Archive for January, 2010

Media Exchanges Are Creating A New World For Search Marketers

Friday, January 29th, 2010

“Displaying Search” is a column capturing the intersection of display advertising and search marketing.

Displaying SearchToday’s column is written by Dax Hamman, VP, Display Media, at iCrossing, a digital marketing agency.

The average search marketer doesn’t rate display very highly. They operate in a very ROI-orientated world based on hard facts and close to 100% accountability. They see display as fluff, and place little credit on what they see as a view-thru-reliant world lacking in the same level of accountability that they are held to. But the increasing awareness of newer buying models created by the exchanges is making search marketers reassess.

Their brand clients are adding to this pressure; the ongoing macro-economic situation has forced brands to look hard at how they invest in digital; ROI goals are King, branding goals less so. SEM budgets have been the big winner from this situation, but can only continue to be so up to a point. As a full service digital agency that specializes in serving fortune 500 brands, iCrossing has long standing SEM programs that have reached their maximum spend level (whilst still maintaining an ROI goal). And so when the client calls and says they have more budget, where is that money to go?

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Presenting… AdExchanger!

Friday, January 29th, 2010

A new, (somewhat) weekly comic strip from AdExchanger.com that highlights the digital advertising ecosystem…

AdExchanger - The Origin Strip - Cell 1

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Varick's Herman Becomes Chief Digital Media Officer; Microsoft Reports On Display; IAB's Rothenberg Thinks Apple iPad Could Semi-Privatize Advertising

Friday, January 29th, 2010

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

Darren Herman Elevated To Chief Digital Media OfficerHerman Takes On New Role

MDC Partners took another step into digital waters as one of its agencies, Kirschenbaum, Bond, Senecal & Partners (kbs+p), announced a new Chief Digital Media Officer and tapped its own – Varick Media’s president, Darren Herman. According to AdWeek’s Brian Morrissey, a search for a replacement for his Varick role is underway as Herman will assume a more “visionary” position. On his blog, Herman writes, “My belief is that if you are going to create a sustaining communications experience in 2010+, you are going to require a digital backbone.” Read AdWeek. And, read the blog.

Microsoft Reports Fiscal Q2

Microsoft made enough money in their fiscal second quarter 2010 (ending 12/31/09) to buy most of the new ad technology companies covered on AdExchanger.com as the company reported a profit of $6.66 billion, or 74 cents a share. Though sales was driven by the company’s software, highlighted by a successful launch of Windows 7, Microsoft also talked display saying that within the Online Services division “search revenue grew, [but] display revenue was hampered primarily by international rate declines.” Read an earnings summary in the WSJ. And, visit the earnings call transcript on Seeking Alpha. Read the Investor Relations press release here.

Entrepreneurs Exchange Shares

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Mobile Ad Network Jumptap Discusses The iPad Advertising Opportunity

Thursday, January 28th, 2010

Jumptap on the IpadMobile ad network Jumptap announced targeting for the new Apple tablet computer, iPad, yesterday.  Read the release.

AdExchanger.com discussed the new iPad and the advertising opportunity enabled by it with Jumptap CMO Paran Johar.

AdExchanger.com: What makes the Apple iPad (or tablet) a “mobile” opportunity? For Jumptap, what are the key differences of the iPad that makes it mobile versus the online experience of a laptop PC’s browser?

PJ: Two key components.  The first mobile opportunity is extending the reach of existing iPhone mobile applications to a new iPad platform.  Our network of application developers, who are both publishers and advertisers with us, will have an immediate opportunity without making any technical changes.  But to fully take advantage of the new platform, new ad units will need to be deployed by both publishers and advertisers for applications that are customized to the new factor of the iPad.  The second mobile opportunity is for brand advertisers that are seeking consumers that are on-the-go.  The ultra-thin, sleek design makes iPad a highly portable device, meaning consumers will have this in the car, on the plane, in the coffee shop, and in their handbag.  For years, mobile advertising experts have built business practices for how to take advantage of mobile’s unique aspects, like geo-targeting and location based services such as couponing.  These will extend onto this new platform.

