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.

Digital advertising is becoming increasingly complex, and honestly, this won’t change for some time. While the advertising ecosystem is strategically preparing for the long haul, peak season is upon us and before you know it, summer will be gone.

With transparency and media quality at the top of publishers’ minds, it will be interesting to see how Q4 plays out. External factors such as Google’s decision to maintain third-party cookies are only further complicating things.

For brands, brand safety is a major concern, especially during election season like this one where advertisers are projected to spend over $12B on ads across all channels. With brands opting out of placing ads next to election content, or news entirely, the question arises, what do brands have to be afraid of?

At the recent AdMonsters Publisher Forum in Boston, Jana Meron, the newly appointed VP of Revenue Operations and Data at The Washington Post, challenged the conventional wisdom around news and brand safety. Speaking to a packed room of publishers and tech vendors, she questioned, “Why would you avoid reaching this audience when they’re most engaged?”

A few years ago, an IAB study found that 84% of consumers trust brands they see in the news, which highlights the importance of addressing misconceptions about news content. Yet, despite this trust, Resonate’s Fall 2024 Consumer Trends Report tells us that consumer spending is down, which is no bueno for publishers, brands, and agencies already grappling with declining ad revenue and sales.

“The challenge continues for advertisers trying to navigate trust and brand safety,” said Jonathan Neddenriep, co-founder and CTO of Postie. “This also puts pressure on the large tech platforms to double down on ad and content safety tools, something that isn’t always a popular or easy investment (see the Meta CrowdTangle shutdown, for instance.)”

So, what’s a brand to do during times like these?

I recently moderated a webinar with Neddenriep and Bethany Bollenbacher, Customer Success Senior Team Leader at Postie, where they dropped a ton of jaw-dropping gems to help brands stay afloat. If one thing is for sure, and two things are for certain, brands should definitely incorporate direct mail into their strategies. With Postie, direct mail now offers digital capabilities like real-time reporting, website re-targeting, and targeting that exceeds even digital channels. 

Here are some insights and strategies to help brands navigate holiday and election campaigns.

• Election Season: The Catalyst for Surging  Ad Rates
  During election years, the surge in political ad spending significantly impacts ad rates on major platforms like Meta and Google. The bid-based nature of these platforms intensifies competition for ad slots, driving up CPMs and CPAs. This situation is particularly challenging for ecommerce brands looking to grow during the holiday season. To navigate these fluctuations, brands should develop conservative forecasts for CPMs and explore alternative channels with more stable performance metrics. Implementing digital campaign levers like cost-capping can also help protect your budget from being drained by the rising cost of ad slots.
• Leveraging Direct Mail for Stability
  Direct mail offers a stable and predictable alternative amidst fluctuating digital ad rates. Unlike digital channels, where ad placements can be unpredictable and subject to sudden rate hikes, direct mail provides a consistent and reliable medium. Its ability to lock in rates and deliver steady results makes it an attractive option for brands looking to diversify their advertising strategies. Additionally, direct mail’s physical separation from digital noise can enhance brand safety—a key concern during politically charged periods.
  
• Develop Strong Personalization and Creative Strategies
  Personalizing direct mail is key to maximizing engagement and conversions. While basic tactics like adding a recipient’s name may have limited impact, tailoring offers relevant to the specific needs of each household can significantly boost engagement. For example, offering loyalty rewards or promoting local pickup to save on shipping can make direct mail more enticing. Additionally, tapping into the nostalgic and emotional appeal of the holiday season in your creative strategies can strengthen consumer connection and drive purchasing behavior. As Bollenbacher puts it, “Keep it warm, fuzzy, and cheesy!”
• Hone in on Your First-party Data
  First-party data remains a vital brand asset, especially as third-party data faces increasing scrutiny and regulation. By leveraging first-party data, brands can gain deeper insights into consumer behaviors and optimize their marketing efforts. Retail media networks, which capitalize on this data, are gaining traction to support both retailers’ and brands’ growth objectives. This data-driven approach enables precise targeting and personalization, enhancing overall campaign effectiveness. During a session at AdMonsters Ops titled “Retail Media In-Housing: It’s the New Wave,” speakers stressed how crowded the retail media space has become. To stand out, one strategy for RMNs is to tap into direct mail, a far less crowded medium in RMN.
• Remain Flexible to Keep up With Consumer Habits
  To run effective holiday campaigns, it’s crucial to understand and align with consumer habits. Different industries follow unique seasonal patterns, so your marketing should reflect these trends. For example, gift-giving behaviors ramp up in early Q4 while sectors like home services decline — no one wants to start a home improvement project on Thanksgiving when everyone is focused on eating. Brands can optimize their campaigns by targeting consumers at the right times and revisiting CRM strategies to encourage multiple purchases during the holiday season, boosting lifetime value.
• Understanding Publisher Concerns
  Publishers are facing a host of challenges, with transparency and diversity in advertising being especially critical for niche publishers striving to stay afloat. Media quality verification remains is also a hot topic, with industry experts debating its effectiveness. At Publisher Forum Boston, Claire Atkin from Check My Ads highlighted these issues, calling for ongoing dialogue and efficiency improvements. In this challenging environment, publishers need strong strategies to maintain and strengthen their market positions.

A Worry-free Approach to Surviving Q4

Navigating holiday campaigns during an election year requires a multifaceted approach, balancing digital and traditional channels, and better leveraging first-party data, while understanding consumer habits. 

