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.

New platforms, data-driven targeting strategies, and cutting-edge measurement solutions are the lifeblood of the ad tech industry. However, as credit remains tight, payment terms from major advertisers have gotten longer — especially thanks to the growing SPO trend and more intermediaries going directly.

Unfortunately, longer payment cycles are becoming more common, threatening to stifle momentum and create additional cash constraints for companies powering the next era of ad tech.

Keurig Dr Pepper’s Controversial Move: A 360-Day Payment Term Shockwave

The most notable example came from Keurig Dr Pepper (KDP).

In 2023, the beverage giant requested extended payment terms (up to 360 days) from its agencies. The 360-day terms required agencies to wait up to a year to receive full payment, but they also offered low-cost financing so they could access funds sooner. Suppliers could self-fund the requirement or participate in KDP’s Supply Chain Financing Program with Prime Revenue (a capital solution).

As is usually the case, the closer to the advertiser a company is in the supply chain, the longer the payment terms. However, this was an unheard-of proposition in the advertising ecosystem. So much so that these terms were highlighted and passed around within the industry, gathering backlash from thought leaders and the media about the potential negative consequences and concern about the precedent it would set.

Theoretically, the extended payment terms could have created a significant ripple effect throughout the ad tech ecosystem – and it was an eye-opening moment for many.

Downstream Effects: Vendors and Agencies Struggle with Extended Payment Terms

When a brand like KDP demands longer payment terms, the burden falls on the vendor and inevitably trickles downstream to their supply partners. The vendor must pay upfront for ad space, media buys, and the technology fees associated with running the campaign.

Then, they extend terms to their vendors, albeit not usually commensurate with their terms, and raise rates or margins to offset the newly added costs they’ll incur. This upfront cost creates a severe cash flow strain for vendors and agencies, especially smaller or independent shops with limited access to capital compared to their larger competitors.

"The lack of liquidity makes them more dependent on cash flow and less likely to take risks they otherwise would have, severely limiting their growth potential and ultimately stifling momentum at a critical time."

With cash tied up and waiting for client payment, supply partners have less to invest in areas critical for long-term success. This is referred to as opportunity cost, or the cost of choosing one option over an alternative that may have a better yield. When resources are limited, this becomes a much more pressing quandary, and opportunities for growth, innovation, and other initiatives take a back seat.

Companies may be forced to make hard decisions, like making payroll or taking on new business. The lack of liquidity makes them more dependent on cash flow and less likely to take risks they otherwise would have, severely limiting their growth potential and ultimately stifling momentum at a critical time. 

Reality Check: Liquidity Challenges in Ad Tech

In some form or another, payments have long been a central concern within media and advertising. In many ways, payment trends serve as an industry barometer, often highlighting the broader health of the market. Demand partner payments, or lack thereof, have shaped ad tech throughout history, spurring hot-button topics like downstream transparency and sequential liability.

"Risk rises as liquidity falls. Terms get longer, offsets get bigger, and companies go under."

While these topics are pertinent, they are tangential to the cornerstone issue of liquidity. Of course, no amount of capital will save us from bad actors, gross negligence, or abhorrent mismanagement. However, that is more of a question of the human condition rather than a treatable industry diagnosis.

While the above risks will be philosophized for eternity, their inverse correlation to liquidity remains relevant. Risk rises as liquidity falls. Terms get longer, offsets get bigger, and companies go under.

Navigating the Liquidity Squeeze: Financing Options for Survival and Growth

Making matters worse is the self-perpetuating nature of a tightening credit environment. As risk rises, lenders and investors become more averse, seeking safer options to deploy their capital. This, in turn, ultimately exacerbates and compounds the issue. At worst, some companies are no longer eligible for their funding.

At best, their funding gets more expensive, and their terms become even more restrictive.

While there is no catch-all answer, alternative financing solutions can help. Downstream partners can leverage solutions to access flexible capital on demand, bringing certainty to their cash flow and enabling them to grow on their terms. However, be aware that not all revenue-based financing options are alike. Industry knowledge and flexibility are frequently overlooked when reviewing capital partners, so pay close attention to penalties, covenants, and recourse. 

If nothing else, it is essential to determine how complicated their funding process is and, ultimately, if they will grow with you.

The post The Cash Crunch Conundrum: How Extended Payment Terms Stall Ad Tech Innovation appeared first on AdMonsters.

While in Boston, we didn’t just indulge in delicious lobster with garlic butter (which was as amazing as it sounds); we also dived deep into the pressing issues facing our industry.  The timing was perfect, as news dropped about X suing GARM, Unilever, CVS, and others — fueling plenty of conversations during Tuesday breaks.

