With holiday sales forecasted to hit $78.7 billion this year — a 15% increase from 2012, according to Forrester Research — it’s no surprise retail marketers are scrambling to get a piece of the seasonal shopping pie. Among the key trends marketers are watching is the forecasted surge in mobile price comparisons and commerce; comScore estimated […]
With holiday sales forecasted to hit $78.7 billion this year — a 15% increase from 2012, according to Forrester Research — it’s no surprise retail marketers are scrambling to get a piece of the seasonal shopping pie. Among the key trends marketers are watching is the forecasted surge in mobile price comparisons and commerce; comScore estimated […]
Asia Digital Marketing News
Data Driven Advertising News
Digital Marketing News
Mobile Marketing News
In a recent post in this publication, fundamental questions were raised on the role and prospect for increased ad viewability in our industry. I’d argue that the nature of our medium makes it likely that viewability will become a key benchmark in ad-trading and optimisation. This is something especially relevant in France, where many marketers are still focusing on the last click model.
These views don’t come without experience, we at Infectious Media have already been using an ad viewability measurement to benefit campaigns for over a year, targeting both branding and performance goals.
Branding and engagement
Brand marketers are probably the most naturally attracted to an increase in the viewability of advertising. For brand campaigns to have any effect they not only need to reach the target audience but the ads must be seen.
Working with an FMCG advertiser in France, we were able to customise our viewability measurement to match the client’s objectives. We bought viewable ads to a higher standard than proposed by the IAB (50% of the banner seen, for a least one second), working to a goal of 75% of the banner in view for at least three seconds.
Moving beyond ad-frequency
When we began to optimise this campaign we found that achieving a high duration of viewability was less of a challenge than increasing the percentage of the banner seen. However, interestingly, as seen in the diagram below, the length of exposure to a message was the more fundamental engagement lever. We noticed no increase in clicks-per-users above 88% of banner area seen, but there was a direct correlation between viewable duration and interaction rate.
It is obvious that frequency is meaningless if banners are not first seen. It makes sense to ensure budgets are optimised towards publishers who provide longer banner viewability, brand campaigns need to be monitored not only on an impression and CPM basis, but also on cost-per-exposure-time.
Why viewability is needed in performance marketing
Ad viewability does not intuitively lend itself to direct response marketing, but we found that viewability measurement is also key to improve performance, whilst inspiring new confidence in the post-impression conversion (something still not widely accepted by French marketers).
To gauge the effect of ad views for a travel client we employed a “post viewable-impression conversion” KPI to track users who saw the advert, didn’t click, but went on to convert. Only impressions that were viewable were accredited for the sale, and optimising to this metric significantly reduced wastage as the campaign became more viewable overall.
The graph above displays the rate of viewability of the client’s advertising (green) and the CPM of the banners which were viewed (orange) over a three-month period. It demonstrates how through testing and optimisation, both algorithmic and human, it is possible to improve the overall viewability of a campaign bought through ad exchanges.
When the campaign began 43% of the client’s ads were viewable, a comparable rate to the industry average (comScore June 2013), three weeks of optimisation raised this to 70% and we ultimately achieved an ad-viewability of 75%. This optimisation produced the corresponding fall in CPM for viewable impressions, leading to a reduction in the viewable CPA, and ultimately beating the client’s viewable CPA target by 43%.
A new dawn for display?
For us, these campaigns represent a first step towards an entirely new approach to buying and optimising display advertising. An approach we hope will sound the death knell for some of the cookie-dropping tactics that have driven many performance marketers to solely click-based metrics. Surely this is an opportunity for the display industry to start to catch up with search marketing, still over twice the size of display in France.
Where are the publishers in all of this? If ad viewability is widely adopted, the bulk of budgets will be redistributed to the publishers that are better able to optimise page layouts towards more viewable advertising. The auction will drive increased CPMs for this same inventory, with a new CPvM (cost-per-visible-mille) metric likely to be adopted. This shift should finally confirm there is a finite amount of time being spent online, and therefore a finite amount of valuable inventory.
Ecommerce spending in the US grew 13% year-over-year in the third quarter to $47.5 billion, a softening from Q2 when the growth rate hit 15%, according to comScore’s State of the US Online Retail Economy report. “There was a bit of a dip in consumer sentiment,” commented Andrew Lipsman, VP of industry analysis at comScore. […]
If News Corporation launching its own global ad exchange is anything to go by, it would appear that publishers are finally waking up to the power of their own data and the monetary value of using that data in the programmatic space. So why has it taken so long and is it the answer to falling CPMs?
Historically, the media has enjoyed a consistent relationship between its consumers and advertisers, yet there was an early reluctance on the part of the media to embrace the internet. It’s easy to see why: gone were the boundaries, the safety of controlled distribution, and in its place a vast landscape, filled with creatures more prepared to receive than to give.
This wasn’t just true of consumers: as online audiences ramped, so too did the need to sell the resulting inventory. Ad networks were created and opportunists lay traps to trip up the wary and rob them of a very new under-realised commodity: data.
Krux Digital estimates the cost in revenue to publishers from data leakage to be in the region of $850m. On the flipside, comScore recently estimated that 36% of web traffic is non-human, while Incapsula and MDotlabs put it closer to 50%. Consumers are fed up and taking control with the use of ad blockers, up 43% this year, and use of Do Not Track (DNT) is up to 25% in some countries, according to Mozilla. Whatever the figures, there’s little good news for publishers in the era of data-driven advertising.
Or is there? Much of what is wrong with online advertising is as a result of the cookie, or rather the use of it and its limitations.