Brands and agencies must stay agile and prepare for fluctuating ad rates while optimizing strategies to cut through the political and holiday noise. Direct mail offers a stable, effective alternative, and personalized, emotionally resonant creative strategies can drive consumer engagement. Ultimately, a well-rounded, data-driven approach will empower brands to succeed even in the most challenging advertising landscapes.

Don’t sleep on the power of direct mail. To watch the full discussion click here.

The post Deck the Halls With Votes and Direct Mail: Mastering Holiday Campaigns in an Election Year 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.

As Google’s Android Privacy Sandbox gears up for its anticipated 2025 launch, mobile marketers need to stay ahead of the curve. Remerge, a leading Demand Side Platform (DSP), is at the forefront of this transition, collaborating  with Google and other ad tech partners, such as Verve, AppsFlyer, Adjust, and Singular, to ensure a seamless shift. Luckey Harpley, Staff Product Manager at Remerge, sheds light on what this means for the future of mobile marketing and how to navigate this new landscape.

Why Is Mobile Marketing Shifting to Privacy-First Advertising?

The rise of AI and sophisticated machine learning algorithms showcases the benefits of new technologies, but it also highlights the dangers of these advancements. People want more control over how big tech businesses manage their data. The advertising world is moving towards a privacy-centric future and marketers must adapt.

Apple made the first privacy move on mobile with the launch of its App Tracking Transparency (ATT) framework in 2021. Google’s answer is the Privacy Sandbox, a set of APIs to facilitate the selling, buying, and targeting of in-app ad placements, without requiring third-party cookies in Chrome or cross-app identifiers on Android. For Android, this will provide tracking and reporting via its Attribution API, targeting through Topics and Protected Audiences APIs, and data collection and handling via the SDK Run Time.

Why are DSPs Like Remerge Already Working on Solutions for the Android Privacy Sandbox?

It’s important to avoid a situation like the ATT rollout, where advertisers and publishers were left in the dark before its launch and struggled to understand how to run campaigns after it came into effect.

We want to ensure everything is ready for mobile marketers to run privacy-compliant advertising campaigns on Android without experiencing a drastic decline in performance. Android maintained its position as the leading mobile operating system worldwide in the first quarter of 2024, with a market share of 70.7% so this transitional period is crucial for the well-being of the mobile marketing ecosystem.

Does Google’s Decision to Keep Third-Party Cookies on Chrome Change Anything?

Google recently announced that they no longer plan to deprecate third-party cookies on Chrome and emphasized giving users the choice to opt-in to tracking. This update is unrelated to mobile. A similar approach is likely to happen on Android, where the GAID remains intact, and users can choose whether to share this with advertisers. In this scenario, nothing would change for mobile DSPs and their investment into Google’s APIs – the Android Privacy Sandbox would remain an essential framework for privacy-preserving advertising campaigns.

What Has Remerge Tested and Why Should Mobile Marketers Take Notice?

Remerge’s Research and Development team has been working on the Sandbox for over 1.5 years. They’ve focused on testing the Protected Audience API, which will allow advertisers to run retargeting campaigns on Android.

Tests have been completed with Mobile Measurement Partners (MMPs) like Adjust, AppsFlyer, and Singular. This includes developing a proof-of-concept for Custom Audience Delegation, a mechanism required for remarketing in Sandbox. This allows an MMP SDK to add users to custom audiences on behalf of advertisers based on their in-app behavior. Additionally, the first DSP/SSP on-device bidding test was conducted with Verve. These are small steps but important milestones for Sandbox testing, demonstrating that the Protected Audience API and custom audiences mechanisms are working as planned and validating product capabilities.

How Will a Mobile Marketing Manager’s Life Change When the Sandbox Rolls Out?

Advertisers won’t experience a considerable change in the buying process. At Remerge, marketers will continue to share their user data, desired campaign segmentation, and budget with the Account Management team as usual. Remerge will still be able to target users according to activity within an advertiser’s app and run creatives such as static and video. There’ll be no changes to CTR and CPX reporting, and for ROAS reporting, the data will likely have limited dimensionality, focusing on campaign and country-level reporting.

Google and its partners are doing the heavy lifting on the technical setup. Compared to ATT, the Android Privacy Sandbox is not only far more powerful with its targeting capabilities but also much more complex. This is a completely new tech stack with privacy-preserving mechanisms, and while we might see some performance dips initially, the long-term benefits are expected to be significant.

What About User Acquisition (UA) Campaigns?

While the focus has been on retargeting and the Protected Audience API, the Protected App Signals is supporting UA on Android. Although no industry players have made proposals on the Protected App Signals API yet, advertisers should reach out to their UA partners to discuss their plans.

What Can Mobile Marketers Do Right Now?

Advertisers should start finding a partner equipped to run mobile marketing campaigns on Android. Early adopters like Remerge, who have helped shape components of the Privacy Sandbox framework, will be well-positioned to hit the ground running when it launches.

The post What Should Mobile Marketers Know About the Android Privacy Sandbox Launch? appeared first on AdMonsters.

The streaming wars are  entering a new generation, marked by Paramount’s potential revival through Skydance and the emergence of unconventional social media entrants like LinkedIn, X (formerly Twitter), and TikTok. 

