000 https://mediaradar.com/?p=6696 Google’s made headlines for years as it perpetually teases at the demise of third-party cookies.

Source: Oberlo

It’s not a tease, though. Google is parting ways with third-party cookies. It’s just a matter of when. As of today, third-party cookies will go away in 2024.

To make matters worse, Apple’s App Tracking Transparency feature continues to pose challenges.

Needless to say, advertisers are concerned. How can they roll out and optimize their programmatic campaigns without third-party cookies and other identifiers?

Alternative identifiers will eventually fill the void, but which ones?

Email? Probably.

Phone numbers? Yep.

Google’s Privacy Sandbox?

Absolutely.

What is the Privacy Sandbox, and what does it mean for advertisers and publishers? 

MediaRadar sales tips recent ad creative and more

What’s Google’s Privacy Sandbox?

Google’s Privacy Sandbox is a set of APIs designed to protect user privacy while allowing publishers and advertisers to target based on interest, demographics and more. The project “consists of new APIs that will allow advertisers to show targeted ads, but without having direct access to users’ personal details, as they do now,” writes Catalin Cimpanu at ZDNet.

Using the so-called ‘Differential Privacy’ techniques that Google has employed for its internal projects, the APIs block the Chrome browser from sharing identifying data until it can be lumped in with thousands of other users’ data points. It means advertisers can still track and target but introduces a layer of anonymity. Vox calls it a tightrope walk

Recently, Google launched the first beta of its Privacy Sandbox on Android, allowing users and developers to test the new technology.

Anthony Chavez, Google’s vice president of Privacy Sandbox, said, “The Privacy Sandbox beta provides new APIs that are designed with privacy at the core, and don’t use identifiers that can track your activity across apps and websites.” Chavez continued, “Apps that choose to participate in the beta can use these APIs to show you relevant ads and measure their effectiveness.”

The Privacy Sandbox on Android shares similarities with Google’s Privacy Sandbox for the web, which will replace third-party cookies in Chrome when they disappear in 2024 (we think).

Understanding Ad Relevance and Impact with Google’s Privacy Sandbox

Google’s Privacy Sandbox sounds great in theory, but how does it actually work, and how will it ensure ad relevance? Going from one-to-one targeting via third-party cookies to one-to-many targeting via Privacy Sandbox certainly can’t be a good thing, right?

Let’s break down what we know about Google’s Privacy Sandbox and, more importantly, what it means for advertisers.

Showing relevant ads

Without third-party cookies, how will Google know which ad to show person X, Y, and Z?

The simple answer: Interest-based targeting via “the Privacy Sandbox privacy-preserving APIs.”

  • Topics API: Topics are categories the browser concludes based on the pages you visit. For example, Topics may categorize ESPN as “sports” and The New York Times as “news.” The browser then collects a handful of topics commonly associated with the websites someone’s visited.

    From a high level, Privacy Sandbox is saying, “someone is interested in X website, so they may also be interested in Y website.” They’re then shared with advertisers and used to deliver relevant ads.

    Users can go into Chrome, see the topics they’re “linked” to and remove or disable any they don’t like. It’s like disabling third-party cookies in the post-cookie world.
  • FLEDGE: FLEDGE addresses the constant need for remarketing, i.e., delivering ads based on what someone has looked at online in the past. Remarketing is why you often see ads “following” you online.

    With FLEDGE, the sites of advertisers someone visits can inform their browser that they’d like to show them ads. They can also share information with their browser, including the ads they’d like to show. Then, when someone visits a website with ad space, an algorithm informs ad delivery.

    Here’s a diagram that outlines FLEDGE:
An overview of each stage of the FLEDGE in Google's Privacy Sandbox
Source: Chrome Developers

At one point, there was FLoC, which grouped people based on their browsing patterns. However, FLoC was stopped in 2021.

Check out this article to learn more about interest-based targeting without third-party cookies.

Measuring advertising impact

Third-party cookies have been the gold standard in digital for so long because they made tracking and measurement easy. Cookies basically put a name tag on someone, followed them around online, and then said hi (with another ad) when the time was right. Guesswork wasn’t necessary; there was always a one-to-one connection between advertisers and consumers.

That’s gone, so how will Google’s Privacy Sandbox allow advertisers to measure the impact of their campaigns?

Attribution Reporting API.

Attribution Reporting API measures “when an ad click or view leads to a conversion, such as a purchase on an advertiser site.”

According to Google, the API allows for the measurement of two events linked together: an event on a publisher’s website—think a user viewing or clicking an ad—with a subsequent conversion on a website.

Here’s a breakdown:

Event-level reports link a click or view with data on the conversion side. Google says these reports help answer the question: “How can I improve my return on investment?”

Summary reports aren’t tied to a specific event on the ad side but offer richer conversion data than event-level reports. Google says these reports help answer the question: “What is my return on investment?”

Looking Ahead to a Better Internet and More Thoughtful Advertising

Third-party cookies aren’t the enemy. They never were.

At their core, third-party cookies facilitated the fundamental value exchange on which the internet was built: you see ads in exchange for (most of the time) free content.