AdExchanger.com: What is the potential impact of the iPad on digital advertising?  A year from now, any guess as to what share the iPad will have of total mobile advertising spend?

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Auditude Offering Automated Video Management Platform And Supporting VAST Says CEO Cahan

Thursday, January 28th, 2010

Adam Cahan is CEO of Auditude which provides a technology platform for video management and monetization.

AuditudeAdExchanger.com: Please provide some background. How did Auditude begin?

AC: Auditude was founded in 2005 around our Content ID/fingerprinting technology. In 2007, we took our first round of institutional financing and began to build the team we have in place today. We have fingerprinted over 100 channels of broadcast television since 2005, which powers our Content ID offering. In 2008, we launched our complementary video ad management platform, Auditude Connect. Our ad platform customers include Major League Baseball, MySpace, MTV Networks and Yahoo!. Some of the largest names in content, websites and advertising trust us to manage their online video assets and monetization.

We’re headquartered in Palo Alto, CA with offices in New York, Los Angeles and London.

What problem is Auditude trying to solve and for whom?

Auditude is helping create a viable business model for premium online video by making video advertising truly manageable in a highly distributed and complex environment. Imagine all the business rules and challenges that occur when premium video such as TV content migrates online. There are many questions that arise including how to deal with advertiser exclusions, manage multi-party selling (websites, content owners, and third parties), incorporating new ad products as well as managing the overall consumer experience. This is in addition to forecasting and accounting for revenue shares, and delivery across multiple sites in real time.

We’ve spent a lot of time on our product removing and automating a lot of these challenges by trying to apply display advertising models to video content. We’ve taken a holistic approach to delivering ad management capabilities that deal with content, context and user interaction. We believe that we can help solve some of the challenges through scaling capabilities and, thus, see more content and consumption continue to increase online.

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AdRoll CEO Bell Discusses Self-Service Retargeting

Thursday, January 28th, 2010

AdRoll announced a new, self-service retargeting solution which it says has resulted in up to a 30% performance improvement when buying cross-platform. Read the release.

AdRollAdRoll CEO Aaron Bell spoke with AdExchanger.com about the new product called Roundtrip and retargeting, in general.

AdExchanger.com: You identify “cross-platform retargeting” (i.e. retargeting across multiple ad networks and exchanges) in the release as the reason for a 30% lift for AdRoll advertiser clients retargeting   campaigns.   How do you manage the client’s cookie pool?  Do you prevent duplication across the supply sources? And what about frequency capping?

On the surface, retargeting is advertising to past visitors as they surf the web at large. However, besides merely targeting a specific user, there are additional factors that need to be layered in, such as context (ads perform 36% better in context*), location of ad on the page, and bid price. The broader the inventory set you can see, the more experiments you can run to exploit these factors, and the better you can optimize. Cross-platform retargeting affords RoundTrip this flexibility, and we see greatly improved lift when we blend campaigns versus buying on a sole platform.

This is the (now being realized) power of real-time bidding. We are rolling out RTB buying with partners that have mature APIs, while mixing in pixel piggybacking with the systems that haven’t reached that point yet. Alongside, we’ve developed a cookie store that lets us recognize users across inventory pools and apply appropriate frequency caps. Our partner integrations are at various stages, but we’re excited to see very strong retargeting campaign lift today purely as a result of cross-platform buying.

* Source: Enquiro Research, “Display Advertising – Does Contextual Relevancy Make a Difference”, August 2008.

AdExchanger.com: What would you say the key differences are between the retargeting needs of the small advertiser and large advertisers  such  as eCommerce players and agencies?

AB: Our overall approach to SMBs is easy DIY tools coupled with support (a live person that can help), and highly-automated optimization technology that reduce the overhead of running a successful campaign. These attributes, in addition to our focus on performance and reach, have also made us attractive to the larger e-commerce advertisers and agencies.

AdExchanger.com: If one of the exchanges or networks, such as DoubleClick Ad   Exchange, was able to scale and capture a significant amount of  your  clients’ audiences, would they need multiple supply sources anymore for retargeting?

AB: Based on the data we’ve seen, a cross-platform solution provides better performance. (Incidentally, the DoubleClick Ad Exchange is one of the platforms that we already make available to our advertisers.) There will always be more optimization opportunities from being able to sample more inventory.

