Tag Archives: programmatic

Transparency and Ad Quality: Brand Safety Matters to Consumers

Following a spate of misplaced ad scandals and fake news controversies, brand safety is commonly acknowledged as one of the most pressing challenges currently facing marketers looking to reach digital audiences.

But the impact on, and reaction of, consumers to issues around brand safety is less well documented.

Brand responsibility

According to latest research from Reuters, Tomorrow’s News 2018, a high proportion of consumers believe brands are responsible for where their ads are running.

62% of consumers believe “brands have full control over where their advertising appears”.

The majority of consumers (77%) also say that advertising next to ‘unsavoury or objectionable’ stories can damage their perception of a brand. Worryingly, 75% have seen brands advertising alongside unsavoury or objectionable stories or videos. And while 81% feel that Facebook and Google should be ‘held accountable’ for the content they carry on their platforms, they are unaware of their role in brand safety. Reuters respondents believe the buck stops with advertisers.

Impartiality, trust & integrity

Ad agencies and tech companies alike, are being forced to pay more attention to good governance, and collaborations with trusted partners to avoid these types of challenges.

With this in mind, the value of impartiality, honesty and integrity also featured strongly in the Reuters analysis. A huge majority of global respondents said they were more likely to turn to professional publishers, such as online news brands, over social media for trusted content, with 86% more likely to turn to online news brands for “trusted content in a trusted environment”.

Consumers underestimated

The uncomfortable truth in our digital age is that it’s not always clear where online ads are running. And yet, consumers – perhaps unsurprisingly – have little idea of the problems of programmatic, vulnerable supply chains or, most importantly, the huge role that Google and Facebook play in the process.

Investment in brand-safe environments and trusted partnerships is supported by numerous studies recently, from Group M to IAS – and they all show the link between brand safety and performance. Now we can add that this is something consumers are also clamouring for.

Reuters Tomorrows News 2018

You can also read and download the full report here.

A Duopoly of Convenience: Facebook & Google Tap New Growth in APAC

by Tom Simpson

Latest data reveals that in Q1 2018, Facebook and Google ad revenue grew by 40% year-on-year across Asia Pacific (ex. China), while ‘The Rest’ – every publisher and ad tech business outside the duopoly – saw a fall in revenue of 20% over the same period.

Total APAC (ex. China) Digital Ad Revenue (USD billions) (1)

Looking at the top-line, digital advertising is experiencing strong growth across APAC, with ad spend up $0.85 billion year-on-year in 2018. But it’s clear that while many publishers and ad tech businesses are still growing, in reality that additional $0.85 billion revenue is comprised of $1.63 billion more for Google and Facebook, and $0.78 billion less for everyone else.

As a result, Facebook and Google revenue hit 65% of APAC total digital revenue, up from 51% in Q1 2017. This means twice as much budget goes to the duopoly as every other digital publisher and ad tech platform in the region put together.

APAC (ex. China) Q1 2018 Digital Ad Revenue Share (%)

Google and Facebook also grew in terms of revenue share across all media, taking 20 cents in every 1 dollar spent in the region. This is up from 15% – or 15 cents in the dollar – last year, and represents an increase in budget flowing from traditional media, including TV and OOH.

The duopoly in perspective

From a global perspective, Facebook and Google have been strengthening their hold over digital advertising budgets for several years. Asia Pacific has actually seen a slower shift in spend than the US or Europe, where Google and Facebook already account for 80% of digital ad revenue.

While there is a huge amount for ad tech to be positive about in 2018, and plenty of genuine tech innovation on the supply side outside the duopoly – mobile, blockchain, digital retail, apps, influencers, and permission-based marketing, are all areas seeing new thinking and growth – the publishing and ad tech industries are in a challenging space right now. Concerns over ad quality and complex value chains, in addition to the impact of Facebook and Google, have left VC money looking for safer havens. With marketing clouds, telcos and consultancies worldwide positioning for unified marketing technology stacks – the acquisition rumours at Cannes in 2018 were even more outrageous than those around the downfall of Sir Martin Sorrell – mad-tech consolidation started several years back, and looks set to accelerate in the years ahead.