Third-party cookies are powerful, turning many people off from targeted advertising over time. It’s why most people go out of their way to avoid ads via ad blockers, skipping, or paying for ad-free services.

Six months before Google announced the initiative, a Think with Google blog positioned the idea behind the sandbox project. “When you work in digital advertising, it’s easy to forget what it’s like to be an average internet user,” Global Product Strategy Lead Kelsey LeBeau wrote. “But when you take a step back and experience the web as most people do, you begin to understand why so many people employ ad blockers.” 

Misconceptions aside, third-party cookies are on their way out, and advertisers will immediately need an alternative way to deliver, optimize, and measure their campaigns across the addressable internet.

Google’s Privacy Sandbox could be one of those ways.

The Privacy Sandbox is among the first steps “in exploring how to address the measurement needs of the advertiser without letting the advertiser track a specific user across sites.” Google is the king of ad tech — if the Privacy Sandbox threatened advertiser reach or ability to target (or ad revenue) in any way, you can rest assured they wouldn’t move forward. Instead, it seems to be a way to address consumer concerns with privacy. 

If the philosophy behind the project is sound, a Privacy Sandbox across browsers won’t mean a decrease in revenue for publishers or the nullification of targeting for advertisers. Google seems to think it simply means users will be less likely to use ad blockers. 

For more of a developer view on Google’s Privacy Sandbox project, you can check out its series of explainers designed to encourage commentary from the web community. 

For more insights, sign up for MediaRadar’s blog here.


]]>
https://mediaradar.com/blog/google-chrome-privacy-sandbox-what-gives/feed/ 0
How Podcast Advertising Fits Into Programmatic Technology https://mediaradar.com/blog/how-podcast-advertising-fits-in-programmatic-tech-or-vice-versa/?content=ad-tech https://mediaradar.com/wp-content/uploads/2019/07/podcast-programmatic-tech-blog-hero.jpg Thu, 26 Jan 2023 12:00:00 +0000 https://mediaradar.com/?p=6512 At the beginning of 2019, we predicted it would be a big year for audio—and it was.

Ad spending on the medium was up and podcasts became a big topic at Digital Content Next.

Better yet, Midroll Media found that 6 out of 10 podcast listeners purchase based on the ads they hear on their favorite shows. The power of podcast ads was becoming crystal clear.

Today, podcasts and their ads are shining even brighter. A 2022 study found that 38% of the U.S. listened to a podcast in the past month, more than 3x the share recorded a decade earlier.

Advertisers have responded. Podcast ad revenue was expected to reach $2 billion in 2022 and $4 billion by 2024.

What feeds this advertising format?

Their very nature. Many podcast ads are the audio equivalent of native ads, which we know perform well.

Traditionally, host-read ads have attracted the most attention, but they may have to make way for their programmatic counterparts as advertisers seek more efficiency and performance from the format.

The question is: How, exactly, do podcasts connect to programmatic tech? 

MediaRadar sales tips recent ad creative and more

Programmatic Podcast Ads: What We (Don’t) Know

The conversation surrounding programmatic podcast ads is more complicated than anyone would like. 

Case and point: AdExchanger featured two apparently contradictory articles.

One focuses on how programmatic audio took off. The other argued we shouldn’t expect programmatic ads for podcasts just yet. 

“As the podcast industry gained steam, it also overcame some technical hurdles,” writes Alison Weissbrot. “As for programmatic, the buying method is still nascent in podcasting but the technology is advancing.”

By way of evidence, Weissbrot points to Panoply’s new programmatic marketplace, Acast’s $35M Series C funding designed to move programmatic forward, and NPR’s foray into listener metrics. 

In a phrase, the state of programmatic podcast advertising was still uncertain—and it still is.

According to a Digiday article published in 2023, advertisers are hesitant to buy programmatic podcast ads.  

Why? They still love host-read ads, and programmatic technology strips their ability to vet the corresponding content before the ad goes live, i.e., they don’t know where their ad will play.

That said, the downfall of third-party cookies could put a premium on podcast ads as advertisers look for equally effective ways to reach consumers with targeted ads. As that happens, players rolling out programmatic podcast ad tech will have to evolve quickly to meet the rising expectations.

How Podcasts Move Programmatic Tech Forward

The success of programmatic podcast ads revolves around one thing: The technology’s ability to keep up. Advertisers big and small have come to trust programmatic technology elsewhere, which is why ad spending via programmatic means continues to rise.

Programmatic podcast advertising may reach that point, but it must prove itself first.

“The tech infrastructure that underlies much of digital ad buying wasn’t really made for audio,” Ross Benes writes at eMarketer. “The ad industry’s most popular ad servers and ad exchanges were originally designed for display. To ensure that their ad insertions aren’t too clunky, audio streaming platforms have had to build a lot of their ad tech themselves.”

According to some, the tech is coming.

“Standardized measurement will come,” one Spotify automation lead told The Drum. “If you look at video, there are a lot of verification technologies out there. None of these have a metric for audio, yet. As adoption grows and expands, those layers of verification and development will expand.” 

Which brings us to our second question: Have podcasts affected advances in programmatic tech? 

