Archive for December, 2009

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AdExchanger.com 2009 Year-End Report: Learn From The Ecosystem

Tuesday, December 22nd, 2009

Download NowWhat’s 369 pages long and contains everything you need to know about the evolving world of digital media optimization?

That’s right! It’s the AdExchanger.com 2009 Year-End Report containing every Q&A from 2009.

You have two flavors of downloads from which to choose.

You can:

Or, download your favorite parts:

You can buy a printed, bound copy
of the report from QOOP.com for the cost of the printed paper plus shipping – click here!

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Executing For 2010

Monday, December 21st, 2009

“the executioner” opinion expressed below is written by Karin Blake, Senior Lead of Platform Management, Ad Exchanges, at Razorfish.

The Executioner

Ten Predictions for 2010

  1. 200% growth in the DSP market.
  2. 25% failure in the DSP market.
  3. Online publishers take an offensive position in how/where their inventory is sold.
  4. Real-time creative optimization becomes and integration solution for direct response media buying (Come on, it’s been standard {hello dynamic keyword insertion} in search since the beginning!).
  5. Some ad networks die.
  6. Some ad networks (those who don’t die) become more like agencies, offering specialized expert services + technology to service advertisers.
  7. More acronyms ensue.
  8. Site transparency improves and proves value for both advertisers and publishers.
  9. Site transparency decisions force smart publishers to understand, evaluate, and adapt ad sales models.
  10. These predictions will be delayed, beta tested, and launched late, possibly well into 2011.

Follow Karin Blake (@km_blake), Razorfish (@Razorfish) and AdExchanger.com (@adexchanger) on Twitter.

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AdMeld Offering Real-Time Bidding To Publishers With UK Audience

Monday, December 21st, 2009

AdMeldIn a release today, AdMeld announced “the introduction of Real Time Bidding (RTB) capabilities in the United Kingdom” through its partners AdJug, AppNexus, Infectious Digital, Invite Media and MediaMath. Read more.

AdExchanger.com corresponded with AdMeld CEO Michael Barrett about the news …

AdExchanger.com: Are you aggregating UK publishers and selling their inventory? Or, are you selling UK audience from non-UK publishers – primarily U.S. publishers I would assume? Please explain.

MB: Both. We’re giving any premium publisher with an audience in the UK the ability to monetize that inventory via RTB.

AdExchanger.com: What special challenge(s) does the UK present AdMeld? (i.e. There are many ad networks on a percentage basis of inventory in comparison to the U.S.; skepticism about yield optimizers; they’re used to networks, etc.)

MB: We’ve been extremely encouraged by the interest in our service in the UK. In an environment where, as you said, there are so many sources of demand, premium publishers are looking for ways to connect efficiently and safely with the best of them, and AdMeld saves them a great deal of time and effort doing that. One of the keys to what we do is giving publishers more options and more control of their ad inventory—and RTB is a natural extension of that.

By John Ebbert

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Agency Relations Fragmenting And Forming; Shifting Sands Of Inventory Access; Mobile Ad Studies Galore; ad:tech Chicago No More

Monday, December 21st, 2009

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

Client-Agency RelationsAgency Sign O’ The Times

GM has finalized its agency dance partners (for now) and for the first time in nearly 100 years, Chevy campaign duties will be split by perennial GM agency service provider, IPG’s Campbell-Ewald, and newcomer Publicis. There are no favorites in the agency world anymore. All hands on deck! Read about it on Bloomberg.

But Wait, There’s More

Brand marketers from companies, such as CPG heavyweight, Unilever, are naming global digital agencies of record. How does Unilever manage agencies across traditional and digital channels? No idea – must be tough. If they’re smart, they’ll – at least – “test” positioning, messaging and campaigns with digital agencies for all channels given the digital channel’s far superior tracking and near real-time reporting capability. Razorfish and AKQA are the lucky recipients of digital record according to Ad Age. Read more.

Inventory Tatto-ed

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Display 2.0: The 2010 Odyssey

Sunday, December 20th, 2009

“Data Driven Thinking” is a column written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is written by Bill Demas, CEO of Turn Inc., a demand-side platform and ad network provider.

