digital advertising

The Quest For Scale Is Ruining The Digital Ad Industry – via AdExchanger (source: Yael Avidan, vice president of product at Adelphic)

The first question marketers or agencies ask ad tech vendors or media companies is probably this: “That audience is perfect, but can it scale?”

Audience targeting is great, but ultimately, advertising’s main draw is reaching large-scale audiences. Although it reflects the return on investment, that marker can miss the point and may end up stifling the digital ad world’s growth.

This results in three core issues I see threatening the growth and sustainability of the digital ad world. First, the quest for scale reduces the value of smaller yet engaged audiences. As a result, many smaller publishers are having a hard time competing and struggle to maintain their revenue bases.

Second, advertisers’ willingness to pay for scale has unsurprisingly driven the emergence of bots and traffic drivers that step in and “supply” this demand. This, in turn, created a massive distrust of advertisers in the ecosystem and is one of the key problems that holds back the shift of more TV dollars to online.

Last but definitely not least, in a market that values scale above all, a handful of large publishers are capturing the majority of advertisers’ attention and spend at the expense of the rest of the market.




“The Influence of Interactivity “ – Ipsos Connect

We explored how dynamic digital creative formats can drive engagement and brand metrics beyond clicks and views.

This research strives to provide insights that substantiate how approaching multi-screen campaigns with dynamic creative design can potentially elevate campaign performance on an impression level and help advertisers make every impression count.

Our session will address:

  • Impact of the creative: What is the impact of different ad experiences in driving campaign effectiveness?
  • Interaction vs. passive engagement: Does the ability to interact with the ad increase effectiveness?
  • Context: How well does the ad fit the context of the content experience and what is the effect on resonance?
  • Effect of different platforms: What is the effect of experiencing the ads/content on different platforms?
  • Best practices: What executional learnings can we glean to help improve the creative suite for advertisers?

Review the Audience Measurement program and register.


Consumers, Heroes, and the Trends That Will Impact Advertising in 2016

Ford Motor Company and advertising agency Ogilvy reveal the “10 Behavioral Trends Guiding Advertising in 2016,” in this Media Post article by Laurie Sullivan. Despite an underlying sense of disillusionment, consumers are willing to embrace heroes, including fictional characters. Sheryl Connelly, Ford’s Global Consumer Trends and Futuring Manager, analyzes additional trends in this article and provides a link to the full study.  TAG: behavioral trends.  See more . . . Source: http://www.mediapost.com/publications/article/265598/10-behavioral-trends-guiding-advertising-in-2016.html

Five Seconds and Counting

Marketers have five seconds to catch the attention of consumers with mobile video advertising according to Gal Borenstein, founder and CEO of the Borenstein Group.  He analyzes the “10 Digital Branding and Marketing Trends to Watch For in 2016” in this Ragan Communications article.  View the infographic and the additional nine trends that will impact your digital branding and marketing in 2016.  TAG: mobile video advertising.  See more . . . Source: http://www.ragan.com/Main/Articles/50581.aspx

Consumers Can Be Motivated Not to Block Ads

Lolly Mason, writing for iMEDIA CONNECTION, believes that publishers and advertisers will reevaluate their digital advertising in 2016 and provide a more positive advertising experience for consumers.  Mason’s article, “The Year We Say Goodbye to Bad Ads?” discusses how fewer, more creative ads, and ads that are less intrusive and more relevant will provide publishers and advertisers with the tools to fight back against ad blocking by consumers. TAG: ad blocking.  See more . . . Source: http://www.imediaconnection.com/content/39712.asp

Email Will Remain the ROI Champion

Data analytics, segmentation, and personalization will increase email’s effectiveness in 2016.  Read how social media presents an opportunity for greater personalization of email in this Direct Marketing News article by Al Urbanski, “In 2016, All Roads Will Lead to Email.” TAG: email marketing.  See more . . . Source: http://www.dmnews.com/in-2016-all-roads-will-lead-to-email/printarticle/461319/

How Do Consumers Think in a Digital World?

The goal of the authors in this December 2015 Journal of Advertising Research article  was to replicate the most-cited study in advertising research, the elaboration likelihood model (ELM), to see if this model would reflect how consumers think in the digital world.

The authors are Gayle Kerr, Queensland University of Technology; Don E. Schultz, Northwestern University; Philip J. Kitchen, ESC Rennes School of Business; Frank J. Mulhern, Northwestern University, and Park Beede, Higher Colleges of Technology.

The authors conclude in this article, “Does Traditional Advertising Theory Apply to the Digital World?  A Replication Analysis Questions the Relevance of the Elaboration Likelihood Model,” that the results of the 1983 study could not be replicated today in any of the three countries in which the current study was conducted.  They suggest that advertising scholars need to examine the assumptions and foundations of “advertising theory.” TAGS: elaboration likelihood model, replication of research.  See more . . . Source: http://www.thearf.org/journal-of-advertising-research-online-access/


How the Internet of Things Is Changing Online Marketing

Neil Patel discusses the impact of The Internet of Things (IoT) on marketing, which he feels is the next big thing in this Forbes article.

Among the implications of IoT for marketing, according to Patel:

-On-demand services are expected everywhere.

Consumers have higher expectations of convenience in the Internet age, and marketing must cater to that expectation in terms of both promise and delivery.

-Smart marketing connects social data to online devices.

Marketing should strive to make it easier for consumers to interact with their connected devices and to enhance social interactions between devices and their owners.