For their part, Pandora, Apple, and Spotify have dipped their toes into programmatic podcast advertising. Pandora even opened its ad inventory for programmatic buying partway through last year. 

More recently, Pandora announced that it reorganized into a cross-platform ad sales team that combines SiriusXM, Pandora and Stitcher.

Lizzie Widhelm, SVP of ad innovation and B2B marketing at SXM Media, said, “We can take the exclusive content we have from Sirius to build new shows, use Stitcher to find new audiences and monetize in a way that makes sense for the intimacy of the podcast medium.” 

Meanwhile, Spoify’s ad business is booming.

Despite the hesitation, it’s clear that advertisers are warming up to programmatic podcast ads. As the technology grows stronger and advertisers learn to trust it—like elsewhere in the programmatic world—the sentiment will warm even more.

For more insights, sign up for MediaRadar’s blog here.

]]>
https://mediaradar.com/blog/how-podcast-advertising-fits-in-programmatic-tech-or-vice-versa/feed/ 0
Supply Path Optimization (SPO): What Is It and Why Is It a Big Deal for Programmatic Ads? https://mediaradar.com/blog/supply-path-optimization-paves-the-way-for-smarter-programmatic-ad-spend/?content=ad-tech https://mediaradar.com/wp-content/uploads/2019/09/supply-path-optimization-blog-hero.jpg Fri, 20 Jan 2023 12:00:00 +0000 https://mediaradar.com/?p=6678 Decades after the first advertising network went live, it’s reasonable to conclude that the ad tech and programmatic landscape would have things figured out; new developments and innovations would be few and far between.

That’s not the case.

After all this time, new ad technology is still rolling off the conveyor belt of innovation to help advertisers make the most of their digital ad dollars.

Supply path optimization (SPO) falls into that bucket.

What is SPO, and why is it a game changer for programmatic advertisers?

This article answers both of those questions.

MediaRadar sales tips recent ad creative and more

What Is Supply Path Optimization (SPO)? 

Supply path optimization, or SPO, reduces the redundancies and intermediaries between advertisers and publishers.

Supply path optimization is “understanding who is touching your inventory and [removing] as many touches as you possibly can,” said Prebid President Mike Racic.

In the simplest terms, SPO ensures media buyers purchase ads at the best price while allowing publishers to maximize revenue, both of which are increasingly top-of-mind for media buyers and publishers as they fend off the down economy.

Jounce Media Founder and President Chris Kane said, “SPO is really just making deliberate choices about which auctions to participate in and which ones to ignore.”

Where Did SPO Come From?

Almost paradoxically, the impetus behind this new form of optimization is a decrease in ad tech investments. 

AdWeek reports that the ambiguity surrounding future ad tech legislation is causing many venture capitalists to place their funding elsewhere.

“Whatever funding is left in the ad-tech ecosystem is being snapped up by an increasing array of middlemen seeking to get their share of the multibillion-dollar digital ad market,” the article points out. “In an attempt to bring some sort of transparency, we’re now seeing advertisers become a bit more choosy about partners, using SPO to slim down the number of supply-side platforms they work with.”

In other words, the multiplex of supply side platforms (SSPs) and demand side platforms (DSPs) is getting crowded.

As a result, advertisers must determine which platforms are worth getting onto and which make sense to pull out of. At the same time, publishers work toward increasing ad revenue. 

“With thousands of ad-tech middlemen littering the landscape and seemingly more entering daily, marketers are quickly realizing the need to be smarter about the outfits they partner with,” writes Shoshana Wodinsky for AdWeek. “Enter supply-path optimization, or SPO, which translates to cutting through the clutter between media buyers and the publishers they work with.”

What role does header bidding play?

Header bidding is a programmatic technique that allows publishers to offer ad inventory to more than one ad exchange at once before making the call to ad servers. By allowing multiple bids at the same time, publishers make more money.

Yieldbot CEO, Jonathan Mendex, said, “Header bidding is a much cleaner and better tech integration between revenue partners, ad tech companies and publishers compared to what’s going on currently.”

While leveling the playing field was necessary, it created a new problem: DSPs receive multiple bids for the same ad impressions. As a result, they had to pick a “path” without losing the inventory.

Enter supply path optimization.

Now, media buyers can pinpoint the best—and most profitable—path for their ads.

What Are the Benefits of SPO?

For those pushing SPO, it’s meant to benefit publishers by giving them an avenue for better, more efficient advertising relationships and benefit advertisers by decreasing spending in unnecessary areas.

Considering at least 50% of every dollar spent in digital channels now goes to intermediaries rather than publishers, according to three studies, it seems there is a lot to optimize. 

An article from Forbes summarizes the challenge nicely: “In what other industry would customers be OK paying a 50% tax on goods and services, and on top of that be at risk of money simply gone missing?”

To push for transparency isn’t exactly scaring away SSPs, either.

Adam Soroca, the Head of Global Buyer Team at Rubicon Project (an ad network), writes that “the recent transparency movement stands to build buyer confidence through curating efficient, transparent programmatic partnerships while establishing clear industry benchmarks.”

