For as long as retailers have existed, they have sought ways to monetize the audience they bring to suppliers. From end caps to circulars, retailers have been a pervasive, but understated, media partner to brands of all sizes. 

But nothing in history has the scope and potential of retail media–the process of selling inventory on their websites, and other owned channels, to brands. 

It’s quickly becoming a huge market for advertisers, reaching $46B of ad spend in 2023. That is significantly higher than CTV, which was estimated at $25B. It is also expected to reach $100B by 2026. 

While some might consider retail media a performance marketing channel, Upwave data busts that myth, showing it is also a brand-building powerhouse.

Upwave’s recent analysis of over 500 retail media campaigns, spanning 300+ brands, found that 96% of campaigns had a positive lift on at least one brand KPI, 87% of campaigns had at least one brand KPI that was above Upwave Norms, and 18.8% of campaigns exceeded Upwave Norms for all brand KPIs.

The Rise of Retail Media

As with other eCommerce advancements, Amazon deserves credit for building the modern retail media network environment. Once Amazon became the online store for virtually everything, they realized millions of people were coming by daily to buy a variety of things. Amazon could sell space on its various product and category webpages to companies looking to influence those visitors. That first-mover advantage has paid off. Over 75% of the current US Retail Media investment is spent on Amazon advertising. Walmart is second, via its advertising solutions division, Walmart Connect.

There’s a simple reason why so many retailers are joining the ranks of retail media: the channel can produce margins of up to 90%, according to the Boston Consulting Group. We’ve even heard that it’s not hyperbole to suggest retailers would gladly do away with selling goods if they could just make the same amount of money in the media. 

Now, brands as diverse as Uber, Sephora, Sam’s Club, and Best Buy all have their retail media networks.

Unsurprisingly, performance marketers have flocked to retail media as a way to monetize that audience immediately. And, sure, it makes perfect sense that people browsing a retailer’s website are considered to be in the market to buy now.

However, retail media is a huge opportunity for brand building, one not nearly enough companies are taking advantage of. That means industry watchers are potentially even underestimating the future revenue opportunities from retail media.

Here’s why.

• The massive first-party data retailers are sitting on. It’s no coincidence that retail media is at the top of the minds of all advertisers at a time when cookies are going away. Retailers are better equipped than almost anyone else to offer targeting capabilities to advertisers and their agencies. They have a plethora of data on hand about households, such as if they have kids. For example, a car manufacturer can more accurately advertise its suite of cars to the right buyers (e.g. a minivan to those with multiple children).

• Not everyone on those websites is in the market to buy. It’s hard to track down specific stats for how many people visit a website without adding something to their shopping cart but the overwhelming majority of visitors do not purchase at the time of visiting. Sometimes people are browsing and not looking for something specific. Even those looking to make a purchase could be stopped in their tracks by a brand-building ad regardless. 

• Non-endemic ads performed as well, if not better than endemic ones. Another myth busted for this channel, Upwave’s study found that advertisements featuring products not for sale on retail media sites outperformed those that you could buy in several key areas, including ad recall, consideration, and purchase intent. One reason is the ad stands out as unique amid dozens of product listings. For example, an ad for insurance may be more noticeable among kitchen staples on a grocery store website. 

• Its reach extends beyond the retail domain. Amazon has Prime, a video platform increasingly winning high-profile deals like NFL broadcasts and producing large-budget shows like Lord of the Rings. Walmart has agreed to acquire Vizio, a manufacturer of smart TVs. Rakuten purchased eBook company Kobo. That’s in addition to their ability to place ads on third-party sites they don’t own. Retailers and eTailers alike are looking to expand their reach as far as possible, given the data advantage they have on many other websites. Retail media offers much more than on-site placements because they can better validate those audiences.

• A strong trust factor. Individuals browsing their favorite retail websites, apps, or streaming from retailer-owned platforms, are likely to trust those who run ads on the site. A 2024 eMarketer study found consumers trusted ads on retail sites almost double that of social media or third-party marketplaces. Furthermore, slightly over 50% of respondents were more likely to buy items and try out a new brand they hadn’t purchased before if a retailer advertised them. This is especially important for newer brands looking to build up their name recognition and trust. Our study found retail media tied with online video as driving the most consideration against all other mediums. Frequent shoppers of a particular website could learn about a brand one day through a well-placed ad intended to drive consideration, and then return days or weeks later to make a purchase.

Now is the time for brand marketers to reevaluate their channel mix and take another look at this medium. By understanding that brand-building is a possibility in retail media it opens up the category for more growth than what is being predicted. All of our data demonstrates it’s a huge opportunity for brands looking to impact consumer behavior along the mid-lower brand funnel. Now is the time for brand builders to embrace the opportunity before the rest catch on.

The post Retail Media: As Important for Brand Builders as Performance Marketers appeared first on AdMonsters.

Identity resolution has become a Rubik’s Cube that everyone’s trying to solve.  

At AdMonsters Publisher Forum Boston, we got a front-row seat to the latest strategies and challenges in this space, thanks to a lively session with Christine Lee, Director of Data Partnerships at Fandom, and Tamir Shub, VP of Business Development at Intent IQ.

Addressability Meets Privacy: The New Balancing Act

Let’s face it: the identity game is rigged. Publishers are caught between the rock of addressability and the hard place of privacy. Lee laid it out clearly — Fandom, the world’s largest fan platform, is navigating a minefield of fragmented regulations and inconsistent user behaviors across devices and browsers. Think of it as trying to juggle on a tightrope while the wind’s picking up speed.

“We’re dealing with different browser types — Apple’s ATT, Firefox, Chrome, Safari — and each has its own set of rules,” Lee explained. She added, “It’s like trying to juggle different user behaviors across desktop, mobile, and mobile web while keeping an eye on the privacy landscape, which is extremely fragmented, not just globally but even within the U.S.”

