Jessica Potter - Freestar

ICYMI: Ad Tech Edition | Week of March 25th, 2024

Jessica Potter — Fri, 29 Mar 2024 20:34:29 +0000

Bits and Bobs from around the industry:

Media buyers don’t want to pay extra for publishers’ first-party data

Amidst the transition away from third-party cookies, media buyers are cautious about the premiums associated with first-party data and contextual targeting offered by publishers. While some publishers are seeking premiums of around $2, buyers are hesitant due to concerns about overspending on data versus media. Holly Dunn from Havas emphasizes the importance of scrutinizing data privacy and costs. Publishers like Epsilon advocate for value-focused pricing strategies.

However, not all publishers have seen significant increases in CPMs. Buyers are now asking about first-party data earlier in the sales process, but they seek tangible performance improvements before investing heavily in premiums. The future of CPMs depends on evolving cookie alternatives and data accessibility, with winners likely offering high-quality, portable data without restrictive spending requirements.

A Pubmatic Server Anomaly, $1 Billion CPMs, and a Complicated Programmatic Ecosystem

Pubmatic’s $1 billion ad auction glitch, though quickly rectified, reverberated through the programmatic advertising landscape, prompting a deeper examination of its underlying complexities and vulnerabilities. This brief yet impactful server anomaly shed light on the intricate interplay of factors within the programmatic supply chain. While no tangible financial losses occurred, the incident served as a wake-up call for industry stakeholders, highlighting the potential for disruption within an ecosystem reliant on seamless digital transactions.

Experts emphasize the imperative of enhanced collaboration and transparency among players to fortify defenses against future anomalies and ensure the integrity of ad transactions. Moreover, the episode underscores broader concerns regarding power dynamics, intermediary proliferation, and the hegemony of walled garden platforms, prompting calls for more robust regulatory frameworks to safeguard the interests of all parties involved in the programmatic ad ecosystem.

As discussions continue, industry veterans advocate for a concerted effort to address systemic vulnerabilities and establish clearer guidelines to foster fairness, resilience, and trust in the digital advertising sphere.

Sins Of The Cookie: How Third-Party Cookies Set The Industry Back

The third-party cookie, now phased out by Google Chrome, has left a mixed legacy in digital advertising. While it facilitated the growth of programmatic advertising, its shortcomings were significant. Advertisers abused its targeting capabilities, leading to plummeting CPMs, content arbitrage, and misleading attribution practices. Shady data vendors proliferated, offering questionable data quality and privacy violations. Measurement became skewed, relying on flawed attribution models and inflated conversions.

Moving forward, the industry must embrace alternative solutions:

1. Identity Solutions: Probabilistic and authenticated traffic solutions can enhance addressability and attribution.

2. Publisher First-Party Data: Leveraging publisher data for segmentation, particularly in understanding consumer intent, can provide valuable context for advertisers.

3. Advertiser Data Enrichment: Brands can leverage their own data infrastructure to better understand audiences, utilizing identity solutions and co-mingling with publisher data.

4. Retail Media: Collaborating with retailers allows brands to measure advertising impact on actual sales, providing valuable insights into campaign performance.

5. AI-Powered Targeting: Independent AI-driven platforms offer sophisticated targeting algorithms, strengthened by experience and partnership with publishers.

As the industry navigates the post-cookie era, embracing diverse data strategies and innovative technologies can lead to a more sustainable and effective advertising landscape, prioritizing quality, context, and consumer privacy over the limitations of the past.

The post ICYMI: Ad Tech Edition | Week of March 25th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of March 18th, 2024

Jessica Potter — Fri, 22 Mar 2024 21:41:20 +0000

Bits and Bobs from around the industry:

How Disney Juggles Direct Supply Paths Without Disintermediating SSPs

Disney continues its journey toward automating ad sales with the launch of DRAX Direct, an extension of its real-time ad exchange. This new platform offers advertisers direct access to inventory on Disney+ and Hulu via integrations with The Trade Desk and Google’s DV360. The initiative aims to provide advertisers with increased transparency into available inventory and audience demographics, potentially resulting in higher match rates and better-deduplicated reach.

While Disney maintains partnerships with SSPs like Magnite, DRAX Direct offers advertisers an additional avenue to access inventory, catering to diverse preferences in ad buying. With partnerships extending to over 30 DSPs, including smaller players, Disney seeks to offer advertisers flexibility and efficiency in campaign execution across various platforms and budgets.

Google’s new Sandbox advertising system could be ‘the end for a lot of publishers

As Google prepares to phase out third-party tracking cookies from its Chrome browser, stakeholders closely scrutinize its proposed alternative, the “Privacy Sandbox” ad system, amidst concerns and critiques from publishers, advertisers, and regulatory bodies like the UK Competition & Markets Authority (CMA). The system, developed under legally binding commitments to prevent abuse of Google’s dominant market position, faces skepticism over its effectiveness and fairness. Of particular concern is the Sandbox’s Topics system, which critics argue lacks flexibility and may consolidate Google’s control over ad targeting.