Firstly, cookies, while useful in first-party mode, blight the internet in third-party guise, mapping content and context to consumers without their knowledge or permission.
Secondarily, we live in a fragmented universe. Smart phone adoption is rapidly growing, itself divided between mobile web and in-app usage, tablets are replacing desktops, and our cars are moving multimedia machines. With no standardisation in consumer identification in this new landscape it’s difficult for publishers to even see their audience, let alone monetise them.
Thirdly, the arbitrage of media has become smarter and in order to shift the balance of power back to the publisher, solutions such as Private marketplaces (PMPs) and Data Management Platforms (DMPs) are providing some safeguards, but it’s not enough. Whilst Programmatic CPMs have increased, they are not linear to the decline in direct or traditional media, nor have publishers been able to fully control how these environments use their data.
Sounds like more problems, but not so. If we conclude that third-party cookies are bad for both consumers and publishers, then we have provided a single point of context for a solution. That solution needs to be one that not only honours consumer rights, but also helps to protect a first party’s data, is device agnostic and protects the advertiser from buying imaginary traffic.
What’s good for goose is good for the gander too; richer contextual data from increased sources benefits the marketplace and the buyer. So, ultimately, universality is key. As an industry we need to get behind a single solution, and work together to provide guidelines and best practises in audience tracking, in the interests of the future of our industry, before it’s done for us.
According to an AdEx Benchmark 2012 study, published by IAB Europe, Russia ranks fourth in Europe in terms of its online advertising market (€1.6 billion in 2012). The Russian market has grown at an impressive annual rate of 34%. The development of programmatic buying has been a significant driver of this growth. Last year, the main players in the RTB market were identified, which included almost all of the major internet companies. European and American companies are now looking at the Russian market with great interest, and this promises to be an important impetus for further development. While the major RTB markets are already fully mature, the Russian market is now on the threshold of it.
Lagging several years behind the US and Europe in terms of development, we now have every opportunity to rapidly close this gap. Our products and experience mean that we can now work at full throttle. It is up to the Russian publishers, which are still wary of putting their traffic up for auction, and advertisers who need to get used to the new buying model.
According to experts, in the first half of 2013 the RTB market in Russia broke the 0.4 billion rubles mark ($12-13 million), and with each passing quarter the market is continuing to grow strongly. At the end of last year, while discussing the forecasts for the RTB market in Russia in 2013, experts gave an average estimate of $50 million. They based this on the fact that revenues from RTB advertising could reach around 5% of the display advertising market. Will these estimates be correct? What changes have we seen in the market in the last six months, what are the trends and which Western players have turned their attention to the Russian RTB market? We have tried to answer these questions in the second RTB Market Watch in Russia.
In preparing this review, we drew upon our own experience of using the ADFOX SSP product, foreign studies and reviews, materials from the media, and the comments and opinions of the players on the Russian market. We want to thank experts of online advertising market for participating in the study, and in particular Sergei Zhuravlev, founder of “Kavanga” company, Oleg Nazarov-Bruni, CEO of HubRus and Dmitry Cheklov, CEO of Targetix.
In 2013, three new trends have come to the forefront in all western RTB markets:
Publishers team up to sell to users via an auction
In the West, where RTB technology is not an experiment but rather a proven revenue stream, publishers are increasingly creating in-house solutions, sometimes teaming up to do this. As we remember, AOL has its own network Ad.com. It sells, for example, The Huffington Post and TechCrunch traffic.
In Russia, despite the fact that growth in the Russian internet video segment has slowed somewhat in recent years, the video advertising market is continuing to grow fast. According to Gazprom-Media Digital and the Video International Analytical Center (ACVI), in the first half of 2013, video advertising expenditures increased by 60-75% to RUB 0.9-1 billion. The forecast for 2013 remains unchanged: advertisers will spend RUB 2.5-3 billion on video ads in Russia.
Russia. Numbers, facts, forecasts
What is going on?
According to comScore estimates, in Russia today there are more than 61.3 million unique internet users aged 15 and older. According to the Public Opinion Foundation, in the fall of 2012, the monthly internet audience in Russia is 61.2 million people over 18 years-old, which is more than 52% of the entire adult population of the country. Three-quarters of them (47 million people) go online daily. The Russian Association for Electronic Communications (RAEC) estimates that each user spends 100 minutes a day online. IAB Europe has called Russia the fourth biggest market in Europe in terms of investment in online advertising.
In 2012 in Russia the internet advertising market began using the RTB model. Almost all the major players launched their own RTB service, the prospects for new technologies were discussed at conferences, journalists worked to figure out the intricacies of online bidding, and advertisers started asking their agencies: Is it worth a try? But despite this widespread interest, not everyone took action. It is clear that at this starting point of the new scheme to sell traffic it is inevitable that there will be problems.
The Russian market is very different from that of Europe and the US. The leading positions are occupied by local players, who typically work with the familiar model of fixed price advertising. Websites are used to selling ads directly, and to know in advance how much they will earn in the next month. Advertising agencies are used to directly buying ads by booking space in advance. To grasp the financial benefits of online bidding and adopt the new advertising scheme, some time is needed. 2013 will focus on this adoption process.
RTB in Russia is now working and bringing in money. According to expert estimates, this was about 0.4 billion rubles ($12-13 million) in the first half of 2013. However, so far only a few of the premium publishers are putting their traffic up for auction, and few advertisers are spending large amounts of money on algorithmic purchases. The only exceptions are retargeters, which as of now constitute the majority of advertising budgets in this market. In addition to local players, major foreign retargeters are interested in Russian traffic: for example, myThings and Sociomantic have already opened offices in Russia.
