Mobile Video Monetization Strategies

Everyone in the industry is wondering  when mobile video will begin to be monetized properly (by which we mean in proportion to the time consumers spend watching it).As part of our work on the IAB Digital Video Committee, we attended a meeting  to learn what may be holding the industry back from getting the kind of ad rates for mobile video that it deserves. Three different issues emerged from the meeting: how publishers feel about available video formats (often unsuitable for mobile), the state of cross-device measurement (just getting started),  and the unfamiliarity of TV media buyers with the digital video environment.

You may already know that ZEDO pioneered a format called InArticle, which later was reinvented by Teads as “outstream video.” While this format has been highly successful for us, we know it is not for everyone, and we  heard two publisher panelists (Meredith and Weather Channel ) say that they will never run out stream because they don’t like the user experience on their sites. They talked about 15-second preroll as preferable, although they admit that most advertisers send them 30-second spots. These publishers are pushing back at agencies and brands who try to use existing TV creative, esp. 30-sec spots, on mobile  have pretty good statistics on completion rates, and they feel shorter is better. In fact, one attendee suggested five-second video, just to get the brand’s name in front of the audience without offending it.

Because there is a relative scarcity of pre-roll another format publishers are testing for video is mid-roll, Facebook is rolling these ads out right now to see how well they are accepted.

At ZEDO and ZINC, we are testing our own version of pre-roll, as well as a new format we call “polite Swipe Up.” Our objective with our formats, which achieve high visibility and engagement, is not to antagonize site visitors. In the Digital Video Committee, several publishers complained that group M’s demand that all Ads be 100% viewable means that they waste inventory and annoy viewers by upping the frequency of ads while trying to  achieve those viewability numbers.

The issue of cross-channel metrics also came up in the meeting, because marketers are only beginning to be able to follow consumers from device to device and from home to work. Before investing in digital video, they need more assurance that they are following the same customer from display to video to TV.

And then there is the “people problem.” TV media buyers often don’t buy digital video, or want to pay less for it, because they don’t know how to buy it. This is such an industry-wide problem that IAB is preparing a Digital Video Guide and a curriculum, and will hold workshops and classes to educate media buyers. The guide will be introduced during the Digital New Fronts, and the education programs will begin shortly thereafter.

 

 

 

 

Google Blocks Twice the Number of Bad Ads as A Year Ago

Despite the “moon shots” under development by its Alphabet decision, the Google organization still makes its living through advertising. According to its most recent earnings report, Google grew 8.3% this quarter, largely driven by search ads. However, the company is looking to mobile for new sources of ad revenue, and that’s not working quite as well (yet).  According to the Wall Street Journal, 

The search for new ad revenue comes with a downside: Users are seeing more ads, but advertisers are paying less for them. While ad clicks increased 36% in the quarter over a year ago, advertisers’ prices for those ads fell 15%. Both figures were the highest in at least three years.

The gap between the prevalence of ads and their prices was previously driven by the increasing share of mobile searches, because advertisers pay less for mobile-search ads than desktop ones. In the fourth quarter, the company attributed the gap to the growing share of YouTube ads, which generally earn less than ads shown above Google search results.

Google has also tried to preserve its reputation by culling out bad ads. Google said it blocked 1.7 billion bad ads in 2016, twice as many as in the previous year. That’s a pretty shocking comment on the state of ad fraud in our industry.

Ads that are misleading, inappropriate, promote misleading products or trick users into installing harmful software are generally deemed “bad,” Google said. The company also blacklisted ads that were once considered acceptable in 2015.

Payday loans that carry an annual interest rate higher than 36%, for example, were banned from appearing as Google search ads last year. The company was applauded for its move, as the measure was expected to cost Google millions in revenue. Yet digital loan sharks quickly adapted to Google’s newfound rule, as many loan companies now offer payday loans with an APR as high as 35.99%.

And there’s a new genre of “bad” ad called “tabloid cloakers.” Tabloid cloakers are misleading ads that feature “news” on their surface, but when clicked lead the reader to an unrelated selling message:

One example the company shared was about an ad showing Ellen DeGeneres and aliens. However, consumers who click on ads like this are taken to a site selling weight loss products, for example.

Google said it suspended 1,300 accounts for tabloid cloaking last year. In one sweep, the company took down 22 accounts that were responsible for displaying 20 million cloaker ads over a one-week period.

Can you imagine being Google and having to keep up with all these insidious trends?  And that’s before the company gets to dealing with fake news sites. We’re still a long way from a clean supply chain.