This scrutiny underscores broader anxieties about the future of digital advertising and the balance of power within the ecosystem. Despite Google’s efforts to address these concerns and promote Sandbox as a voluntary framework, doubts persist regarding its potential impact on publisher revenue, data dynamics, and overall market competitiveness. As the digital advertising landscape undergoes significant shifts, stakeholders remain vigilant, advocating for transparency, fairness, and innovation in ad tech solutions.

HOW TO MAKE FIRST-PARTY DATA WORK FOR YOUR BRAND

The Digital Markets Act (DMA), enacted by the European Union today, imposes stringent regulations on six tech giants—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft—targeting their core platform services (CPS). The DMA aims to disrupt the dominance of Big Tech by introducing measures like banning self-preferencing and mandating data interoperability. While some companies contest their designations, others brace for compliance adjustments. The DMA’s objective is to foster competition and innovation by curbing unfair practices, but its effectiveness depends on user adoption of alternative services. Despite pushback from tech giants, the EU is poised to enforce DMA provisions swiftly, signaling a significant paradigm shift in digital regulation.

The post ICYMI: Ad Tech Edition | Week of March 18th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of March 11th, 2024

Jessica Potter — Fri, 15 Mar 2024 20:10:15 +0000

Bits and Bobs from around the industry:

Adalytics Report Torches Ad Tech For Touting MFA Prevention While Scarfing MFA Supply

Ad tech vendors have been vocal about their efforts to combat made-for-advertising (MFA) sites, but a recent report from Adalytics casts doubt on the efficacy of these measures. Despite claims from SSPs and media companies about blocking MFA, the supply chain remains inundated with low-quality inventory. This reveals a systemic issue within the programmatic advertising ecosystem rather than isolated failures of individual companies. While some SSPs have attempted to eliminate MFA, they face challenges as their reach diminishes and CPMs rise without incentivization from the buy side.

Similarly, DSPs continue to serve ads on MFA sites to meet client demands for broader reach and lower costs. Adalytics, renowned for its transparency reports, conducted its analysis using open-source data sets, exposing the prevalence of MFA through the observation of ads served to fake online identities. Major players like Google, Amazon, and Microsoft are called out for their contribution to MFA supply, each employing unique methods that perpetuate the problem. Despite efforts to mitigate MFA, many SSPs and DSPs persist in serving ads on low-quality sites due to incentive structures and the human element. This indicates a broader issue within the industry, where conflicting incentives and a lack of ongoing maintenance perpetuate the proliferation of MFA, undermining the effectiveness of ad tech efforts to combat it.

With AI looming as a threat to news sites, publishers push back

The digital news media landscape has experienced considerable turbulence this year, marked by the closure of publications, widespread layoffs, and the emergence of Generative AI (GenAI) as both a potential threat and a source of innovation for journalists. Amidst these challenges, Google’s decision to phase out third-party cookies from its Chrome browser has sent ripples through the industry, raising concerns about the future of ad revenue for news publishers. This shift has been accompanied by observations of declining search quality, with original content often buried under aggregated links.

However, amidst these disruptions, there are glimmers of hope and resilience. Some publishers are adapting to the changing environment by exploring new avenues for revenue generation and reader engagement. The demise of third-party cookies presents an opportunity for digital publishers to forge more direct relationships with their audience through authentication mechanisms. By requiring readers to log in or sign up for newsletters, publishers can not only authenticate users but also gain valuable insights into their audience demographics and preferences. This shift towards authentication represents a step towards a more transparent and sustainable model for digital journalism.

One example of this proactive approach is exemplified by 404 Media, an independent news publication founded by a group of tech journalists. Recognizing the threat posed by AI-generated content, particularly the unauthorized replication of their articles on other websites, 404 Media implemented authentication measures to safeguard their original reporting. This move not only helps protect the integrity of their journalism but also underscores their commitment to transparency and reader trust.

Similarly, other journalist-owned digital media brands, such as Aftermath, have embraced authentication as a means of strengthening their bond with readers. By encouraging users to log in, these publications foster a sense of community and accountability, reassuring readers that the content they consume is authored by human journalists rather than generated by algorithms.

While authentication offers a promising short-term solution to combat AI-generated content, industry experts emphasize the need for broader, long-term strategies to address the evolving challenges facing digital journalism. James Rosewell, co-founder of the Movement for an Open Web, suggests that larger news publishers can play a pivotal role in negotiating with AI companies to develop technical and legal standards. Additionally, engagement with lawmakers to ensure adequate regulation of AI in the digital market is crucial to safeguarding journalistic integrity.

With the digital news media landscape continuing to face disruptions and uncertainties, there are opportunities for innovation and adaptation. By prioritizing reader engagement, transparency, and collaboration, publishers can navigate the complexities of the evolving digital landscape while upholding the principles of quality journalism.

Europe’s DMA rules for Big Tech explained

The post ICYMI: Ad Tech Edition | Week of March 11th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of March 4th, 2024

Jessica Potter — Fri, 08 Mar 2024 22:12:55 +0000

Bits and Bobs from around the industry:

Privacy Sandbox’s Latency Issues Will Cost Publishers

The advertising industry faces challenges in testing Google’s Privacy Sandbox for Chrome’s cookie deprecation. The IAB Tech Lab’s Privacy Sandbox Task Force found issues in its case study analysis, and Mediavine’s testing indicates that the Privacy Sandbox’s Protected Audiences API (PAAPI) causes increased latency, reducing viewability and yield. PAAPI results in an average 1500 milliseconds of additional latency, impacting viewability rates, with Google recommending a sequential auction approach that substantially increases latency. Publishers argue for more controls and reporting capabilities within the Privacy Sandbox to address these issues and continue testing effectively. Recommendations for the industry include active testing, sharing results, persistence in testing, and preparing for potential delays in privacy-centric programmatic advertising development. Despite challenges, the industry is encouraged to view the cookie deprecation as an opportunity for improved advertising experiences through rigorous testing.