Increased merger and acquisition (M&A) activity is also shaping the advertising space as legacy media players adapt to shifting consumer preferences toward streaming. This transformation underscores the growing complexity of the media landscape and the necessity for advertisers to diversify their campaigns and reach their audiences effectively.

The revival of Paramount through Skydance exemplifies how traditional media companies are reinventing themselves to stay relevant in the streaming age. Skydance, known for its high-quality content and production capabilities, can potentially breathe new life into Paramount’s streaming offerings, attracting new subscribers and retaining existing ones. This move highlights the importance of content quality and brand recognition in the highly competitive streaming market. Here are other ways to approach the new generation of entrants while still ensuring effective reach and campaigns.

Programmatic and CTV Integration

At Dstillery, we have seen firsthand how brands and marketers are refreshing their strategies to navigate this evolving environment. Integrating Connected TV (CTV) into hands-on programmatic buying platforms and leveraging clean room data matching are key strategies that marketers and brands use to better understand the impacts of CTV advertising compared to standard linear television.

With its ability to deliver highly targeted ads to specific audiences, CTV is rapidly gaining traction among advertisers across all parts of the funnel and becoming a factor when looking at budgets. By using programmatic buying platforms and clean rooms to combine fragmented reporting from walled gardens, advertisers can better target the right audience and optimize budgets. Yet, this tactic is still in its early growth stages

Adopting AI Targeting and Measurement Technology

Adopting AI targeting and measurement technology is crucial. These advanced tools help media buyers understand and then find customers on the most relevant types of content, genres, networks, or categories. AI-driven insights can reveal patterns and trends in consumer behavior that might not be immediately apparent through traditional methods. 

For instance, an AI system can analyze vast amounts of data such as aggregated historical reporting or ACR data related to their campaigns to better understand and optimize against their desired KPI and audience. 

One of the critical aspects of effective targeting in  streaming is understanding how ID-based targeting translates into CTV delivery to better identify your audience. While cookies allow for a 1:1 relationship between an ID and a single browser for targeting, these cookies do not exist on other devices, and so must often be probabilistically matched to a household via an IP address. This means that while one person in a household may belong to a given audience, ads will be shown to everyone in that household. It is essential to consider this when selecting your audiences or using content-based optimizing features to better fine-tune your targeting.

The Streaming Players

The continuing growth of ad-supported tiers on leading streaming platforms and potential entries of social players like LinkedIn, X, and TikTok further intensifies the competition. These platforms bring unique strengths and audiences, challenging traditional media companies to innovate and adapt. 

LinkedIn, for instance, could leverage its professional network to offer niche content tailored to career development and industry insights, while TikTok’s short-form video format appeals to younger audiences looking for quick, engaging content. X’s vast user base and real-time engagement capabilities could position it as a formidable player in live-streaming events.

Increased M&A activity among legacy media players reflects their efforts to consolidate resources and expand their streaming capabilities. These media giants aim to enhance their content libraries, technological infrastructure, and market reach by acquiring or merging with other companies. This trend will likely continue as companies strive to stay competitive.

What Is in Store for Advertisers

These developments mean advertisers must navigate a more fragmented media environment. Diversifying campaigns across multiple platforms and formats is essential to reaching the best audiences. Advertisers must stay abreast of the latest trends and technologies to engage viewers and measure the impact of their efforts.

Overall, the new generation of streaming wars presents challenges and opportunities for advertisers. By starting to take CTV into your programmatic buying platforms, leveraging clean room data matching, and adopting AI targeting and measurement technology, advertisers can better navigate the fragmented media landscape and reach their desired audiences. 

Understanding the nuances of both ID-based and content-based targeting, as well as staying informed about industry trends will be crucial for success in this dynamic environment. As the streaming wars evolve, advertisers must remain agile and innovative to stay ahead of the competition.

The post Conquering the Streaming Wars: An Advertisers’ Guide to Reaching Audiences in  Fragmented Media  appeared first on AdMonsters.

Google recently announced changes to their plans to deprecate third-party cookies (3PCs) on their Chrome browser:

“…we are proposing an updated approach that elevates user choice. Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.” 

Emphasis added

Reading these proposed changes has led to many interpretations, including the headline “Google cancels plans to kill off cookies for advertisers.” My careful reading of this announcement leads me to another conclusion: while Google will not deprecate cookies, a workflow will be introduced that allows users to turn off cross-site tracking via 3PCs more easily, similar to Apple’s App Tracking Transparency. If this is the case, we may see an accelerated time frame where users may start to opt out of 3PCs sooner than the previously stated 3PC deprecation plans.  

The bottom line is that the advertising industry still needs to prepare for loss of addressability of some cohort of users via 3PCs. This will still be a massive shift that leaves brands wondering: What can we do today to ensure we’re prepared for the post-third-party cookie world? 

Collecting Zero- and First-Party Data 

Brands are likely already using both zero- and first-party data in some capacity for personalization and targeting purposes. Zero-party data is solicited directly from users and generally captured in the form of personally identifiable information (PPI) such as email, address, and phone number. Zero-party data can’t currently be onboarded to Google’s Protected Audience API (PAAPI) or other Privacy Sandbox solutions. Since one-to-one targeting is unavailable through PAAPI, zero-party data should be part of a broader, identification-based targeting strategy encompassing additional retargeting and personalization strategies. 