Trustworthy Accountability Group

The Trustworthy Accountability Group (TAG) has accomplished an incredible amount during its first year, including rolling out a TAG Registry, an Anti-Piracy Initiative, Certified Against Fraud, Certified Against Malware,  and updated Inventory Quality Guidelines. Now the work begins: to round up more participants. The early adopters are already on board: 127 companies are already TAG-Registered. To be registered, companies must complete a self-assessment and attest to having certain processes and procedures in place and a plan to keep them in place for the coming year. TAG Registered companies have been verified as legitimate participants in the digital advertising industry through a proprietary background check and review process powered by Dun & Bradstreet and approved by TAG. Once registered, companies are awarded a TAG-ID, a unique global identifier that they can share with partners and add  to their ads or the ad inventory they sell.

130 people, myself included, have completed Compliance Officer Training, and have been designated Compliance Officers for their companies.

I first became involved with the Trustworthy Accountability Group last January, when it held a meeting at the IAB Annual Leadership Conference. Because I’ve represented ZEDO for five years on several industry initiatives that fit our “high-road” approach to partnership with both advertisers and sellers, I attended the meeting and listened to the plans. I had no idea how fast they would move.

By the end of the year, TAG had released a suite of anti-Malware tools, including “Best Practices for Scanning Creative for Malware,” a glossary of terms that establishes a reference of malvertising types, and a Malware Threat Sharing Hub, where certified companies can join a trustworthy collaborative network that qualifies and tracks malicious ads.

The Certified Against Fraud program, which was the last to roll out,  is open to participation by buyers, direct sellers and intermediaries across the digital advertising ecosystem.  Requirements to achieve the TAG “Certified Against Fraud” Seal differ according to a company’s role in the supply chain.  These requirements are outlined in details in the Certified Against Fraud Guidelines.

Companies that are shown to abide by the Certified Against Fraud Guidelines receive the “Certified Against Fraud” Seal and can use the seal to publicly communicate their commitment to combatting fraudulent non-human traffic in the digital advertising supply chain.

When the group sent out its press release earlier this year on the first hundred companies to get registered, it reiterated its pledge to create industry transformation at scale. It was formed in response to multiple accusations by news sources and participants of lack of transparency. With TAG, the industry hopes to prove that it can regulate itself.

Germany’s BVDW Advocates for Transparency

In Europe, Germany is known as the country with the strictest privacy concerns. So it is no surprise that a Dusseldorf-based industry association has come up with a code of conduct for marketers, publishers, DSPs, SSPs, and data providers  that will bring some transparency to the programmatic market..

The Bundesverband Digitale Wirtschaft (BVDW) eV is a leading German advocacy group for companies  with digital business models, or who are part of the digital value chain. Anchored by member companies from various segments of the Internet industry,  it can provide a holistic view of the German digital economy and act as a spokesperson for the market. It’s a source of important information, facts and data for both those in the industry and those wishing to learn about it.

BVDW is committed to making the efficiency and benefits of digital services – content, services and technologies – transparent and thus promoting their use in the overall economy, society and administration.  Using the pillars of market development, market intelligence and market regulation, BVDW bundles leading digital know-how  to help shape a positive development of  what is now considered a leading growth sector in the German economy. However, as a central body of the digital economy, the organization also provides standards and binding guidelines for industry players for market transparency.

Over forty companies, including Adform, Appnexus, DataXu, Mediamath and Teads have signed the new agreement. Companies that are not members of the organization  can also sign, and signing companies are required to adhere to the code of conduct.

Companies that call themselves full stack providers will also be required to adhere to the standards, which stress transparency, safety and quality.

The aim of BVDW’s standards effort is to make programmatic more efficient and useful to German marketers and publishers by creating a controlled system. Germany is probably hoping to avoid the problems that surfaced  in the US, which deployed programmatic advertising without sufficient transparency, and caused many marketers problems, such as discovering their brands displayed in non brand-safe environments. Other issues like scanty metrics for determining ROI caused online advertising prices for programmatic to remain low years after they should have risen consistent with the number of consumers moving online.

We suspect that the focus group that created the code of conduct will have to continue studying the more complicated issues involved in programmatic, such as header bidding and programmatic TV:

The code of conduct is a first step to provide new impetus for the development of programmatic in Germany, says Julian Simons, deputy chairman of the BVDW’s focus group on programmatic advertising: “In a highly dynamic area such as programmatic, we cannot just establish rules within the market and then sit back. This continues to be a process of development, which will take current developments into account.”

One large looming problem is the absence of both Facebook and Google, said to control 75% of global ad spend, as signatories to the compact.