Microsoft Embraces Google’s Privacy Approach for Advertising

Microsoft has announced its “preliminary support” for Google’s Privacy Sandbox standards, indicating a collaborative effort between the two tech giants to enhance privacy in digital advertising. Microsoft Advertising will integrate these rules into its products to ensure effective ad delivery while prioritizing user privacy. Microsoft had previously developed a similar concept called Parakeet, which has evolved into the Ad Selection API. This tool, incorporated into Microsoft’s Edge browser, enables advertisers to display relevant ads without relying on cookies for user tracking, emphasizing privacy without compromising ad effectiveness. The move signifies Microsoft’s commitment to privacy in online advertising and a willingness to collaborate with Google for industry improvement.

What web creators should know about our March 2024 core update and new spam policies

Google’s March 2024 core update is a comprehensive one, involving changes to multiple core systems and marking an evolution in how the platform identifies the helpfulness of content. The update aims to display more useful results and reduce content created solely to attract clicks. Google has enhanced its core ranking systems, utilizing various innovative signals and approaches, moving away from a reliance on a single signal or system. The rollout of this complex update may take up to a month, with anticipated fluctuations in rankings.

In addition to the core update, Google has introduced new spam policies targeting practices that can negatively impact search results. The three new spam policies address expired domain abuse, scaled content abuse, and site reputation abuse. Violating these policies may result in lower rankings or removal from search results. The March 2024 spam update is launched alongside these policies.

1. Expired Domain Abuse: This occurs when an expired domain name is purchased and repurposed primarily to manipulate search rankings. The goal is to leverage the domain’s past reputation for higher search visibility, even if the new content provides little to no value to users. Google clarifies that using an old domain name for a new, original site designed to serve users is acceptable.

2. Scaled Content Abuse: This involves generating many pages for the primary purpose of manipulating search rankings without providing value to users. It covers the creation of large amounts of unoriginal content, regardless of whether it’s produced through automation, human efforts, or a combination of both. Google aims to take action against scaled content abuse to maintain search result quality.

3. Site Reputation Abuse: This occurs when third-party pages are published with little or no first-party oversight or involvement, intending to manipulate search rankings by exploiting the first-party site’s ranking signals. Google’s new policy does not consider all third-party content as a violation, focusing only on content hosted without close oversight and designed to manipulate search rankings.

To give site owners time to prepare for the changes, the site reputation abuse policy will take effect starting May 5, 2024. Google encourages content creators to review all spam policies and avoid engaging in such practices. The company aims to prioritize helpful content creators in search results over those engaging in spammy practices. The rollout progress and updates can be tracked on Google’s Search Status Dashboard, and feedback can be submitted after the update concludes.

The post ICYMI: Ad Tech Edition | Week of March 4th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of February26th, 2024

Jessica Potter — Fri, 01 Mar 2024 19:48:26 +0000

Bits and Bobs from around the industry:

Magnite’s CTV Spend Swelled By 20% In 2023

Magnite’s revenue breakdown reveals the increasing significance of connected TV (CTV) for the company, representing almost 40% of its business in Q4 2022. While CTV’s share of revenue grew, the actual revenue from CTV was down 2% YoY in Q4. However, Magnite’s DV+ business, covering various ad formats except CTV, performed well with an 11% YoY increase in revenue. Despite the decline in CTV revenue, the company generated $187 million in Q4, a 7% YoY increase.

The CEO credited Magnite’s strong CTV performance to partnerships with major players like Roku, Warner Bros. Discovery, Paramount, Disney, Samsung, LG, and Vizio. He also highlighted the potential for new advertisers entering the CTV market due to Amazon Prime Video’s shift to an ad-supported model.

In response to questions about third-party cookie deprecation, the CEO expressed confidence in Magnite’s preparedness, citing integrations with alternative identity solutions and full support for Google’s Privacy Sandbox. He emphasized the company’s ability to navigate any potential challenges, even in the face of a decline in CPM, by leveraging volume to maintain revenue levels.

The AdOps Team of the Future

AdOps professionals are actively incorporating generative AI, like ChatGPT, into their workflows to enhance productivity and streamline tasks. These tech-savvy individuals are well-versed in prompt engineering, allowing them to query large language models (LLMs) effectively. AdOps teams use generative AI to manage time more efficiently, automating repetitive tasks such as troubleshooting ad issues, creating HTML templates, and generating reports.

Additionally, AdOps professionals leverage generative AI to enhance their communications, making emails more polished, human-sounding, and empathetic. This use of AI helps individuals and teams present themselves more effectively to clients and colleagues. The interviewees reported using various generative AI tools, including ChatGPT, Gemini, Claud.ai, and Perplexity.ai, each with its subtle differences.