By John Ebbert

The Future Of Privacy; Not All Newspapers Believe In A Paywall; Gabriner Moves to Adap.TV

Thursday, January 28th, 2010

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

Future Of Privacy ForumThe “I”s Have It

Jules Polenetsky of the Future Of Privacy Forum is hoping that a new “i” image will be the indicator light for consumers telling them that they’re seeing an online ad due to behavioral, cookie-based targeting. Stephanie Clifford covers the story in The New York Times and quotes Polonetsky on the image, “The idea was ‘to come up with a recycling symbol — people will look at it, and once they know what it is, they’ll get it, and always get it.’” Read it.

Some Newspapers Believe In Free

McClatchy CEO Gary Pruitt said during his company’s fourth quarter earnings conference call that McClatchy is focused on a free, ad-supported business model for its online newspapers in spite of calls by some to put up the pay wall and try ease the pain publishers have been feeling as CPMs have tanked. Read more from Dow Jones Newswire.

TRUSTe For Behavioral

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AdGear Building A New Ad Serving Platform For Advertisers And Publishers Says VP Stesin

Wednesday, January 27th, 2010

Vlad Stesin is VP, Strategy at BLOOM Digital Platforms, makers of AdGear, an ad serving platform.

AdGearAdExchanger.com: Please discuss AdGear. How did it start? And what challenge is AdGear trying to solve?

The team working on the platform has built and operated the proprietary ad serving infrastructure at Cossette, Canada’s largest independent advertising agency. We’ve been running that platform since 2001, serving billions of monthly impressions for clients such as Coke, General Motors Canada, McDonald’s, Nike, H&M, Brother, GlaxoSmithKline, Molson and others. Our emphasis has always been on two things: richness of data and flexibility of ad formats, no matter the shape they take.

In 2008 we spun out the digital marketing technologies team into BLOOM Digital Platforms, where we set out to build AdGear, our new generation of ad management tools for publishers and advertisers. Our goal is to build a true next-generation ad platform with an emphasis on managing data and properly accommodating for third party services, be it optimizers, ad networks, third party data providers or ad exchanges. Unlike legacy systems built before things like yield optimization and third party data exchange were commonplace, AdGear was built from the ground-up specifically with the intention of making dealing with such services simple and comprehensible for publishers.

We have released a first version of the publisher product last year, while the advertiser version is currently in closed beta.

Who do you see in your competitive set? What will be the key differentiators for AdGear?

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Solbright CEO Pace Says Advertising Will Remain Major Way Publishers Create Revenue; Discusses Company's Back Office Solutions

Wednesday, January 27th, 2010

Tom Pace is CEO of Solbright, a web publisher solutions provider.

SolbrightAdExchanger.com: Solbright has been around for a while. Discuss the evolution of your company and how it has tracked changes in the online ad industry.

Solbright started out as a practical solution for addressing the basic business processes of publishers and Web sites looking to manage their online advertising businesses. It began with some improvements in the trafficking and operations area, including flight and creative management. Over time, as the process grew increasingly complex, features and functionality were added to the Solbright solution to address the sales and billing processes, followed by inventory forecasting and management. All of these features were strategically considered and added in order to reflect the needs of the online ad market as it grew over the years. Now ad hoc reporting, yield management, multiple ad server management, third-party system and buy-/sell-side integration are all being addressed due to the current and anticipated demands of the market. In addition, we’ve partnered with leading technology providers – such as Ad-Juster, with whom we announced a partnership last week – to integrate these technologies into our solution and further simplify the process of digital ad operations management for premium publishers. When you are managing processes for the best publishers and Web sites in the business, there is a terrific interplay of ideas and trends coming from this base of clients, all of which are setting expectations and needs for the market based on real-world experience.