With first-party data–the data passively captured from site visitors– you can create interest groups within PAAPI. For instance, if a user visits a page for petite women’s jeans, they may be added to a “petite clothing” interest group, enabling brands and DSPs to identify and target these user segments in subsequent auctions. It’s important to note that the current segmentation will be the same for the API, as no changes are expected to be made that will impact the user experience. 

If it’s not a priority already, brands need to start collecting and storing zero-party data in customer relationship management (CRM) or customer data platform (CDP) systems.

Testing Emerging Tactics

The most prominent emerging solution is Google’s Privacy Sandbox, which aims to create a more private internet by reducing cross-app and cross-site tracking, including blocking covert tracking while keeping online content free.

This initiative includes Google phasing out 3PCs and creating new web standards to create technology that protects user privacy while still giving advertisers the tools needed to develop well-targeted campaigns.

While testing is underway, results from the initial trial involving 1% of Google Chrome users indicate that there is still a long journey ahead before completely phasing out 3PCs. 

Evaluating Alternative Identifiers

Deterministic IDs are created via authenticated registration events and rely on a user’s personal identifiable information (PII). Active efforts to collect zero-party data, especially email addresses, are essential because email addresses are the primary piece of PII that creates the most deterministic IDs.

With an email address and a deterministic ID, you can track a user’s first-party behavioral and interest data. For instance, if a user adds items to their cart but doesn’t complete the purchase, their activity syncs with your CRM. You can then automatically send an abandoned cart email or retarget them with relevant ads using a DSP that supports deterministic ID technology.

However, because deterministic IDs rely on PII, they’re expected to be limited in scale availability. Users must share their email information with publishers who sell advertising space on their website(s) or app(s). That said, deterministic IDs are often highly accurate because the information comes directly from users, which is where incentives can come into play.

Probabilistic IDs rely on multiple cross-channel signals to approximate user identity without collecting PII from zero-party data. They may use the IP address, screen resolution, device type, and operating system. 

Because probabilistic IDs are not reliant on PII, the data involved is much easier to collect and more widely available. Due to this approach, probabilistic IDs are often less accurate and have a lower persistence over time due to browser-readable signals.

 Key Questions to Assess Ad Providers’ Readiness  

While testing Privacy Sandbox APIs and alternative identifiers is limited by the current lack of market adoption and, in some cases, technical readiness, there are ways to gauge whether your current or future ad provider is prepared to help you navigate these tactics in a post-3PC world. To ensure your ad provider is ready to help you as 3PC addressability is lost, you can ask these questions:

•     Have you been involved in the W3C and the development of the Privacy Sandbox API specs?
•     To date, what level of testing have you done on the Privacy Sandbox APIs?
  • Which APIs have been tested?
•     How will a loss in 3PC impact your attribution reporting?
•     Which deterministic and/or probabilistic IDs do you support today and why?
  • Which do you plan to support in the future?
•     Which systems and functionalities are 3PC dependent?
  • How are you future-proofing these systems?
  • What systems will be drastically impacted or not future-proof?
•     What approach(es) will you take to future-proof your technology?

 Potential Red Flags When Choosing an Ad Provider

There are a few potential red flags you should watch out for when assessing ad providers, including, but not limited to: 

• They’re unfamiliar with the extent of Google’s shift away from 3PCs or dismiss concerns about the potential severity of impact.
• They don’t already have a plan to account for the loss of reachable audiences caused by Google’s shift away from 3PCs.
• Collecting and maintaining user privacy and consent aren’t core considerations in their strategies.
• They don’t have methods prepared to leverage first- and zero-party data for retargeting, interest-based targeting, or full-funnel campaigns.
• They can’t provide specifics about campaign attribution, performance tracking, and optimization.

While the future state of retargeting following Google’s shift away from 3PCs is still evolving, it’s unlikely that a single tactic will emerge as the solution. Instead, advertisers will need to leverage each of these tactics in concert to maximize the value of their retargeting efforts. 

The post Google’s New Cookie Plan: Empowering Users, Shaping Advertiser Strategies appeared first on AdMonsters.

The revolution in live-streaming sports is unfolding before our eyes, disrupting the broadcast and cable industry as new media giants, including Amazon, Netflix, and YouTube, enter the field. Sports organizations are finding themselves negotiating deals with lots of layers, where specific streamers get a certain night, like Amazon while free streaming is available on Twitch and aired on local broadcast stations. 

The stakes are incredibly high as everyone figures out the rules for live-streaming sports. The NBA’s rights are valued at $75 billion over 12 years, and the NFL’s rights are worth upwards of $110 billion. The current court case against the NFL won’t just affect NFL franchise revenue, but the entire advertising and streaming ecosystem, which relies heavily on these extremely popular mass live events. 

With all of this upheaval and complexity, it seems logical for advertising to follow the same path — with digitization, fragmentation, targeting, and more. But that’s actually the opposite of what’s going to happen. Live sports events on streaming channels actually work very much like linear broadcast sports events, and both streamers and advertisers need to understand why the industry will succeed.

Streaming Can’t Change Live Sports

Streaming sports has hit a tipping point — 53% of adults stream sports at least once per month, and it now accounts for 30% of all streaming views in the US. For multi-channel media companies like NBC, striking a balance on live sports is critical to ensure they aren’t out-maneuvered by a native digital competitor.