The 3 benefits of SPO

  • Cost: SPO pulls back the curtain and gives buyers a glimpse into the fees of different SSPs. It also improves the efficiency and effectiveness of the auctions, which translates to higher-performing ads for a better price.
  • Insights: Eliminating the unnecessary complexity from auctions gives media buyers a better vantage point into performance, which they can use to improve future campaigns.
  • Control: SPO largely eliminates the fraud that comes with the “old way” of buying ads, ensuring a brand’s ad only shows up in tandem with websites they want to be associated with. The simplicity of SPO also increases accountability and rewards partners acting in advertisers’ best interests.

The primary factors that go into an SPO-based decision are inventory quality, the scale of advertising, pricing, audience, and the mechanics of the auction platform. It’s a perfect combination that will continue to catch the attention of advertisers.

SPO: A Move in the Best Interest of Programmatic Advertising

Programmatic advertising’s meteoric rise has been nothing short of remarkable.

Between 2017 and 2021, programmatic ad spending increased by more than 122%. Despite an expected slowdown in spending this year, largely due to the economy, by 2027, spending is expected to reach more than $700b.

The growth lends light to programmatic’s efficacy but also points to the need for ad tech players to constantly improve. SPO isn’t exactly new, but it’s the perfect example of the industry working together in the best interest of everyone involved.

For more insights, sign up for MediaRadar’s blog here.


]]>
https://mediaradar.com/blog/supply-path-optimization-paves-the-way-for-smarter-programmatic-ad-spend/feed/ 0
Are Interactive Voice Ads Going Too Far? https://mediaradar.com/blog/are-voice-ads-going-too-far/?content=ad-tech https://mediaradar.com/wp-content/uploads/2020/01/are-voice-ads-going-too-far-blog-hero.jpg Mon, 16 Jan 2023 12:00:00 +0000 https://mediaradar.com/?p=7031 Interactive ads aren’t new.

Neither are audio ads, which made a name for themselves on the radio but have recently experienced a podcast-induced resurgence. Podcast advertising in the U.S. drove almost $1.5 billion in revenue as of 2021, representing a 72% increase from 2020.

While voice ads of this variety—especially those read by hosts—are nothing new, their interactive counterparts are a relatively new frontier for ad tech companies and brands.

In an era of heightened concerns regarding consumer privacy (a la GDPR, CCPA, third-party cookies, and Facebook scrutiny), interactive voice ads represent a double-edged sword.

How can brands and media companies realize the benefit of highly engaging audio ads without risking the alienation of their audience? 

MediaRadar sales tips recent ad creative and more

What Are Interactive Voice Ads?

Interactive voice ads are a format that allows B2B and B2C brands to engage with consumers by starting a conversation with their digital assistant or smart speaker. Pandora was the first major player to launch voice ads in 2019, but other industry mainstays have followed suit, including Amazon and the dedicated voice marketing platform, Instreamatic.

Pandora Makes the Big Move

Introducing interactive audio ads wasn’t a surprise; Pandora announced the test in 2019, with plans to launch in Q4 of that year. In early December, the test ads went live. 

“Pandora has begun to test a new type of advertising format that allows listeners to respond to the ad by speaking aloud,” Sarah Perez explains at TechCrunch. “In the new ads, listeners are prompted to say ‘yes’ after the ad asks a question and a tone plays. The ads will then offer more information about the product or brand in question. The ads begin by explaining what they are and how they’ll work. They then play a short and simple message followed by a question to which listeners are supposed to respond.”

Doritos, Ashley HomeStores, Unilever, Wendy’s, Turner Broadcasting, Comcast, and Nestlé were some brands giving the new ad format a whirl.

Wendy’s ad, for example, asked listeners if they were hungry. If they said “yes,” the ad recommended what to eat.

Meanwhile, DiGiorno took a comical approach, asking listeners to say “yes” if they wanted to hear a pizza-themed joke.

Amazon Follows Suit

Amazon isn’t one to sit idly while other industry players innovate and attract ad revenue—Pandora generated $1.5b in advertising revenue in 2022.

In 2022, Amazon officially launched “interactive audio ads” that “make it easier than ever for listeners to engage with brands or services whose messaging they find relevant using just their voice.”

Amazon’s interactive audio ads play while people listen to Amazon Music’s ad-supported tier on an Alexa-enabled device.

Consumers can reply to the call-to-action by voice, request more info via email or set a reminder.

Kendra Tal, a Senior Partner Manager at Amazon Ads, said: “These interactions create millions of opportunities for brands to connect with customers in a variety of different ways, places, and times. And as a brand, you’re likely looking for, or at least open to, new and unique ways to engage customers wherever they’re spending their time.“

Why are brands excited about interactive video ads?

The emergence of interactive voice ads comes in the wake of society’s adoption of smart speakers. In fact, smart speaker ownership reach 35% of the U.S.

Although smart speakers haven’t gained ubiquitous status, voice technology has.

In 2022, 62% of Americans over the age of 18 used a voice assistant on smart speakers, smartphones, TV remotes, in-car systems, computers/laptops, tablets, etc.

“The growth in purchases of connected TVs and smart speakers means that consumers are spending more time interacting with these devices than ever before,” Tal said. “These devices not only allow you to reach relevant audiences with video and audio ads, but they literally put the control in the hands of the user with their TV-remote and with their voice. Amazon has the unique ability to bring together our ad products, our devices, and our voice assistant to bring interactive ad experiences to customers.”