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Yahoo! Beats Estimates; Lining Up The Mobile Ad Network Acquisitions; Gates On Google; Selling PPD

Wednesday, January 27th, 2010

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

Yahoo Q4 2009Yahoo! Reports Q4 ‘09

Yahoo! reported its Q4 earnings for 2009 and the big news is “CEO Carol Bartz noting that the company would disable its irksome ‘hover interaction’ on the homepage,” according to Kara Swisher of All Things D. The Associated Press reports that earnings for Yahoo! beat analysts’ estimates as the company earned a chunky $150 million and Q4 revenues stopped sliding as much (only 4%) as they had in previous quarters. Read it.

More highlights from the Seeking Alpha transcript:

  • CFO Tim Morse: “O&O display was essentially flat year-over-year which was a big improvement compared with where we were earlier in 2009. The best news was that display grew an impressive 26% sequentially. 4Q is of course a seasonally strong quarter but this year’s sequential growth was the strongest we had seen since 2006.”
  • Morse claimed that the guaranteed inventory was squeezing supply for non-guaranteed and causing prices to go up for non-guaranteed.
  • CEO Carol Bartz: “Demand for our guaranteed display inventory is growing. We are seeing advertisers reach farther into 2010 to book premium Yahoo! sites and events so we expect the positive momentum to keep building.”
  • Morse indicated that the “housecleaning” around ad networks who bought inventory from Yahoo! and were booted or curtailed due to poor “quality scores” would not have as much impact on revenue as originally estimated – $150 million instead of $240 million.
  • Bartz added the following during her only mention of Right Media, “We have 120,000 active buyers and sellers there would have to be a major shift to cause any kind of a problem with display inventory.”

Read the Investor Relations release. Or, listen to the call yourself.

Mobile Ad M&A Game On

BusinessWeek’s Olga Kharif covers the mobile ad network M&A madness and identifies four potential acquisition targets: Millennial Media, Jumptap, Greystripe, and Tapjoy and Mobclix. The article reveals that Jumptap’s revenue increased 5x year-over-year as CEO Dan Olschwang whetted the appetites of potential acquirers with, “More [advertisers] now treat mobile as a must-have component in their media mix.” Click here for mobile millionaires.

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Turn Announces Agency Holding Company Client: Omnicom Media Group; Upgrades Platform Features

Tuesday, January 26th, 2010

Turn announced feature upgrades to its demand-side platform as well as an agency holding company client win in Omnicom Media Group in a release today. Regarding the upgrades, the company said, “Capabilities include single-click deployment across all real-time bidding (RTB) inventory sources, automated budget allocation and a new audience extension technology.” Read the release.

AdExchanger.com spoke to Turn CEO Bill Demas about the release and industry trends.

AdExchanger.com: Beyond offering a “hard dollar” return on ad spend, what other benefits does the Turn platform offer its clients?

BD: Analytics is a big component. The platform includes a feature rich Audience Insights module that provides detailed demographic and psychographic audience profiling for campaigns. These analytics can be viewed during and after a campaign, but many of our clients actually use it to analyze an advertiser’s existing customers prior to the campaign launching. The data is then used to help inform messaging strategies, creative design themes and media planning across both exchanges and traditional guaranteed buys.

Turn

Image replaced 1/26/10

For campaigns that are targeting a very niche audience, the Audience Extension module can be utilized to identify additional, high performance ‘act alike’ audience segments. By finding these new audience segments, our clients are able to go beyond just optimizing within the existing budget, to identifying whether the budget itself can be increased!

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eXelate Announces Invite Media Partnership; CEO Zohar Offers Insights On Data Marketplace

Tuesday, January 26th, 2010

eXelate and Invite MediaOnline targeting data provider, eXelate, and Invite Media, a demand-side platform, announced an agreement in which “Invite Media customers gain both seamless access to eXelate data across multiple media exchanges including Right Media, Google DoubleClick’s Ad Exchange, AdBrite, AppNexus, AdMeld, PubMatic and others, as well as dynamic insight reporting indicating the audience characteristics that are driving results.” Read the release.

Meir Zohar, Chief Executive Officer of eXelate, spoke to AdExchanger.com about details of the release and the application of data in online advertising today.

AdExchanger.com: What do you mean by “multipoint performance analytics?”