Our publisher forums are always valuable, but this one hit differently. The focus was clear: everyone was determined to crack the code to retain more revenue. This time around, attendees were in rare agreement, openly discussing their biggest challenges as publishers. The great main-stage presentations and breakout sessions all revolved around one core question:

What is the future of revenue? Three key themes emerged: data, transparency, and diversifying ad revenue across diverse publishers. Let’s explore each of these critical areas in more detail.

Unlocking the Treasure Trove: How Data is the Golden Key to Future Revenue for Publishers

I’d be rich if I got paid for how often data came up in conversations. But it’s no surprise—it’s at the forefront of every publisher’s mind. The conference started with a bang when Claire Atkin, CEO of Check My Ads, took the stage. She kept it real, to say the least, ruffling some vendor feathers, but hey, we’re here to expose the truth. 

Atkin emphasized that the ad tech industry must embrace a new era of accountability and transparency. To empower advertisers and ensure purveyors of disinformation don’t hijack their brand messaging, she advocates for hourly log-level data and “know your customer” requirements.

Jeff Goldstein, Head of Programmatic at Future, shared how they rely heavily on their first-party data platform, Aperture, to collect and unify data signals from their 200+ owned and operated properties. This data is key for audience segmentation and building media products. Goldstein and his team collect data signals that give advertisers better insights and help create more precise targeting products. These signals include brand, model, and category information from the content, which helps Future understand how audiences behave, consume, and shop.

During the Deal Curation session, Scott Messer explained how these curations create a less leaky data-sharing environment. This is crucial, considering how data often leaks somewhere in that black box called the ecosystem.

Rick Welch, who works on advertising partnerships at Western Union, shared how they use their audience data to sell media and create cohesive, multi-touch packages for advertisers. And yes, when we say Western Union, we mean Western Union, the publisher, as they have thousands of owned and operated screens strategically lighting up retail spaces and locations worldwide. Their digital out-of-home network is making waves, proving they’re not just money movers but also a force in the digital advertising game.

Transparency and Collaboration: The Dynamic Duo Powering the Future of Publisher Revenue

Data and transparency were neck and neck in Boston, given how often attendees discussed both. This brings us back to that black box in ad tech — everyone is doing something, but no one knows what anyone else is actually up to. Publishers may know the pipes that generate their revenue, but what happens inside the ad tech ecosystem often remains a black box—how bids are made, who’s bidding, and where the money goes. Brands don’t have full visibility into agency strategies and tactics, while agencies may lack insight into the brand’s internal goals and data.

This has to change, and fast. The only way forward is through collaboration and establishing more transparency. In other words, talk to each other. It’s really that simple even a caveman can do it, jk.

I recall at least four sessions that directly addressed transparency. Jana Meron discussed it in her keynote, and John Shelby, Director of National Programmatic Sales at Zoom Media, Gym-TV, also brought it up in his Ops to Sales workshop. Attendees further explored this topic in the media quality session featuring Addy Atienza, VP of Programmatic Revenue and Streaming Operations at Trusted Media Brands, and Roxanne Allen, Head of Ad Ops at Dotdashmeredith. Finally, Atkin and Goldstein shared valuable insights on transparency during their keynotes. Goldstein also talked about how important it is to partner with advertisers to share sales data, which is vital for validating the effectiveness of high-intent segments. This collaboration explicitly boosts campaign ROI and refines audience targeting.

Meron shared some compelling stats on brand safety and made a strong case for the ongoing relevance of quality news. She stressed that brand safety and news SHOULD NOT be mutually exclusive, and advertisers should feel confident placing ads next to election content. Consumers with high political interests are highly engaged and could be lucrative.

She also emphasized that everyone needs to communicate to enhance brand safety across the board; publishers can no longer be left out of the conversation. Atienza and Allen echoed this sentiment, highlighting the lack of transparency, the challenges in getting verification vendors to address misclassifications, and discrepancies in reporting. They also pointed out how publishers are excluded from brand safety conversations, with agencies often defaulting to broad, non-contextual blocking measures.

The main theme of Shelby’s Ops to Sales workshop was clear: “Communicate, communicate, communicate, educate, educate, educate.” The key takeaway was the need for greater transparency, both internally between ad ops and sales teams and also with clients.

As I mentioned earlier, Atkin also reinforced the need for advertisers to be more transparent and controlled and suggested new strategies.