Whether it’s Apple’s ATT or the ever-shifting sands of state-level privacy laws, Fandom is testing identity solutions to find that sweet spot where addressability meets privacy without losing sight of either.

Fandom’s Secret Sauce: Testing, Testing, and More Testing

But, with over 100 ID solutions on the market, not all options are worth your time. As Lee pointed out, “We’ve leaned into testing a variety of ID solutions in the space, including Google initiatives, Amazon initiatives, and our partnership with Intent IQ. But it’s difficult to compare apples to apples because every vendor has a different methodology.” The real challenge is figuring out which ones move the needle.

Fandom has actively experimented with many ID solutions, but they’re not just throwing spaghetti at the wall to see what sticks. The key is to be selective — testing the ones that make the most sense for their audience and business goals.

By working with Intent IQ, Fandom saw revenue uplifts from 55% to a whopping 140% across different properties, proving that the right approach can help publishers thrive in this new identity landscape. But it’s not just about the numbers. Lee emphasized the importance of comparing these results side-by-side with traditional methods — a task easier said than done. Still, Fandom’s commitment to rigorous, strategic testing sets them apart from the pack.

Identity Graphs: The Backbone or the Achilles’ Heel?

If identity resolution is a puzzle, then identity graphs are the pieces that need to fit together perfectly. But, as Shub pointed out, not all graphs are created equal. The crux of the issue? Accuracy. Without frequent updates and a reliable truth set, you might as well be hiking with a faulty compass.

“Identity solution infrastructure is founded on its identity graph. But the accuracy is only as good as the graph and the data it uses,” Shub stated. “Without frequent updates, the data becomes irrelevant and misleading. That’s why refresh rates are critical.”

And let’s be honest: no one knows what a post-cookie world will look like. We’re all betting on a hypothesis. The regulatory landscape is murky, platform decisions are unpredictable, and consumer sentiment is a moving target. In this climate of uncertainty, it’s easy to get swept up in solutions that might not hold up under scrutiny.

There’s an urgent need for a standardized way to validate these graphs because trusting data without validation is like betting on a rigged horse race. It’s a gamble, and not one publisher can afford to lose. As Shub pointed out, “Currently, there’s no tool available that can validate data accuracy on a household level ID or person level ID.”

ID Bridging: A Savior or a Mirage?

With the deprecation of third-party cookies looming like a storm cloud, ID bridging has stepped into the spotlight. But as with any tech innovation, it comes with its share of controversy. Critics argue that ID bridging while promising, is fraught with transparency issues, potential fraud, and ever-present privacy concerns. Some in the industry see it as a Band-Aid on a bullet wound — helpful in the short term, but not the long-term solution we need.

ID Bridging is almost directly correlated to the impending demise of third-party cookies. While publishers and tech companies scramble to maintain addressability, there’s growing concern that with no universal standard, ID Bridging could create more problems than it solves. Shady practices, lack of transparency, and fragmented user data are just a few of the issues that put the buy side on edge.

Yet, this is where Intent IQ aims to stand out from the pack. Their technology is built with transparency and accuracy at its core. Beyond following the new IAB standards, the ad tech vendor sets a high bar for others to meet. By ensuring their identity graphs are refreshed every 48 hours and maintaining over 90% deterministic accuracy, they’re working to shut down skepticism and build trust on both the buy and sell sides.

The Buy-Side Perspective: Scaling the Heights with Alt IDs

While publishers are busy fine-tuning their strategies, the buy side faces another set of challenges. Shub gave us a peek into how agencies grapple with the scalability of alternative IDs. The promise is there, but the execution? Not quite hitting the mark — yet.

“Agencies report that alternative IDs didn’t generate the results they were hoping for,” Shub noted. “They’re saying the solution was promising but lacking scale. It’s not just about scale; it’s about having the expertise in identity — specifically.”

Intent IQ is working closely with agencies to overcome these hurdles, with successful campaigns already showing significant performance gains. “For example, we’ve delivered a successful campaign with Involved Media, leading to a 77% increase in leads for an education client,” Shub shared.

It’s a tough climb, but the right tools and partnerships are helping the buy side make headway.

Takeaways for Publishers: Test, Partner, and Evolve

The identity resolution space isn’t just evolving; it’s mutating at a breakneck pace. For publishers, the mantra is clear: test relentlessly, choose your partners wisely, and stay agile.

Lee’s advice? Don’t just look at the numbers—look at the whole stack, and make sure you’re not comparing apples to oranges. “Continue to test various solutions, and make sure when you measure, you’re looking at your entire stack, not just certain demand channels,” she emphasized.

And as Shub pointed out, identity solutions should work for everyone involved, creating a win-win situation for both publishers and advertisers. “Identity is sustainable as long as it works for both sides,” he concluded.

The post How Fandom Is Mastering the Art of Addressability and Privacy With an Assist From Intent IQ appeared first on AdMonsters.

Who said cookieless targeting doesn’t scale?

Dotdash Meredith’s cookieless targeting tool, D/Cipher, has propelled the publisher to a 12% increase in digital ad revenue year-over-year, marking the second consecutive quarter of double-digit growth.  

D/Cipher is proving its worth in driving campaigns like the one the media company conducted with Pandora. The campaign resulted in 76% higher foot traffic when compared to other targeting methods. 

But this isn’t just about impressive numbers. It’s about Dotdash Meredith setting a new standard in the industry. With third-party cookies becoming obsolete, their ability to pivot and innovate with tools like D/Cipher is a masterclass in adaptation. 