MZ: Basically this process is all about providing advertisers with a new way to define who their audience is, and what members of that or any newly discovered audience segment are truly performing. It is based on “machine learning” in which each distributed creative looks at all potential segment identifiers, seeing which creates a lift, reporting that and then allowing impressions to be moved to the high performers. We have coined the term “behavioral optimization” for the process – and it is something I think you will hear a great deal more about in 2010 and beyond.

AdExchanger.com: Can you discuss the complexity of using eXelate data today? Do advertisers and agencies need to be adept with demand-side platforms, for example?

MZ: A key differentiator of eXelate’s approach to the buy side of the market is our “open platform” position. Our philosophy is that data should be able to be applied in many different methods, delivered in multiple formats and priced by flexible business models. Targeting applications for branding campaigns demand a different business and technology model than media exchange based analytics reporting or campaign optimization does. It is not a one size fits all data world. Our technology supports this concept by offering an open API that’s very easy to integrate into various demand side platforms, a direct data buy interface and a flexible group of business models. In a nutshell, we want to make our partners’ data easily applied anywhere so they can find their audience everywhere!

AdExchanger.com: What do you see as key drivers to demand for display advertising by advertisers/agencies in 2010?

MZ: A few thoughts on what will drive the display business:

  1. General economic recovery (a rising tide . . .)
  2. Remaining scars from the last downturn (dollars shifting from inefficient offline to accountable online media)
  3. Further development of the “secondary channel” based on Real-Time Bidding (RTB) becoming fully operationalized which will drive the continued growth of ad exchanges. That will go side-by-side with the growth in quality and quantity of data that feeds second channel targeting.
  4. Growth of premium media channel based on (a) the opportunity for the agencies to start leveraging data from companies like eXelate to perform “audience buying” as opposed to strictly using content as proxy for audience (this will eventually move offline as well), and (b) explosion of the agency buying platforms such as Vivaki, Cadreon and MIG, who want premium environments, but can drive massive centralized volume (and targeting as noted above)
  5. Great data that will fuel display performance which will finally start to approach that of search!

Dentsu Buys Innovation Interactive – As In 360i, Search Ignite, Netmining

Tuesday, January 26th, 2010

Dentsu Buys Innovation InteractiveAnother independent digital agency has been gobbled.

The Wall Street Journal’s Suzanne Vranica reported last night that top-5 holding company, Dentsu, was in the final stages of acquiring Innovation Interactive which owns 360i, Search Ignite and Netmining (AdExchanger.com Q&A). According to Vranica, “The deal under discussion is valued at roughly $200 million… In 2009, Innovation’s revenue was about $69 million.” Read more. This morning, the deal was confirmed in a release by Dentsu here. Ad Age has more here and notes that iCrossing may be next.

Tim Andree, President & CEO, Dentsu Holdings USA, gives the corporate perspective in the release: “Unmatched digital expertise, world class capabilities and proven performance are what led us to Innovation Interactive, but it is their unique culture, commitment to clients and industry leadership that make this marriage a true win-win. Will [Margiloff, co-CEO at Innovation], Bryan [Wiener, co-CEO] and I have spent nearly a year walking in each other’s shoes, and the farther we walked, the more clearly we saw compatibilities that would result in a higher value proposition for our clients. We share the same passion for client-centric operations and continual innovation for some of the largest brands in the world.” It would seem Margiloff and Wiener will have important roles in the company going forward as Dentsu transitions its agencies into a digital world. Getting digital leaders can be a key part of any acquisition by a holding company.

And, Dentsu aspires to be a data-driven company if their website’s home page is any indication. The tag line says, “Good Innovation.” Is today’s news coincidence?

AdExchanger.com gathered some reaction from the ad ecosystem…

Darren Herman, President of Varick Media Management said:

I think this move by Dentsu is another nod to advertising and technology aligning. If you are going to build the agency structure of the future, having technology at the core is a must. Will and his team over at Innovation Interactive innovated and executed towards this aligned goal and now it’s a new chapter in their life with Dentsu.

Randy Nicolau, CEO of Demdex added:

This is a great exit for Innovation Interactive. During the past 10 years Innovation Interactive has built a solid, diverse business which includes search technology, analytics/targeting, and agency services. I would keep an eye on the demand-side platforms, ad verification services, and behavioral data management firms. An acquisition of one of these companies will likely signal that the race to own the best ‘audience platforma has begun.”