 

Legacy Publishers Grapple with New Competition at CES

CES (formerly known as the Consumer Electronics Show) is a wonderland of new gadgets, technologies, and possibilities. For the past few years, its focus has been on concept cars with huge screens that can drive themselves while the passengers watch video, and connected home devices that use microprocessors and networks such as wireless, Bluetooth, and NFC (near field communications) to make themselves smart. The connectedness of all inanimate objects around you is called the Internet of Things. The ubiquitous robots seen at CES are also part of the IOT.

In the same way your automobile can inform you that it’s running low on fuel, the most advanced refrigerators can both alert you that you’re running low on milk. But unlike the car, appliances can now connect to your home digital assistant (Apple Home, Google Assistant, or Amazon’s Echo) to help you order more.  This year’s most unusual Internet of Things products included a smart breast pump for nursing mothers and a smart toothbrush with a video camera that takes pictures of the inside of your mouth that you can share with your dentist — or your mom if you’re a kid. Yes, many of these gadgets are silly, and that’s part of the fun of CES. See also “Hair Coach,” a smart hairbrush.

But others are going to evolve into platforms through which brands will be able to talk to consumers. The most obvious platform so far has been the connected car, because now that all cars have display screens built into their dashboards there’s an opportunity to think of the car as “publishing” content to its passengers, whether it be diagnostics or entertainment. And where there is publishing, there is also a marketing opportunity. To that end, Ford has partnered with Amazon to use the Alexa voice technology in its cars next year. Other automakers have chosen to partner with Apple for its Siri technology, or Android for Google Assistant.

The car as a platform is forced to use voice technology because of safety concerns. However, household appliances are not limited that way, and in the next few years they will also become publishers of a sort, delivering information about themselves to consumers and collecting consumer data in return.

In 2017, there will be many other new platforms we can consider as publishers, and those publishers will hope to monetize through advertising — but not in the old way. It’s been twenty years since publishing began to become digital, and it is almost shameful that we’re still for the most part serving up digital versions of the same formats we used in print and TV: 15 and 30 second spots, and display ads on pages. We’ve begun to evolve with native advertising, but that’s just in its most rudimentary phase.

A better example of what is to come in the future is Weiden+Kennedy’s effort to build a virtual cellular network for Verizon within a Minecraft game. The network allows players to make phone calls.  Call that a native ad, call it a sponsorship, call it a product placement, or whatever you wish; that’s how the market is headed and we need to spend time creating new formats to take advantage of the exciting new platforms. At last week’s CES, many brands and agencies were there simply to learn about new mixed reality techniques that can be used to talk to consumers.

At ZEDO, we’ve designated 2017 as a year of innovation for ourselves, as we begin to develop tools for our publisher and agency partners to reach consumers in new ways.

The Smart Hairbrush, one of the new IOT gadgets at this year's CES

The Smart Hairbrush, one of the new IOT gadgets at this year’s CES

 

2017: A Different Year

Because we’ve been watching the industry since before the turn of the century — yes, we were founded in 1999 –we find it amusing to see people try to predict what’s going to happen in ad tech, despite the fast moves that upend the predictions year after year. 2017 will be no different, but we’re going to throw our ideas out there anyway.

  1. Facebook will find itself in greater trouble than ever after a year of disillusioning metrics for publishers and de-prioritization of their content. Analysts have said that the rise of “fake news” sites on Facebook corresponded with when the company tweaked its newsfeed algorithms to favor user-generated content over that from professional publishers. User-generated content turned out to be hundreds of sites generated by Macedonian teens who now are empowered to think they may have influenced the American election.
  2. Advertisers will thus re-think the percentage of ad spend they allot to Facebook, and spend more dollars on sites they know are premium and are still destinations for their targeted buyers.
  3. A confluence of changing ideas and necessity brought about by the percentage of people using ad blockers will re-define reach and scale, making the definitions more about reaching the “right” customer, and not just about reaching someone who will find the ads offensive or irrelevant and turn her ad blocker on again.
  4. Digital video CPMs will continue to rise, because video is the only way to reach viewers on mobile, especially on non-video sites. Outstream video will continue to outperform the market, and ZINC’s innovation suite will continue to outperform its competitors.
  5. More venture funded ad tech companies will run out of money without having found a business model that adds value to either the advertiser or the publisher, and they will be forced to either shut down or be acquired as revenue becomes the major source of expansion funding.
  6. The ad industry in Europe will be quietly preparing to leave London as new data privacy guidelines and the Brexit create business challenges that make staying in the UK more difficult and expensive.
  7. The nascent mobile advertising industry in Africa will grow faster than almost any other reason except perhaps southeast Asia, because of the rapid deployment of inexpensive smartphones.
  8. Snapchat’s IPO will cause a flurry of interest on the part of advertisers until they realize it has pivoted to be a camera company. Brands will experiment with it and not be able to prove ROI for a long time, if ever.
  9. Digital video advertising will finally get its due as a great way to do targeted branding campaigns.