Tech giants like Amazon, Google, Apple, and Netflix have the resources to dominate streaming sports. Unlike traditional broadcasters, they lack legacy relationships and dependencies, allowing them to operate more flexibly. Without the constraints of politics, multiplatform contracts, and outdated technology, these companies can leapfrog traditional broadcasters.

However, streaming might be upending most things about watching TV, but a lot about live sports looks a lot like linear. People can binge-watch shows, watch new movies in their living room, and access content from around the world, but sports are resistant to a lot of these elements.

The excitement of the game happening live doesn’t change much just because it’s streamed instead of broadcast — few people time shift an important game. Sure, some people might discover they love Canadian curling or Indian cricket on streaming, but most people are going to root for the same local teams that they always have, streaming or broadcast. The big games like NBA finals, the Super Bowl, and the World Series will draw huge audiences all watching at the same time.  

Premium Content Demands Premium Prices

The mass live appeal of sports means that the digital, often programmatic advertising that digital companies know and love isn’t as relevant. Amazon might have an advantage of cash and streaming technology, but their advertising savvy doesn’t come into play. It doesn’t make sense to allow a performance-oriented advertiser to bid on individual impressions during an NBA game when a brand-oriented advertiser is willing to pay premium CPMs for an entire audience – maybe even several national ad slots during a single game. 

Live sports advertising makes media companies the most money when they stick to old-school ratings-based metrics and price-based on branding at scale, not precision targeting. This means that any streaming sports rights-holder is still going to consider the UpFronts important. They’re going to want some direct premium ad sales executives. And, they’re going to need to be able to program advertising directly coded into the content, not dynamically serve it to individual households through a big complex supply chain.

The Trickle-Down Effect to All Streamed Sports

By leading with brand awareness and following with addressability on major sports events, streaming platforms create a valuable ecosystem, avoiding the race to the bottom seen in programmatic advertising. 

However, betting solely on brand advertising carrying streaming sports at the long tail is risky. The math of sports broadcasting shows that larger audiences generate greater revenue, but not every game attracts millions of fans. Mid-season baseball games for a mediocre team, college basketball, hockey, and many other popular but smaller sports streams can and should deliver a hybrid of premium brand advertising and targeted advertising. 

As all of these details get worked out, the future of live sports streaming will remain complex. Half of American households still have cable. Sports rights holders need licensing deals that cater to both groups and offer flexibility for a variety of ad-sales strategies. Converged media planning across platforms will be essential. Convergence means different things for buyers and sellers, with varying performance KPIs. Success with converged platforms requires unified sales, delivery, performance metrics, and reporting. 

Streaming will continue to grow in importance, but it won’t lead to an all-programmatic world. The ad market will resemble network TV more than walled gardens, with mergers and acquisitions likely shaping the future landscape as linear slowly fades out and streaming evolves. The convergence of live streaming and traditional advertising will define the next era of sports broadcasting.

The post Live Streaming Takes Brand Advertising Full Circle appeared first on AdMonsters.

When it comes to ad tech, Jack Smith is no stranger to innovation. With over 25 years of experience and seven patents in AI and machine learning, DoubleVerify’s Chief Innovation Officer knows a thing or two about navigating the digital wild west. In DoubleVerify’s latest Global Insights Report, they uncovered a nearly 20% surge in MFA sites, fueled by the rapid rise of AI-generated content.

The report reveals that MFA impression volume increased by 19% in 2023, with a staggering 73% jump in “Low-tier” MFA impressions. These sites, which blend MFA and non-MFA characteristics, are reshaping the internet faster than a Netflix show drops spoilers.

Using advanced AI technology, DoubleVerify analyzed over three dozen “High-tier” MFA websites, finding numerous instances of likely AI-written content, including examples like HeroInvesting’s Clint Eastwood aging article and Noteabley’s Best Steakhouses list. These sites often bombard users with ads, making the user experience as pleasant as navigating through a maze of pop-up ads in the early 2000s.

In this Q&A, Smith breaks down the complexities of distinguishing high-quality AI content from the low-tier junk flooding the internet. We dive into DoubleVerify’s sophisticated blend of AI and human review and explore how advertisers can protect their investments amid the explosion of MFA sites.

Join us as this ad tech luminary shares his insights and strategies for staying ahead in the ever-evolving world of AI-driven ad tech. Whether you’re an advertiser looking to make the most of your budget or a publisher striving to maintain quality, this conversation is packed with valuable takeaways.

Lynne d Johnson: Your report touches on the surge in MFA sites. However, the digital landscape often sees legitimate sites misclassified as MFAs due to their ad strategies or content distribution tactics. Can you explain DoubleVerify’s criteria for distinguishing true MFA sites from legitimate content sites that might superficially appear similar due to high ad-to-content ratios or aggressive monetization strategies?

Jack Smith: This is a great point, and thank you for raising it. When it comes to MFA content, we believe nuance and surgical categorization — not blunt, one-size-fits-all lists — are key to safeguarding advertiser investments and supporting quality publishers and, more broadly, the open internet.

We were the first verification vendor to really define MFA content in an effort to create a common yardstick from which to evaluate. While we have a clear overall definition — DV defines MFA sites as those whose sole purpose is to deliver advertisements — our definition also considers nuance. MFA sites can be identified by analyzing several factors across their ad monetization activities, ad traffic sources, and approach to content creation. That combination of criteria needs to be robust to properly distinguish content in a way that’s fair and equitable for content creators. 