But it’s not only the supply side facing increased headwinds. The brave-new-era marketing stacks are already busy hunting brand agency business direct from the major holding groups, using their newly enhanced strategic and tech positioning to situate themselves both upstream closer to the CEOs ear, and downstream on the battlefield of media execution across newly rationalised, open, and addressable programmatic auctions. Whether it’s okay for the auditors to also do the work, is another question of course.

Even Google and Facebook cannot be sitting easy in the face of the increased scrutiny and margin pressure promised by these changes, alongside recent brand safety issues, an emerging 3rd advertising player in Amazon, and a resurgent Twitter. Growing antitrust concerns in the US and EU spurred by a public revolt against the increasing power of the silicon valley tech titans, fears over over-reach into our everyday lives and loss of jobs have also made headlines in 2018. Google and Facebook are yet to crack China, but each is making moves with greater and lesser degrees of success to grow influence in this hugely important global market.

The age of convenience

Human beings have long sought means to make our lives easier. From earliest times with the invention of the stone hand axe, to the swarms of gig economy apps which today get people to clean your apartments, drive you around, do your shopping or deliver you just about anything you can think of, at the touch of a smartphone screen, convenience has been the driving force behind much human-made ingenuity. Most of us in the modern world now expect gratification to be on-demand.

New ways of offering services to customers have significantly changed how organisations and companies operate and compete in all markets. So it is no surprise that the age of convenience has come to our industry. What Uber did for transportation, Netflix for TV, and AirBnB for accommodation, Google and Facebook have done for marketing. And they are justifiably reaping the rewards.

In the on-demand era, there is only one guarantee: money flows to those who offer – or at least appear to offer – the comfort of convenience. This is the inconvenient truth.

Notes

As per last year, numbers are based on Facebook and Google publicly filed earnings information and best industry advertising revenue estimates via the IAB, Zenith and Emarketer among others – but someone out there may have a better view, so corrections welcome. The major assumption in this data is to exclude Chinese advertising spend from Google and Facebook earnings information and APAC industry spend estimates. This is to avoid distorting the data by including a market where Facebook and Google have small (although not insignificant) advertising businesses. All the data is available on a public Google sheet (yes, sorry, it’s Google!) here.

Key References

Facebook Reports First Quarter 2018 Results: https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q1/Q1-2018-Press-Release.pdf

Facebook Q1 2018 Earnings Presentation
https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q1/Q1-2018-Earnings-Presentation-(1).pdf

Alphabet Announces First Quarter 2018 Results
https://abc.xyz/investor/pdf/2018Q1_alphabet_earnings_release.pdf

Vietnam: Digital Trends & Consumer Landscape Overview

With a population of more than 96 million, a median age of 30 years, and internet penetration standing at 50 million, or just over 54% of local population, Vietnam is a young and dynamic market representing a huge commercial opportunity for brands, marketers and investors. Vietnam digital trends emerge fast in this exciting consumer space.

Since 2013, the last time we took a detailed look at Vietnam’s digital market landscape, so much has changed in terms of digital trends. Most notable has been the rise of mobile as a channel, driven by lower handset costs and faster 4G connections. The mobile internet experience now dominates in Vietnam, with consumers naming mobile as the second most important source of news after TV, the most important “big ticket” purchase and their second favourite daily activity after spending time with family and before hanging with friends.

Digital technologies and online connectivity promise to be a key driving force in the growth and transformation of the Vietnamese economy over the coming decades, with the IT industry expected to contribute up to 10% of the country’s GDP by 2020. Ho Chi Minh City is being touted as the Silicon Valley of Asia with blockchain, fin-tech, health-tech and digital accelerators playing a key role in the emerging start-up, hipster coffee shop and co-working space culture.

Below we’ve collected a series of takeaway resources covering the key digital trends in Vietnam.

Mobile Ecosystem Report Vietnam 2017/18

Vietnam mobile ecosystem and digital sizing report from Group M and the MMA.

Digital in Vietnam 2018

Key data covering the Vietnam digital landscape.

Digital Marketing Agency & Marketer Landscape in Vietnam

Vietnam digital marketing overview from an advertiser and agency perspective.