The adoption of generative AI in AdOps is seen as transformative, freeing up time for strategic thinking and allowing teams to focus on revenue growth and product development. The integration of AI tools is expected to continue evolving the AdOps team, enabling them to be more proactive and efficient in their roles.

32 media groups levy $2.3bn antitrust suit against Google over its adtech practices

The coalition of European media organizations filing the €2.1 billion ($2.3 billion) antitrust lawsuit against Google includes prominent names like Krone from Austria, DPG Media and Mediahuis from Belgium, TV2 Danmark A/S from Denmark, Sanoma from Finland, Agora from Poland, Prensa Iberica from Spain, and Ringier from Switzerland. The lawsuit contends that Google’s dominant role in the digital advertising ecosystem has unfairly harmed their publishing businesses, particularly impacting news media during a period when their economic model is already weakened by declining print subscriptions and associated advertising revenue.

Google, in response, rejects the allegations and plans to vigorously defend itself against the lawsuit, emphasizing its collaborative efforts with publishers and its support for their businesses through the adaptation and evolution of its advertising tools. Google’s legal director, Oliver Bethell, referred to the lawsuit as “speculative and opportunistic.”

This legal action in Europe mirrors the scrutiny Google faces in the United States, where the Department of Justice sued the tech giant last year, accusing it of using deceitful and anti-competitive strategies to establish a dominant position in the online search market. The trial for the US case is scheduled for September. The European media coalition hopes to find success in the Netherlands, a jurisdiction with a favorable track record for antitrust cases. Following the news of the lawsuit, Google’s shares experienced a more than 2% dip.

The post ICYMI: Ad Tech Edition | Week of February26th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of February19th, 2024

Jessica Potter — Fri, 23 Feb 2024 20:32:14 +0000

Bits and Bobs from around the industry:

It’s MFA Freedom Day! Celebrate By Fixing Your Supply Chain

February 24th, designated as Made-for-Advertising (MFA) Freedom Day, symbolizes the point in the year when advertisers cease funding spammy and undesirable MFA sites, based on the ANA Programmatic Media Supply Chain Transparency Study. The study revealed that 15% of ad spend goes to MFA sites, and MFA Freedom Day marks the end of these payments for the year. Advertisers lose an additional 26% on non-viewable, non-measurable, and invalid traffic, totaling a third of their media productivity.

The ANA study emphasized the need for transparency and access to granular log-level data, exposing a $22 billion waste in ad spend. The article suggests five steps for advertisers to enhance transparency and ROI:

Eradicate MFA: Eliminate MFA sites to save money and improve campaign effectiveness.
Ascend the LLD data throne: Demand transparent log-level data access and work with partners providing granular insights.
Benchmark with the best: Participate in ANA transparency benchmark initiatives to measure progress against industry leaders.
Embrace TrueKPIs: Adopt the ANA’s TrueKPI framework for efficient campaigns, moving beyond vanity metrics.
Champion quality journalism: Prioritize quality over price, supporting professional media outlets for long-term brand and performance goals.

By focusing on transparency, data-driven insights, and quality journalism, advertisers can celebrate successful campaigns while avoiding wasted time and resources associated with MFAs.

Amazon wants a bigger slice of the DSP ad tech market

Amazon is actively encouraging advertisers to utilize its demand-side platform (DSP) for programmatic ads beyond its own ecosystem. The company aims to broker deals and partnerships with ad tech vendors, especially supply-side platforms (SSPs), to facilitate easier ad buying in-app and connected TV (CTV) environments. Amazon is making significant investments in these deals, focusing on enhancing the DSP’s capabilities for in-app and CTV advertising. By securing better access to premium inventory, Amazon hopes to attract more advertisers and increase spending on its DSP over time. The company is positioning itself as a dominant force in the programmatic ad space and is actively working on collaborations and upgrades to compete with major DSPs like The Trade Desk and Google’s DV360. Advertisers are being approached to use the Amazon DSP for purchasing ads on Prime Video, with the potential for expanded usage and increased spending.

Google Responds to the IAB Tech Lab’s Scathing Privacy Sandbox Report: “It’s Full of Inaccuracies”

In response to the IAB Tech Lab’s analysis of Google’s Privacy Sandbox, Google has disputed several points, emphasizing that the Privacy Sandbox is not intended as a direct replacement for third-party cookies. Google thanked the IAB Tech Lab for their perspective but criticized the analysis, citing misunderstandings and inaccuracies. The IAB Tech Lab expressed concerns about the challenges associated with Privacy Sandbox, including issues related to essential event-based metrics, brand safety, on-browser computing implications, and a perceived lack of consideration for commercial requirements.

Google clarified that the primary goal of Privacy Sandbox is to enhance user privacy while supporting efficient digital advertising. The Privacy Sandbox APIs are not meant to replace third-party cookies or cross-site identifiers directly. Google acknowledged the need for adaptation and innovation in digital advertising methods to align with privacy goals, emphasizing that this shift requires investment, effort, and collaboration.

The response from Google delves into specific inaccuracies highlighted by the IAB Tech Lab, offering detailed commentary and clarifications across programmatic advertising categories. For example, Google refuted the claim of the “Loss of Runtime Data for Brand Safety,” stating that buyers still receive the page URL in ad requests, and brand safety measures can be implemented during Protected Audience auctions.