 

DigiTrust Universal Identity for Consumers is Here

All morning we’ve been listening to a webinar on  TAG, Ad-IDD, Time-based Metrics, and DigiTrust presented by IAB. By far the most interesting new development in the industry to us, is DigiTrust  a new 501c6 that is trying to fix identity and tracking problems for digital ads.

Many publishers have been concerned about the number of third party requests to their sites. They know those requests make the consumer experience poor.

So DigiTrust has come along to standardize the identifiers for consumers. Digitrust is a cloud service that  will offer a DigiTrust ID, and a DigiTrust consent stored in a 1st party cookie accessible by third parties. As a standardized ID for all, with DigiTrust, everybody uses the same ID for the consumer.  It’s just a common language they use with their partners, giving every party proof of consent, which is already necessary in Canada and Europe and may become essential in the US soon.

It eliminates the need for pixel syncs, makes pages load faster, levels the playing field between open web and walled gardens. Publishers need to start with putting a script that sets the identifier, establishes ID and consent, and can be passed through to all their suppliers. This standardized ID makes it possible to eliminate all the other Javascript calls and provides a level of control for the publisher. If you close down Javascript access, you benefit the entire ecosystem.

How it works: the consumer views a site with DigiTrust Javascript on any browser, JS then checks if a token and consent exist, and if not a consent notice is shown to the consumer via a window shade. Any subsequent page navigation is then directed through Digitrust ID. Digitrust stores no data, and empowers NO party with incremental data. It’s just a way to identify consumers once.

DigiTrust is aiming for for 100% consumer notice and consent and all Digitrust platforms and publishers must be part of a self-regulatory program (like TAG).

Publishers pay nothing. Platforms pay. Membership fees are one-time non recurring, with monthly API subscription fees for a decryption key. The more people involved, the more cost is spread among members.

So far, 60+ ad tech platforms have indicated interest,  with 20 already paying the fees. There are also 50+ premium publishers involved. But because of the holidays, deployments are not expected to happen until Q1. For information, contact Jordan @digitru.st Digitrust

A Moment of Gratitude

Every year at Thanksgiving, I become reflective about the year that is coming to a close. It has been a tumultuous one for our industry, and for the world as a whole, but as the year draws to a close there is still much to be thankful for at ZEDO.

First, ZEDO’s incredible product development team.  Not only do our products  stay abreast of and even ahead of the industry, but they perform so well that when a customer gives us a chance to test against a competitor, we always outperform. This while taking the high road in an industry still fraught with malware, fraud, and misrepresentation.

Second, our sales teams, who never sell vaporware, but get us in front of the right customers so we can help people achieve their financial objectives on both the publisher and the advertiser side.

Third, our highly regarded support and implementation teams, for which we always receive compliments. We have always been known for our support, and this will never change because our customer relationships are not transactional — they’re personal.

Next, our customers, whom we prefer to think of as our partners. Indeed, some of our customers have been on a very long journey with us from ad serving at the turn of the century to serving advertisers with high impact formats on a secure platform today.

Fourth, our thirty party partners, the technologies that externally verify our ads to make certain we keep our promises.

And next, the industry associations we support, like IAB and the Online Trust Association, who keep on working to bring our industry greater professionalism, better research, and higher standards.

Last, but certainly not least, everyone on the ZEDO team who keeps the lights on and makes us who we are. When my friends ask me why I went into the ad tech business, I answer that it’s because of the great people I’m able to work with all the time — bright minds in a fast-moving business.

I hope you all out there in the audience remember to feel grateful for your families, your teams, your health, and your continued presence on this great planet whether it is Thanksgiving in your country or not.

 

 

TAG Releases Names of First Hundred Participants

It’s a very exciting time in the digital media business. The Trustworthy Accountability Group’s effort to clean up the supply chain has been gathering momentum all year. We’ve (ZEDO) been working on the Business Transparency Committee, and on the IQG (Internet Quality Guidelines) working group. During this first year, over 100 companies, most of them familiar names in the advertising industry, have gone through the process of registration as trustworthy partners, and have either self-attested or been audited on their business practices. All the major advertising holding companies have already been through the process, which has become more common for anyone who buys or sells advertising. In the future, the process will extent to intermediaries.