“The performance is amazing because the industry is always trying to find ways to tie media buys to real results. This proves that Dotdash Meredith can drive national brick-and-mortar sales for a brand without any cookie or identifier,” Lindsay Van Kirk, Senior Vice President and General Manager of D/Cipher told ADWEEK. 

The publisher’s success is part of a broader narrative vividly discussed at the recent AdMonsters Publisher Forum in Boston. Let’s connect the dots between Dotdash Meredith’s achievements and the strategies shared by top publishers.

Connecting the Dots from Publisher Forum

Several sessions highlighted how publishers leverage data to secure ad spend and ensure brand safety, aligning perfectly with Dotdash Meredith’s success story. Conversations weren’t merely about surviving the post-cookie apocalypse — they were about thriving.

Data-Driven Strategies:

Patrick McCarthy, SVP, Programmatic Monetization, Dotdash Meredith, emphasized the importance of big data in ad operations. “We are a very data-driven company. When you go into meetings with our C-suite team, hunches really aren’t acceptable. Our whole programmatic and advertising part of our business is really driven by our CFO and Chief Innovation Officer, who is a former data scientist. Data is absolutely paramount to making your case for new investment, for new products to be rolled out,”  he said.

This reflects D/Cipher’s ability to utilize first-party data and contextual signals to outperform traditional cookie-based methods. He also highlighted the role of predictive analytics and real-time data applications. The publisher is proving that first-party data and advanced analytics are the future.

Echoing the power of data, Jesse Waldele, SVP, Digital Operations and Client Success at Dow Jones, shared how they’ve ditched third-party data in favor of first-party insights, fueling more effective ad solutions. Their “Thematic AI” tool, which predicts the best content placement using AI, has driven noticeable performance lifts for advertisers. Dow Jones’ focus on real-time measurement ensures that advertisers keep rebooking.

While the benefits of big data are clear, reliance on it also comes with obstacles. The high cost of data management and the risk of data privacy issues can be a significant barrier for smaller publishers.

Brand Suitability and First-Party Data:

In her keynote, Jana Meron, Vice President of Revenue Operations & Data, The Washington Post, discussed the power of first-party data in achieving brand suitability and effective ad placements. She noted, “The intersection of deterministic and probabilistic first-party data is where we get our power.”

The Washington Post observed a 3x performance lift when using first-party data compared to third-party data with standard display, and a 5x lift when integrating custom ad units designed for their audience.

While first-party data offers significant benefits in targeting and personalization, the session also highlighted potential downsides, such as difficulties in scaling deterministic data due to the reliance on user logins, which can limit reach. Additionally, there are concerns about balancing privacy with data collection, as overly aggressive data strategies might lead to consumer pushback or regulatory scrutiny.

Still, The Washington Post’s direction is a fundamental shift in how publishers view and leverage their audience data. By focusing on the nuances of their data, publishers can create a more personalized and effective advertising ecosystem, which is essential as consumers become increasingly wary of invasive data practices.

Harnessing Audience Power: Future’s Strategy

Jeff Goldstein, Head of Programmatic at Future, offered a compelling keynote on the importance of understanding and harnessing audience passions. He explained how Future’s approach to audience segmentation — dividing users into “practical intenders” and “passionate intenders” — has allowed the publisher to optimize its content and ad strategies.

Goldstein shared that through their first-party data platform, Aperture, Future has identified high-intent users, leading to a 30% higher purchase likelihood among these users. He emphasized the value of deep audience insights and the role of AI-driven data in refining targeting strategies.

Future’s approach underscores the value of deep audience insights, enabling them to create more personalized and effective media products. By leveraging AI and contextual data, Future exceeds advertiser expectations, driving better outcomes across its 200+ owned and operated properties.

ID Bridging: Navigating the Benefits and Risks

In another session, the topic of ID bridging was explored in depth, highlighting how this technology enables publishers to maintain addressable audiences in a cookieless environment. Ianna Feliciano, Senior Director, Programmatic Advertising, Raptive, and Jasper Liu, Senior Programmatic Yield Analyst, Daily Mail, explained how ID bridging allows for deterministic and probabilistic matching across devices and browsers. While deterministic matching offers precision, it often lacks scale. On the other hand, probabilistic matching provides greater reach but with potential trade-offs in accuracy.

The speakers also explained the risks associated with ID bridging, such as increased complexity in managing multiple ID partners and the potential for data leakage, which can have severe privacy implications. Additionally, the costs associated with ID bridging can be significant, especially when considering the need for continuous vendor management and compliance with evolving privacy regulations.

But when connected with the right partners, ID bridging is becoming essential for maintaining campaign effectiveness in the face of increasing privacy regulations and the decline of third-party cookies. The session emphasized the importance of choosing the right ID-bridging partners and continually testing and adapting strategies to balance accuracy, scale, and compliance with privacy laws.

Innovative Revenue Strategies:

The “One Big Problem” session, a town hall publisher-only conversation, underscored the challenges and strategies in ramping up revenue. One standout solution was monetizing social media audiences. Publishers are turning their social followers into a goldmine, leveraging these platforms to drive engagement and revenue. This strategy, highlighted by some ad ops leaders shows the innovative ways publishers are navigating the post-cookie landscape.

This strategy doesn’t come without its downsides though. Relying heavily on social platforms means publishers are subject to the algorithms and policies of those platforms, which can change suddenly and impact reach and monetization.

Another exciting approach discussed during the Forum was Deal Curation as a Service (DCaaS). This strategy empowers publishers to showcase and monetize high-quality inventory effectively, leveraging first-party data for improved targeting and higher CPMs. Yet, implementing DCaaS can be resource-intensive, requiring significant investments in technology and data management. It can also lead to increased operational complexity, as publishers must manage and coordinate with multiple partners and ensure the integrity of their curated deals. 