With that in mind, DV’s approach allows for the deepest and most nuanced level of analysis, preventing miscategorization and false positives. For example, a website may feature a significant number of ads while still registering high rates of direct and search-enabled traffic. In this instance, the publisher would not meet our definition of MFA. For sites we do classify as MFA, we have a tiered system of high (more egregious examples), medium, and low. Advertisers can then make decisions on the tiers and how they best fit or don’t fit into their campaigns. For DV to classify a site as MFA, it really needs to consistently show high signs of arbitrage both in terms of heavy reliance on paid traffic and arbitrage traffic.

For DV to classify a site as MFA, it really needs to consistently show high signs of arbitrage both in terms of heavy reliance on paid traffic and arbitrage traffic.

Also, just as an inclusion or exclusion list-only approach doesn’t allow for nuance in categorization, we don’t solely rely on AI for classifying content. Algorithms can be biased just like people and are not infallible. To ensure protection and support publisher monetization, we blend AI with expert human review to help ensure that sites that don’t ultimately qualify as MFA content, including those owned by underrepresented groups or news publishers, are not incorrectly flagged. We also regularly audit our categorization criteria, which is critical as the space evolves quickly.  

As a result, publishers have embraced and supported our MFA solution. We also developed it with feedback from the community to ensure responsible and thoughtful categorization.

LdJ: With the report highlighting a 19% increase in MFA sites largely driven by AI-generated content, how does DoubleVerify differentiate between low-quality AI-generated content and high-quality AI content that might also be prolific in ad placements? Are there specific markers or technology you use to make this distinction clear?

JS: AI-generated content is an interesting topic because there is often a rush to judgment. Just as many rush to say all MFA content is fraudulent or bad, we’ve seen the same about AI content. Ultimately, AI-supported content can range from high to low quality. We’ve seen trusted publishers in the financial space, for example, rely on AI for quality reporting for years. AI can be an additive tool for quality journalism. 

At DV, for these reasons, we don’t automatically or bluntly label AI content as “bad.” However, we do believe it’s problematic when AI is used to create low-quality content at scale, while coupling that with a heavy reliance on paid and arbitrage traffic to take in ad dollars that would otherwise go to quality publishers. For instance, DV has found some sites that publish in excess of 1,000 pieces of content per day, powered by AI. That level of output usually comes at a cost to quality. We factor these considerations into our evaluations of MFA and quality more broadly.

As new Gen AI tools have emerged, tracking AI content can be a difficult task given its growing volume. To help us with this process, we built our own proprietary AI to detect and analyze replicated and AI-generated content across the web. In doing so, we also gain so much more data and signals to help better understand the use of AI in MFAs, but also fraud and other areas.

LdJ: Given the significant growth in ‘Low-tier’ MFA impressions, could you elaborate on the real-world impact this surge has on publishers and advertisers? How do these ‘Low-tier’ MFA sites specifically dilute the efficacy of digital advertising campaigns, and what measures can advertisers take to safeguard their interests?

JS: The growth of low-tier MFAs really speaks to the earlier topic you raised about nuance and categorization. What we classify as “low-tier” covers sites or sections with a blend of MFA and non-MFA content — for example, sites where only a section or a subdomain exhibits MFA content or characteristics. These publishers make up the highest percentage of MFA publishers, which highlights the need to have different tiers so they can be treated differently. 

Ultimately, we classify, and it is up to the advertiser to determine if MFA inventory aligns with their own performance outcomes and is suitable for their brand. However, by having this nuanced categorization, brands have the freedom and tools to decide if and to what extent they want their ads to be served on MFA sites.

LdJ: As AI technology evolves, so too do the strategies for generating and monetizing content on MFA sites. What are DoubleVerify’s plans for staying ahead in this technological arms race, particularly in terms of improving detection mechanisms and helping advertisers avoid these pitfalls?

JS: We heavily invest in R&D at DV, more than any other verification provider, and most other technology companies in our space. This emphasis on innovation has given us a substantial lead in the market, providing an edge over tech advancements that may negatively impact advertiser investments and transparency. This strategic focus ensures we anticipate future developments and adapt quickly.

Beyond the tech, the arms race in AI isn’t just about countering the technology itself — it’s also about aligning with a brand’s preferences for how advertising is incorporated into an environment. Effective policy plays a critical role in maintaining this alignment, ensuring that our solutions continually meet the evolving needs of advertisers.

LdJ: With the proliferation of MFA sites and AI-generated content, what are the broader ethical implications for the digital ecosystem? How does DoubleVerify envision the future of online content quality, and what role do you believe regulatory bodies should play in curbing the growth of low-quality, ad-centric platforms?

JS: This is a great question. AI-generated content is already subject to some regulation, and it’s inevitable that more regulations will emerge. As the technology improves, the regulatory landscape is likely to evolve and expand, which we support to help ensure the safety of the Internet.

Interestingly, these regulations often focus on end-consumer protection and enhancing transparency rather than directly curbing the creation of the content. This means that AI-generated content will continue to proliferate within the digital ecosystem. Even if it’s labeled transparently due to new rules or standards implemented by large tech companies, we, at DV, need to help advertisers navigate this growth. Our role is to support their ability to advertise safely and effectively alongside and around this content, but really any content, whether AI-created or not.

