These ‘Climate Risk’ websites, which make up 10% of the domains in the five countries studied by the report — the U.S., U.K., France, Germany and Australia, contribute 33,500 metric tons (mt) of carbon dioxide equivalent (CO2e) greenhouse gases per month. That’s equal to driving a car 86,000,000 miles or 3,449 times around the earth. Between January 2020 and May 2022, $115 million was spent on advertising on these sites.

The big picture. Overall, the energy used by programmatic advertising in these five countries every month generates the same amount of greenhouse gas as 24 million gallons of gasoline, according to the report.

Dig deeper: How advertisers can take the lead in reducing carbon emissions

This includes energy used in 

• Ad selection from servers and cloud computing; analytics; network traffic; storage; data providers; and vendor overhead.
• Media distribution via CMS; CDNs and hosting services.
• Consumer devices during views.
• Creative distribution from creative delivery including transfer and all vendors involved.

Global emissions per 1000 programmatic ad impressions are approximately 514.8 gCO2PM (grams of carbon dioxide and equivalent greenhouse gasses). That’s the same amount of energy as washing a load of laundry.

Average publisher emissions can range anywhere from as low as 187 gCO2PM all the way up to 1772 gCO2PM.

Why we care. Climate change is the greatest threat to human existence and we are running out of time to do anything about it. This is why every action matters. 

It’s easy to get overwhelmed by the scale of the problem and think this one change won’t accomplish anything. Repurposing ad spend away from those problematic websites “only” cuts 33,500mt out of programmatic advertising’s monthly total of 215,000mt. Even if we could get that amount to zero, it is a fraction of a percent of the 50,000,000,000mt of greenhouse gases produced each year.

Here’s the thing: We’re in the marketing business. We’re all about the cumulative impact of incremental change in attitudes. We don’t know where the tipping point is for this change. We could be a very small step away from it. Every action matters in getting to that.

Doing less with more isn’t only in your own self-interest, it’s also good business. Retail giant Walmart has saved billions of dollars by requiring more environmentally friendly packaging for the products it sells.

What can be done: Each ad impression travels through an “advertising life cycle,” which starts with the programmatic selection process and ends when the ad is delivered. Every step along the way contributes to the ad’s emissions. Knowing the impact of each part of the journey will help you discover excess energy uses. 

For example, ad selection is responsible for upwards of 60% of the energy used in programmatic advertising. You can lower that amount significantly by adjusting things like your programmatic supply chain.

The post ‘Bad’ digital ad spending can harm the environment appeared first on MarTech.

In a peer group session we organized for omnichannel stack owners, a large B2C firm and a B2B enterprise shared case studies with contrasting and identical points. Here are takeaways from each presentation that are worth tracking.

Looking at today’s B2C and B2B martech and adtech systems

The B2C firm had understandably made heavy investments in adtech. Their systems — from content to data and decision logic — had predated their martech stack to some extent. This stems from pre-digital (especially pre-pandemic) business models, where the firm had gone to market through distributors and retailers. Now in the era of growing direct-to-consumer business, “It’s all martech,” the B2C stack leader noted. 

But as their initial engagement strategy transitioned from transactional selling to building omnichannel customer relationships, the firm needed to think about their media buying efforts more holistically in the context of customer journeys. 

Based on the ensuing conversation, it is clear that some leading enterprises are formally structuring marketing plus adtech into “madtech” teams. Even if not formally re-structuring, at a minimum, it became possible to glean that nearly all leading companies are:

• Joining data and marketing teams and making measurement part of every activity.
• Focusing heavily on metadata, both at the campaign and asset level, since it’s impossible to draw analytic conclusions without it.
• Developing more in-house AI capabilities to keep building off early learnings.

The B2B case study revealed similar insights but with a greater emphasis on journey optimization as the initial driver. The firm optimized its ad spend for longer and more complex buyer journeys, not just front-end lead generation. This meant integrating media buying and account-based marketing, which isn’t always easy. They simplified the process by having a single DAM that fueled both media channels and messaging via owned-and-operated properties.

Dig deeper: Customer journey orchestration: What it is and why marketers should care

Closing the loop: Striving for martech and adtech alignment

In theory, better martech and adtech integration and alignment should bring enterprises closer to the holy grail of a single, “closed loop” motion — from media buy to loyal, repeat customer. Yet, all the martech leaders agreed that the processes and analytics required to achieve a fully closed loop remain an aspiration. 