Who is buying?
According to Google, in Russia retargeters buy more than 75% of the traffic in AdX, advertising networks buy 15%, and DSPs and advertising agencies buy less than 10%. At the same time, in the US DSPs buys about 40%, networks — almost the same amount, and retargeters — a little over 20%.
The DSP market in Russia is represented by several major local players, some foreign platforms and a large number of small buyers.
DSPs operating on the Russian market:
o Doubleclick bid manager
o Video International
Large advertisers, as in the US, are on the path towards creating their own technologies for purchasing pay-per-click traffic. The platform Data Mind was created from such in-house technology, which was originally unveiled as an independent DSP, but a year later became a division of TCS Bank. Major online retailers such as Lamoda are independently procuring goods. We can say that a new In-house DSP segment is emerging on the market.
In-house DSPs on the Russian market:
o DataMind (ТКС)
o Xplosion (Otto Group)
The Russian market is saturated with solvent users, and is attracting the attention of foreign players. According to the study Data Insight, in 2012 Russians made between five and eight million purchases in foreign online stores, worth a total of $1.3 billion.
Among the key drivers of growth of the RTB market, experts point to advertising agencies, which must soon move in this direction. As the head offices of many major network agencies are located in the US or Europe and already fully enjoy the benefits of programmatic buying, the active dissemination of algorithmic purchases in Russia is only a matter of time. RTB has benefits for agencies. Now agencies can easily purchase a single target audience on websites with different advertising platforms. Yet today, even when buying visitors from a DSP, they try the old trick of “keeping the audience for themselves” and buy a bundle of impressions won at auction.
It is the lack of qualified professionals on the part of advertisers that is largely inhibiting the development of the RTB market in Russia. The problem could be solved by holding training sessions for employees of agencies to teach them about the basic principles and specifics of automated purchasing. Regarding advertisers who are already experimenting with programmatic buying in Russia, according to agencies and DSPs, cars, real estate, finance and e-commerce advertisers dominate.
Who is selling?
Publishers are also very apprehensive. While in the US traffic is sold by premium content sites via RTB, in Russia many sites are worried about data security. Of course, you do not have to give full details of the impressions put up for auction, but it’s a double-edged sword, as anonymous traffic has a much lower value, and by concealing information about the destination page, publishers run the risk of having significantly lower purchases. At the eTarget conference Artem Parshentsev said that the share of anonymous traffic to Google sites in Russia stands at about 60%, whereas in the US this figure is less than 20%.
At the same time, ADFOX is offering another approach to the sale of traffic through auctions, in which information about the impressions put up for auction is given in full, and anonymous traffic is kept to a minimum. Through SSP exclusively premium traffic is sold with a fairly high minimum purchase value. High minimum prices are used by websites to reduce the risks of loss of income. Site owners have the leverage to optimise revenue by targeting buyers, and by setting a minimum price and the level of transparency of the traffic.
In the Russian market the following companies have their own SSP service:
o Between Digital
o DoubleClick AdExchange
Players provide a total volume of about six billion impressions available via RTB, a week. In the near future, a few more players plan to launch their own SSP solutions, such as Kavanga with its SSP-service Republer.
The Russian market of automated sales traffic has huge potential. It is estimated that today the Russian ad-serving systems provide at least three billion impressions per day, a not insubstantial part of which can potentially be put up for auction. The market leaders of external technologies for advertising management are AdRiver and ADFOX, and the largest online projects such as Yandex, Odnoklassniki and Vkontakte have their own technology.
Where does the data for targeting come from?
In Russia, as throughout the world, data is collated by major internet services and social networks, such as Yandex, Google, Rambler, Mail.ru, VK and Facebook. Other players have extremely limited access to this data, as user profile data is used by the companies themselves, which last year entered the RTB market.
Other players use the services of existing suppliers to get third-party data. These suppliers can be divided into two groups:
1) companies that possess data that provide it for targeting advertising (Data Suppliers)
2) companies that aggregate the data of suppliers to generate aggregate profiles based on several sources (DMP).
The companies that provide data for targeting advertising include:
o Visual DNA
o Aidata.me / Loger
o Visual DNA
What sells well and for what price?
The most popular format in Russia is 240×400, and as expected it is also the most popular format in RTB auctions. Almost 70% of impressions won through auctions were sold in this format. The next most popular formats are 728×90 and 300×250, which are the leaders in the European RTB market.
What are the problems?
Today, with the high growth rates of the RTB market in Russia there are still certain factors that are inhibiting growth. The main ones are:
o Publishers are concerned about their data
o It is profitable for agencies to continue working in the old way
o Buyers are only just beginning to experiment
o It is not clear what kind of data is going to be supplied, and by whom
o The pricing models, standards and quality verification mechanisms are not yet fully determined
What does the future hold?
Experts predict that in 2013, RTB will constitute 2-5% of the display advertising market. This year is the time for both advertisers and sites to gain a full understanding of the advantages of the new purchasing schemes. Technically, the auction system in Russia can already be put on full throttle, but market participants are not eager to abandon conventional models in favour of unfamiliar schemes with a non-guaranteed income.
The short-term forecasts are much more optimistic. The founder of Kavanga, Sergey Zhuravlev, believes that in 2014 the share of RTB in the display advertising market will jump to 10%. After the first year of growth, which saw the new market segment starting out from point zero, growth will increase rapidly.