Despite the differing perspectives, Google expressed openness to additional feedback from the IAB and the industry to enhance the Topics APIs and address concerns related to the Privacy Sandbox. The response reflects the ongoing industry dialogue and the challenges associated with transitioning to new privacy-focused advertising frameworks.

OpenAI’s Web Search Product Aims to Challenge Google’s Search Supremacy

OpenAI, the developer of ChatGPT, is reportedly working on a web search product in collaboration with Microsoft Bing, positioning itself as a potential competitor to Google’s search engine. While large language models like ChatGPT are powerful, they are not inherently designed for continuous updates, a critical feature for search engines. The move follows previous attempts by alternatives like DuckDuckGo and Neeva to challenge Google’s search supremacy. Despite Bing’s integration of ChatGPT, there hasn’t been a significant shift in audience behavior, with Google maintaining a substantial lead in the search market. Advertisers are advised to consider segmented audiences across platforms, adapting to changing dynamics in the search landscape and the phasing out of cookies. The success of OpenAI’s search interface against Google’s dominance remains uncertain.

The post ICYMI: Ad Tech Edition | Week of February19th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of January 29th, 2024

Jessica Potter — Fri, 02 Feb 2024 19:41:53 +0000

Bits and Bobs from around the industry:

How IAB Tech Lab aims to calm concerns around Google’s Privacy Sandbox

Marketers are grappling with uncertainties as Google Chrome moves to phase out third-party cookies by the end of 2024. IAB Tech Lab CEO Anthony Katsur reveals concerns over the lack of clarity in Google’s Privacy Sandbox documentation, calling for more comprehensive and centralized information. In response, the IAB Tech Lab is set to publish its Privacy Sandbox analysis, gathering input from over 60 companies to address industry challenges. Katsur emphasizes the need to rethink the industry’s value chain, highlighting the ambiguity surrounding counterparty relationships and contractual agreements in the context of Privacy Sandbox’s integration of an ad server and an SSP into the browser. The industry is urged to seek clarity on contracting parties and reassess liabilities amid this significant paradigm shift.

ChatGPT Under Fire for Allegedly Violating EU Privacy Laws

OpenAI, currently facing a lawsuit from The New York Times and a privacy investigation by Italy’s Data Protection Authority (DPA), is under scrutiny for its generative AI, ChatGPT. Italy’s DPA has given OpenAI 30 days to respond to allegations related to ChatGPT’s data collection methods, citing privacy concerns. OpenAI could face a potential €20 million fine or up to 4% of global annual turnover if the EU court confirms the breach. The lawsuit follows last year’s GDPR concerns, leading to a temporary ban on ChatGPT’s local data processing in Italy. The case may set new precedents for AI regulation standards and highlights the evolving challenges in navigating privacy and copyright issues associated with generative AI.

OpenAI has a history of legal challenges over its data collection practices, including the NYT lawsuit alleging the use of copyrighted data. Attorney Justin Nelson, representing the NYT, accused OpenAI of building its product on others’ intellectual property, while OpenAI responded, stating the lawsuits were without merit. Last year, Italian authorities raised GDPR concerns, temporarily banning ChatGPT’s local data processing due to issues like a lack of a legal basis for personal data collection, AI hallucinations, and child safety problems. As regulators worldwide push for AI industry standards, Ad and Rev Ops professionals integrating AI into their workflows must be aware of potential legal consequences related to privacy and copyright laws.

Were We Wrong About the Value of First-Party Data?

Many direct-to-consumer (DTC) brands, which were initially built on a data-driven ethos and strong first-party connections with customers, are facing significant challenges, casting doubts on the perceived value of first-party data. Brands like Allbirds and Solo Brands, once seen as exemplars of the data-driven approach, have experienced sharp declines in stock value and financial struggles. The DTC marketplaces Zulily and Farfetch are also encountering difficulties.

The article questions whether the industry’s expectations regarding the transformative impact and value of first-party data were misplaced. It highlights various issues, including the short half-life of data, the prevalence of ad blockers limiting one-to-one marketing use cases, and the high costs and complexity associated with managing first-party data through different vendors and technologies.

Moreover, the piece explores the challenges faced by DTC startups and the shifting landscape of technology vendors in the first-party data activation space. The rise of ad blockers, coupled with the transient nature of first-party data, prompts a reconsideration of the industry’s reliance on data-driven strategies. It also delves into the struggles of DTC brands in competing with legacy grocery store brands, the potential vendor implosion within the DTC ecosystem, and the evolving role of cloud infrastructure providers in challenging the value proposition of Customer Data Platforms (CDPs). The article concludes by suggesting that the supposed first-party data revolution may be more aligned with major platforms like Amazon or Google than within individual businesses.