To that extent, you need to avoid over-promising. In a world where most enterprises still struggle to align adtech and martech at a basic level, you may, as one leader put it, “have to work with a “180-degree closed loop.” It will take time to consolidate appropriate technologies, data flows and teams.

The necessary skill sets needed to execute in a blended martech and adtech world are rapidly evolving, too. Increasingly, the lines between technical, content and data people are blurring. Sprinkle in the right level of legal counsel, and you’ve got the makings of a modern madtech team.

All this uncertainty and change enhance the argument to focus on core data, content and process capabilities that can work underneath your adtech and martech stacks as foundational building blocks. This may present the most critical objective for overall architecture this decade. A good time to start is now.

The post How enterprises are pursuing martech and adtech integration today appeared first on MarTech.

In-game advertising merges ads with the game environment seamlessly. Imagine seeing billboards while racing through the streets or branded in-game products you can purchase. These ads are more powerful and effective than in-app advertisements — those annoying pop-ups or banner ads you commonly see in mobile app games.

With nearly 3 billion games worldwide, in-game advertising can give brands incredible reach. From virtual billboards to branded experiences, video games have become a marketer’s paradise for reaching the coveted gaming demographic.

This guide covers the basics of in-game advertising, including common ad types, available targeting options, associated costs, challenges and best practices.

Types of in-game advertising

Before exploring how to take advantage of in-game advertisements, let’s review the most common types of game ads.

Static in-game advertising

These ads are directly hardcoded into the game. Since the ads can’t be changed and will exist in the game ad infinitum, rates are expensive and charged on a fixed-fee basis.

Dynamic in-game advertising

Dynamic ads can be replaced quickly and deployed instantly. These ads can appear in different places and formats (display and video ads are the most common). The 2008 billboards from Barack Obama in Need for Speed: Carbon are a great example of this ad format’s simple yet powerful use.

Sponsored game content

Sponsored game content involves integrating a brand or product into the actual game content, making it even more tangible and visible to the player and engaging them with the brand.

Dig deeper: PepsiCo’s strategies for marketing via online games and esports

KFC did this exceptionally well when it partnered with Nintendo to create a virtual island in the popular game Animal Crossing: New Horizons. The island was designed with KFC-themed items and decorations and even allowed players to win a voucher for chicken in real-life.

Advergames

Rather than integrating the ads into an already existing game, advergames are games specifically designed to promote a brand or product. They provide a fun and engaging way to interact with a brand and can effectively build brand awareness and loyalty.

Chex Quest, made by Chex, was the first video game ever to be included in cereal boxes as a prize. It was a top-to-bottom conversion of the popular game Doom but adjusted it to be family-friendly. The game was a hit among consumers and even won several awards.

Activision Blizzard Media has recently created many Playables — branded stand-alone mobile app games.

Product placement

The classic advertisement method still works. Advertisers can put their products directly into video games to guarantee players see the brand and “use” the products.

I remember playing Mario Kart 8 on the Nintendo Wii and unlocking the Mercedes-Benz cars. This made the branded products more exclusive since they had to be earned.

Targeting options for in-game advertising

The other unique benefit of in-game advertisements are the targeting abilities. It starts with choosing the right game (or games). Advertisers can focus on consumers based on demographics, geolocation, device type or platforms. However, integrating these traditional targeting approaches with behavioral targeting makes in-game advertisements even more effective.

Behavior targeting uses the actions the player has taken (or has not taken) to create an ideal segment of users to reach. For example, an advertiser could target players who have demonstrated a willingness to open their wallets by spending money to buy items in a game — or players who have reached a certain level and are, therefore, more engaged.

Combining these different ways of targeting and deploying them across various games that reach consumers on multiple platforms (gaming consoles, computers and smartphones) makes in-game advertising extremely powerful. With abundant reach and powerful targeting, brands can build awareness, drive engagement and boost sales quickly and effectively.

How to buy in-game advertising

Getting started with in-game advertising will ultimately depend on the types of games you want to appear in and your budget. 

When selecting an approach to buying in-game advertising, consider the specific goals, budget and target audience of the campaign. 

Game publishers

• Example: Activision Blizzard Media

You can work directly with game publishers to create custom ad campaigns within their games. This approach provides more control over the creative content and targeting and a deeper level of integration with the game environment. 