The CEO of Hubrus, Oleg Nazarov-Bruni, agrees with this. He is confident that the Russian market will grow faster than the US market because it will ‘skip’ a few steps. All the required products have been invented, and Russian specialists just need to promote them to their customers. According to Oleg, in two years the Russian market will grow as fast as the US did in five years, and 30% of media budgets will be spent on RTB.
The international company Aegis MediaMore gives more cautious forecasts. This year the company launched a Russian technology platform for the purchase of digital advertising via the RTB model AMNET. The CEO of AMNET, Kirill Chistov, speaking at a Russian Internet Forum in the spring of 2013, forecasted that in 2015 the Russian RTB market will constitute 15% of the total display advertising market.
In 2013 and 2014, along with an open auction among multiple DSPs, the Russian market will begin the first steps on the use of programmatic direct. This technology involves the sale of traffic to a single buyer outside the auction, but using the same technology and standards, and at RTB-auction. Programmatic direct allows agencies and DSPs to use the RTB-procurement scheme, working under a direct contract with the sites.
Company Unveils Sophisticated New Logo and Tagline
NEW YORK, NY and SAN FRANCISCO, CA – Martini, the experts in engaging the affluent online, shared key findings from its most recent Affluent Online Shopper Index™ research study powered by comScore. The index measured the behavior and engagement levels of the online affluent audience, and found shopping activity across the wealthiest segments continued to grow. The study is a continuation of an ongoing research series in which Martini has partnered with comScore to keep steady track of affluent shopping behaviors.
Applying comScore’s methodology (1), Martini’s Affluent Shopping Index reveals 100k+ earners were 90 percent more likely to make a purchase online in Q2, up five percent from the year before. The increased spending was seen across a variety of categories, including apparel, accessories and jewelry (up 16 percent YOY), event and movie tickets (13 percent), flowers, greetings and gifts (15 percent) and video games and consoles (20 percent).
Affluent shoppers are increasingly more likely to visit auto sites compared to those earning under $100k, with the gap in visitation growing six percent YOY. The gap in auto search reach also grew versus last year, with affluent shoppers now seeing an 11 percent higher index over those earning under $100k.
Similar findings are reported by Steve Kraus, chief insights officer for the Audience Measurement Group, Ipsos MediaCT, whose recently released study also highlights the growing spending and digital media use by affluent Americans. “Compared to a year ago, affluent Americans have significantly increased their spending in many categories, while also increasing their time spent online and their use of mobile devices. Coupled with the growing size and wealth of the affluent population, the growth potential remains strong for affluent-targeted brands, provided they reach and engage their audiences in compelling ways.”
The increased shopping and surfing habits of the affluent equate to more time spent with ads. Martini recently partnered with digital analytics company Moat to observe how Martini’s affluent audience specifically engaged with online display advertising. The study measured universal interaction rate, which indicates a user voluntarily engaging with an ad. According to Moat, the average universal interaction rate is 4.1 percent (as of Q2 2013), but the affluent audience, which was measured engaged at a rate of:
• 13 percent in retail – 217 percent over average
• 10.3 percent in automotive ads – 151 percent over average
• 9.5 percent in travel – 131 percent over average
• 6.1 percent in tech – 48 percent over average
“It’s very encouraging to see the affluent engaging with ads at such high levels across these diverse categories,” said Jonah Goodhart, CEO and Co-Founder, Moat. “We believe engagement and interaction activity are key metrics that matter for digital advertising, and it is a good sign to see the affluent, the audience that are typically the drivers of new trends and influencers on others, lead this trend.”
To reflect the growing digital media consumption of the affluent, Martini has launched a new look and tag line, one of the first major initiatives initiated by Martini’s senior VP of marketing, Sarah Kate Ellis, a well-known veteran of Conde Nast and Time Inc. According to Ellis, the new tagline “Affluent Advertising Engineered” represents Martini’s use of first- and third-party data to construct actionable audience insights that ultimately allow Martini to deliver the right message, at the right time, in the right environment to the affluent. The new design approach reflects a sophisticated logo that marries the look and feel of traditional affluent brands with the modernity of digital media and with a splash of Martini.
To download the infographic, please visit:
About comScore Inc.
comScore (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital business analytics. For more information, please visit www.comscore.com/companyinfo.
Martini specializes in helping the world’s most prestigious brands engage the audience with the most money and influence online. Leveraging proprietary insights on where and how the affluent consume media, Martini provides sophisticated solutions for delivering compelling rich media campaigns that integrate content, video and social functionality across the passion-based, niche sites this audience interacts with, at work and at play. It’s affluent advertising engineered. Headquartered in San Francisco, Martini has offices in New York, Chicago, Detroit, Los Angeles and London. Visit www.martinimediainc.com to learn more.
1). The Martini Media Affluent Online Shopper Index™ Powered by comScore measured behaviors and engagement levels of the online affluent audience (HHI $100K+) by indexing (1) affluent users (across the Internet) against non-affluent online users (HHI < $100K) to provide a precise picture of how this coveted segment shopped, spent and searched online during the second quarter of 2013 versus the same time last year. (1) Indices are calculated using the comparative audience’s metric as a baseline to understand the propensity of the $100K segment to buy or spend within a certain category. Indices above 120 indicate a notable propensity and those under 80 indicate the audience under-indexed relative to the other income segment in terms of penetration and/or dollars spent per buyer.
AOL’s $405 million acquisition of video ad exchange Adap.tv has already begun to pay off, at least in bragging rights.
In September, the same month the Adap.tv deal closed, AOL passed Google as the company serving the most online video ads in the U.S., according to comScore. AOL ran 3.72 billion video ads to reach 50% of U.S. online video viewers versus Google’s 3.24 billion and 36% population span.