In the long haul, DCaaS enables publishers to regain control over their inventory, creating a more curated and valuable marketplace that benefits publishers and advertisers alike. As Scott Messer of Messer Media explained, DCaaS alleviates costs, aggregates sales efforts, and delivers a good product.

The Existential Crisis and Future-Proofing Revenue

Despite Google’s flip-flop on third-party cookies, savvy publishers are already adapting. Our recent Publisher Pulse report, Ramping Up Your Revenue: Digital Publishers Reveal Key Growth Strategies, shows that 71% of publishers are investing in new tools and technologies to drive revenue growth, with the most invested tools including audience segmentation (65%), identity resolution (50%), and AI-driven/advanced analytics platforms (40%).

But this isn’t just about technology for technology’s sake, it’s about addressing the existential crisis of trust and relevance. Publishers like Dotdash Meredith, The Washington Post, and Future are leading the way, demonstrating that investing in first-party data and contextual targeting is key to thriving in a cookieless world.

As Dotdash Meredith’s McCarthy explained, predictive analytics and real-time data are revolutionizing how we approach ad operations, ensuring we stay ahead of the curve. This aligns seamlessly with the broader industry trends discussed at the Forum, showing a unified move towards data-driven, privacy-safe ad tech solutions.

The landscape is shifting, and those who don’t adapt will be left behind. Since many of these approaches may require significant investment in technology and talent, it’s a survival of the fittest scenario, where only the most innovative and forward-thinking publishers will thrive. Regardless of the size of your operation, your best bet is to start small and keep testing iteratively.

Innovation must be balanced with caution — embrace your data, invest in the right tools, and keep innovating.

Editor’s Update 08/14/2024 An earlier version of this article omitted insights from Jesse Waldele, SVP of Digital Operations and Client Services at Dow Jones, and Jeff Goldstein, Head of Programmatic at Future’s keynote.

The post Dotdash Meredith’s Cookieless Conquest and the Publisher Pulse: Notes from AdMonsters Publisher Forum Boston appeared first on AdMonsters.

In response to challenges posed by privacy regulations and AI-driven changes in search traffic, 71% of publishers plan to invest in new technologies. To sustain revenue growth, publishers are investing in AI-driven analytics, customer data management, and identity resolution. As one publisher noted, personalizing content and engaging audiences will be key in the coming year.

But, it’s not all smooth sailing. Publishers are grappling with significant challenges, including privacy regulations and changes in consumer behavior. These factors underscore the importance of diversifying revenue streams. With audience data, subscriptions, and licensing emerging as planned new streams, publishers are laying the groundwork for sustainable growth in an evolving digital ecosystem.

While the digital ad landscape faces headwinds, the coming year looks promising for publishers who are agile enough to navigate these challenges. Publishers who invest in direct deals, audience development tools, and diversified revenue streams are well-positioned to thrive in 2024 and beyond.

For more insights and a look at the full study results, visit the Publisher Pulse report page, and enter your information at the bottom to download your copy.

The post Publisher Pulse: Key Revenue Drivers and Strategic Shifts for 2024-2025 appeared first on AdMonsters.

Worldwide, finding a consensus on nearly anything is just about impossible. Yet, when thinking about the way people interact with brands online, there are two glaring truths: consumers demand personalization and privacy in nearly equal measure.

Studies show time and again that nearly 90% of consumers want to do more to protect their online privacy, and almost as many consumers will choose one brand over another if that brand provides a personalized experience. Both of these aspects of digital advertising and commerce are now table stakes. Striking the balance between the two, however, can be difficult, particularly for upstart brands. 

On the privacy front, many brands must contend with increased regulation. Especially in a more globalized marketplace, brands need to conform to international regulations, including GDPR, CCPA, and many more, which can limit the amount and type of consumer data they can collect.

This is all leading to the eventual depreciation of third-party cookies. While it’s true that Google has walked back from its plans to eliminate cookies in Chrome, other browsers have degraded their value, and their continued use in global commerce can run afoul of privacy regulations. Moreover, even if cookie depreciation is slow, brands can find a point of differentiation by offering services that demonstrate respect for consumer privacy. Traditionally, this means turning to transparently collected first-party data.

Yet for smaller advertisers, building up stores of that valuable data can be nearly impossible; third-party cookies are a cheap and abundant way to deliver that needed personalization at scale.

Looking to the future, data clean rooms can be a conduit for advertisers to continue offering highly personalized experiences while also respecting consumer privacy through multiparty collaboration and first-party data access.

What Are Data Clean Rooms?

To understand what a data clean room is, it’s first essential to know why it rose to prominence about a decade ago. For smaller brands and advertisers, there isn’t the luxury of vast amounts of first-party data for targeting and personalization efforts. However, if advertisers could share data with other smaller entities, perhaps everyone could benefit from those insights. 

Data clean rooms provide a secure virtual environment where multiple parties can analyze and collaborate using shared, anonymized data sets without the risk of exposing or sharing the underlying data. These virtual platforms provide the necessary data protections that can enable collective user data programs while remaining above board with regulators.

The Importance of Multiparty Collaboration in Data Clean Rooms

As regulation increases and consumer sentiment moves more towards privacy, brands and advertisers will need to rely more heavily on their first-party customer data. Collection of this data must be ethical and based on a value exchange, with consumers willingly offering their information in exchange for exclusive offers, access to gated content, rewards programs, and much more.

For larger brands with massive customer bases, accessing this first-party data provides a major competitive advantage over smaller brands. If you already have a user base of hundreds of thousands of customers, turning that user data into something actionable is almost as simple as flipping a switch. Smaller brands don’t have that same luxury, which is where collaboration becomes essential.