However, it can be more time-consuming and expensive than other options and may not offer as much scale or reach since it is limited to a single game.

In-game ad networks 

• Examples: Admix, Unity Ads

Ad networks connect brands with multiple game publishers, providing access to a broader collection of games. They offer greater scale and reach and more efficient pricing and targeting options. 

The downside is that you have less control over the creative content and placement. Some ad networks are not as high-quality and have limited targeting options. 

Programmatic advertising platforms 

• Examples: Bidstack, Anzu

Programmatic platforms use data and algorithms to automate the buying and placement of in-game ads across multiple publishers and platforms. This approach can offer greater efficiency, scale and advanced targeting options based on user data and behavior. However, programmatic platforms may have less control over the creative content and placement and may require more technical expertise.

The costs of in-game advertising

How expensive are in-game ads? It depends, but it’s only going to get more expensive. In-game advertising pricing can vary based on several factors, including the type of game, ad format, targeting options and the size and scope of the campaign.

CPM pricing is the most common approach, and rates can vary widely based on factors like ad format and targeting. The average CPM for in-game display ads ranges from $10-20, with video ads from $15-30.

These numbers will vary dramatically depending on the audience, game, targeting and ad formats. For example, CPMS for in-game ads targeting Gen Z and Millennials were 30-50% higher than those targeting Gen X and Baby Boomers, according to an Interactive Advertising Bureau (IAB) study.

You can also expect CPMs to continue to rise with the growing popularity of games and the high demand to reach gamers who are otherwise difficult to reach. Other in-game ads follow a flat-rate pricing model, especially static ads or advergames.

Challenges and best practices

It’s all fun and games until your campaign stops performing well. In-game advertisements come with their own unique set of challenges — and fatigue is a real concern. 

• Players can quickly become bored or annoyed by seeing the same ads repeatedly. Be sure to monitor frequency and refresh creative as often as possible.
• Players will also be upset if ads are intrusive, distracting, or disrupt their gameplay in any way. This isn’t commonly an issue, but it’s an important consideration.

As with any advertising, targeting is critical. It’s best to use non-intrusive creative formats to engage users. If possible, rewarding users with in-game currency, items, or exclusive content can increase engagement rates and brand affinity. The aforementioned example of being able to earn Mercedes-Benz cars in Mario Kart is a simple but effective model of this in practice.

What’s in store for in-game advertising?

In-game advertising is a powerful way to reach a highly-engaged, lucrative and fast-growing audience. There is no shortage of different types of games and no reason not to try in-game advertising.

Mobile games and handheld gaming platforms like the Nintendo Switch make it even easier for brands to stay connected and engaged with users even more than ever before.

New technologies like virtual reality and the Metaverse will bring more gaming environments, unique experiences and even more diverse opportunities for advertisers to explore.

The post In-game advertising: A marketer’s guide appeared first on MarTech.

We asked Annamarie Andrews, VP for global marketing at Cielo, an international talent acquisition partner, to walk us through two programmatic B2B ad campaigns — how they did it and what they learned along the way. 

“When we consider programmatic advertising, I tend to put things in two different buckets … brand and demand,” says Andrews. “Brand is the long game. If people don’t know who we are or what we do, they aren’t going to reply to our e-mail, send us an RFP or answer our phone call. The demand side is connecting with the right organizations that we know, that we want to win to grow. So think about programmatic ad campaigns in those two buckets. Is it leaning with brand and brand awareness or is it leaning with really more targeted sales messaging to the accounts that we know we want to win or that we know are in the market for our services?” 

Last year, the company launched two campaigns. One in the U.S., where the company was pushing into a sector they’d never been in before, was demand focused. The other was an international brand campaign which included introducing the company in several nations. It was also part of their global brand refresh.

Dig deeper: Get With The Programmatic: A Primer On Programmatic Advertising

“We shifted from a really specific category within talent acquisition called recruitment process. outsourcing,” Andrews says. “Now we’re much bigger and broader and do everything from executive search to more high-value transformational consulting. We’re trying to own a new and different space in the minds of our buyers.”

Moving to account-based marketing

The campaigns were launched as Andrews and her team were re-thinking how they approached digital advertising and how to make it more effective. One outcome of this process was a shift to a more account-based marketing approach. To do this they partnered with 6Sense, an ABM platform provider. 