Amazon’s take on interactive voice ads fundamentally operate in the same way as Pandora’s; however, the former has something the latter lacks: shopping data.

Tal continued, “Alexa CTAs (calls-to-action) simplify the customer experience and offer utility through voice-forward experiences. For example, when customers may not even remember the name of the product, they can simply say, ‘send me more information,’ and an email is sent to them with information on that product. This makes the customer experience more frictionless and adds time-saving convenience for listeners who would like to engage with the ad.“

As futuristic and experimental as these ads seem, all signs point to them working.

According to Amazon, the ad format has 18% higher engagement and click-through rates than dynamic video and standard pre-roll.

The Risk and Reward of Interactive Voice Ads in the Post-Cookie World

The potential for brands to increase engagement with their audience through interactive audio ads can’t exactly be understated. One survey found that 39 percent of those who responded to a voice ad (“yes,” meaning “I want to hear more”) went on to purchase the product later.

“The ad format arrives when consumers have become more comfortable talking to digital voice assistants, like Siri, Alexa and Google Assistant,” Perez continues. “There’s also an increased expectation that services we interact with will support voice commands.”

Many consumers enjoy this interaction, and the numbers show they respond to it even in advertising; 50 percent of the U.S. uses voice search features daily.

But the potential for reward does not come without risk. 

Sensitivity to consumer privacy is higher than ever, with GDPR in effect and FAANG companies under scrutiny and “consumers’ appetite for interactive voice advertisements is still largely untested,” Perez concludes.

Either way, the format is set to outpace traditional audio ads – the only question is how brands and ad tech companies will use them without stirring up the consumer fears associated with highly personalized advertising.

While privacy and sentiment concerns will persist, all parties will have to act fast in the best interest of consumers.

With third-party cookies falling by the wayside in Google’s ecosystem in 2024, advertisers will actively seek alternatives to engage with consumers.

Given the rise in smart speaker ownership and the slow embrace of mCommerce shopping, it seems likely that more advertisers will give it a shot.

Source: eMarketer

That said, platforms like Instreamatic must work diligently to ensure the ads don’t cross lines, ruffle feathers, and ultimately deliver an optimal experience for brands.

And it’s done that.

In 2022, the company launched Speaky, a many-to-one communication solution that enables “customers to instantly and easily speak their minds to brands or content producers by leaving brief audio messages at any physical or digital brand touchpoint.”

Speaky taps into Instreamatic’s voice AI to analyze the ideas, advice, suggestions, and other valuable insights that customers verbalize—and then deliver reporting for brands to put that insight into action.

For more insights, sign up for MediaRadar’s blog here.

]]>
https://mediaradar.com/blog/are-voice-ads-going-too-far/feed/ 0
eSports Are Opening New Ad Inventory for Brands https://mediaradar.com/blog/esports-the-new-media-for-advertisers/?content=ad-tech https://mediaradar.com/wp-content/uploads/2019/08/esports-for-blog.jpg Mon, 16 Jan 2023 12:00:00 +0000 https://mediaradar.com/?p=6584 Almost a decade has passed since ESPN launched a new vertical to cover eSports—and for years, many of us, including advertisers, were left scratching our heads at competitive gaming.

That was then, and this was now.

If you think tuning in to watch other people play a video game sounds boring at best, at least 33.2mm people disagree with you. That’s the number of active users on Twitch. In 2021, Twitch users watched 22.8b hours of content on the platform.

“eSports was once an under-the-radar activity for enthusiasts of multiplayer online games,” says eMarketer principal analyst Paul Verna. “Just a few years later, it’s a multimillion-dollar business in the US, with implications for game developers, players, leagues, teams, live venues, streaming platforms, TV networks, audiences and marketers.”

The popularity of Twitch has caught the attention of other big-name players, namely, Facebook and YouTube, both of which continue to make a name for themselves in the gaming sphere. In Q3 2022, YouTube Gaming Live generated 1.17b hours of content watched.

eSports has even made its way to the Olympics, with the IOC confirming Singapore as the host of the first Olympic Esports Week in June 2023.

The growth of eSports is a rapidly expanding opportunity for digital advertisers looking for new, younger audiences. 

MediaRadar sales tips recent ad creative and more

eSports is Growing — So What?

At the beginning of 2019, Jurre Pannekeet at Newzoo reported that the global eSports economy will top $1 billion for the first time that year. The new milestone will come after a nearly 27 percent YoY growth. The eSports economy is expected to reach $5.74b worldwide in 2030.

Most revenue comes from media licensing, as video game brands and platforms license streaming to other major players.

“Both digital broadcasters and TV media companies have already started to compete for eSports content and the extent to which these deals will generate a direct return on investment will impact the pace of media rights growth,” writes Pannekeet. 

Red Bull, for example, has sponsored eSports tournaments for Blizzard’s StarCraft 2 and sponsoring teams such as Tempo Storm.