As the first decade of the new millennium comes to a close, the online advertising industry is at an inflection point: We are now entering the era of Display 2.0. Forget all that old school thinking about media buying, audience targeting and the traditional roles once held by agencies, media buyers and service providers in the world of display advertising. The rules of the game are changing.

The display world is going through a classic disruptive innovation precipitated by technological innovations and introductions such as real-time bidding exchanges, privacy-compliant data resellers and exchanges, and of course demand-side platforms. In 2010, we will begin to see the creation of more open platforms, increased systems integration and more powerful analytics to align with – and better tap into – the openness of ad exchanges. Classic ad networks are going to have to adapt to this new world order, beefing up their technology offerings (as some have already done) in order to compete with the exchanges and reinforce the value they bring to advertisers. It will be the end of the party for undifferentiated ad networks targeting brand marketers. Technology, scale, security and strategic expertise will be critical for success.

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Netmining Brings Profiling Solutions Through Ad Network Model Says GM Vegliante

Sunday, December 20th, 2009

Dean Vegliante is General Manager of Netmining, an online ad network and optimization company – and a division of Innovation Interactive which also owns SearchIgnite and 360i.

Dean Vegliante of NetminingAdExchanger.com: What problem is Netmining solving for its clients?

Netmining helps marketers drive significantly more revenue from their websites and online advertising. That’s the heart of what we do.

We also simplify the execution of online behavioral solutions with our Smart Tag. One simple Netmining tag in the footer of a marketer’s page can be used to deploy behavioral optimization across their website, email and display campaigns. Any future changes can be controlled by Netmining offsite, reducing the need for marketers to get their IT and website folks involved.

Who is your target market? Please describe your revenue model.

Netmining’s customers include some of the world’s leading digital agencies, as well as direct marketers, particularly in the automotive, retail, travel and B2B markets. Right now we find ourselves best suited to work with marketers who can tie us to a performance metric where we are consistently the best performer for customers like Red Roof Inn and Borders.

In terms of our pricing, we’re in a fortunate position because the rich data we collect and use in our algorithm provides us with the best performance in the space and thus allows us the flexibility to be open to different revenue models – CPA, CPM, rev share. We flourish in all of these models and work with clients to determine the best approach for them.

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Mobclix Bringing Ad Networks And Developers Together Through Ad Exchange Says Co-Founder Subramanian

Friday, December 18th, 2009

Krishna Subramanian is Co-Founder of mobile ad exchange, Mobclix.

MobclixAdExchanger.com: Why create a mobile ad exchange? What problem are you looking to solve?

KS: Mobclix allows ad networks to reach targeted ad inventory across mobile applications. Mobclix solves a real problem mobile developers have: managing their mobile application ad inventory. One ad network alone does not have a 100 percent fill rate – low fill rates result in a loss of revenue for developers. Mobclix optimizes ad impressions on a real time basis across over 20 ad networks and 20 different optimization variables. For the first time, traditional online Web ad networks have the ability to extend their Web networks to mobile

Who’s your target market in terms of advertisers and publishers?

In terms of advertisers, our target market is the ad networks themselves who then deal with advertisers. We work with the ad networks from start to finish to provide them with the support, education and access they need to close deals. Our publishers are mobile app developers. We currently work mainly with iPhone apps, but are in private beta for Android, Blackberry and Mobile Web. Right now, we represent 90 percent of the top 100 app developers on the Apple App Store.

What transparency do you offer advertisers? How much information can they see about their placements?

Advertisers can choose how to target their ads: behavioral, contextual, geographical and demographic targeting. Advertisers can cherry pick the users that will be most effective for their brand, driving higher conversions.