Kirby Winfield is CEO of mPire, makers of AdXpose commented:

“It is interesting to see this news on the heels of the recent Vivaki announcement (no more equity investing) and the relative silence on the tech deal front for the past few quarters from the traditionally tech-acquisitive WPP Group. That said, IPG looks to have reorganized its efforts around tech with the recent formation of Split, and digital leaders within agencies are certainly being promoted more frequently into leadership roles within traditional agencies.”

Zach Coelius, CEO of Triggit said:

“I think agencies are starting to recognize that technology is reshaping their business just like it has in every other sector in the economy.”

By John Ebbert

Publicis' VivaKi Transitioning; IPO Market Gets Everyday Health; Lotame Managing Preferences; Mediabrands Has 4 CEOs

Tuesday, January 26th, 2010

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

VivaKiVivaKi Ventures Transitions

VivaKi Ventures has transitioned from the investment phase to the integration phase according to a ClickZ article by Zach Rodgers. Rodgers says that VivaKi investments such as Adap.tv, Aggregate Knowledge, Tumri and others will continue to be integrated into the VivaKi Nerve Center toolkit, but the venture unit will back away from further equity investment. Sean Kegelman, SVP of Partnerships at VivaKi, will get what remains of VivaKi Ventures responsibilities. Read more. With an impressive list of tech companies in-house (likely including another unnamed DSP or two), the Nerve Center appears to have enough technology for now.

A Health-y IPO

Waterfront Media is taking the IPO plunge in a public offering that – if successful – will raise $100 million according to PaidContent’s Joseph Tartakoff. Don’t be confused though – it’s no longer Waterfront Media. It’s Everyday Health, the owner of 25 health-related websites which fill the Google search result pages with paid ads and organic results – not to mention heavy spending on the Google Content Network. Read more. And, here’s the S-1.

Hearst Thinking Mobile

In a release, Crisp Wireless announced its new mobile ad serving technology (Adhesion) for the mobile web which continues to show the ad above-the-fold even though the consumer is scrolling down the page. The company said Hearst Magazines Digital Media is one of the first publishers to sign up for the service. Read the release.

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Rubicon Project Research Showing Q4 2009 CPM Surge; Discusses Drivers

Monday, January 25th, 2010

Rubicon ProjectThe Rubicon Project released it’s Online Advertising Market Report for Q4 2009 and said that CPMs were showing considerable strength as “CPMs across the Rubicon 20 Index have risen by an average of 34 percent vs. Q3 2009.” Read the release. And, download the report here (sign-up required).

Rubicon Project VP of Marketing, Kara Weber, discussed the report with AdExchanger.com.

AdExchanger.com: Can you share some data that shows audience targeted buys, in particular, were a key driver of increased CPMs for the “Rubicon 20″?

KW: At the end of Q409 more than 10 percent of advertising dollars flowing through the Rubicon Project’s REVV Marketplace were being spent exclusively on audience-targeted buys, compared to 5 percent at the start of Q409. There is also a chart highlighting percentage of revenue from Audience-targeted buys in this blog post.

Comparing Q4 of last year for the Rubicon 20, what does it look like in terms of CPMs?

The Rubicon 20 Index saw 17.7% growth Q4 ‘09 over Q4 ‘08.

What are the key “major news events, especially around celebrity activities” in which Rubicon Project saw an increased demand?

The events we identified were the same as what the rest of the market saw, including the passing of Brittany Murphy and reports on Tiger Woods’ infidelity. These major new stories drove consumers to celebrity gossip sites en mass in Q409.

By John Ebbert

Better Advertising Will Create More Trust Between Consumers, Companies And The Government Says CEO Meyer

Monday, January 25th, 2010

Scott Meyer is CEO of Better Advertising, a company focused on provide a solution for privacy self-regulation for the online advertising industry.

CEO Scott Meyer of Better AdvertisingAdExchanger.com: Please discuss your background and how it brings you to where you are today.