For the global brand effort, Andrews and her team used 6Sense Targeting, which found “more than 160 accounts that we wanted to get our message and information through,’” says Andrews. “We never layered on buying intent or where they are in the buying process because frankly we didn’t care, we just wanted to get awareness and visibility.”

For the U.S. demand campaign they then dug deeper to find out which executives at these accounts would be the most interested in Cielo’s services. These people have the same responsibilities but may have different titles — chief HR officer, chief people officer, chief challenge officer. They also wanted to connect with the people in the role a step below them, the VPs for talent acquisition and/or human resources. 

Constructing personas

You can never know your customer too well in marketing, especially in a demand campaign. Which is why Andrews and her team went beyond the job titles, adding demographic and psychographic data to construct personas. These are then used to tailor the messaging.

“We always start with, ‘How can we connect the personal value that someone will gain from our new brand or our services and tailor our messaging there?’” Andrews says.

This is part of a messaging matrix or framework for creating headlines, supporting copy, proof points for the initial creatives. 

“Always leading first with that top level message, then think about the visual design and the way that it connects,” Andrews says. “Consider everything from important keywords that are speaking to pain points that we know that these personas have down to color theory and color and shape of button to people versus iconography.”

The customer experience after the ad

Then comes something equally important for both brand and demand campaigns: Determining what the experience should be when the person goes from an ad to a landing page, to an offer or to a piece of content.

For the demand campaign, this requires further segmenting the audience into where their organization is in the buying process. 

“We couldn’t do this before we had the capabilities within 6Sense,” Andrews says. “We could target based on self-reported demographics or singular points of digital behaviors. We were never able to say based on this cumulative activity across an entire organization, we have a pretty good guess about the actions that they’re taking and what that means in terms of where they are in their buying process. That has really completely been a game changer to our strategy and making sure we’re spending money on the right accounts at the right places.”

There are three tiers in this segmentation:

1. Low intent/beginning of the buying journey.
2. Mid intent/mid journey.
3. High intent/end journey.

This lets them further refine the messaging matrix by asking what pain points do you think they’re trying to solve at each point in the journey. 

This tiered approach to advertising helped Andrews prove a hypothesis that was built into the campaign from the start: Your ads will get more engagement when they’re being served to people that are later in the buying stage. Knowing this informed their pricing strategy for ad buying. “If we only had $10 we’re going to put two on low intent and the rest on mid- and high-intent because that’s where we’re seeing more engagement and more conversions.”

Now that they understood the impact of tailoring to the buying stage, the Cielo team started tailoring according to industry, adding industry-specific language and pain points to the messaging.

Don’t set it and forget it

The ads were distributed on the Google display ad network, LinkedIn and a B2B network via 6Sense. “It takes and distributes our ads across a multitude of sites and depending on our personas or where we’re trying to target,” says Andrews. “If we think about the more brand-focused campaigns, we will use the Facebook ad network which includes Instagram, but that isn’t ever our main source.”

After segmentation, the biggest draw of programmatic advertising is automation. Buying ad space, running the ad and more are done automatically. Andrews says this may make marketers think it’s a set it and forget it operation. Do that and you miss out on key data.

“A piece of work that we did after running a campaign for a month is going and diving into the detailed URLs to know what sites the ads are being served to and creating a list that we now use repeatedly,” says Andrews. “That pulls out and removes URLs that were either underperforming or were places we actually didn’t want our brands appearing. One perfect example is we didn’t want our ads appearing on any sites that were focused on politics because that’s divisive.”

How well did they do?

The big difference between brand and demand campaigns is the outcome: What you want the audience to do, think and feel from seeing/engaging with the campaign. So, how did these campaigns do?

“[For the brand campaign] our ultimate measure of success was, did we get this new brand in a new category in front of more than 160 organizations?” Andrews says. “We were able to deliver impressions for 98%.” 

About the demand campaign, Andrews says, “We’re now able to understand how these campaigns are influencing one opportunity. And not just winning an opportunity, we have seen really positive indicators with this hyper focused targeting on buying stage to deal velocity and increase in win rates.”

The post How to create winning B2B programmatic ad campaigns appeared first on MarTech.

Brands advertising around the game this year are adapting to changes in media consumption and shopping with new digital partnerships and campaign strategies.