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IAB And AAAAs Offer T's And C's Guidelines; Cisco Entering Ad Exchange Business?; MediaMath Gets Netezza-d

Friday, December 18th, 2009

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

Terms and ConditionsYour New T’s And C’s

MediaPost’s Wendy Davis reviews the IAB and AAAAs proposed, new Terms & Conditions guidelines which evidently includes this: “Advertisers (and their agencies) can’t now decide to send a second ad to users simply because they already viewed a first ad at a particular publisher’s site.” Huh? Is everything a frequency cap of 1 now? In Twitter-land, Invizua’s James Sandoval reacted with a tweet thusly, “‘Updated [IAB] Ts & Cs restrict advertisers’ ability to retarget users’ based on ad consumption data; Enforceable? No.” Read MediaPost. And, download the new guide from the IAB (PDF). FYI, you have until January 29 to make a public comment!

Cisco Eyes The Ad Exchange

Rumors! And, this one makes too much sense. Digital-out-of-home (DOOH) site, The DailyDOOH, is reporting that Cisco is about to launch its own DOOH ad exchange. Read more. Can you see Cisco entering the display ad space next year? Buy a DSP or ad network to address another digital channel? As software is at my service – OH yeah!

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Data Nugget: Google Trends Speaks On "Ad Exchange"

Thursday, December 17th, 2009

Today’s data nugget!

How far along are we in this new data-rich world of ad exchanges and demand-side platforms? Not “too” if Google Trends is to be believed.

In fact, in the United States., we’re still at 2007 levels when Google bought DoubleClick, Yahoo! bought Right Media and Microsoft acquired AdECN. The “F” bump you’ll see below is for the launch of the DoubleClick Ad Exchange.

US Trends

Worldwide usage shows a similar trend except that the use of “ad exchange” goes back further – likely associated with the popularity of swapping of ads between websites to promote each other’s traffic.

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BlueKai Releases Latest Pulse Index; CEO Tawakol Discusses Intent Capture and Its Time Value

Thursday, December 17th, 2009

BlueKaiYesterday, BlueKai announced the second edition of its BlueKai Pulse which looks at intent data across its data exchange through the end of November. The report offers insights on consumer buying trends much like the company’s new analytics tool, BlueKai In-Market Reports, which includes access to a a panel of 160 million unique users across online retail and comparison shopping sites according to the company.

Here are example results provided by BlueKai for video game equipment that you might expect during the run-up to the Holidays – and people want a Wii!…

online-intent

Get the latest BlueKai Pulse here.

So what is intent? According to the release: “Shopping intent is defined as search and shopping related activities by consumers on retail and price comparison sites.”

AdExchanger.com asked BlueKai CEO Omar Tawakol for more insights on the insights…

AdExchanger.com: Can you get in the weeds a bit and explain the technology side of how BlueKai generates “Pulse” observations?

OT: BlueKai captures commercial intent through pixels that are integrated into the largest commerce sites on the web. For example, when an anonymous consumer shops for a Sony Bravia flat panel tv, BlueKai, tags that consumer as in-market for a Bravia flat panel tv. That tag is captured in the consumer’s browser cookie, but it is also logged as an event on our back end. This shopping event is then captured and aggregated with billions of shopping interactions every month. This allows BlueKai to mine for patterns that provide insights into how consumer’s behaviors are changing. The BlueKai Pulse report is our way of sharing those high-level insights with the industry.

AdExchanger.com: Do you have any sense of the shelf life (time value) of intent data?

OT: Intent behaviors are most valuable when they are first created. Over time, a consumer will buy the item they are shopping for – so intent behavior is best served fresh before a competitor accesses that behavior and converts that customer into a buyer. You can visualize this with a conversion decay curve by graphing conversions against time. This curve will show the highest number of buy conversions very early and fewer conversions a month later. Given this dynamic, each vertical has a different decay curve. For example, the conversion curve for in-market auto decays much slower than the conversion curve for a smaller ticket purchase like an iPod. One of the advantages of an auction system like BlueKai’s is that buyers can set their own price depending on the granularity and freshness of the data.

By John Ebbert

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Associated Content Is A Content Platform – And Not Just For News Says Patrick Keane CEO

Thursday, December 17th, 2009

Patrick Keane is CEO of Associated Content, an online publishing platform.

Patrick Keane of Associated ContentAdExchanger.com: Given AOL’s recent positioning in the content creation space, where does Associated Content fit? And, is it odd having Tim Armstrong as an advisor and competitor?