SM: I’ve been in the digital media business since 1998, including eight years with The New York Times Company where I was CEO of About.com and also General Manager of NYTimes.com. Before the Times Company, ran the consumer business at Multex, which was a successful IPO and is now owned by Reuters.

So, I know first-hand what some of the pressures are on our industry, including the role privacy concerns play in how major brands allocate their digital media dollars.

What problem is Better Advertising solving?

There is an immediate need for self-regulation to succeed. The Principles put out by the cross-Industry Coalition have to be successfully implemented. Better Advertising simplifies and makes that process scalable. The larger ongoing problem we solve is creating more trust in the online advertising ecosystem between consumers, companies and the government. This current lack of trust leads many brands to stay on the sidelines, missing out on great marketing opportunities, such as Online Behavioral Advertising (OBA). Multiple studies show that many millions of new branding dollars would come online if privacy concerns weren’t so severe. A recent study by Forbes found that 77% of brand marketers are worried about the privacy concerns with OBA. That is clearly keeping dollars out of the market.

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Blodget, Calacanis Take On ComScore; Big Data Gets Bigger For Facebook; DataXu On RTB; And Then There Were Cloud Exchanges

Monday, January 25th, 2010

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

Calacanis On ComScoreBlodget, Calacanis Take On ComScore

Henry Blodget and Jason Calacanis are on a war path! In a diatribe he published in his newsletter and then personal blog, entrepreneur Jason Calacanis is calling for a boycott of ComScore saying the audience measurement firm is a “big bully.” He says, “I’m asking startup companies to not support their new and widely-reported on ‘$10,000 to get your stats correct’ extortion ring.” Read more. Meanwhile, Silicon Alley Insider publisher Henry Blodget says, “Comscore is effectively waving the threat of relatively poor traffic metrics in the face of every company that chooses not to pay. We see that as blackmail.” Read more. The ComScore marketing team was working the weekend as CMO Linda Abraham came back with a lengthy response on the ComScore blog and added what looks to be a veiled shot at Quantcast, “we have observed instances where some Web sites were surprised and dismayed to discover that the ‘free’ services they were using were, in fact, off selling their audience cookies on the online ad exchanges without their knowledge.” Read it. What will Monday hold? Only time will tell!

Intel Working On Its Attribution

Ad Age talks to Nancy Bhagat, Intel VP of sales and marketing, who has developed a point system to assist with its attribution modeling when trying to understand return-on-ad-spend. From Ad Age: “The system, developed with its media agency, OMD, assigns a pre-determined number of points for every action consumers do online with Intel.” Bhagat intimates they’re getting a 10% cost savings from the “Value Point System.” Read it.

Big Data, Big Infrastructure

Facebook has finally said “uncle” to its data management requirements and is building its own data warehousing facility in Prineville, Oregon, says VP Jonathan Heiliger on The Facebook blog. Now with more than 350 million people worldwide and our service and business continuing to grow, we must constantly scale our technical infrastructure to meet the demand and deliver you a fast, reliable experience” – So, we’re building in Prineville!! Woohoo! Read it.

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Putting Display in Search Terms

Friday, January 22nd, 2010

“Displaying Search” is a column capturing the intersection of display advertising and search marketing.

Today’s column is written by Justin Merickel, VP of New Product Development and Marketing at Efficient Frontier, a search engine marketing solutions company.

Displaying SearchThe other day a group of us at Efficient Frontier gathered in a conference room to discuss display optimization. We met to dig into the comparative ROI for various audience segments, including site-driven retargeting and 3rd-party purchased segments. One of our lead engineers developed an interesting analogy that mapped audience targets to search term types. The search term to audience segment analogy is an interesting way to think about relevance and tactically design portfolios of targets for display campaigns.

Before jumping into display, let me set up the analogy by talking about term types in search. We tend to think about search terms in three buckets: head, torso, and tail. Head terms have mass amounts of queries but are less specific in query intent, torso terms have decent query volume and some specificity in intent, while tail terms tend to have little volume but have very clear intent. Additionally, in search marketing, we typically isolate brand terms into their own category.
With that in mind, the display to search analogy goes like this: retargeting is like search brand terms, 3rd party data buys are like search torso and tail terms, and site or content targeting is most like search head terms. Let me play it through with you in more detail.