The post ICYMI: Ad Tech Edition | Week of January 29th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of January 22nd, 2024

Jessica Potter — Fri, 26 Jan 2024 20:42:15 +0000

Bits and Bobs from around the industry:

As The Open Web Wobbles, Index Exchange Is Betting On Curated Deals

Index Exchange is launching a new product called Index Marketplaces, aiming to leverage the curation capabilities of DSPs, DMPs, and RMNs (Retail Media Networks) to activate demand for private marketplace (PMP) deals across its network of publishers. This product is designed to facilitate “frictionless” data matching and enable marketers to apply data to reach specific user subsets more efficiently. By using Index’s existing infrastructure, data matching tech vendors can avoid the cost and complexity of building numerous connections, benefiting from the company’s preexisting integrations. Index is not charging an additional upstream fee to the curator, differentiating its approach from other SSPs. The product is currently in closed beta, with plans for gradual expansion based on operational considerations and demand. Index sees this as a strategic move in the evolving programmatic landscape, emphasizing curated audiences on the open web over a broad approach.

Some publishers are starting to see revenue lift from alternative IDs

Publishers are actively exploring alternative identifiers to replace third-party cookies, and some are sharing their initial findings regarding the revenue impact of these solutions. For example, in a test of Unified ID 2.0 by Salon, Snopes, and TV Tropes, a 200% increase in CPMs was observed compared to ads served to an authenticated audience with third-party cookies. Unwind Media, the owner of online gaming sites Solitaired and Solitaire Bliss, has experimented with first-party deterministic IDs, such as LiveRamp’s RampID, UID 2.0, Yahoo’s ConnectedID, and ID5, noting a 40-50% CPM increase when a deterministic ID is present in the bidstream.

However, the industry is still in the early stages of evaluating and testing various alternative identifiers, and publishers are exploring different options. The Independent is keeping an eye on Anonymised.io, UID 2.0, and LiveRamp’s RampID, while Future is actively testing LiveRamp’s Authenticated Traffic Solutions, The Trade Desk’s European Unified ID (EUID), UID 2.0, and Google’s publisher-provided signals. Publishers are navigating a landscape where multiple alternative IDs coexist, and the challenge lies in selecting the identifiers that will best meet the evolving needs of the advertising ecosystem.

Zack Sullivan, CRO of Future, emphasized the importance of authenticated users and noted that solutions like LiveRamp and The Trade Desk have received significant engagement. While there have been noticeable revenue lifts from implementing these alternative IDs, publishers are cautious about making definitive decisions at this early stage. The focus is on understanding which IDs will gain broader industry adoption and deliver effective marketing outcomes. The industry consensus is that more extensive testing, scaling, and evaluation are needed to determine the most effective alternative identifiers in the evolving post-cookie landscape.

A New Year and a New Google: A Perspective on Privacy Sandbox

Jeff Green, CEO of The Trade Desk, reflects on the challenges and opportunities in the advertising industry amid significant changes, particularly with Google’s Privacy Sandbox and the deprecation of third-party cookies. He expresses disappointment in what he sees as a lack of innovation in Google’s approach, criticizing Privacy Sandbox for not being conducive to the open internet. Green highlights the chance for the industry to step in, innovate, and build a new identity fabric for the internet.

Despite his reservations about Google’s strategy, Green sees this as an opportunity for others to create new solutions, citing technologies like Unified ID 2.0 as potential accelerators of change. He emphasizes the need for publishers, advertisers, and consumers to adapt and innovate in the face of evolving challenges. Green predicts that by the end of the year, the adoption of these new technologies will have increased, providing more opportunities for stakeholders in the advertising ecosystem. Overall, he underscores the importance of taking action and innovating in response to the transformative shifts occurring in the advertising landscape in 2024.

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The post ICYMI: Ad Tech Edition | Week of January 22nd, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of January 15th, 2024

Jessica Potter — Fri, 19 Jan 2024 18:12:25 +0000

Bits and Bobs from around the industry:

The Precipice of Peril: Publishers And Ad Tech Face A Harsh 2024

In 2024, the digital advertising landscape will face significant challenges, surpassing the turbulence experienced in 2023. Key trends to watch include:

1. Traffic Woes for Publishers: Publishers, grappling with declining referral traffic, face challenges due to AI separating search from sources and the diminishing newsfeed. The cookie deprecation, stringent regulations, and increasing ad tech costs will add to their burdens. Long-form content may gain prominence, while vertical publishing remains vulnerable to AI.

2. DCaaS (Deal Curation as a Service): Publishers will turn to “curation houses” to navigate the complexities of the open market. Trusted curation houses with direct buyer relationships and clear value propositions will emerge, addressing the historical issues of custom solutions’ high costs and buyer apathy.

3. Bid Enrichment Challenges: Bid enrichment, traditionally an internal DSP/SSP service, is moving to publisher pages. However, concerns about bid washing, fee structures, misrepresentation, and ID laundering arise. The mechanics of bid enrichment deals, often structured as “lift deals,” need reevaluation to ensure transparency and fair compensation.

4. CTV Addressability Paradox: Ad-supported streaming’s surge leads to an overflow of undifferentiated supply, prompting inventory owners to opt for addressable auctions. However, the increased ad tech presence may force downward adjustments of floor prices, challenging the need for inventory reservation and potentially eroding CPMs.

5. Attention Metrics Dilemma: Attention as a value metric introduces complexity, favoring buyers and potentially reducing publisher payouts. The measurement problem compounds as pre-impression and post-impression filters drive up costs, leading to incomplete correlations of performance and attention.