Ryan Pessoa, a pro FIFA player for Man City Esports, said, “The way Red Bull works with us is pretty much the same as how they work with their traditional athletes.” He continued, “We all train at their Athlete Performance Centre in Austria which has been so useful for me in terms of teaching me all about nutrition, and mental and physical wellness. Gaming professionally can be stressful so it’s great to be able to focus on lifestyle improvements that can help in and outside of the game.”

Red Bull and other brands are all-ins on eSports.

The interest from brands means that media companies will launch advertising packages around the eSports market, which is why the rapid growth of eSports’ popularity will likely be tied to increased advertising investments in the niche.

In 2020, the global video games advertising market was estimated to be worth slightly more than $4b. By 2024, that number is expected to reach $4.8b.

“From beer brewers and computer companies to mortgage lenders and sports apparel makers, brands across the spectrum are trying to figure out how best to market to esports fans,” the report says. The audience tends “to be young, tech savvy and affluent, as the professional video gaming industry is expected to balloon in coming years.”

But what does advertising within the eSports space look like? 

The Shape of eSports Advertising  

Advertising and sponsorships have historically made up the majority of eSports revenue streams, primarily due to the preference of eSport fans; Digiday reported that 70 percent of fans preferred promotions from gaming brands

Meanwhile, sponsorship and media rights revenue was estimated at $882.4 million in 2020 and is expected to increase to $1.2 billion this year. Platforms and networks like HelloGamers were even founded with eSports sponsorships in mind.

Sponsorships and media rights will always be at the heart of eSports advertising, but consumer-facing brands, like McDonald’s, are increasingly pushing into the market.

McDonald’s participated in a “Friendsgaming” event with the eSports organization Faze Clan.

“Friendsgaming” was centered around a live Twitch stream on FaZe Swagg’s channel and includes the sale of custom gaming gear and a DoorDash delivery code.

Elizabeth Campbell, senior director of marketing and cultural engagement at McDonald’s, discussed how the company uses eSports to meet its audience “where they are,” and the value of a partnership with the “influential and culturally diverse gaming group Faze Clan.”

Source: AdAge

eSports: Paving the Way for the New Age of Advertising

Despite the rapidly expanding digital advertising world, advertisers have largely been tied to a handful of ecosystems—think social media, display, and OTT.

These ecosystems have been—and always will be—pillars of advertising strategies for brands big and small alike.

But new inventory is opening up, including an increasing amount in the world of eSports. As this happens, forward-facing brands will look to eSports not only as a way to reach a niche and highly engaged audience but break free from the noise that comes with legacy ecosystems.

For more insights, sign up for MediaRadar’s blog here.

]]>
https://mediaradar.com/blog/esports-the-new-media-for-advertisers/feed/ 0
Programmatic TV: 7 Terms You Need to Know in 2023 https://mediaradar.com/blog/programmatic-tv-7-essential-terms/?content=ad-tech https://mediaradar.com/wp-content/uploads/2019/06/programmatic-tv-glossary-hero.jpg Wed, 11 Jan 2023 12:00:00 +0000 https://mediaradar.com/?p=6341 Spending on programmatic and addressable TV has been rising for some time, albeit by a small portion of total TV ad spend, as advertisers and consumers move away from traditional broadcast TV.

In June 2022, streaming video surpassed one-third of all video viewing, up from 27.4% the previous year. At the same time, the share of broadcast television was just 22.4%.

And OTT is just a fraction of the programmatic TV pie.

The approach allows better integration across distribution channels for media platforms, reducing ad load and ultimately translating into a better consumer experience.

For media buyers, the benefit is in data-driven and addressable ads, which they’ll continue to put a premium on as Google sunsets third-party cookies and other ecosystems, like Apple, do the same.

With iOS 14.5, Apple brought the long-anticipated “App Tracking Transparency” feature to the table, requiring companies to ask iPhone users for permission to track them across apps and websites.

Apple’s unveil immediately posed seemingly insurmountable challenges for mobile advertisers and social platforms that rely on the technology, like Facebook. For example, Apple’s App Tracking Transparency was expected to cost Facebook $13b in 2022.

But with programmatic TV advertising, media buyers can pinpoint ads based on demographics, keywords, and browsing history—all without third-party cookies. It’s good news as advertisers across industry lines search for alternative identifiers to power their campaigns.

But to take advantage of this promise of programmatic TV advertising, media companies and advertisers must clearly understand the shape programmatic takes in TV and its potential.

This glossary will walk you through the key terms you need to know to make the most of programmatic TV advertising this year.

MediaRadar sales tips recent ad creative and more

#1: Programmatic TV Advertising

Programmatic advertising is nothing new — Google has monetized its search engine, and websites have taken advantage of Demand Side Platforms (DSPs) to make reaching advertisers easier since soon after the dot-com bubble burst.

While programmatic ad spending is slowing (largely due to the economic downturn), advertisers are still spending billions. In 2022, more than 90% of all digital display ads were expected to be bought programmatically.

But programmatic TV has allowed the digital exchange to move into television, typically associated with more traditional ad buys.

Like digital DSPs—think Google Marketing Platform and MediaMath—programmatic TV lets advertisers buy planned inventory sold based on how many impressions it will make. As advertisers pay for clicks on Google, they can also buy their inventory based on more than ad length with programmatic TV.

