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Marketing 2013: No Room for Mad Men

IDG Connect

Over the next two weeks, IDG Connect is serializing commentary from industry experts on marketing 2013 predictions.  We feature expert opinion on the key trends in 2013, and regional outlooks on what 2013 holds for marketing around the world.

Marketers have been trying to understand consumer behavior and motivations since the dawn of advertising and propaganda.  Technology – from the earliest form of radio broadcasts and then TV – has had a deep impact on how marketing campaigns are strategized and executed.  Today’s marketers have resources at their fingertips to get deep consumer insights based on their online and mobile behavior – capabilities that Don Draper and his team would do anything to get their hands on.

Each year, technology gets more precise at targeting the most interested consumers with the highest purchase intents.  What trends will we see in 2013?

Mobile ads will grow
I might as well start the predictions off with the most obvious one.  Unless you’ve been living under a rock, you’ve heard that mobile advertising is growing at an exponential rate.  That’s because it works, and it works because the technology to enable it keeps getting more precise.  As companies are able to discern more granular information about mobile users’ behaviors (device, location, etc.) the success of mobile ads will grow.

Reliance on first-party cookies
In the desktop world, marketers had things figured out.  By attaching their cookies to popular sites such as NYTimes.com, they could track a user’s behavior, learn more about them and target ads specific to their behaviors.  But iOS doesn’t allow third-party cookies, and neither does Android (it’s possible to get around this on Android, but it’s not reliable).  But now brands realize the value of mobile ads, and that means they’re ready to do something about it.

Continue reading… 

Native Advertising Is Bad News

Digiday

Native advertising is a more insidious encroachment into consumer media content than any prior form of advertising. Billions of banner ad impressions may annoy readers, but they don’t misdirect users by disguising the source of the message — and this is exactly what native does. If publishers and marketers aren’t careful, they are going to poison the well of digital ad communications by breaking consumer trust.

First, understand why publishers are so tempted to make native their future. Digital outlets are getting creamed by RTB on online ad inventory that avoids the comparatively high prices publishers charge for ads. If you want to reach a business executive, you could pay The Wall Street Journal a $17 CPM on its website, or you could use DSP audience targeting to reach the same executives at a $2.50 CPM. eMarketer estimates RTB will account for 19 percent of all U.S. display advertising in 2013, and if you factor in the lower costs per impression, that translates to about 44 percent of all online display impressions. (Any publisher saying RTB is substandard ad inventory must now be prepared to explain why nearly half of her inventory is lousy.)

Publishers see native as a way to convince marketers to spend more directly with them — and to charge higher ad rates. Like all marketing intrusions, native has a spectrum of annoyance; I classify it into three categories: “The Frame,” “The Insertion” and “The Misdirection.” At each level, native is growing more problematic.

Read more… 

Real-time bidding reprograms the future of ad buying

BtoB

Real-time bidding—serving up display ads from a winning bidder within milliseconds directly to a targeted prospect—promises to reach mainstream maturity this year. “The advantage of RTB to the marketer is that it takes less effort than standard display ad placements,” said John Dietz, VP-applications at ad verification company Adometry Inc. “You can go to a platform and say, “This is what I want to achieve,’ and you automate the estimated price to achieve that.”

Dietz said RTB, also known as programmatic ad buying, will never capture 100% of the ad-buying market and that there will always be room for agency media buying desks. “I don’t know if the branding guys will be very involved, but for those marketers with performance-based campaigns, I would see budgets for programmatic buying going upwards of 50% of their ad budgets,” he said.

Continue reading… 

Dare to Be Surprised in Digital Video Advertising Trends for 2013

MediaPost

In the past year, we’ve seen the greater awareness (and, consequently, media spending) devoted to digital video, mobile, programmatic buying and selling of ad inventory, and social media take off in manners and volumes most of us wouldn’t have predicted. There’s no such thing as the status quo in rapidly growing technologies and media channels, and in 2013, records will be broken, and outmoded models will crumble. Here are 11 ways we predict the digital marketplace will really change in 2013.

- Video RTB revenue will exceed Forrester expectations. Sure, we have an affinity to this, but Forrester has predicted RTB video spending will grow from $387 million in 2012 to $667 million in 2013. This might sound like huge growth, and it is, but it’s conservative given the conversation about programmatic buying and selling is picking up.  RTB is a big part of programmatic in video. If people were surprised by the statistics around the rise of online video consumption in 2012, 2013 will be even more of a shocker. RTB in video will be lauded for its abilities to monetize video content and give brands the reach they desire.

Continue reading… 

Why 2013 Will Be the Year of Programmatic Premium Guaranteed

ClickZ

Fairfax Cone, the founder of Foote, Cone and Belding, once famously remarked that the problem with the agency business was that “the inventory goes down the elevator at night.” He was talking about the people themselves. For digital media agencies that rely on 23-year-old media planners to work long hours grinding on Excel spreadsheets and managing vendors, that might be a problem.

For all of the hype and investment behind real-time bidding (RTB), the fact is that “programmatically bought” media will only account for roughly $2 billion of the anticipated $15 billion in digital display spending this year, or a little over 13 percent depending on who you believe. Even if that number were to double, the lion’s share of digital display still happens the old-fashioned way: publishers hand-sell premium guaranteed inventory to agencies.