__

Jack is responsible for ensuring alignment between DV’s commercial and product organizations. He manages senior level product relationships with key customers, identifies new client-driven product opportunities and supports sales efforts. Prior to joining DV, Jack served as Global Chief Product Officer, Investment at Group M, where he developed products and platforms that empowered teams to make better decisions about where to invest over $80 billion of media spend. Previously, Jack co-founded the machine learning company Solariat, which was acquired by Genesys. He brings over 25 years of experience in executive strategy, technology, client and market insight to his role as Chief Innovation Officer. Jack holds seven patents in AI and machine learning for signal detection in natural language and the prediction of consumer media consumption.

The post The Rise of AI-Driven MFA Content: Insights from DoubleVerify’s Global Report appeared first on AdMonsters.

Reaching the right audience at the right moment is critical to business success. However, if the company’s budget is limited, this is not easy. Modern technologies, such as programmatic buying, may come to the rescue, allowing small and medium enterprises to advertise cost-efficiently and reach their marketing goals faster.

Why Programmatic (and What’s That, Really)?

Traditional advertising was mainly manual: it required finding a website where you’d like to place your banners and communicating with its owners. It was a time-consuming and suboptimal solution, plus often, it was expensive. Today, there’s a modern alternative called programmatic advertising. The word “programmatic” refers to how it operates: instead of people, the algorithms buy and sell ad space.

But it’s not just automation that makes programmatic so enticing – it’s also relevance. This technology can ensure your ads will be seen by the right audience in the right context. For instance, you’ve seen programmatic ads when shopping on Amazon. This company shows customized ads to visitors based on their purchasing and browsing history. 

Programmatic advertising revolutionizes the industry, making it easier for global companies and small and medium businesses to access large target groups.

Let’s look at some data to prove this point. According to Statista, in 2023, global spending on programmatic advertising reached $558 billion. By 2026, this number will likely grow to $700 billion. Also, the share of programmatic advertising in digital spending worldwide has increased since 2020. In 2020, it constituted 77.04%, in 2023 – 81.06%, and in 2029, it’s projected to reach 84.92%.

In 2021, 45% of small business respondents in the USA said they paid for digital advertising. They spent $534 monthly on average, and 93% of small companies planned to increase this amount.

So, programmatic advertising is undoubtedly the future. And it’s worth delving deeper into the subject. 

A Closer Look at Programmatic Advertising and Its Benefits 

Basically, the programmatic advertising process looks like this:

• A company creates an ad campaign, describes the audience (demographics, location, etc.), and decides on a budget.
• The ad is downloaded to the programmatic exchange via a dedicated platform. The exchange conducts auctions for ad space: who’s willing to pay more for showing their ad wins.
• A user visits a website participating in the exchange and sees the winning ad. 

Companies can use various types of programmatic ads, such as video ads, audio ads, and out-of-home (OOH) ads on billboards and displays. Today, video format is the most popular option, although OOH usage is growing in retail and other industries.

Every business, regardless of size, can experience the advantages of programmatic buying. But what are the benefits, exactly?

1. Cost-Effectiveness – Programmatic buying allows SMEs to control their budget and spend exactly as much as they are ready. Moreover, you can always be sure your ad will reach the right audience, so your money won’t go to waste. Companies often spend a significant share of their marketing budgets on traditional ads, like in magazines or on TV. Sure, many people will see this campaign, but how many belong to your target audience? With programmatic buying, every time your ad is displayed, counts.

According to Google News Initiative, direct ads cost two to four times more than programmatic ads. The numbers are $10-20 per thousand impressions for direct ads and $1-5 for programmatic ads.

For example, capturing the right audience’s attention was challenging for the Canadian clinic Whistler Medical Aesthetics. They tried traditional advertising channels like radio and magazine ads but weren’t satisfied with the cost-efficiency ratio. The company wanted to attract new customers, but the conversion rates were low. 

Eventually, with the help of consultants, they changed the strategy and focused on several types of programmatic ads. After the first month, traffic to their website grew by 60%. The clinic spent 50% less but got 25% more in return.

2. Advanced Targeting – Programmatic buying helps small and medium businesses identify and reach the right target groups, which is challenging with traditional advertising. The secret behind it is the approach’s core: focus on the audience, not the website. After all, for a company, it doesn’t really matter where the potential customer sees its ad. What matters more is what happens next. The programmatic approach suggests delegating the choice of websites to algorithms. 

So, to run an efficient campaign, a company needs to target the audience appropriately. It can choose among multiple targeting options and combine several in one campaign. The most popular criteria are demographics, interests, and online behavior. The better you describe the audience, the higher the engagement and conversion rates.

For example, a non-profit organization, The Amanda Foundation, wanted to speed up the process of adopting homeless cats and dogs. They decided to try programmatic advertising to reach people interested in hosting pets. Advanced targeting helped the organization identify the right audience and create a profile for potential pet owners. For instance, young people prefer more active dogs, while older people would likely adopt a calmer animal. The campaign’s results exceeded expectations: all the pets found new homes.

3. Real-Time Optimization – Programmatic campaigns are more flexible than traditional advertising. Moreover, the ad’s performance is measured in real-time, and the campaign can be adjusted on the go to get better results. Data on total views, conversions, impressions, etc., is recorded all the time while the campaign is running.