PK: Tim remains an investor and friend of the company. I cannot comment about Tim or AOL’s strategy but he has made a number of very public statements about the increasing importance of scalable and cost efficient content models. In my opinion we at Associated Content have the largest and most open content platform on the web. The web content ecosystem is large and diverse and will support multiple companies.

There has been a lot of talk about pay walls as a savior for newspapers and other online publications. Will Associated Content use a pay wall? Why not? And when do pay walls make sense?

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Lotame's Reich On New DSP Phenomena; UK Ad Exchange Optimism; Forrester Promising Demand-Side Platform Research; Display Ads In Your Sleep Are Next

Thursday, December 17th, 2009

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

DSP InefficiencyEfficiency Kills

From his company’s blog, Lotame’s Dan Reich references a recent manifesto/post by the IAB’s Randall Rothenberg who said, “technology succeeds in driving the cost of reaching the perfect audience down to zero.” Reich identifies a growing phenomena in the new demand-side platform world that “when you bid on an impression, in all likelihood, you are bidding on yourself, for the same piece of inventory.” He thinks there is decreased efficiency! Blasphemy? Or, another version of cookie wars? Read it.

DSP Research Ahead

DSP Marketing chiefs – ALERT! ALERT! ALERT! Emily Riley is promising that research is ahead from Forrester on the growing demand-side platform (DSP) space. In teeing up her DSP research, Riley gets emotional about ad networks saying on the Forrester blog, “I have a soft spot for the ‘good kind’ of ad networks, those who keep the advertiser and publisher interests in mind, who strive for good quality advertisements and content, and who have killer optimization and targeting technology.” Read more about what’s coming.

UK Looking To Exchanges In 2010

Will Cooper and Charlotte McEleny of MarketingWeek team to poll UK media types for their thoughts on media momentum for 2010. Stefan Bardega, MD of MediaCom’s Beyond Advertising unit, tells MarketingWeek, ““The important thing next year will be the inventory going through ad exchanges. It might not be a massive percentage but everyone will be testing them. A lot of people are saying it’ll change the way media is traded. It’s appealing because it’s an auction model so it isn’t a fixed price and you only pay what media is worth.” And, there’s more.

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InterCLICK Taps Markets For $12 Million; Pres Katz Says Ad Network Model Is Validated

Wednesday, December 16th, 2009

InterCLICKFresh from its move to the NASDAQ, InterCLICK announced that it has succesfully placed “2,875,000 shares of common stock to a select group of institutional investors.” Given the sale price of $4.50 share, InterCLICK now has a cool $12 million in net proceeds to play with. Acquisitions? More tech? Feet on the street? We’ll see. Read the release on Yahoo!.

AdExchanger.com caught up with InterCLICK president, Michael Katz…

AdExchanger.com: What does the investment mean for InterCLICK? And, can you characterize the openness to investment in advertising technology companies these days by investors? Market improving?

MK: This is a significant development for us and hopefully continues to validate the network model amidst other industry trends. Having access to significant capital (for the first time) will allow us to continue to deliver innovative solutions on behalf of our clients.

Its tough to compare the openness to investment between us and private companies because they are two very different types of investors but hopefully we are helping to validate the model for everyone.

AdExchanger.com: Looking back at the ad industry the past year, any surprising developments come to mind?

MK: The most surprising development was the hype around RTB, still way too early.

By John Ebbert

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2010 Brings Improvement, M&A Says Index Ventures' Dom Vidal

Wednesday, December 16th, 2009

Dom Vidal is a partner at Index Ventures, which backs – among others – OpenX, Criteo and Adconion, an ad network.

Dom Vidal of Index VenturesAdExchanger.com: What sets Index Ventures apart from other venture firms?

DV: At Index, we invest in technology and life science companies from early through to the growth stage of their development. We’re global in our outlook and investment philosophy, and this geographic diversity is one thing that makes us different. Many other VCs only invest in companies that are ‘in their own backyards,’ but we work with entrepreneurs and businesses spread around the world ­ in addition to our many portfolio investments across Europe, over 25% of our portfolio is US based and 10% in Israel. The real value of this is that it puts us in a great position to help our companies expand geographically when they are ready.