Spreading the Love: Why Championing Diverse Publishers is the Secret to Industry Growth

Messer’s Deal Curation session stood out for its focus on multicultural publishers. He invited Armando Aguilar, VP of Programmatic Operations at Mirror Digital, and Alex Haluska, Senior Director of Revenue Operations at MyCode, to discuss these publishers’ challenges. Despite representing 40% of the population, multicultural publishers receive only 6% of media budgets—a glaring disparity. 

Promises of increased ad spending on minority-owned and small niche publishers have not materialized. Instead, agencies bottlenecking the budgets, with most diverted to large platforms like Facebook and Google, bypassing diverse publishers altogether. 

Both speakers urged agencies to innovate and be accountable for their spending practices. They also encouraged publishers to engage directly with brands to circumvent agency bottlenecks. Once again, speakers emphasized the need for transparency and accountability in distributing ad dollars. 

The Premium Publisher Shift session began with a powerful visual:  a slide highlighting the disparity between the US Black population (15%) and the ad spend on Black-owned media (2%) to emphasize the issue. Terry Guyton-Bradley, Senior Director of Ad Tech at Fortune, led the discussion alongside Michael Bendell, an ad tech consultant from Ebony, and DeVon Johnson, founder of BlueLife Media and co-founder of BOMESI.

Each panelist offered a unique perspective on how to address this issue. One proposed solution to simplify ad buying was for platforms to aggregate minority-owned media buys. They also discussed the need to dismantle systemic barriers in the advertising industry that prevent minority-owned publishers from thriving independently. 

Advertisers should differentiate their spending on Black audiences from their spending on minority-owned publications, recognizing that these groups have distinct experiences and needs. As an industry, we must find ways to support unique publishers— whether they’re diverse, niche, small — if we want to see real growth. 

Embracing Data, Transparency, and Diversity: The Path Forward for Publisher Revenue

At PubForum Boston, it became clear that the future of publisher revenue hinges on three critical pillars: data, transparency, and support for diverse publishers. The discussions were not just about recognizing these elements—they were about taking actionable steps to make them central to our core strategies.

Data isn’t just a tool; it’s the foundation of future publisher revenue. Transparency and collaboration are no longer optional — they’re essential for defining success. And when it comes to diverse publishers, we need to actively uplift and invest in them, as they are vital to the ecosystem’s growth.

Looking ahead, these themes will clearly shape our strategies, push us to think differently and drive us to work more closely together. The future of revenue is bright, but only if we embrace these lessons, act with urgency, and follow through on our commitments made at forums like this one.

If you missed Lynne and myself chatting about these themes, check it out on AdMonsters LinkedIn

The post PubForum Boston: Three Emerging Themes Redefining Revenue’s Future 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.

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.

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.

No matter where you stand on the political spectrum, it’s hard not to watch the Supreme Court since it established its conservative majority. When SCOTUS overturned Roe v. Wade — there was major backlash from some and celebratory cheers from others — the country knew we were at a major political turning point. 

Now, the dominoes just keep on falling. With the 1984 Chevron Deference precedent overturning, power has shifted away from the executive branch to the judiciary, potentially transforming federal government operations.  

Consequently, the court’s conservative majority has made many regulations vulnerable to legal challenges. This ruling affects executive actions, including plans to install Wi-Fi on school buses, ban non-compete clauses, implement health care coverage rules under Obamacare, and forgive student loan debt. Plus, the advertising industry will have its blowbacks. 

As no industry remains untouched by this, what does it mean for the advertising industry? The consensus is that it will infringe on regulatory efforts and cause publishers and advertisers to challenge government agency regulations that affect their businesses more fervently. 

A Look Into Chevron

Chevron deference was a legal principle established by the Supreme Court in the 1984 case Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. It required courts to follow administrative agencies’ interpretations of unclear laws, as long as those interpretations were reasonable and Congress had not explicitly resolved the issue.”

For 40 years, Chevron deference played a crucial role in administrative law. However, in June 2024, the Supreme Court overturned this doctrine in Loper Bright Enterprises v. Raimondo. The Court ruled that the Administrative Procedure Act requires courts to independently judge whether an agency has acted within its statutory authority without deferring to the agency’s interpretation of ambiguous laws.

Previously, Chevron deference allowed agencies to interpret statutes they administered as long as their interpretations were rational and not explicitly contradicted by Congress. This deference did not extend to agencies interpreting their own jurisdiction or statutes they did not administer. 