Streaming and CTV advertising continue to climb

CTV and traditional linear advertising will be in close competition for ad dollars. Digital agency Adtaxi projects that the number of streaming viewers will surpass those watching the Super Bowl on broadcast and cable.

“It looks like it could be neck and neck, and of those paying attention to Super Bowl content, it looks like more will do so via streaming than broadcast or cable,” said Adtaxi Director of Research, Murry Woronoff.

The advantage that brands and agencies gain by using CTV advertising is the ability to control their ad dollars while still hitting the right demos. Instead of paying millions for a single Super Bowl ad, marketers can place ads on CTV and zero in on specific segments of any size.

“With Apple+ streaming services entering the live sports sphere, and Google getting the rights for NFL Sunday Ticket to distribute on their YouTube TV product, we could see more NFL fans switch to streaming services down the line,” said Laura Connell, consumer trends manager for consumer insights and analytics company GWI. “With price leading the list of streaming concerns, platforms like YouTube or Twitch have an unmatchable competitive advantage — their basic offerings are free, and are more likely to retain engagement, despite the current financial climate.

Dig deeper: How brands lined up on CTV for the 2022 FIFA World Cup

Cross-screen viewing behaviors

“Brands don’t have to spend $7 million on a 30-second TV spot that will likely be forgotten in a few days,” said consultant Brittany Hodak. “The best payoffs are when brands create experiences around the Super Bowl in a way that lets them be a part of the conversation while still connecting with fans in an authentic way. The ROI of a targeted PR​ or experience ​play that strongly connects with a subset of your audience will outweigh that of an expensive commercial that broadly speaks to millions.”

The reality is that regardless of whether viewers are watching the game on streaming or broadcast on their primary screen, over half of adults expect to follow the Super Bowl on a second digital screen, Adtaxi found. This figure, 52%, is up from 46% last year. Also, 36% of those the agency surveyed said they’ll be on social media while watching the game, and 15% will be following along on a sporting website.

“With social networks quickly becoming the leading source of information for consumers, brands have an opportunity to maximize real-time engagement on social media this Super Bowl, rather than just commercial breaks,” said Connell.

GWI’s research suggests that the segment of NFL fans who use social while watching games could be as high as 50%.

Finding shoppers before and during the Big Game

There’s a chance that fans who follow sports on multiple screens are shopping on one of them. To connect with shoppers, Michelob ULTRA partnered with Instacart for a first-of-its-kind co-marketing initiative around the Super Bowl.

“Together, we’re leveraging all of Instacart’s and Michelob ULTRA’s marketing channels — from linear TV, to our app and Marketplace, to social media, and CRM — to reach the widest possible audience,” said Instacart CMO Laura Jones. “The campaign reflects a meaningful partnership between the two brands — we’re powering Michelob ULTRA’s TV commercials with a QR code, we’ve also launched our game day essentials Pop-Up in our app and Marketplace, and we led the creative execution for our co-branded imagery. Additionally, in partnership with PepsiCo, the Michelob ULTRA page on Instacart features game day staples that pair well with ULTRA like Tostitos and classic Frito Lay chips.”

Jones added, “There’s really no other cultural moment each year like the Super Bowl that commands such strong consumer attention across the US. For us, a pre-Super Bowl, co-marketing campaign with Michelob ULTRA makes a ton of sense because historically we’ve seen that consumers start shopping for their game day party staples in the weeks leading up to the big game.”

Streamer Roku also partnered with DoorDash to offer streaming viewers membership into the local commerce company’s loyalty program, DashPass.

For the first year of the partnership, Roku will also be the exclusive adtech marketplace solution for DoorDash’s U.S. restaurants and grocers who buy shoppable click-to-order ads that run on Roku.

Dig deeper: How Roku boosts advertiser experience

Digital shoppers courted by Rakuten

Since a lot of digital shoppers will be watching the Super Bowl, ecommerce brand Rakuten is taking the opportunity to boost brand awareness with a nostalgic campaign featuring 90s star Alicia Silverstone.

“The goal of the campaign is to show consumers how easy it is to save with Rakuten while shopping all their favorite brands,” said Vicki McRae, SVP of brand, creative and communications at Rakuten.