We also have a great group of partners who bring very different areas of expertise to the table ­ people who are leaders in their fields and know about a huge variety of sectors including consumer internet, IT infrastructure, enterprise software, semiconductors, clean tech and communications.

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CPL Advertising Invading Brand Advertising Says Pontiflex CEO Lasker

Wednesday, December 16th, 2009

Zephrin Lasker is CEO and Co-founder of Pontiflex, a cost-per-lead marketplace.

PontiflexAdExchanger.com: Has performance marketing started to reach the brand marketer?

ZL: Definitely. When we started Pontiflex two years ago, we anticipated that most of our growth would come from direct response marketers. But surprisingly we have seen a very rapid adoption of Cost-per-Lead advertising by brand marketers who are looking for cost-efficient and scalable ways to connect with new consumers.

We’re seeing major brands like HUGGIES, Dell, Blackberry and others look to CPL advertising as a way to acquire marketing leads. I want to be clear here. When I say marketing leads, I mean the contact information of people who raise their hands to hear more from a specific brand – the kind of information you would collect off a landing page in a display or search campaign.

Our advertisers pay for these marketing leads on a performance, or Cost-per-Lead basis and then engage them in a variety of ways. As many as 51% of advertisers used community sites and social networking groups to engage consumers. This was closely followed by e-newsletter programs with special deals and offers.

So yes, as brand marketers begin to think about branding not as broadcasting, but as engagement, we will see more brand marketers use performance marketing to accomplish their objectives.

Please discuss the momentum for Pontiflex in the past year. What are the strengths? (verticals, pricing) Any weaknesses?

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ScanScout Partnering Like Maniacs; VideoEgg Tying To Offline With ComScore; MIG In The News

Wednesday, December 16th, 2009

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

PartnersPartners Swarm ScanScout

In a release, video ad network ScanScout said its partnering with a gaggle of “premium” brands including Warner Brothers, Warner Music and Marvel Comics to provide its video ad network services. Read the release. On Beet.tv, CEO Bill Day talks “engagement” metrics here.

VideoEgg, ComScore Skip To My Lou

Pursuing the CPG marketers, video ad network and technology company, VideoEgg, announced that it will partner with ComScore and use its new AdEffx software suite to provide clients insight on the effect of online media buying on offline purchases according to an article by MediaPost’s Mark Walsh. VideoEgg has set the threshold for such deals at $500k. Read more.

Herman On Desktop Ads

Varick Media’s Darren Herman thinks that a recent Apple patent could mean ads are coming to the desktop of a Mac near you and further subsidize computer hardware and software. Malaprop-ing a tagline from a startup long since deceased, Herman concludes, “Will Apple make famous, ‘Get Paid to Use the Computer’?” Read it.

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Google Webcast Recap: Demand-Side Platform Performance Varies On DoubleClick Ad Exchange

Tuesday, December 15th, 2009

Webcast RecapIn today’s Google Investor Webcast, a team of Google execs focused on the company’s display advertising products including VP of Product Management, Neil Mohan, who addressed Google’s strategy for the Exchange.

The on-demand version of the webcast (“December 15 Educational Webcast”) is available on Google’s IR site.

Mohan’s presentation was an abbreviated version of the same presentation he offered when the exchange launched last September – which is available here.

Also of note, Teracent popped up in the webcast as Google’s Ari Paparo said Teracent technology will be available through the Company’s ad serving system “in the coming months.”

YouTube and Google Content Network were also addressed before Mohan took back the mic and focused discussion back on the exchange saying Google was interested in “openness.” Yahoo! must love to hear this.

Mohan said “strong lifts in yield” are being realized on the exchange and the company hopes to provide some examples in the future.

From the Q&A portion of the webcast, some highlights:
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Mpire Announces AdXpose Deal With WPP Group And GroupM's MediaCom, Discusses Risk Management

Tuesday, December 15th, 2009

MediaCom and MpireMpire announced in a release today that over the course of four months, WPP Group agency, MediaCom, implemented Mpire’s AdXpose technology for a consumer electronics firm resulting in what it says was significant performance improvement by, among other things, “removing underperforming sites from the network buy.” Read the release.