Data clean rooms level the playing field for smaller advertisers by pooling first-party data to create a unified resource that all contributors can access.

What Advertisers Can Do With Pooled First-Party Data

By working together, small and mid-tier advertisers can enjoy the same insights as larger brands with massive stores of first-party data through data clean rooms.

The utility of this pooled data can’t be understated; bringing in anonymized consumer information from multiple brands can dramatically improve customer experience across each brand’s channels. By analyzing aggregated data, advertisers can identify patterns and trends that might not be evident from their data alone. Zooming out and broadening the pool of insights enables more precise audience targeting, which can improve the effectiveness of marketing campaigns.

Advertisers can also leverage this pooled data for performance tracking and benchmarking campaign efficacy against industry standards or competitors to help identify areas for improvement.

Data clean rooms help facilitate this collaboration, extending beyond data sharing. It can also enable advertisers to co-create targeted campaigns with partners, which can help optimize ad spend and maximize reach.

Why We Need Clean Room Standardization

Once you understand the utility of data clean rooms, it’s pretty easy to see the difference they can make industry-wide. Unfortunately, one of the biggest challenges of data clean rooms that threaten their adoption is a lack of rules and standards for contributors.

Standardization works to ensure consistency and trust across platforms. Establishing uniform protocols and frameworks for data security, privacy, and collaboration can facilitate seamless data sharing and analysis between different parties, reducing complexity, enhancing efficiency, and encouraging continued collaboration.

Additionally, locking in set security protocols guarantees that all parties adhere to the same stringent regulations, thus protecting consumer data more effectively.

In early 2023, the IAB Tech Lab set out to create a set of unified standards for data clean rooms. While this project is still ongoing, it opens up the conversation for parameters of collaboration in the future.

Data clean rooms are not without faults, but their adoption is critical to enable small and mid-sized advertisers to compete with larger companies as the availability of third-party data dwindles. Coming together, creating a standardized methodology for data clean rooms, and using that combined data effectively can be a major win for the entire industry.

The post The Crucial Role of Data Clean Rooms in the Future of Digital Advertising appeared first on AdMonsters.

At this point, it’s not news that years of ongoing changes in data privacy regulation have created massive amounts of change in the way that data is being used (or not used) across the advertising industry.

As IAB Tech Lab CEO, Anthony Katsur, often says, “Just like energy, finance, or healthcare, advertising is now a regulated industry.” As part of this trend, publishers face challenges in creating sustainable revenue growth.

Navigating Data Privacy in Advertising

Whether it’s the continuing decline in ad revenue that digital publishers are grappling with or the never-ending struggle that the streaming television industry is having to reach profitability it’s clear that owners and publishers of media are feeling the effects of these changes.

One of the areas where these changes are most visible is within the publisher’s data technology stacks. Increasingly, publishers are centralizing the many data sources they need for monetization within their data warehouse. While this evolution brings the promise of insights and connectivity, publishers also need a purpose-built application layer to help them activate and get the most value from their data.

DMPs: From Central Role to Obsolescence

For years publishers relied on DMPs to be at the center of their monetization efforts. As cookie-based monetization becomes less and less dependable and publishers’ distribution channels continue to fragment outside of the web these systems have failed to develop new solutions for key functions like app and historical data collection, 2nd-party audience enrichment, and programmatic activation.

This leaves most legacy DMPs relegated to web-based data collection, audience segmentation, and simple ad-serving activation. Additionally, traditional DMPs were not built with important capabilities such as data clean rooms, identity resolution, and PETs which are extremely important in our privacy-centric world.

Data Warehouses: A New Hub for Monetization

Many DMPs have responded by integrating large data sets through mergers and acquisitions to help fill gaps around identity, some are playing catch up by trying to build more privacy-centric features like identity and clean rooms, and others have decided to completely go out of the business. A response to this lack of innovation by DMPs in recent years has been more organizations investing in their data warehouse to centralize their various audience data sources. The question is, is the data warehouse alone enough?

The Missing Piece: Purpose-Built Applications

As we talk to customers in the market it’s clear that they need applications that can work with their data warehouse to create efficiencies and grow their revenue. One of the biggest challenges is actually activating data.

Data warehouses often rely on applications and integration providers to make data more actionable which leaves publishers building expensive custom solutions and navigating complicated operations.

Similarly to how the Composable CDP movement has stepped up to help marketers evolve how they activate data in their warehouse, media owners and publishers (and new companies like retail media) need solutions that are purpose-built for both the era of privacy as well as ad monetization use cases.

Embracing the Future of Audience Monetization

Audience monetization platforms of the future need to be able to combine the streamlined audience building and activation (in both programmatic and direct)  that legacy DMPs relied on, while also allowing for more complex tasks like normalizing various data sources, running complex identity resolution models and collaborating within data clean rooms.

As free and scaled 3rd-party cookie data goes away the monetization is shifting to the publishers and media owners who are investing appropriately in their 1st-party-data, and there’s a major opportunity to create profitable growth. Investing in technology to help power this growth is crucial and will separate the winners from the losers during this period of change.

The post The Data Warehouse Has Replaced Many DMP Functions, but Is It Enough for Publisher Data Monetization? appeared first on AdMonsters.

The past few years have been tumultuous for publishers. The on-again/off-again deprecation of cookies, concerns over MFA sites making programmatic advertising risky, and the rise of generative AI search decimating referral traffic have all posed significant challenges. Despite these hurdles, publishers continue to innovate. As a result, the majority anticipate revenue growth in the coming year.

In July 2024, we surveyed and interviewed publishers to gain insights into their revenue outlook and identify their top opportunities for growth. This report summarizes our findings.