The overturning of Chevron deference in 2024 reduced the power of administrative agencies and increased the judiciary’s role in interpreting laws. This change will likely impact various sectors, including advertising, by altering how regulatory guidelines are enforced and interpreted.

Chevron Looms Over Advertising

These regulatory changes will compel the advertising industry to become more adaptable and cautious. As regulations, particularly the ones related to privacy, become increasingly complex, companies must remain agile in their compliance efforts. Publishers and advertisers must be flexible and quickly adjust to new rules and interpretations.

The reversal of Chevron could further incentivize brands to challenge FTC decisions through outside agencies, potentially altering incentive structures within the industry. On the other hand, federal agencies may now adopt slower, more cautious rulemaking, and Congress may need to draft clearer legislation related to privacy.

But not everyone sees this as a negative. Ken Nahigian, co-founder of the Balancing Act Project, sees potential benefits for the advertising industry following Chevron’s repeal. Publishers and advertisers may now be able to challenge industry regulations they believe negatively affect them, a feat Nahigian believed impossible before the repeal. 

“After today, the company will be able to challenge the rule and the courts will decide whether the agency had or didn’t have the authority. This will lead to a more thoughtful and collaborative process for regulating the industries,” said Nahgian. 

The Impact On Ad Tech’s Privacy Detox 

Publishers and advertisers will still face heightened legal scrutiny. Legal challenges to regulations, such as the FTC’s privacy crusade, will have substantial implications for the industry.  Additionally, challenges related to using AI in marketing and various consumer protection regulations could generate ripple effects throughout advertising and digital media.

With increased inspection of privacy compliance in ad tech, the Chevron appeal could add to the already stressful privacy detox ad tech is experiencing right now. Especially with the uphill battle of creating a Federal Privacy Law in the U.S. 

Major privacy-related efforts that may be impacted include the FTC’s Commercial Surveillance and Data Security Rulemaking, updates to the Children’s Online Privacy Protection Act (COPPA), and inter-agency efforts to prevent discriminatory automated systems in housing and employment.

This will require publishers and advertisers to stay ahead of regulatory developments and adapt their strategies accordingly. But this industry is no stranger to adapting to new regulations at a fast pace. It’s the name of the game.

The post SCOTUS Overturned the Chevron Deference Precedent…What Does It Mean for Advertising? appeared first on AdMonsters.

Media and ad tech conferences have been dominated by discussions about AI and cookie deprecation over the past couple of years. These are important topics, but one equally important topic gets less attention: data strategy.

Everyone wants the mystical data lake that will solve all their data needs and finally make them “data-driven,” the thing everyone claims to be but few actually are.

A data lake can be a great thing but, not unlike a normal lake, it can also be filled with toxic waste and be more like a dump than a beautiful lake anyone wants to touch. Just putting your data in a data lake doesn’t actually fix anything. A data lake is just a fancy marketing term for a database. 

The key to enabling your organization to make data-driven decisions is to make the data accessible to the whole organization and different stakeholders, including those who don’t have a computer science or data science background. 

For example, your ops team may want to know the latency of ad loading or be able to see how many impressions an ad unit generated for a certain audience. They shouldn’t need to know SQL to achieve that.

A SQL prompt (even though it is powerful and one of my favorite tools) won’t help, and a static dashboard won’t help either because you can only think of and design so many things ahead of time. You need something else.

3 Steps to Unlock Data for the Entire Publisher Organization

So, how do you make your data truly accessible — and understandable — to every relevant person within your organization?

1. Ensure you have a solid ETL pipe. You want all the data in one place, but more importantly, you want it normalized across your sources so you are actually comparing apples to apples when reporting. A business user shouldn’t need to know how Magnite or Index Exchange defines their ad types. Their tools should account for these differences.
2. Make the data accessible. Enable the data to be queried with easy-to-use tools that take care of the logic in the background. People are strapped for time, and if it is a hassle to get to the data — maybe they have to submit a ticket to the data science team and wait two weeks to hear back — they are probably not going to do it.
3. Monitor the data for accuracy. One thing that will definitely kill a data strategy is inaccurate or out-of-date data. If users can’t trust the data, they will not use it, instead retreating to manual Excel spreadsheets or other less effective methods.

A data lake won’t make publishers data-driven. But getting all their data in one place is indeed the first step to more efficient, data-driven decisions.

Normalizing the data, making it easy to query, and shoring up its accuracy will help publishers get the rest of the way so that “data-driven” is a real way of doing business and not just a nice-sounding slogan.

The post Data Lakes Won’t Make Publishers Data Driven. Here’s What Will appeared first on AdMonsters.