AOL wouldn’t have one-upped Google were it not for Adap.tv, which remains a standalone entity within the company’s ad tech division AOL Networks. The ad tech firm accounted for 3.13 billion, or 84%, of the video ads attributed to AOL — and as a result, should result in an sizeable boost to the portal’s video ad revenues.
NEW HOPE, Pa. - MeetMe®, Inc. (NYSE MKT: MEET), the public market leader in social discovery, announced an ad management agreement with Beanstock Media, the world’s first premium Publisher Trading Desk. Under this agreement, Beanstock Media will utilize its proprietary Helix™ platform to optimize the revenue generated from the sale of MeetMe’s global web-based remnant ad inventory.
Bill Alena, Chief Revenue Officer of MeetMe, said, “We started working with Beanstock on specific portions of our website, and we believe that Beanstock has the industry expertise and technological capabilities to improve the performance of our web-based remnant ad inventory. In addition, this agreement allows us to free internal resources to further our focus on mobile monetization. This quarter we expect native mobile ads to reach or exceed one billion impressions, and we look forward to continuing to grow the mobile opportunity internally while working with Beanstock on optimizing web monetization.”
Jim Waltz, Chief Executive Officer of Beanstock Media, said, “We represent over 400 publishers, including exclusive relationships with Ask.com, Dictionary.com, ZipRealty.com, ZAM Network, Slacker Radio, and CityGrid. From the beginning, we set out to arm publishers with real tools and services that increase yield on their ad inventory, reduce cost and improve control. Expanding our relationship with MeetMe is a prime example of what Beanstock can deliver for publishers – less hassles, fewer discrepancies and increased revenues.”
About MeetMe, Inc.
MeetMe® is the leading social network for meeting new people in the US and the public market leader for social discovery (NYSE MKT: MEET). MeetMe makes meeting new people fun through social games and apps, monetized by both advertising and virtual currency. With nearly 60 percent of traffic coming from mobile, MeetMe is fast becoming the social gathering place for the mobile generation. The company operates MeetMe.com and MeetMe apps on iPhone, iPad, and Android in multiple languages including English, Spanish, Portuguese, French, Italian, German, Chinese (traditional), Russian and Japanese.
About Beanstock Media
Beanstock Media (http://www.beanstockmedia.com) is the world’s first premium Publisher Trading Desk. Beanstock’s Helix™ platform is a cloud based yield management system that aggregates demand from every available source simultaneously to ensure maximum yield for its publishers. The Beanstock Media represents over 400 publishers, including top ranked comScore properties and connects with thousands of advertisers and hundreds of Demand-Side-Platforms (DSP), trading desks, ad exchanges and ad networks to maximize ad revenue for its publishers. Beanstock Media has offices in San Francisco, New York, Denver, Seattle, Washington D.C. and Chicago. Connect with Beanstock on Twitter at @Beanstockmedia or Facebook at https://www.facebook.com/BeanstockMedia.
U.K.’s Mobile Marketing Magazine is out with a new report presenting an eye-opening look at the growth of mobile ad spend in the United Kingdom.
The latest data indicates that U.K. mobile advertising spend grew by 127 percent year-on-year, reaching £429.2m in the first half of 2013.
The growth observed is nothing short of remarkable, considering that mobile ad spend was just £188.1m in the first half of 2012.
The numbers mean that mobile now accounts for 14.1 per cent of all digital advertising spend, which was worth £3.04bn in the first half of 2913, 17.5 per cent up on the first half of 2012.
The data comes from the Internet Advertising Bureau UK (IAB) Digital Adspend report, conducted by PwC, with UKOM-approved comScore consumer data.
“Nothing illustrates the internet as an entertainment platform better than the fact that over one in five minutes online is accounted for by entertainment, and that advertisers spent almost 1,300 percent more on mobile video than a year ago,” says Tim Elkington, director of research & strategy at the IAB. “With smartphone penetration crossing the two-thirds landmark and the successful roll out of 4G, 2013 could be the year when advertising spend on mobile crosses the £1bn threshold.”
“The product we’re working on with Millennial Media allows advertisers to track conversions beyond the mobile device itself, and extend measurement into the physical world”
“Measurement is one of the most important issues in mobile advertising today,” said Mollie Spilman, EVP, Global Sales & Marketing, Millennial Media. “Brands need to feel confident that the dollars they are spending in mobile advertising are truly moving the needle, and our Omni Measurement Solutions represent the most comprehensive, data rich solution at this scale in mobile advertising.”
Omni Measurement Solutions currently consists of the following products:
- Door Open Rate – Measures the impact on foot traffic to a given retail location generated by a mobile campaign.
- Register Ring Rate –Measures the impact in total credit card spend at a retail location due to a mobile campaign, including number of transactions per purchaser and total basket size.
- Brand Lift Rate – Measures the impact on high funnel activities such as awareness, intent, consideration, and recall.
For every measurement product in the Omni Measurement Solutions suite, Millennial Media partners with a third party, and matches mobile IDs against exposed and control groups to judge the effectiveness of marketing campaigns with target audiences. Data analytics company Neustar and location analytics firm Placed are among the launch partners. Millennial Media will offer end-of-campaign reports that will accurately show the impact on advertiser KPIs, and give advertisers credible and qualified insights to use for future marketing efforts.
To power Door Open Rate, Millennial Media selected Placed, the leader in location-driven insights and mobile ad intelligence.
“The product we’re working on with Millennial Media allows advertisers to track conversions beyond the mobile device itself, and extend measurement into the physical world,” said David Shim, Founder and CEO of Placed. “By combining Placed Attribution with Millennial Media’s industry leading scale, we’re able to measure the impact on in-store visits in a way that was simply not possible before.”