Here are the mechanisms enabling real-time optimization:

• Bid adjustments allow changing the frequency of ad showings depending on the device, location, time of day, etc. There’s also an option to adjust bids based on performance metrics. This helps a company maximize its return on investment in advertising.
• Ad placement optimization. Programmatic buying allows placing ads in the best possible location on the web pages and changing it if performance metrics aren’t good enough.
• Audience retargeting. Programmatic advertising aims to increase conversion rates. Hence, it can reach people who have already interacted with a company. It helps to engage non-customers and offer something new to existing clients.

4. Flexible budgeting – Programmatic advertising allows companies to set a spending limit, and they can decide whether it will be per day or for the whole campaign. Small and medium businesses often can’t afford pricey advertising, so it’s crucial to keep the budget under control. Luckily, programmatic buying helps prevent overspending.

As you can see, the benefits of programmatic advertising are convincing. Now, let’s determine how to achieve the best results using this technology.

Better Targeting for Better Outcomes

Programmatic buying isn’t a magic wand. Companies still need to do their homework to make it work, i.e., get to know their customers. With demographics, it’s not hard; you just need to analyze the data you already have. But if you aim for advanced targeting, you’ll have to discover more: what are your customers’ interests? What do they do in their spare time? What do they value the most? Consider conducting an online survey or interviewing your customers to collect this data.

The more you know about your audience, the more targeting options you can use. Among them:

• Behavioral Targeting – This option focuses on customers’ online activity, such as visited websites, cart abandonments, purchases, etc. A simple example is ads with a particular product you start seeing after visiting an online store and looking at similar products. If implemented correctly, behavioral targeting helps companies increase sales and conversion rates. For example, the children’s clothes brand Sunuva couldn’t afford a big sales team but needed a sales boost. Behavioral targeting was the answer: the company focused on cart abandonments and offered visitors relevant product recommendations. It helped increase turnover by 8.9% since the first day.

• Contextual Targeting – This option allows ads with relevant content to be placed on websites. For example, watching an interview with a famous athlete on YouTube and seeing the ad for a brand-new sneakers model results from contextual targeting. Marketers discovered that such advertising increases conversion (and irritates the audience less). Some more examples are knife ads on the website with recipes and sports equipment ads next to the article about the exercise routine.

• Geotargeting –  is a location-based option. Simply put, you reach customers in a certain geographical location and show them your ad. For instance, a restaurant may target people within a 3-block radius. Another popular tactic is to target customers in locations (country, state, city, ZIP code, etc.) that have already shown high conversions. For example, the cider maker Marners launched a campaign in four UK cities to sell tickets to its sponsored events. The company chose the locations where, according to the data, people were the most likely to buy tickets spontaneously. The campaign was a huge success: not only were all the tickets sold, but people also ended up on a waiting list.

For small and medium companies, a wise ad placement strategy requires considering relevance, time, and exposure. This is when targeting options come into play. Any business can choose one of them or combine a few to ensure the best possible result.

Managing Campaigns with Programmatic Platforms

Modern programmatic platforms offer small and medium companies practical solutions to manage their ad creatives effectively. For instance, businesses can:

• Customize Their Digital Ads – If a company has done its homework, it knows much about target groups. So, it can customize ads for different customer segments and channels. After all, the “one fits all” approach rarely works; you often need more than one creative option.

• Conduct A/B Testing – A company can test two or more different ad creative options and compare the results. For example, a clothing store can experiment with different images and offers, monitor their performance and draw conclusions. This helps make more informed decisions, reach the right audience with the right message, and, eventually, save money.An impressive example here is Lacoste. A designer brand decided to boost its summer sales in France, the UK, and Germany and turned to programmatic advertising. First, they conducted audience analysis and defined customer profiles. Then, they harnessed the power of A/B testing: they ran various versions of creatives, adjusted them, and tested new ads. The process continued until the company reached the best results. The campaign resulted in 19,749,380 impressions and 2,290 new sales.Sure, small and medium companies’ budgets are much more humble than Lacoste’s, but they still can analyze data and experiment with A/B testing.

• Use Dynamic Creative Optimization –  Since the programmatic approach includes permanent performance tracking and users’ behavior, it allows companies to adjust creatives, such as images and messages, in real time to ensure their ads are as relevant as possible for viewers. How does it work? A company must create a flexible template with elements that may change, such as calls to action (CTAs), images, etc. Then, track the metrics of each option, if necessary, eliminate inefficient versions, and add new ones.

Creatives play a vital role in engaging customers and increasing conversions. So, one of the company’s primary tasks is to ensure they deliver the message to the right audience in the best possible way. 

Customer segmentation is essential to achieving outstanding results. Dynamic creative optimization will be the most efficient if you’ve identified critical segments of potential clients. You can divide them by demographics, interests, or online behavior. Later, it will help you connect to each segment with the most relevant version of the ad. 

Last but not least, programmatic platforms measure ad performance and create sophisticated reports that companies can use to improve their decisions. The typical set of metrics includes clicks, impressions, conversions, and return on ad spend (ROAS). This data is enough to evaluate the campaign results and compare your expectations with reality.

Today, programmatic buying is changing the market rules. With its cost efficiency, budget allocation flexibility, advanced targeting, and real-time optimization features, small and medium businesses can achieve the success they could only dream about, reach a wide new audience, and learn much more about existing clients. So, why not try it as part of your marketing strategy?

The post Smarter Advertising: How Small and Medium Businesses Can Harness the Potential of Programmatic Buying appeared first on AdMonsters.