It’s a total win considering traditional TV largely operated behind a curtain, preventing advertisers from gaining visibility into performance and targeting.

Programmatic TV also means marketers can optimize their ads with audience data, focusing ad spend on where it will matter most.

As Digiday put it back in the day, “Programmatic TV advertising is the data-driven automation of audience-based advertising transactions.”

#2: Connected TV (CTV)

Connected TV (CTV) is a device connecting to a TV to support video streaming. Popular CTVs include Smart TVs, Chromecast, Apple TV, FireTV and now Xbox. In 2022, 87% of households in the U.S. own at least one CTV.

As such, CTV advertising allows advertisers to programmatically purchase ad inventory across these devices and reach a growing addressable audience with immersive ads.

Connected inventory in programmatic TV varies slightly since the metrics it uses can account for how many times the video was watched, how many people skipped the ad, and how many times the video was watched completely.

Understandably, advertisers love it. According to the IAB, CTV ad spending is supposed to grow by more than 14% this year.

#3: Addressable TV Ads

Besides the lower cost (compared to traditional TV advertising, which can cost millions during primetime events like the Super Bowl), addressable ads are the real draw of programmatic TV.

Addressable ads are essentially personalized ads deployed at scale on CTVs. While YouTube ads can be highly targeted based on browsing history and demographics, they are typically limited to one creative (often shown multiple times to the same person), which can lead to ad fatigue, i.e., someone sees an ad so many times that they become bored with it and stop paying attention.

In contrast, addressable TV ads let advertisers present different versions of the same ad (or completely different ads) to viewers of the same program — a live sports game, for example.

The benefits of addressable TV ads are clearly too much to pass up.

According to a recent survey, 81% of advertisers are satisfied with addressable TV ad options, an increase from 72% last year. Of those polled who are currently using addressable TV ads, 37% plan to increase spending this year.

#4: Linear Ads

This term can be confusing since ‘linear’ is used interchangeably for the addressable ads described above and more traditional media delivered through OTT.

Linear ads (or linear inventory) are purchased on a platform, making them part of programmatic TV inventory. But the ads are delivered linearly, targeted based on audience metrics and reported on with traditional viewing metrics.

#5: Programmatic Ad Platforms

This is where media companies can use ad networks to sell ads (demand side platforms) and where media buyers can find the audience reach they need (supply side platforms).

For programmatic TV advertising to work at scale, DSPs, SSPs and programmatic ad networks must work together.

“Say you have a service with a million or so subscribers. That million number isn’t very exciting for a big advertiser,” says Jim Lombard, co-founder of Tetra TV. “So you need to pull together more ad opportunities and more households. That’s the opportunity for us to pool this inventory together so we’re able to monetize it more effectively with reach and frequency. It serves the purpose of pooling inventory and creating scaled value.”

#6: Data Management Platforms (DMP)

Data management platforms (DMP) aren’t directly tied to the ad seller-buyer relationship, but they are critical for brands getting the most out of programmatic TV ads.

A DMP can be used by software and media companies to collect data (first-, second-, and third-party data) on an audience, split the audience into segments, and then offer these segments to engage their target audience. DMPs then offer these anonymized customer profiles to DSPs, SSPs, and other ad platforms.

DMPs are the foundation of ad networks, as media companies, apps, and websites pool data together and allow advertisers to truly understand—and target—the right consumers. Larger brands also use DMPs to identify and target promising prospects.

#7: Programmatic Inventory Metrics

Programmatic TV metrics are made possible through connected TVs or set-top boxes, which allow access to cable, over-the-air and OTT television. The source is accounted for when reporting on programmatic TV ad metrics.

The programmatic inventory’s primary metrics include impressions, targeted market area reached, and cost (i.e., CPM).

While these metrics are already more specific than traditional TV, programmatic metrics will have to catch up for advertisers to get the most out of their programmatic campaigns. Social and search ads have gone granular, and programmatic TV will soon need to do the same.

Making the Most of Programmatic TV Advertising in 2023

Programmatic TV is an up-and-coming addition to the ideal marketing mix for advertisers across industry lines. As consumers ditch traditional TV for streaming and targeting data continues to get a facelift, advertisers will be forced to find alternative outlets for their ad dollars.

Programmatic TV—as well as the entire programmatic advertising landscape—will be one of them.

That said, programmatic TV advertising isn’t just one thing.

Like traditional broadcast advertising, programmatic TV involves a range of interrelated terms.

Understanding them is key to making the most of it in 2023 and beyond.

For more insights, sign up for MediaRadar’s blog here.


]]>
https://mediaradar.com/blog/programmatic-tv-7-essential-terms/feed/ 0
The Fast Advance of Programmatic Native Ads https://mediaradar.com/blog/the-fast-advance-of-programmatic-native-ads/?content=ad-tech https://mediaradar.com/wp-content/uploads/2019/08/programmatic-native-for-blog.jpg Mon, 09 Jan 2023 18:46:00 +0000 https://mediaradar.com/?p=6574 At first blush, it would seem that native ads and programmatic ads would come together like oil and water. 