Of course, much has changed since our survey, including Google’s decision to forgo cookie deprecation for the foreseeable future. Still, what’s clear to us is that the talk of cookie deprecation has prompted them to rethink the way they do business and how they can generate revenue.

Key Findings: Direct Deals & Audience Data

• On the whole, revenue will grow. Most respondents (60%) anticipate revenue growth, with 19% expecting significant growth and 41% anticipating moderate growth.
•  2025 will be the year of the direct deal, with 68% of publishers saying it represents their best opportunity for revenue growth.
• Monetizing audience data (50%) and creating new products (46%) are also seen as significant opportunities for growth.
• Looking ahead, 33% plan to leverage audience data, and 23% each consider subscriptions and licensing/syndication as new revenue streams.
• To support these growth plans, 71% of respondents plan to invest in new tools or technologies to ramp up revenue.
• The most invested tools include audience segmentation (65%), identity resolution (50%), and AI-driven/advanced analytics platforms (40%).

Enter your info to download your copy below!

The post Ramping Up Your Revenue: Digital Publishers Reveal Key Growth Strategies appeared first on AdMonsters.

Political advertisers are forecasted to spend over $12 billion across all channels during the 2024 election cycle, marking the highest spend in U.S. history, according to eMarketer. While a significant portion of that budget will go to linear TV, digital advertising remains a critical battleground. 

Election campaigns are turning to advanced techniques like bid shading to stretch their dollars in this high-stakes environment. But what does bid shading mean for publishers? Let’s dig into how this tactic impacts publishers, the challenges it presents, and how to navigate these waters during this unprecedented election cycle.

What is Bid Shading?

Bid shading might sound like some covert operation, but it’s actually a savvy strategy media buyers use in digital ad auctions. Imagine you’re at an auction, but instead of bidding wildly, you have an algorithm whispering the optimal bid in your ear. 

This algorithm analyzes historical pricing data, current market conditions, and the value of the impression to tweak bids just enough to win ad impressions without overpaying. The method is especially crucial in situations like political advertising where budgets, although large, need to be spent efficiently.

Example:

Picture a political campaign aiming to secure an ad slot. Without bid shading, they bid $10 and pay the full amount. But, with bid shading, the algorithm suggests $7.50 based on past data, saving $2.50 while still winning the spot and potentially saving the advertiser 25% on that impression.

The Impact of High Political Budgets on Publishers

With political budgets hitting an all-time high, this influx of ad spend can be both a golden opportunity and a potential headache for publishers. 

The Upside:

1. Increased Demand: More political dollars chasing your inventory means heightened competition, which typically drives up demand and fill rates.
2. Revenue Boost: Those previously unsold ad slots? They’re now hot commodities, filling up quickly and boosting your bottom line.

The Downside:

1. Revenue Volatility: While demand surges, bid shading introduces a layer of unpredictability as bids are adjusted downward, making revenue streams less predictable.
2. Inventory Devaluation: As campaigns use bid shading to cut costs, the perceived value of your ad impressions might take a hit, impacting long-term revenue strategies.

Navigating the Risks of Bid Shading

Bid shading isn’t just a double-edged sword — it’s a whole cutlery set. Here are the risks you need to watch out for and how to handle them:

Lower CPMs:

Bid shading typically results in lower cost-per-thousand impressions (CPMs). Some publishers have reported CPM drops of up to 20% due to bid shading. This is a direct hit to your revenue as bids are systematically adjusted to lower amounts.

What to Do:

Consider implementing dynamic price floors that adapt to market conditions in real time. This ensures bids won’t drop below a certain level, protecting your revenue.

Inconsistent Revenue Streams:

The dynamic nature of bid shading means your revenue from political ads can fluctuate wildly, complicating forecasting and planning.

What to Do: 

Leverage advanced yield management tools to analyze historical data and market trends. This helps you understand and anticipate the effects of bid shading, optimizing your inventory pricing and placement.

Competitive Pressure:

With multiple campaigns vying for ad space, the pressure to lower prices further increases, risking a race to the bottom.

What to Do:

Enhance your auction strategies with techniques like header bidding. By involving multiple demand sources, you can drive up competition for your inventory, balancing out the downward pressure from bid shading.

Making Bid Shading Work for You

Bid shading isn’t all doom and gloom—there’s a silver lining if you play your cards right. Here’s how to turn bid shading into an advantage:

Leverage Advanced Analytics: 

Investing in tools that provide deep insights into bidding patterns can help publishers adjust their strategies in real time and identify opportunities to maximize revenue.

Enhance First-Party Data: 

Rich, accurate data about audience segments can command premium prices, even in a bid-shaded environment. Investing in data collection and analysis can increase the value proposition for advertisers.

Dynamic Price Floors:

Setting smart, dynamic price floors can help you maintain control over your inventory pricing. Adjust these floors based on real-time market conditions, like time of day, user demographics, and current events to prevent your CPMs from dropping too low.

Auction Strategies:

Don’t just rely on traditional auction setups. Incorporate header bidding to get multiple demand sources competing for your ad space. Increase competition for inventory and mitigate the impact of bid shading from any single source by relying on multiple SSPs and ad exchanges. This improves the likelihood of higher bids, even with bid shading in play. 

Yield Management:

Invest in robust yield management tools and expertise. These tools help you make data-driven decisions about your ad inventory, optimizing pricing and placement to counteract the effects of bid shading.

Collaboration with Buyers:

Build strong relationships with your advertisers. Educate them about the value of your premium inventory and work together to establish fair pricing and bidding practices. This collaborative approach can lead to more stable and beneficial outcomes for both parties.

When in Rome Leverage Bid Shading to Your Advantage

Bid shading is here to stay, especially in high-budget political advertising cycles. Publishers who adapt and strategically manage their ad inventory can thrive, capturing the full potential of these high-budget opportunities.