AdExchanger.com followed up with Mpire CEO Kirby Winfield…

AdExchanger.com: Are you surprised about the number of “underperforming sites”? What are some of the characteristics of these sites? Specific types of UGC, images, etc.?

KW: I am not at all surprised. I spent 10+ years in the search market, so I’ve seen the types of publishers and problems that can exist in a blind or unregulated environment. To me, the non-premium CPM display market, although it predates search, is way behind when it comes to quality control and fraud prevention. Impression fraud and unseen inventory, specifically, are rampant.

Advertisers, platforms and publishers have not traditionally viewed the impression-based ecosystem through the lens of transparency or site-level performance. Optimization generally occurs at the 10,000-foot level, with advertisers typically viewing performance at the network or exchange line, where items like passed tags, URL spoofing, URL padding, and specific publisher underperformance are simply not visible. The CTR and impression totals always magically turn out the way they should – it’s what informs those totals that advertisers need to be concerned with.

The good news is that there’s finally a focus on establishing some standards, and creating a marketplace where transparency, trust, accountability, quality are commonplace.

As far as characteristics of the sites, here are some red flags: hyphenated domains, unusual TLDs, movie sites, foreign UGC, Manga/anime sites, cricket/rugby/soccer sites, work from home sites. Of course, you have to be able to see the referrer URL to even catch these red flags.

AdExchanger.com: Is the brand marketer showing more interest in running awareness campaigns from your vantage point?

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Peerset Human Interest Data Providing Psychographic Targeting Capabilities Says CEO John-Baptiste

Tuesday, December 15th, 2009

Mike “JB” John-Baptiste is CEO of Peerset, an advertising technology company.

Mike JB John-Baptiste of PeersetAdExchanger.com: What is Peerset?

MJB: Peerset is an ad targeting service focused on leveraging social psychographics to connect a marketer with a user. Social psychographics is a category of consumer data we are helping the market understand and embrace. Think about it most simplistically as user generated content that is most reflective of people’s interests (better than polls and better than tracking web visits). Core to our IP is that our software understands the relationship between human interests(i.e. based on 5 things someone says, we can predict their other likely interests). Our first product, Peerset Advertising, can be used by marketers, agencies, social networks and ad networks to predict the likelihood that a specific user’s interests are matched well enough to a specific advertisement to recommend that ad to them. Peerset can either deliver the ad or deliver the user and have other services deliver the ad.

Discuss your competitive set.

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CBS Has That Ad Exchange Feeling; DataXu On DSPs; Clickable Clicking; PubMatic Reading TVGuide.com

Tuesday, December 15th, 2009

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

CBS Loves Ad ExchangesCBS Lovin’ Ad Exchanges

Ad Age’s Michael Learmonth breaks the supposed bad news for ad networks that CBS Interactive is showing the door to arbitrage in hopes of boosting direct ad sales, eliminating channel conflict and getting control of their data. The good news? They’re staying with exchanges. Learmonth writes, “CBS will continue to offer inventory to Yahoo’s Right Media Exchange, Google’s DoubleClick and demand-side exchanges such as Publicis Groupe unit Vivaki’s Audience on Demand.” CBS sees exchanges as a way to control data. That’s great for ad networks who can buy just the impressions they want through DoubleClick ad exchange and RMX rather than commit to larger, less targeted buys. Read it.

Digital Gives It To Traditional Up Hoo Ha

AdWeek’s Brian Morrissey is reporting that brands are starting to go directly to digital shops for their creative karma as traditional gets left with a bucket of tears. Morrissey names AKQA and R/GA as digital shops that are starting to take the creative lead. Read more.

Hush Hush, Microsoft M&A

If a tree falls in a forest and no one is around to hear it, does it make a sound?” Last Friday’s reported $65 million acquisition of Opalis by Microsoft wasn’t exactly well-publicized but it does signal a return to the M&A world for the Redmond giant which now is the proud owner of a company that “specializes in automating technology processes within data centers.” Sounds like ads to me! Read more from Dow Jones Newswires.

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