Additional products will be added to the suite in the coming weeks, including a product in collaboration with comScore that measures online consumer behavior after mobile ad exposure.
To learn more about Omni Measurement Solutions, visit http://www.millennialmedia.com/omni
About Millennial Media
Millennial Media is the leading independent mobile advertising and data platform. Our technology, tools and services help app developers and mobile website publishers maximize their advertising revenue, acquire users and gain audience insights. Our platform also enables us to offer advertisers powerful Mobile Audience Solutions (MAS) that utilize our significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results.
NEW YORK - Time Inc. announced it is launching a digital video partner network, with distribution partners including the AOL On Network, Alloy Digital, NewsLook and NDN. Completing the first stage of a video strategy it set earlier this year, Time Inc. brands will produce 50% more video content in 2013, including several new original programs from new studio spaces in New York, Los Angeles and Birmingham.
“Video presents an enormous opportunity for storytelling from influential brands like ours and we have only just scratched the surface. Ramping up our programming significantly and establishing a distribution network with all-star partners, we’re now fully entrenched in our strategy”
Time Inc.’s video network is projected to deliver approximately 40-50 million monthly views across platforms and devices. Time Inc.’s partners include The AOL On Network, where Time Inc.’s videos will be added to its library of more than 700,000 premium videos; Alloy Digital, recognized for its portfolio of top-ranked media brands and proprietary networks including CLiP, a large scale video syndication platform; NewsLook, a leading distribution and syndication company that helps publishers incorporate video into their text-based products, and NDN, the 4th largest online video property in the U.S. according to comScore and a leading digital media exchange and monetization engine.
Bringing new scale opportunities to advertisers, Time Inc. will offer multiple options for advertising across its video network including run-of-network, segmenting audiences and contextual targeting on Time Inc. sites.
“Video presents an enormous opportunity for storytelling from influential brands like ours and we have only just scratched the surface. Ramping up our programming significantly and establishing a distribution network with all-star partners, we’re now fully entrenched in our strategy,” said JR McCabe, SVP of Video for Time Inc. “Building on the deep connection consumers already have with us, we can cultivate a daily habit of consuming high-quality, compelling video content across our platforms.”
In addition to the thousands of individual videos produced by Time Inc., the company features more than 50 video series, including daily, weekly, live and event-based programs, across its news, entertainment, business, sports, style and cooking categories. New or soon-to-premiere series, accessible here, include:
- Pro Football Now: a live weekly series, hosted by SPORTS ILLUSTRATED Maggie Gray and former New York Giants player Amani Toomer, that delivers commentary and analysis throughout the NFL season
- SI Now Powered by Ford: a live, 30-minute daily talk show broadcast on SI.com featuring commentary, analysis and social interaction with SI writers/editors, newsmakers and special guests
- The Must List: a daily show hosted by Entertainment Weekly Editor Jess Cagle where he recommends what to watch, hear or read that day
- TV Recaps: a daily video show where EW editors give descriptions and critiques of last night’s most talked about shows
- The Top 3: a brief daily video on what’s dominating the conversation on social media, with TIME’s Callie Schweitzer
- TIME Explains: brief videos explaining everything from Obama’s options in Syria to what causes sinkholes
- Chatter: stars play beat-the-clock as they answer a grab bag of 5 questions in a fast-paced 60-second segment from PEOPLE
- Hackett & Crew: Managing Editor Larry Hackett and PEOPLE editors chat about the most buzzed-about celebrity news story of the moment, in a lively debate.
- The Chat: a quarterly live talk show where FORTUNE Senior Editor at Large Pattie Sellers interviews some of the biggest names in business. The Chat’s first guest was Warren Buffett, who sent his first-ever tweet during the interview
- Real Simple Video of the Day: a new daily video featuring an easy, accessible, and useful tip from Real Simple editors. Examples include “How to Make Champagne Bubbly Again” and “5 Last Minute Halloween Costume Ideas”
Time Inc. debuted a new studio space this month on the second floor of its New York headquarters, complete with live-streaming capabilities, a new control room suite and multiple editing stations. The company also upgraded its studio facilities in Birmingham with new editing suites and a studio refresh, allowing it to double video production for the Lifestyle brands based there.
About Time Inc.
Time Inc., a division of Time Warner, is one of the largest branded media companies in the world reaching more than 130 million Americans each month across multiple platforms. With influential brands such as TIME, PEOPLE, SPORTS ILLUSTRATED, InStyle, and Real Simple, Time Inc. is home to celebrated events and franchises including the FORTUNE 500, TIME 100, PEOPLE’s Most Beautiful and SPORTS ILLUSTRATED’S Sportsman of the Year.
LOS ANGELES – OpenX Technologies, Inc. (OpenX), one of the world’s leading providers of digital and mobile advertising technology, announced that it has completed the sale of all its interest in its legacy open source ad serving product, OpenX Source. The buyer is a team led by Andrew Hill, one of the code’s original developers who will operate the open source project under the name Revive Adserver. Moving forward, the acquirer will manage and further develop the product to meet the needs of the diverse publishers who rely on it.
OpenX will continue to focus on both its market-leading OpenX Ad Server, the proprietary enterprise ad serving technology used by many of the comScore 500 publishers, and on the OpenX Ad Exchange, its global Real-Time Bidding marketplace. In completing the sale, OpenX has committed the product to a respected team and passionate supporters of the open source movement and the technology. They look forward to continuing to provide free ad serving technology to the large community for which this product has proven valuable.