Vietnam Digital Landscape 2017

Detailed overview of digital stats and consumer internet data in the Vietnam market.

Vietnam Digital Trends 2017

Trends to watch out for across the Vietnamese consumer internet.

Vietnam ICO & Blockchain Market

Overview of the emerging blockchain and ICO scene in Vietnam.

Vietnam Today – The Digital Economy

In depth report looking at the future digital transformation of Vietnam.

PWC Vietnam Spotlight

Deep dive into Vietnam as an investment opportunity and information technology driven market.

Vietnam Esports Market Report 2018

Insight into the growth of Esports in Vietnam..

In terms of other resources, check out Vietcetera for wider coverage of Vietnam, Tech In Asia for tech news, or Geektime and ICTNews for tech news… if you speak Vietnamese. Finally, you can find out all the practical information you need to know about the start-up scene in Vietnam at this Google Doc.

Myanmar Digital Trends 2018

Myanmar is going through a digital transformation. AdsMy, a local marketing tech platform, have produced a trends deck covering digital marketing and consumer behaviour for Myanmar in 2018. Programmatic, mobile, video, native and digital advertising are all highlighted as growth areas.

Myanmar is extremely hot with VC investment right now, built on the amazing speed of consumer growth in mobile and app usage.

Digital Transparency: Peeling the Programmatic Onion

A new survey from the ANA looking at how marketers are conducting their programmatic media buying, revealed that 85% of marketers are currently conducting programmatic initiatives, either in-house or with an agency. However, more than a third of respondents (35%) have reduced the role of their external agencies over the past year as a result of the expansion of their in-house programmatic media buying capabilities. This is a notable increase from a 2016 study that found only 14% of marketers in-housing programmatic.

Other key findings to emerge from the study included:

  • 78% of marketers are “concerned, or very concerned about brand safety and programmatic.”
  • Only 40% of marketers are comfortable with “the level of transparency about their programmatic media investments” with “hidden costs” a particular concern.
  • “Better audience targeting”, “building audience reach”, and “real-time optimization” were the top three cited benefits among marketers that opted to in-house.

It seems overall, transparency in programmatic is on the rise and non-disclosed models are in decline. But what is true transparency in programmatic?

The Programmatic Onion – Layers of Programmatic Transparency

the programmatic onion

Previously in programmatic, all the above layers of cost would be bundled into a CPM, CPA or CPC – for example, an advertiser would book a campaign with an agency or trading desk at $4 CPM with a minimum spend of $50k per month and all of the operating costs are covered.

Now, slowly, the costs are being unbundled from top to bottom of the programmatic supply chain as we peel back the layers of the programmatic onion. During this unbundling process, some of the people, contracts and relationships are shifting from 3rd parties and into advertisers themselves.

Not every marketer needs or wants to peel the onion. Outcomes based marketing is well suited to many, and certainly simplifies a complex ecosystem. But for many marketers, it seems there is an emerging need for transparency at every step of the supply chain, and a perception that this transparency can be better facilitated through direct relationships with publishers and tech.

Peeling the programmatic onion is a crucial exercise in transparency for our industry, an opportunity for agencies, tech vendors and publishers to build trust, and a key part of building spend in digital channels outside the Duopoly.

iKorea: Why Korea is Saying No to Programmatic

iKorea is a column by Soyoon Bach, a Digital Marketing professional in Seoul, covering developments in the Korean digital ecosystem.

Programmatic media buying is a powerful infant. While the technology itself is fairly new, it’s making strides globally. According to eMarketer, the programmatic market in the United States is projected to reach an estimated amount of 26.78 billion USD by the end of this year.

While North America is still by far the biggest programmatic market to date, Asia is quickly catching up and experiencing fast growth rates. Japan, Singapore, and Australia are leading the way as more mature programmatic markets in APAC. Korea is a big digital ad spender – the sixth largest in the world. However, programmatic buying is struggling to get its footing in the nation.

The estimated programmatic spend in Korea as of 2016 was around 141 million USD, which is far behind the billions spent in North America. Also, the definition of “programmatic transactions” is still murky; therefore, it’s unclear how much of that 141 million is truly programmatic. So why is this the case? How could one of the leaders of digital ad spending in Asia have resisted the strong programmatic current taking over the industry?