The former answers a brand’s need to speak personally and authoritatively to its audience. The latter allows rapidly expanding brands to reach a huge demographic while still targeting interest (although targeting will be tricky without third-party cookies).

One is almost always in a natural format, while the other traditionally take the form of banner and PPC ads. 

These two formats are not diametrically opposed but seem to address different needs. But as ad networks expand and programmatic capabilities advance, the line between programmatic and direct ads blurs, opening the opportunity for native ads to join the programmatic bandwagon. 

MediaRadar sales tips recent ad creative and more

What Is Native Advertising?

Native advertising is paid content that matches the look and feel of the unique environment in which they’re delivered. Native ads feel natural and aren’t jarring. Nearly every online ecosystem offers native ads, including social media and YouTube. That said, the ad format is making its way offline as advertisers look to escape the crowded online world and rising prices.

Why Are Programmatic Native Ads So Popular?

Native advertising spending increased by 37% in 2021 and is expected to reach $98.59b in 2023.

These numbers make it clear that programmatic native ads are popular.  

But why are native ads on the rise, and what do they offer brands?

The short answer: They just work.

According to Outbrain, 68% of consumers trust native ads seen in an editorial context, compared to 55% for social ads. Meanwhile, native ads generate an 18% boost in purchase intent, which is music to all advertisers, especially those in DTC who rely heavily on their online presence.

The longer (but not super long) answer: People don’t mind native ads. In fact, Outbrain found that native ads are the least intrusive form of advertising.

In the past, brands have had valid concerns about programmatic ads translating into a poor fit or a risk to brand safety. YouTube has been in the headlines in the past for brand safety-related concerns.

In 2017, AT&T and Johnson & Johnson pulled ads from YouTube and Google after news reports showed their ads running next to offensive content.

In 2019, Procter & Gamble warned digital media companies that they need “a rethink of their ecosystem to build in quality, civility, transparency, privacy and control or risk major brands stepping back from advertising.”

Google’s president of EMEA business & operations, Matt Brittin, responded by saying, “In the context of brand safety, we’ve seen some of the bigger advertisers pull back spend while they understand what’s there and make sure they do the right thing. And we recommend that where they have concerns about it.

“We take the responsibility very seriously, we’re in it for the long term. Any advertiser who wants to think about what they’re doing differently, we support them in doing that.”

Google and other major advertising ecosystems have taken the responsibility seriously.

In 2021, Google became the first digital platform to receive content-level brand safety accreditation from the Media Rating Council (MRC). It received the same accreditation again in 2022, making YouTube the only platform to hold this distinction.

Similarly, Meta has gone to great lengths to address safety concerns on Facebook and Instagram by showing brands exactly where their ads appear.

But the pros are starting to outweigh the cons. 

The approach offers two major benefits for advertisers: cost-effectiveness and better targeting. 

Programmatic native ads are more cost-effective because they automate an otherwise time-consuming process and result in higher-converting ads. One study shows native ads have a click-through rate (CTR) 8.8x greater than display ads.

“Doing native ads programmatically means you get many of the benefits of programmatic display: automated media buying, effective targeting and audience insights for further optimization,” writes Grace Kaye at Marketing Land. 

The higher conversion is often due to combining the power of contextual and native ads; users not only see highly relevant ads, but they see them next to highly relevant content.

“Programmatic adds more power to native ads by leveraging machine learning and contextual signals to customize them according to user preferences and placing them at appropriate places,” writes Vandita Grover at MarTech Advisor. 

Here’s a good example of a native ad from Visit Portugal:

Source: Wyzowl

Why’s it a good example?

Because someone looking at flights to Portugal on Skyscanner clearly has some intention of visiting the country. Therefore, an ad from Visit Portugal makes all the sense in the world. It’s natural and highly relevant to the page.

Native ads already reached more qualified leads, particularly when placed with niche publications. With advancing ad tech, that reach can become more expansive and targeted. 

Top native advertising platforms

  • Outbrain: Outbrain is arguably the most established native placement platform, making 275 billion monthly recommendations and covering 80 percent of the “world’s premium publishers.” 
  • Nativo: Nativo offers Dynamic Creative optimization and A/B testing to ensure native ads are well-placed. Major brands — from Walmart to Disney — are using the platform. 
  • Taboola: The platform has agreements with MSN, Business Insider, Fox News, and many digital properties. Their goal is to make brands the next story on the page “in moments when people are looking for something new.” 

Other popular native advertising platforms include TripleLift, Yahoo Gemini, and RevContent.

Native Ads: An Advertiser’s BFF

The downfall of third-party cookies and the rise of other privacy-focused initiatives have made one abundantly clear: People are tired of the current state of advertising.

That said, most people don’t dislike ads simply because. In reality, most people want to distance themselves from ads because they’re intrusive and don’t add value to their lives.

In 2023 and beyond, advertisers who can make the most natural, authentic, and meaningful connection with consumers will win (and get the most ad engagement).

Natural, authentic, and meaningful are three characteristics at the heart of native advertising.

For more insights, sign up for MediaRadar’s blog here.

]]>
https://mediaradar.com/blog/the-fast-advance-of-programmatic-native-ads/feed/ 0