Terms of the sale were not disclosed. Additional information on the new platform can be found at: http://www.revive-adserver.com/
OpenX is a global leader in digital and mobile advertising technology. OpenX’s vision is to unleash the full economic potential of digital media companies. OpenX solutions provide a unique Software as a Service platform by combining ad serving, an ad exchange, which includes Supply Side Platform technology, and content valuation.
OpenX Technologies, Inc., a wholly owned subsidiary of OpenX Software Ltd., is based in Los Angeles and is backed by leading investors including Accel Partners, Index Ventures, SAP Ventures, and Samsung Venture Investment Corporation.
For more information, please visit www.openx.com
OpenX is a trademark of OpenX Limited.
64% Of Advertisers And Agencies Increasing Spend On Online Display Advertising;
Investment Especially Strong In US, France And The UK.
Rise Of RTB And Private Marketplaces – Average Of 40% Of Display Advertising Spend Is Traded Through RTB And 19% Of Advertisers Have Established Private Marketplaces
Los Angeles / London / Paris / Hamburg – Online advertising is growing around the world according to research conducted by Econsultancy on behalf of The Rubicon Project, Inc., which operates the advertising industry’s largest independent real-time trading platform for digital advertising. Sixty-four percent of advertisers and media agencies surveyed declared they have increased their spend on display advertising online in the last year. In the US, 77 percent of advertisers and agencies have increased their investment in display, a figure that rises to 88 percent in France, 63 percent in the UK and 62 percent in the APAC region.
This is the third time that Rubicon Project has commissioned this research from Econsultancy, and display investment has grown with each successive survey up from 58 percent in 2011 and 57 percent in 2009. In 2009 a quarter of those surveyed revealed a decrease in spend, but this has reduced to 14 percent for the past twelve months. Almost half of the respondents in Europe have seen an increase in the price of display advertising and two-thirds of advertisers and their agencies in APAC have seen an increase. However, 29 percent of the advertisers and agencies surveyed in the US believe the cost of display has declined.
Spend on Facebook advertising, paid search marketing (PPC) and the Google Display Network (GDN) is also up, although 12 percent of respondents have decreased their investment in the Google Display Network.
The Rise Of RTB, Trading Desks And Demand-Side Platforms (DSPs)
The research reveals the continued growth of automated trading with 39 percent of the advertisers and agencies surveyed buying display advertising through DSPs. This is up from 23 percent in 2011.
Improved performance is given as the main advantage of real-time bidding by two-thirds of the advertisers and agencies surveyed, which was also the main advantage in 2011 identified by 48 percent of those surveyed. Reduced media wastage, lower cost-per-acquisition and better targeting capabilities also score highly, which also reflects the responses from two years ago.
An average of 40 percent of the trading desks’ spend is via RTB, although these numbers are much higher in France (73 percent) and lower in Germany (24 percent). This is a big change from 2011 when the survey revealed that an average of only 34 percent of trading desks’ spend was allocated to RTB—with 41 percent in US and 34 percent in Europe.
‘Fewer points of sale’ is highlighted as a key benefit of working with a DSP by 41 percent of respondents, up from just one fifth of respondents two years ago. The following benefits are each identified as a key benefit by more than half of those questioned:
- Improved targeting
- Real-time understanding of campaign performance
- Ability to buy at impression level
- More efficiency
- Increased reach
Thirty-seven percent identify ‘global frequency caps’ as a benefit and this is expected to grow as more global campaigns are managed centrally.
The Growth Of Private Marketplaces, Especially In Europe
A fifth of the agencies and advertisers surveyed have implemented private marketplaces, with a further 40 percent planning to do so. This trend is particularly pronounced in the UK, and also in France where three quarters of agencies have implemented a deal. In APAC, 18 percent of advertisers and agencies have implemented private marketplaces and another half plan to. In contrast, only a tenth of the buy-side in Germany have created private marketplaces, although more than half of those surveyed are planning to. On a global scale, over a third of advertisers expect to increase their spending on private marketplaces by between 26-50 percent in the coming year.
Forty-two percent of ad planning and buying is based on first party data in their planning and buying—which is likely to be retargeted advertising—and 31 percent of planning and buying is based on third party data. Advertisers in the US are most likely to use first party data, although one in four campaigns there are planned with no data at all.
Jay Stevens, General Manager of International, Rubicon Project, explains, “All of us who work in advertising have seen the dramatic rise of programmatic trading around the world over the past few years. This research reveals that more than a third of advertisers are buying online display advertising through Demand-Side Platforms, benefiting from improved targeting, reach and efficiency and fewer points of sale and global frequency caps are also highlighted as advantages suggesting more media will be traded on a global basis over the coming years. Automated trading for direct response campaigns was quick to take off in the US, but adoption of the private marketplaces and programmatic premium has been faster in Europe, especially in the UK and France. Most international markets, including Australia and the Nordics, have adapted the RTB protocol work most effectively and efficiently for them.”
Stevens continues, “The research also reveals the growth of private marketplaces, especially in Europe. Twenty of the advertisers we surveyed around the world have implemented a private marketplace, but this figure rises to three quarters in France, a market where there are more sophisticated independent trading desks and media innovations such as La Place Media, a collective of several leading publishers making their inventory readily available for programmatic trading and educating the market on the possibilities for impression-level targeting, increased reach and maximum return on investment.”