6. PAAPI’s Impact on Adsense: As Chrome deprecates cookies, the Protected Audiences API (PAAPI) emerges to handle privacy-safe retargeting. Google brands supporting PAAPI may impact non-Google SSPs, potentially shrinking their demand. The adoption of PAAPI auctions could reshape the DSP landscape and impact client-side multi-bidder auction dynamics.

7. Standalone DMP Challenges: Standalone Data Management Platforms (DMPs) face challenges in monetizing their data. Increased competition from adjacent vendors and the rise of contextual solutions at a fraction of the cost threaten the standalone DMP proposition, although the impending cookie collapse could bring them back into focus.

8. LoMP (Loss of Media Productivity) Concerns: The ANA Programmatic Media Supply Chain Transparency Study highlights the full “cost waterfall” of transaction costs and Loss of Media Productivity (LoMP). DSPs and SSPs may focus on reducing LoMP with new features, potentially charging for these solutions, leading to a flight to quality and strengthening of seller relationships.

Despite the challenges, 2024 could still be a great year, urging industry players to focus on strengthening consumer relationships amid the changes and uncertainties.

Indeed is launching a bunch of specialized ad networks to grab a bigger piece of the $36 billion companies spend on advertising jobs

Indeed, a popular job website, is expanding its advertising tools to assist companies in reaching potential employees across the internet. In addition to running search ads on Indeed’s website, companies can now utilize ad networks to place display ads on specific publishers’ websites, targeting niche pools of job candidates. The first such ad network is the Tech Network, designed for tech workers, and includes 50 tech websites with a claimed reach of over 500 million monthly visits. This move allows companies to get hard-to-fill and competitive job listings in front of a broader audience, ultimately aiming to increase the number of qualified applicants.

The Tech Network, which features publishers like The Next Web and Stack Overflow, redirects job seekers who click on the ads to Indeed’s website for the application process. Indeed plans to launch similar ad networks for healthcare and transportation professionals and is testing targeting capabilities for these ads. This strategy responds to the current trend where tech layoffs from major companies like Google prompt tech employees to explore job opportunities beyond traditional career websites, seeking roles on platforms they already frequent.

The ad networks leverage artificial intelligence (AI) to identify the most suitable publishers for potential job seekers. Indeed’s approach involves capping the number of publishers in the ad network to ensure more targeted outreach. The platform aims to differentiate itself from competitors like LinkedIn by emphasizing AI-driven targeting and limiting the number of publishers to focus on specific groups. This move comes as companies globally spent $36 billion on advertising online jobs in 2022, according to a report from Staffing Industry Analysts. Despite facing competition from LinkedIn, Indeed hopes its targeted approach will help companies connect with the right candidates more effectively.

THE PRIVACY SANDBOX DEBATE; INDUSTRY LACKS PREP FOR COOKIE DEPRECATION; OPENAI V. NYT SAGA; CES PRODUCTS

Google’s Privacy Sandbox initiative, particularly Chrome’s Tracking Protection feature, has sparked a divisive debate in the ad tech industry. The Trade Desk has chosen not to participate, criticizing Google’s self-serving motives and asserting that sandbox solutions are inadequate. However, results shared by Paul Bannister, Chief Strategy Officer at Raptive, indicate that the Privacy Sandbox is not at a full 1% deprecation yet. Cookieless Chrome users are monetizing about 30% worse than those with cookies, and Chrome iOS users outperform Safari iOS users by 15%, despite being identically unaddressable.

Additionally, a report highlights that many big brands are not adequately prepared for cookie deprecation. Adlook surveyed nearly 200 consumer packaged goods (CPG) companies, revealing that over half (55%) are still exploring options or just starting to consider them. Less than half (45%) are making major revisions to their data collection and usage patterns. Concerns and skepticism about the impact of cookie deprecation on ad targeting were expressed by 38% of respondents.

In the realm of AI and media, OpenAI responds to The New York Times’ lawsuit, emphasizing its collaboration with news organizations and asserting that training its chatbot on published material falls under fair use. The lawsuit revolves around the concept of “regurgitation,” where generative AI may memorize data and reproduce it rather than creating new text. OpenAI claims this phenomenon is rare, while The New York Times argues otherwise.

CES (Consumer Electronics Show) featured several noteworthy advertising products. NBCUniversal’s One Platform introduced the Total Audience platform, emphasizing cross-platform, audience-based advertising. Hulu presented shoppable ads with The Gateway Shop, focusing on commerce within streaming platforms. Monks.Flow showcased an AI suite for marketers, offering a platform-agnostic environment with synthetic media, workflow optimization, and business intelligence capabilities.

The post ICYMI: Ad Tech Edition | Week of January 15th, 2024 first appeared on Freestar.

ICYMI: Ad Tech Edition | Week of January 8th, 2024

Jessica Potter — Thu, 11 Jan 2024 22:03:35 +0000

Bits and Bobs from around the industry:

Privacy Sandbox: How is 2024 Looking?

The article discusses Google’s Privacy Sandbox, which aims to balance effective advertising with heightened user privacy following the demise of third-party cookies. The Privacy Sandbox involves collaborative efforts among stakeholders in the advertising industry to create a framework that addresses privacy challenges. Key components include the Trust Token API, Aggregated Reporting API, Conversion Measurement API, Privacy Budget, Federated Learning of Cohorts (FLoC), Turtle Dove, and First-Party Sets.