To understand this phenomenon, it’s important to take a look back through the history of Korea’s digital landscape. Since Yahoo! entered the domestic market in 1997, the digital ecosystem has largely been shaped and influenced by web portals, whereas web portals became fatally disrupted with the introduction of Google in North America. 1999 saw the birth of two web portals that still remain local titans – Daum and Naver. Dozens of other web portals competed for market share but Naver solidified its place at the top in 2003 and has maintained the position ever since. Daum come as a not-so-close second (the Bing to its Google if you may).

Naver is a formidable giant. The key difference between Google and Naver is that Google is a launching-off point. You start on Google and use it as a tool to help you get to where you need to go. Naver is different. It’s its own fully functioning ecosystem, equipped with search functions, blogs, cafes (communities), maps, ask sections, news, shopping, webtoons, music, real estate, finance, etc. You could access a mind-boggling amount of content without ever having to truly leave the platform. The experience is enclosed in comparison to Google’s openness.

Displaying Photo note

This is probably the biggest reason why programmatic is stunted in Korea. One of the reasons why programmatic is such a hit is because it makes it so much easier to sell and buy ad inventory. There were an estimated 1.82 billion active websites in the US in April 2017. Imagine advertisers having to shift through that many websites to decide which publisher’s inventory they want to purchase. It also makes it that much harder for publishers to manually sell their inventory. But when you put it into an automated system, such as programmatic media buying, it relieves the pressures of manually selling and buying.

However, Naver never has this problem. Many Koreans go to Naver to start web surfing and usually will stay within the platform for most, if not all, of their internet journey. Thus, advertisers will always go to Naver to buy inventory because they know that it’s guaranteed to be shown to a wide audience. Unlike Google, that has famously refused any form of disruptive ads on its search engine (e.g. banners and pop-ups), Naver allows ads to be shown on a variety of placements all throughout their portal. And it’s always in high demand.

Advertisers have to go through booking processes for most of the inventory, possibly facing hefty penalties for booking cancellations. They also have to adhere to strict rules set by Naver, be satisfied with simplistic reports that don’t reveal much, deal with the strict forbiddance of third-party tracking, etc. For Naver Timeboard, which guarantees your ads will be shown in the spot right under the main search engine for one hour, advertisers can pay up to 30,000 USD. FOR ONE HOUR.

Displaying Photo note

Advertisers grumble and moan but continually go back to Naver because that’s where their customers are. They can’t help but use it the way that most advertisers can’t avoid using Google for their search campaigns. You’re giving up too many impressions when you do. And because there’s such a high demand for their advertising space, sometimes requiring advertisers to book months in advance, they have absolutely no incentive to put their inventory out in a competitive marketplace. Daum has also followed in Naver’s footsteps.

So without Naver and Daum inventory, the marketplace for programmatic media buying just shrunk drastically, to a point where most advertisers don’t see the appeal of even bothering. Even with the appeal of more granular targeting options, more competitive pricing, and the ability to derive great insights about customer behavior, the lack of inventory is a huge barrier to entry.

However, Korea can’t stay this way forever. Global trends push for more transparency, more data, more precision and efficiency. High-tech Korean users are gravitating towards Google products and Korean branches of global agencies continue to feel pressure from abroad to start implementing programmatic practices. Programmatic technology platforms are arriving domestically in bulk. DCM, MediaMath, Adjust, Turn, Criteo, DataXu, and Rocket Fuel are just a couple of the players that are aiming to get in the market early.

It’s only a matter of time before the wall collapses and programmatic infiltrates the domestic market with full force. This leads to interesting questions that cannot yet be answered. How will powerhouses Naver and Daum react to this threat to their dominance? How will this change the Korean digital landscape and its heavy reliance on web portals to direct their internet activity? What strategies will Google utilize to take advantage of this situation? How will this push for transparency and an open web have ripple effects across other industries that have benefited from this enclosed ecosystem?

I think we’ll find out sooner than we think.