Marco Bertozzi, Executive Managing Director/ EVP, VivaKi EMEA comments, “Now in our fifth year at Audience On Demand, we are still seeing growth rates of over 100 percent year-over -year for RTB spend. The development in sophistication from publishers, agencies and advertisers around RTB in general, and private marketplaces in particular, means that the real benefits are now being exploited in delivering these growth numbers. It is the most exciting space in digital and will soon stop being a channel and become the delivery and targeting mechanism for all digital with Facebook, Twitter and others embracing the technology.”
Linus Gregoriadis, Research Director at Econsultancy, adds, “The online display advertising industry continues to develop at breakneck speed, with programmatic trading much more established globally than it was two years. The increasing budgets for online display advertising shown in the research are a reflection of the improved efficiencies and of the better opportunities for advertisers to reach the right audience.”
The Proliferation Of Demand-Side Platforms (DSPs) And Advertising Technology
Most trading desks use two or three DSPs, with a further 16 percent using more than four. These numbers have stayed consistent since the last time the research was conducted. Liquidity (lack of available inventory) is described as a challenge of working with DSPs by two thirds of those surveyed around the world, up from 54 percent in 2011.
Service levels are also an issue for nearly half of the agencies and advertisers surveyed, down from 51 percent in 2011, and under-delivery of campaigns has reduced from being cited as a challenge by 49 percent of agencies in 2011 to 45 percent in 2013 as the amount of inventory on the market available for programmatic trading climbs around the world.
Seventy-four percent of the advertisers and agencies surveyed are still buying advertising from online advertising networks, and 39 percent from sales houses and rep firms. This demonstrates that buyers are using a wider range of technologies. These numbers are increased from two years ago when 63 percent said they buy on ad networks. Over the years the research has charted the continued growth of this sector.
Commenting on the research Fabien Magalon, Managing Director at La Place Media, explains, “The French online display advertising market has seen a fantastic quality leap over the last twelve months. First on the sell side, with the launch of La Place Media, and the Orange Adexchange, followed by the buy side with more and more advertisers investing increasing amounts on brand advertising on our La Place Media inventory.
RTB gives the market the ability to package inventory with first party data through Deal ID, which has allowed La Place Media to drive significant increase in our average CPM’s compared with the open auction.
La Place Media has been using Deal ID intensively for the past nine months as a key element of our sales strategy. The CPMs we derive using Deal ID increase an average 5X over those from open auction.”
This is Econsultancy’s third Online Advertisers Survey Report, produced in association with Rubicon Project. The study, supported by the IAB UK and AOP, follows similar research carried out first in 2009 and followed in 2011, and is based on a survey of over 1,000 online advertising professionals carried out in August 2013. This report is specifically focused on results from more than 650 advertiser and agency respondents. A copy of the full report can be downloaded here.
About the Rubicon Project
Rubicon Project pioneered advertising automation and is now doing for advertising what companies like NASDAQ did for stock trading. The company’s automated advertising platform is used by more than 500 of the world’s premium publishers to transact with over 140,000 advertisers globally. A company driven by innovation, Rubicon Project has engineered one of the largest real-time cloud and Big Data computing systems, processing trillions of transactions each month within milliseconds. According to comScore, Rubicon Project reaches approximately 95 percent of U.S. Internet users per month and is ranked #1 in reach. The company’s customers include eBay, TIME, ABC News, the Wall Street Journal, Tribune Company, Virgin Media, People, Universal and legions of other Fortune 500 companies. Headquartered in Los Angeles, the Rubicon Project has ten offices across the globe including New York, San Francisco, Hamburg, Sydney and London.
As retailers well know, purchases don’t begin and end with a customer’s single click. The buyer’s path to purchase often involves several online – and, increasingly, mobile – steps. Shoppers are visiting retailers’ web sites, sure, but they’re also researching products through search, opting into promotional emails and getting tips friends and promoted content through social media.
Shopping’s gotten complicated.
That’s why we’ve collected some interesting stats about consumer shopping behavior to shed some light on how people are really using their mobile devices. Judging from these stats, coupons aren’t so unsexy after all, and there’s never a time when you can’t shop. Check it out:
Ninety-five percent of tablet shoppers and 72 percent of smartphone shoppers who make a purchase with their device do it at home. (Nielsen)
Shoppers make less than 3 percent of their annual purchases on mobile devices. (RIS/Cognizant)
Four percent of Americans have made a mobile purchase while at a social gathering. (Google)
En route to the store, 70 percent of smartphone shoppers use a store locator to plan their shopping trip. (Nielsen)
Forty-two percent of consumers chose finding a better price online as their reason for purchasing online after shopping in a store. (RIS/Cognizant)
Forty-six percent of shoppers say they are less likely to comparison shop when using a mobile app. (ComScore)
Half of shoppers say tracking services for online purchases are essential. (ComScore)
Nineteen percent of consumers leave a store and look for lower prices online. (RIS/Cognizant)
Coupon apps are used by about 25 million Americans each month. (NPD)
Two out of five women have searched for a product because of an online coupon. (NRF)
Twenty percent of mobile shoppers use their tablets to comment on social media sites about their purchase. (Nielsen)
It is predicted that the number of US adult smartphone users who also use mobile coupons will jump from 31 million at the end of 2012 to 40.8 million at the end of 2013. (eMarketer)
Fifty-nine percent of tablet owners use their tablets for product research and are more likely to purchase physical items (38 percent) than smartphone shoppers (24 percent). (Nielsen)
Fifteen percent of online retail sales will be made on a mobile device this year. (eMarketer)
Mobile coupons are redeemed 10 times as often as traditional coupons. (eMarketer)
Image via Flickr
The post 15 Surprising Stats About Online and Mobile Retail appeared first on Digiday.