Site retargeting typically delivers strong ROI but is limited in scale. The only value question clients ask is what percentage of retargeting conversions would have occurred without the influence of ads. Luckily, the question of incremental value for retargeting is a fairly straightforward one to address with testing.

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Google Reports Q4 2009 And Talks Display; AudienceScience Reports, Too; Morals And DSPs; UK Digital Media Agencies Are Pumping

Friday, January 22nd, 2010

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Google Reports Q4 And Talks DisplayGoogle Reports Q4 And Talks Display

Google reported its q4 2009 earnings after the market closed yesterday and though the company made an impressive profit, it wasn’t as much as some expected. Paul Kedrosky posts JP Morgan’s thoughts on the results on his blog including: “EBITDA margin came in at 63.1%. This was well ahead of our expectation for 61.9%.” Among the quotes from the call, Google execs said:

  • “Display we have talked about before and is now a huge opportunity for Google.”
  • “AdSense revenue was up 21% year-over-year to $2 billion driven primarily by solid performance in ad sense for search, strength in ad sense for content and growth in our display initiatives.”
  • “DoubleClick [Ad Exchange] is now fully integrated and display is ramping nicely.”
  • “If you shift to emerging markets we are very happy with our performance. In most of these markets we see very clear effects of underlying economic expansion again as well as the accelerating adoption of both search and online display advertising.”
  • “Brand marketers continue to better understand the online display format and incorporate that into their campaigns.”
  • “The ad exchange which we launched in Q3 continues to show good progress and is increasingly becoming an important part of display consistent with we believe most of the top networks are now signed onto the exchange.”

You can listen to the earnings call on YouTube here. See the IR press release. Finally, read the full transcript of the call on Seeking Alpha.

AudienceScience Reports, Too

It’s ANOTHER “earnings release” from a private company as behavioral ad network, AudienceScience, said in a release that it “experienced 69 percent continuing operations revenue growth in 2009, with technology services revenue growth of over 48 percent and media revenue growth of over 76 percent.” Read more.

Facebook Pulls Back From Microsoft

Bloomberg is reporting that it’s moving away from it’s advertising deal with Facebook as Dina Bass and Brian Womack report “Facebook stopped using Microsoft this month to sell graphical banner ads in some international markets. It also may drop those ads in the U.S.” according to an interview with Robin Domeniconi, VP of sales at Microsoft. Read more.

(more…)

The LinkedIn Report: Google, Yahoo, Right Media, Teracent, AOL (a.k.a. Aol.)

Thursday, January 21st, 2010

The LinkedIn ReportThe digital advertising start-up world continues to play its siren song as the résumé pages of LinkedIn reveal moves and machinations within the industry.

Over at Google’s DoubleClick Ad Exchange, Lauren Nemeth has left the building to take on the Director of Sales role at AppNexus. Highly respected within Big G, Nemeth brings her high-level agency contacts and deep understanding of the audience buying space to AppNexus, which continues to build its team around a stealthy DSP strategy.

Meanwhile, back at Google, Teracent’s Chip Hall has taken on the mantle of “Head of Strategic Alliances” after his company was acquired in November. He describes his new group in his profile:

Strategic Alliances within the Google Display Platform oversees strategic partnerships and/or relationships that support the growth of sales revenue and new product and new market development. Strategic Alliances is a business development role that identifies, negotiates and supports partnerships that include sales channels, data partnerships, publisher partners and platform partners.

As “Head,” it sounds like Hall is at the tip of the spear. If you’re going to get acquired by Google, may want to check in with him.

Yahoo!’s Right Media has lost another player as Jacob Ross has moved on to Demand Media where he’s assumed the role of “Senior Director, Ad Management at Demand Media.” Ross was “Director, Business Development at Yahoo!” and part of the Right Media team.

The Weather Channel has added former AOL exec, Rob Deichert, who was “SVP, AOL Global Sales Development at AOL Advertising” until December. Deichert’s new title is “SVP Digital Advertising Operations” at The Weather Channel.

Finally, former Right Media star Antony Taylor has changed his profile picture. Match.com worthy? You decide.

By John Ebbert