The current state involves the gradual rollout of the Tracking Protection Tool to Chrome users, testing with 1% of users initially. Larger companies are proactive in integrating new technologies, while smaller businesses face challenges in transitioning away from third-party cookies. Advertisers are experimenting with these tools, but concerns persist about the precision of targeting and the balance between privacy and economic needs. The Privacy Sandbox’s effectiveness and impact on the digital advertising ecosystem, especially for smaller players, are subjects of ongoing evaluation.

Critics express concerns about the Privacy Sandbox potentially allowing extensive data collection and user tracking, leading to worries about Google consolidating its power in the ad tech industry. Skepticism arises amid antitrust investigations, raising questions about whether the initiative may unintentionally contribute to a more monopolized ad tech realm. However, the Privacy Sandbox also presents an opportunity for the advertising industry to embrace creativity, organic traffic generation, and a return to the fundamentals of advertising. The shift away from traditional cookie-based targeting invites innovation and the exploration of new territories in digital marketing, fostering a more authentic connection between brands and consumers in the age of privacy-first internet.

Index Exchange Donates Privacy Sandbox Demo Tool to IAB Tech Lab’s Privacy Sandbox Taskforce

Index Exchange, a major independent ad exchange, has donated an advanced Privacy Sandbox Demo tool to the Privacy Sandbox Taskforce through IAB Tech Lab, a digital advertising technical standards-setting body. The tool, an open-source platform, allows stakeholders to explore and understand the functionalities of Google’s Privacy Sandbox Protected Audience APIs without full implementation. This initiative aims to enhance transparency by providing a real-time platform for media owners and buyers to comprehend the complexities and implications of these APIs. The demo tool accelerates collective understanding and collaboration, facilitating comprehensive testing and feedback within the evolving addressability landscape of programmatic advertising in Chrome. By offering logging and visualizations, the live demo provides a comprehensive overview and flexibility for further testing, enabling the industry to navigate the complexities of the evolving addressability landscape.

Expect Bolder Ad Creative In 2024, Courtesy Of Generative AI

In 2024, marketers are expected to further embrace generative AI for ad creative, with 88% of marketing leaders planning to implement, pilot, or actively consider generative AI in the next six to 12 months, according to Gartner. This represents a significant shift from 2023, where 29% were already implementing and 7% were piloting generative AI. Brands are integrating generative AI tools into their existing technology stacks, with considerations for compatibility and ease of implementation based on their preferred platforms such as Adobe Creative Suite, Microsoft Office, or Google Bard and Gemini.

Generative AI technologies, such as Privacy Sandbox Protected Audience APIs, are being tested and implemented, but there are concerns about their impact on programmatic bidding. These changes, including Trust Token API, Aggregated Reporting API, Conversion Measurement API, Privacy Budget, Federated Learning of Cohorts (FLoC), Turtle Dove, and First-Party Sets, are altering fundamental aspects of digital advertising, impacting areas like frequency capping, video advertising, audience creation, and impression counting. The industry is in the early stages of understanding the practical implications of these changes.

The Privacy Sandbox initiative by Google is aimed at balancing effective advertising with increasing demands for user privacy. While the adoption of these privacy-centric technologies is proactive among larger companies, smaller businesses and publishers are facing challenges in adapting to alternative strategies such as contextual advertising or first-party data collection due to the decline of third-party cookies.

The potential impact of generative AI on creative overload is also a subject of discussion. While there is excitement about the ability to produce a large volume of ad creatives and conduct multivariate testing, concerns have been raised about managing and making sense of the vast amount of creative performance data. Brands are cautioned against unnecessary volume, and the effectiveness of generative AI in achieving precise targeting is still being evaluated.

Despite the potential benefits of generative AI, marketers are wary of issues related to bias, accuracy, and governance. With the absence of specific US regulations, both AI vendors and companies using these technologies are expected to engage in self-governance. The IAB Tech Lab’s AI subcommittee is working on a guide addressing AI applications in digital advertising, covering topics like evaluating AI models, bias, copyright, privacy, and data accountability, with a target release date in mid-2024.

In summary, the marketing industry is in a transitional phase, with generative AI technologies being actively explored and adopted, but concerns and challenges related to privacy, governance, and effective implementation still need to be addressed.

Media Briefing: Sustainability standards are coming for digital advertising

The Global Alliance for Responsible Media (GARM) and Ad Net Zero are jointly working on the Global Media Sustainability Framework to address the lack of standardized measurement of carbon emissions in the digital advertising industry. The initiative, set to publish guidelines in June, focuses on creating voluntary standards for measuring carbon emissions, offering guidance on transparency, and disclosing companies’ emissions data. The effort includes working groups dedicated to metrics, methodology, and audit verification. A survey conducted in August 2023 revealed discrepancies in measuring the carbon emissions of the same ad by different firms, emphasizing the need for consistent standards. The voluntary nature of the proposed standards aims to encourage widespread adoption, similar to GARM’s previous initiatives, and the framework is expected to contribute to reducing the industry’s carbon footprint.

The post ICYMI: Ad Tech Edition | Week of January 8th, 2024 first appeared on Freestar.