Kawaja map companies, founded to apply data and technology to the problem of audience buying, have gotten the most ink, most venture funding, and most share-of-voice over the past five years. The amount of innovation and real technology that has been brought to bear on audience targeting and optimization has been huge, and highly valuable. Today, platforms like The Rubicon Project process over a trillion ad bids and over 100 billion ad transactions every month. Companies like AppNexus have paid down technology pipes that bring the power of extensible platform technology to large and small digital advertising businesses alike. And inventory? There are over five trillion impressions a month ready to be purchased, most of which sit in exchanges powered by just such technology.

Read more… 

The pros and cons of real-time bidding for mobile

Mobile Marketer

Real-time bidding promises to impact the way in which mobile ad inventory is traded and can significantly boost performance, according to a new report from Adfonic. However, it still comes with some challenges for marketers and its future role is by no means guaranteed.

In a report that was released today, Adfonic compares RTB with non-RTB methods for running mobile advertising campaigns and finds that the clickthrough rates for RTB ads is 97 percent higher on average. Results are even higher for certain verticals such as fashion and style and when RTB is combined with rich media.

“Today, RTB is still a ‘mid sized’ part of the mobile ad space,” said Howie Schwartz, CEO of Human Demand, a mobile DSP focused on real-time bidding. “Twelve months ago, I would have said that it is a tiny part, so we have experienced significant growth and scale.

“OpenRTB as a standard has really sped up integrations and access to supply,” he said. “I think the next big growth areas in mobile RTB this year will focus on: hyper local, mobile audience, rich media, mobile video.”

Lifting results
RTB is the programmatic trading of mobile ads based on algorithms. By bidding for inventory in real time, advertisers can access impression-level attributes very specific to their audience and are likely to pay less because they eliminate most of the friction from the sales process.

Continue reading… 

Eight Digital Trends to Watch in 2013

Adweek

Making predictions in digital media can be a dangerous game. Conjecture such as “2006 is going to be the year of mobile” come to mind. How many of us this time last year even knew what Pinterest was, let alone predicted its popularity explosion? With that being said, Adweek is attempting to make some educated guesses about where this industry might be headed. Here are eight trends to watch for as 2013 unfolds:

Brands as Publishers

Content marketing became all the rage this year as brands from IBM to Amazon to Unilever started thinking more like publishers. Most of the conversations centered on embedding companies within digital consumer experiences by way of visual or text-based content. Paul Polman, Unilever chief exec, planted his firm’s flag in the movement by saying it “is reallocating budgets to enable us to make content in an always-on world. Agencies need to organize themselves around the consumer, not the client.”

Continue reading…

Real-Time Bidding Myths Busted

MediaPost

More and more publishers are contemplating the value of the real-time bidding (RTB) model, but concerns are keeping many from taking full advantage of it. Some publishers fear that with RTB, they are losing control over how access is being granted to their inventory, while at the same time potentially reducing ad quality standards. Others fear the platform is too complex and requires too many resources in order to adapt to publishers’ needs.

It’s not surprising, given the fast-paced and often confusing nature of the space, that these misconceptions have been formed — but they are misguided. The truth is, RTB can represent a meaningful addition to a publisher’s monetization strategy. To do so, however, requires a clear distinction between fact and fiction.

Here is my attempt to clear up some of those myths that publishers hear about RTB:

Myth #1 – What’s good for buyers is bad for sellers.

Fact – Publishers are in the driver’s seat, and make the decisions.

Read more…

Big Data Initiatives High Priority for Enterprises but Majority Will Face Implementation Challenges

IDG Enterprise 

Framingham, Mass.  – IDG Enterprise—the media company comprising of Computerworld, InfoWorld, Network World, CIO, DEMO, CSO, CIO Executive Council, ITworld, CFOworld and CITEworld—releases the results from the 2012 IDG Enterprise Big Data research which delves into big data strategies and challenges as adoption increases. The research highlights big data initiatives as a high/critical priority for 59% of enterprise organizations (1,000+ employees) and 48% of small/medium (SMB) organizations (<1,000 employees). As a new technology trend, challenges are anticipated, in fact 60% of IT executives believe big data integration will be very/extremely challenging.

For the full release click here

Delivering Mobile Ads Through RTB: Long Way To Go

MediaPost

In recent years, two important trends in digital have occurred simultaneously: real-time bidding (RTB) has taken off and revolutionized digital advertising, and the rise of mobile has forever changed the way we interact with digital content. And yet, surprisingly, when it comes to RTB on mobile, we’ve haven’t made a great deal of progress. Even some of the most fundamental questions remain unanswered.

What does mobile even mean? Is a tablet a mobile device? How about a laptop with an LTE or 3G connection? If we assume a mobile device is a tablet or mobile phone, then there is a further problem. RTB-based ads can appear inside an app, but they can also appear on a website being viewed on  a mobile browser. Each experience is vastly different and has different limitations.

Let’s take a look at three distinct types of RTB on mobile — and see why one should be banished from the definition of mobile advertising.

Read more…