-The Internet of Things means that big marketing data is getting even bigger.

Patel suggests that useful and surprising marketing data about consumer preferences and habits could invigorate marketing.

-Smart marketing deploys specific solutions to thing-related problems.

IoT will enable a greater degree of target marketing in terms of both demographics and psychographics.  Additionally, IoT will allow marketers to predict and deliver solutions based on consumer needs.

-Nothing is unmarketable.

IoT will also enable marketers to reach deeper into the lives of consumers to offer them products, services, and solutions.

Patel also refers to surveys of marketers who believe that the marketing impact of IoT will exceed the significance of big data, mobile marketing, and personalized transactions.

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Marketers Overwhelmingly Call for Third-Party Measurement of All Digital Media Owners’ Inventory

The Association of National Advertisers (ANA) surveyed its members to understand the perspectives of marketers on the issue of the viewability verification procedures used by digital media owners.  The results of the survey emphasized the need for third-party verification.

Among the findings:

-97 percent of ANA respondents believe that all digital media owners’ inventory should be measured by a third party.

-90 percent of respondents said they are not fully confident that their digital working media meets industry viewability standards.

-61 percent of respondents indicated they would shift their spending elsewhere if digital media owners did not provide independent measurement.

-Nearly two-thirds of respondents feel “very strongly” that a digital media owner should have internally derived metrics accredited by the MRC.

According to this press release, some large media owners do not allow third-party measurement vendors to report viewable ad impressions to their clients. Instead, they utilize internally derived metrics that have not been independently verified.  Currently, more than 20 firms are accredited by the Media Rating Council (MRC) to measure digital advertising viewability.

Bob Liodice, ANA President and CEO, commented on this issue, “During a time of intense scrutiny on transparency and accountability, it’s vitally important that all digital media owners measure viewability by an independent third party, consistent with industry standards. That’s just ‘table stakes’ for digital advertising.”

The ANA will continue working with the Media Rating Council and other industry trade associations to elevate the importance of this issue and drive industry standards.

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How to Effectively Connect With Consumers in Their “Content Cocoons”

Pat LaPointe, Executive Vice President at Resonate and ARF Board member, analyzes the challenges faced by marketers trying to connect with digital consumers in this Advertising Age article.

Many digital marketing campaigns are based upon the premise that consumers like personalized ads, and that such personalized ads make marketing and advertising more relevant.  However, consumers are suspicious of these ads, consider their offers to be false, not relevant, or intrusive.

As a result, consumers create their own “content cocoons,” in which they search for information, engage in social media or watch videos.  However, each online interaction provides data for marketers, and represents an opportunity to become part of the curated web of consumers.

The author advises marketers that to be relevant in this digital world, they need to demonstrate an understanding the of the mindset and motivations of consumers. LaPointe recommends, “marrying observed behavioral data to surveys and consumer-initiated dialogue to shape highly curated marketing experiences to blend into the content cocoon consumers have curated for themselves online.”

By building insightful profiles and understanding consumer motivation, marketers will be able to provide relevant, curated content, and relevant messaging.

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Digital Strategies Mature According to Cannes Study

Digital Strategies Mature According to Cannes Study

According to Warc’s analysis of the 2015  Cannes Creative Effectiveness Lions, digital-led advertising strategies, particularly those combining video and PR, are increasingly delivering business results for marketers.

Of the shortlisted and winning entries:

  • 60% used social media as a lead channel vs. 50% of the total pool of entries.
  • 44% used online video as a lead channel vs. 34% of the total pool of entries.

According to Warc, 2015 marked the first year that a truly digital-led campaign won the Grand Prix at the Cannes Creative Effectiveness Lions. The “Live Test Series” campaign from Volvo Trucks utilized a strategy built around online video and PR.

Social media, online video and PR have all seen significant growth in recent years: 85% of case studies used social media in the 2015 Lions compared with 51.9% in 2011; 64% of entries used public relations, and the same percentage used online video – in both cases more than double the 2011 figures.


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For more on this topic, check out the Advertising Tab in Morning Coffee.

Mobile Becoming the First Screen

Jack Loechner, writing for the Research Brief From the Center for Media Research, analyzes The Salesforce Marketing Cloud Report, and finds key changes in global mobile consumer behavior and the digital and advertising landscapes.

Among the findings:

-Mobile is increasingly becoming the first screen in terms of time spent by consumers with media.

-Combined, Facebook, Twitter, and LinkedIn experienced a 49% growth in ad revenue from Q1 2014 to Q1 2015.

-In 2014, digital advertising surpassed both broadcast and cable television revenue in the U.S.  Digital advertising became the largest single channel and the fastest growing channel.  Revenue in 2014 was almost $50 billion.

This report also reveals that the revolution in technology will foster tighter collaboration among marketing, sales, and service departments within corporations. It will also break down marketing silos, which negatively impact brand teams and agency relationships.

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For more on this topic, check out the Media Tab in Morning Coffee.



Internet adspend to overtake TV, study finds

According to the latest International Ad Forecast from Warc, the internet is expected to overtake TV to become the largest medium for advertising in 2016. Across all key markets, internet adspend is expected to register rapid growth, rising 15.6% to $135.9bn in 2015 and 12.7% to $153.1bn in 2016. At the same time, adspend on TV is expected to fall 0.9% to $144.9bn this year before rebounding with 3.1% growth in 2016. By then, TV adspend across the 12 markets will be worth $149.4bn, or $3.7bn less than adspend devoted to the internet.

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