While bid shading presents both opportunities and challenges, strategic measures can mitigate risks and maximize revenue. Implementing dynamic pricing, enhancing auction strategies, optimizing yield management, and fostering collaboration with buyers is key to navigating bid shading complexities and staying competitive.

Not all of the predicted $12 billion election cycle budgets will be subject to bid shading. Direct deals, bypassing programmatic auctions, will also play a significant role. Publishers offering unique value propositions, like highly engaged audiences or brand-safe environments, can command premium prices despite bid shading tactics.

The post How Bid Shading and the $12 Billion Political Ad Boom Could Impact Publishers appeared first on AdMonsters.

In a plot twist straight out of a digital marketing thriller, last week, Google announced it will not deprecate third-party cookies unilaterally after all and instead opt for enhanced user choice. This revelation is leaving buyers and sellers scrambling to reassess their strategies.

We attended a U of Digital Live Learning Event, where industry experts shared insights about what the news means for the advertising ecosystem.

Following are key points from the U of Digital event and what this means for digital media and ad tech, with insights from industry-heavy hitters. U of Digital’s Myles Younger and Shiv Gupta were joined by Alex Cone Product Manager, Privacy Sandbox at Google; Joe Root Co-Founder & CEO at Permutive; Shailley Singh, EVP Product & COO at IAB Tech Lab; and Therran Oliphant former SVP Data & Technology at Essence Mediacom discussed what steps advertisers and publishers should take to navigate this new reality.

The Big Reveal: Google’s Change of Heart

Last Monday, Google unveiled its new approach to privacy, giving users elevated and informed choices for managing third-party cookies in the Chrome browser. Instead of outright deprecation, users will receive a universal prompt allowing them to decide whether to accept cookies, with the option to adjust this choice at any time. This move aims to balance user privacy with the industry’s need for effective advertising tools.

Panel Insights: What the Experts Are Saying

During the U of Digital event, the panel of industry experts dissected the implications of Google’s announcement, and here’s what they had to say:

User Choice and Its Ripple Effects: Google’s decision to elevate user choice, potentially mirroring Apple’s ATT framework, means cookies aren’t entirely gone but are expected to decline as more users opt-out. The design and deployment of the consent prompt will be pivotal. Will it be opt-in or opt-out? How will it be presented to users? These factors will determine the extent of cookie usage going forward.

Privacy Sandbox Continues to Evolve: Despite the shift, Google will continue developing privacy-preserving alternatives like the Topics API, Protected Audiences API, and Measurement API, ensuring the industry has robust tools for the future.

Broadening Privacy Horizons: With plans to introduce IP protection in incognito mode and other privacy measures, Google is pushing the envelope on broader privacy initiatives beyond cookies.

Voices from the Field: Real-Time Reactions

The panel experts shared their perspectives on the announcement’s broader implications:

Publishers and Ad Tech Innovators: Joe Root emphasized the significant shift for publishers who must now consider a future where cookies play a smaller role, focusing on alternative IDs, contextual advertising, and first-party data.

Advertisers and Agencies: Therran Oliphant pointed out the increased complexity for marketers, stressing the importance of investing in first-party data and streamlining tech stacks to future-proof their strategies. This is a wake-up call for marketers to clean their houses. Those clunky, inefficient tech stacks? They’re yesterday’s news.

Portfolio Solutions Approach: Cookies may still have a seat at the table, but they’re no longer the head. Shailley Singh from IAB Tech Lab highlighted the need for a portfolio approach, blending cookies with other addressability solutions to maintain effective advertising strategies in a rapidly evolving landscape.

Alex Cone’s Crucial Insights: Timelines and Testing

While the timeline has shifted, the privacy-first future is still coming. It’s less of a demolition and more of a renovation. Alex Cone from Google provided valuable insights regarding the timelines for cookie deprecation and the privacy sandbox APIs:

Decoupling Timelines: Cone clarified that the timeline for third-party cookie deprecation has always been separate from the availability of the privacy sandbox APIs. The APIs have been generally available since last September, allowing publishers to start testing and integrating these tools well before cookies are phased out.

Testing and Adoption: While a 1% deprecation rate for cookies was meant to facilitate initial testing, the APIs are available for broader industry adoption. Publishers can and should start integrating these technologies to prepare for the eventual decline of third-party cookies.

Informed User Choice: Cone emphasized the importance of ensuring users can make informed choices about their privacy settings. This involves a more detailed and transparent consent mechanism, likely resembling Apple’s ATT prompts but applied universally across browsing experiences.

What Publishers Need to Know: Practical Steps Forward

It’s time for advertisers to find new ways to reach audiences without relying on third-party data. The race to find the perfect balance between personalization and privacy has just begun.

For publishers, the cookie jar might not be empty, it’s certainly not as full as it used to be. Root of Permutive pointed out that many users are already browsing without third-party cookies. The time to develop robust first-party data strategies and explore contextual targeting solutions was yesterday.

While Google’s announcement offers some breathing room for the industry, it raises crucial questions about implementation and future strategies. Here are the key considerations for publishers:

1. Prepare for User Choice: Publishers should anticipate a decline in third-party cookies as more users opt-out. Investing in first-party data collection and management will be critical.
2. Embrace Privacy Sandbox APIs: Start testing and integrating Google’s privacy-preserving alternatives like the Topics API and Protected Audiences API. These tools will be essential in maintaining addressability and ad effectiveness.
3. Develop and adopt privacy-preserving technologies: As cookies continue to decline, the industry must keep developing and adopting privacy-preserving technologies. This includes enhancing first-party data strategies, utilizing privacy sandbox APIs, and exploring new addressability solutions.
4. Engage with Consent Mechanisms: Stay informed about the development of Google’s consent prompts. Understand how these will be implemented and what messaging options will be available to maintain user trust and transparency.
5. Monitor Regulatory Developments: Google’s approach is designed to appease regulators, but ongoing dialogue with bodies like the UK’s CMA will shape the final implementation. Publishers should stay engaged with these discussions to anticipate and adapt to regulatory requirements.