There is now an accepted transfer protocol for the transmission of registration IDs and payment IDs, and these have begun being passed back and forth during automated transactions.

“The TAG Registry is the foundation for the full range of TAG’s programs to fight fraud, reduce ad-supported piracy, block malware, and increase transparency in the digital advertising ecosystem,” said Mike Zaneis, CEO of TAG. “Through the TAG Registry and use of TAG-IDs, companies can tell which of their industry partners have taken the necessary steps to verify their business as a legitimate digital ad industry participant. When the TAG Registry is combined with the Payment ID system, a floodlight of transparency will illuminate the digital advertising ecosystem, and criminals will have no place left to hide.”

The TAG Registry is one of two parts of the interlocking “Verified by TAG” Program designed to fight digital ad-related crime and increase transparency across the digital ad ecosystem. The other core element of the program, TAG’s Payment ID Protocol, helps ensure that payments made in the digital ad ecosystem are made only to legitimate companies. The Payment ID Protocol enables intermediaries to add a unique identifier for each participant in the supply chain, allowing companies to monitor their ad campaigns and “follow the money” to see who is receiving money for each advertising impression.

Following the money will be the best way for media planners and publishers, as well as ad exchanges and ad servers, to be sure they are dealing with quality partners. The Trustworthy Accountability Group was created to spur transformational improvement at scale across the digital advertising ecosystem, focusing on four core areas: eliminating fraudulent traffic, combating malware, fighting ad-supported Internet piracy to promote brand integrity, and promoting brand safety through greater transparency.

 

Coalition for Better Ads Launches

The biggest news coming out of Dmexco was the formation of a new effort to mute the influence of ad blockers, which are now used in 25% of browsers, according to recent statistics. A coalition consisting of industry leaders like Google, Facebook, Unilever, Procter and Gamble, Group M, the World Federation of Advertisers and the IAB, calling itself The Coalition for Better Ads, launched at the conference.

IAB had already launched its own initiative, L.E.A.N. (Light, Encrypted, Ad Choice Supported, Non-interruptive) last year, and began to develop standards. At the same time, AdBLock Plus, the largest downloadable ad blocker distributor, launched its idea of “Acceptable Ads.” AdBlock Plus spent the year trying to acquire partners for its efforts, but with little success. Finally, in its own Dmexco announcement, the company launched its own SSP to sell what it considers acceptable ads. This may or may not be successful.

The industry effort, however, probably will be, because ad blocking is the one issue that unites publishers, advertisers, and ad tech companies, all of whose business models are threatened by the unwillingness of consumers to tolerate ads after a decade of taking abuse in the form of popups, interstitials, auto-playing video ads, and even malware. The most offensive sites are so loaded with ads that the content on them cannot be read without interruptions. To make matters worse, the shift to mobile has revealed the slowness of page loads and the cost of additional data borne by now-angry consumers.

The group will focus on the following initiatives:

  • Create consumer-based, data-driven standards that companies in the online advertising industry can use to improve the consumer ad experience
  • In conjunction with the IAB Tech Lab, develop and deploy technology to implement these standards
  • Encourage awareness of the standards among consumers and businesses in order to ensure wide uptake and elicit feedback

Here’s an alphabetical list of the founding members. Notice that the Washington Post is the only traditional publisher to belong outside of an industry group: The American Association of Advertising Agencies (4A’s), Association of National Advertisers (AA), BVDW Germany, Digital Content Next, DMA, European Publishers Council, Facebook, Google, GroupM, IAB, IAB Europe, IAB Tech Lab, as well as additional national and regional IABs, Network Advertising Initiative (NAI), News Media Alliance, Procter & Gamble, Unilever, The Washington Post, and World Federation of Advertisers (WFA). Companies and trade associations that wish to join the Coalition can learn more at www.betterads.org.

Consumer research will be used to develop the standards.

“The foundation for any premium publisher is consumer and advertiser trust. Consumers are clearly frustrated with the current dynamic of digital advertising across the wider web. No industry has ever survived by ignoring consumer needs,” said Jason Kint, CEO, Digital Content Next.

As we always do, we hope to lead in this initiative with our “polite” formats within the ZINC Innovation Suite. However, we also think it will take much consumer education about what industry is trying to accomplish and why –the need to keep digital content free for consumers–before the industry will once again be trusted  to comply with consumer sentiment and people will turn off their ad blockers.