 

The New Digital Advertising Ecosystem Part 7: Programmatic Direct and Private Marketplaces

Private Marketplaces, also known as PMPs, are places where publishers offer their ad inventory to a selected group of advertisers. You may also hear buying in Private Marketplaces referred to as:

  • Programmatic Premium
  • Programmatic Direct
  • Programmatic Guaranteed
  • Programmatic Reserved
  • Preferred Deals
  • Private Auctions

Don’t worry, these are all basically the same thing – just different flavours of PMP.

Programmatic Direct combines the best of direct sales with the targeting and automation benefits of programmatic. PMPs are now a popular method of programmatic trading.

For publishers, PMPs give tighter control on which kinds of advertisers and creatives will be displayed on their site or app, while not having to manage individual advertisers like they would in a direct buy.

For buyers, PMPs allow access to premium quality inventory, and all the bespoke benefits of working directly with a seller – but also allow use of data, targeting and reporting from a single DSP dashboard.

Typically CPMs are higher in a PMP because premium advertisers are competing for the highest quality ad inventory on very reputable digital properties.

https://adngin.com/wp-content/uploads/2016/06/private-marketplace-pmp-deals-explained-infographic-1-638.jpg

Each type of PMP does a specific job for buyers or sellers.

programmatic-as-a-means-to-meeting-your-marketing-goals-by-darragh-daunt-incisive-create-ad-effectiveness-16-638

This is a great video from sovrn that covers RTB v PMPs and Programmatic Direct in a little more detail.

Make sure you read the earlier articles in this series to understand basic concepts of programmatic.

Programmatic to hit $12.72bn ad spend in China over 2017

We see a big year ahead for programmatic in China with projected 36.9% YOY growth. $12.72bn estimated ad spend will account for 57% of total digital advertising market.

China Mobile Ad Revenues and Programmatic Ad Spend 2014-2017 [Infographic]

china-infographic-en-03

WPP Stream Top 100 Tech Conferences 2016

Handy Google spreadsheet listing out the Top 100 tech conferences recommended by WPP for 2016.

Not many Asia focused events, only World Cities Summit 2016 and Code Conference Asia covered.

We think ATS Singapore deserves a mention for those wanting to find out more about programmatic, and Tech in Asia run a comprehensive calendar of start up and tech events across APAC on their site which is worth checking out.

The New Digital Advertising Ecosystem Part VI: Agency Trading Desks

In the latest in our series on programmatic we take a look at Agency Trading Desks (ATDs), the independent units within media agencies that specialise in programmatic buying. In Asia we often hear ATDs referred to as Internal Ad Networks, or just as “the Programmatic team”.

Agency Trading Desks have been set up by the large agency groups to support their clients who want to buy programmatically.

Examples include Xaxis, Accuen and Vivaki. See the Holding Company, Agency and Trading desk mapping below to understand how it all fits together.

Map of Agencies and Trading Desks [PDF]

Download here.

Agency Trading Desks usually offer a transparent and data driven approach to media buying, certainly compared to standard digital media, and can deliver impressive ROIs for smart marketers. ATDs use Demand Side Platforms (DSPs) to buy their media, and utilise a combination of Real Time Buying (RTB) and direct publisher deals to get the best results. Targeting is delivered via a Data Management Platform (DMP).

We know. Too many acronyms.

In summary, programmatic is a much smarter way of buying media and SHOULD get you better results.

But it can be confusing. Agency Trading Desks do a great job of simplifying this complex world.

In addition to being the future of media, programmatic is also a major revenue growth engine for agencies, who have seen profits reduced over the past 20 years by (sometimes over zealous) client procurement teams.

Establishing ATDs as a specialist unit enables agencies to charge fees for the additional services provided, including technology, data, and bespoke media. This is good or bad for the client depending on who you listen to.

What is for certain is that programmatic is moving at high speed and Agency Trading Desks are still evolving. Some ATDs will disappear and become part of the agency, while others will remain as specialist technology units.

In Asia, programmatic is just getting started and we still haven’t seen a full roll out of ATDs beyond regional level in Singapore. Watch this space.

We should also note that there are a bunch of other trading desks operating independently across Asia outside the big agency groups including Performance Asia and CTRL/SHIFT alongside many more.