Adapting to a New Era of Digital Advertising

Google’s third-party cookies reversal marks a significant shift for the industry. While it offers a reprieve, the long-term trajectory remains clear: a move towards greater user privacy and the need for innovative solutions. Publishers must stay agile, continuously adapt their strategies, and prepare for a future where privacy and addressability coexist in a delicate balance.

Take a deeper dive into this topic, check out the presentation, view the deck, and download the recap at U of Digital. 

The post Google’s Cookie Curveball: What’s Next for Buyers and Sellers? appeared first on AdMonsters.

Transitioning into a new role can be daunting, especially at a prestigious institution like The Washington Post. But Jana Meron, now the VP of Revenue Operations and Data, embraced this challenge head-on. In a recent LinkedIn Live session, hosted by yours truly, Lynne d Johnson, Content Director at AdMonsters, Meron opened up about her transition, the state of the digital advertising industry, and her vision for The Washington Post’s future.

In this lively session, Meron spills the beans on her career journey and the challenges of the ad tech ecosystem. Discover how she plans to tackle brand safety issues, harness first-party data, and drive innovation at one of the world’s most respected news outlets.

Plus, don’t miss her pearls of wisdom on mentorship, career growth, and the ever-evolving landscape of digital advertising. Tune in to gain invaluable perspectives on the intersection of ad tech and journalism.

Rekindling Connections: From Coronado to LinkedIn Live

It’s always a blast reconnecting with industry peers, and this LinkedIn Live was no different. The last time Meron and I crossed paths was at AdMonsters PubForum Coronado in 2023.  That encounter was unforgettable, filled with intense discussions about the bloated advertising ecosystem, and even a few well-deserved F-bombs were dropped on stage. Meron’s passion for the industry and her desire to see publishers win shone through every word.

Check out the video below and be sure to follow us on LinkedIn so that you can stay up-to-date on more conversations like these.

“As long as we’re focusing on our readers… we’ll be able to do better for our advertisers.” – Jana Meron 7/25/2024

The Washington Post: A New Chapter

During our chat, Meron radiated excitement about her new role at The Washington Post. The day she announced her new gig on LinkedIn as VP of Revenue Operations and Data, we knew we had to bring her into our AdMonsters community discussions.

Mark your calendars. She’ll be one of our keynotes at AdMonsters PubForum Boston, discussing: Boosting Revenue through Brand Suitability. With her vast experience in ad tech and a keen understanding of the advertising landscape, Meron is an invaluable asset to the Post. Her journey to this role is steeped in her passion for news and media, representing a chance to make meaningful changes in an industry she loves.

“Twenty-five years of experience, and this role gives me the ability to do it all in one place,” she shared. 

Jana Meron’s Background and Motivation

Meron’s career kicked off as a media buyer in the early days of digital advertising when it was still considered an added value to traditional platforms like TV and print. Her diverse experience spans TV, digital display, print, programmatic, and data strategy. This new role allows her to channel her 25 years of expertise into a brand she is deeply passionate about. Her mission is clear: to combat the bloated ad tech ecosystem and ensure the news survives and thrives.

Challenges in the News Industry

Brand safety measures significantly impact news, Meron explained. She cited instances where crucial articles were blocked from receiving ads, limiting their reach and impact. To explain further, she highlighted how ad networks often penalize articles covering the elections. 

“Why would you avoid reaching them when they’re most engaged?” she emphasized, noting that news is a vital part of daily life and that should be supported by advertisers, not shunned.

Ad Tech and Privacy Concerns

“The media has always been ad-funded,” Meron affirmed. “We wanted information to be available, but we forgot to tell people that the exchange for that was going to be seeing ads.”

She underscored the complexities of the ad tech ecosystem and rising privacy concerns. Recalling an interaction with an ad tech company admitting to being the ad tech tax, she stressed the need for a balanced approach that prioritizes both advertisers’ needs and user privacy.

Strategies for Success

Meron champions the importance of first-party data and user engagement as strategies for tackling these issues and improving the news advertising ecosystem. “I’m always excited about first-party data and what we can do with it,” she stated. She sees it as a way to innovate and improve the relationship between publishers, advertisers, and audiences.

She also advocates for better advertiser education and an updated approach to ad tech practices that align with the evolving landscape.

Mentorship and Career Development

The discussion also touched on the significance of mentorship and career development. Having learned the industry mostly on her own and later through collaborative efforts with peers, Meron stressed the importance of curiosity, asking questions, and voicing opinions. For her, mentorship is about guiding the next generation with her wealth of knowledge and experience.

Work-Life Balance

Balancing a demanding career with a personal life is no small feat, and Meron candidly spoke about her approach. She prioritized her children’s needs at different stages of their lives, adjusting her professional commitments accordingly. This flexibility allowed her to maintain a balance that worked for her and her family.

Her drive comes from a deep curiosity about how things work and the satisfaction of solving complex problems. Meron thrives on making ad tech work efficiently while enhancing user experiences. Her inquisitive nature pushes her to seek better solutions and improve industry practices.

Future Trends in Digital Media and Ad Tech

Looking ahead, Meron is particularly excited about the potential of first-party data to model better user experiences. With the digital media landscape and ad tech constantly evolving, she’s keen to see how new technologies and strategies will shape the future.

The post Jana Meron on Her New Role as VP of Revenue Operations at The Washington Post appeared first on AdMonsters.