She added, “Last year we had a Super Bowl ad that was a big brand awareness play. We saw great success with that ad, seeing a four-point increase in brand awareness. This year we’re building on that momentum, while still benefiting from the brand awareness that comes with the Super Bowl, and we’re taking it a layer deeper. We want to explain to shoppers what is that we do, and how we can help them save.

Rakuten’s approach this year is to “span across multiple pieces of content before and after the Big Game for sustained storytelling and reach,” said Michael Knott, Rakuten’s senior director, brand media.

The content includes the 30-second game day spot, a 60-second extended cut on YouTube, and a 15-second retargeting ad that will air after the Super Bowl. The campaign will be extended through other digital ads on paid social, display, paid search and affiliate partners, as well as through email and Rakuten-owned social channels, running throughout Q1.

“There is a lot of noise during the Super Bowl and brands will fight for attention in the weeks leading up to, and during, the game,” said Matt Conlin, Chief Customer Officer at performance marketing company Fluent. “It’s what you do after the game that matters. Leverage the brand equity gained during the Super Bowl to your benefit in the weeks that follow to re-engage consumers and drive conversions.”

The post How Michelob ULTRA, PepsiCo and Rakuten are approaching the Super Bowl this year appeared first on MarTech.

Digital media channels continue to deliver more viewing options to TV watchers through on-demand streaming and live broadcasts. At the same time, the explosion of ad-supported connected TV (CTV) and over-the-top (OTT) services gives advertisers more options in delivering ads to consumers.

That’s the big story in digital media, and not a wild prediction that momentum will grow in 2023. But how will marketers ride this wave? What factors will motivate viewers to watch ads on streaming?

The new year will bring answers to these big questions and others. Below are our predictions for digital media and other adtech trends.

Premium streamers provide the inventory, price hikes increase the audience for ads

Price hikes on streaming services will continue to motivate consumers to accept ads in the new year. The ad-free tier on Disney+ got bumped up to $11 when they introduced the ad-supported tier at the end of 2022. The ad-free Netflix option is less than half the price of its $20 “Premium” plan. Netflix is also expected to crack down on password-sharing soon, so more customers overall will have to pay to play. Ads will allow them to pay less.

Prime Video’s takeover of Thursday Night Football, and free-ad-supported (FAST) app Tubi’s recent World Cup presentation lay the groundwork for more live sports and events being watched by cord-cutters. (The World Cup Final was streamed by 3 million viewers in the U.S. alone, across all available platforms.) 

For advertisers, the combination of sports and ad-supported Disney-owned and Netflix series means more premium inventory attracting big audiences in the year to come.

Real-time ads and cross-channel amplification

Viewing behavior will continue to change. Advertisers and their adtech partners will have to adapt in the new year.

In 2022, CTV overtook mobile for global ad impressions. Users stream different kinds of content on mobile devices than when they’re streaming longform programming. They could be streaming on a smart TV while consuming even more content on their phone, especially when watching live events.

“We can expect to see a proliferation of technologies that enable brands to more efficiently connect with their audiences who are tuned in to live spaces,” said Oz Etzioni, CEO and founder of creative optimization company Clinch. “On the backend (activation), this means new and innovative ways to feed ‘live event’ data into the creative. Think real-time information tied to sporting events, gaming, shopping and more, and across different channels — CTV, social, even certain DOOH (digital out-of-home) environments.”

Advertisers will experiment with new ad formats, as well as how they support CTV campaigns on other platforms.

“We can expect household entertainment names to continue launching streaming platforms as they aim to increase their subscriber base, stay relevant, and offer lower price points,” said Laura Connell, consumer trends manager for audience research company GWI. “With video-social platforms like Twitch, YouTube and TikTok in the mix, different formats will also need to work together to complement one another.”

First-party data refining CTV campaigns, a greater demand for measurement

As budgets transition from traditional linear TV to CTV campaigns, first-party data will become more crucial to justify the spend and measure results.

“Data will be king,” said Lynette Kaylor, SVP of advertising sales for FuboTV. “As budgets tighten, advertisers will need to become more efficient with their buys and have smart data strategies. Efficiencies come from reducing waste and increasing targeted media buys. For example, investing in the audiences that are most inclined to buy your product or service instead of mass reach.”

She added, “There will be a greater need for transparent attribution and measurement to show the value of audience-based buys.”

“There are far more eyes on measurement particularly as the bigger advertisers like P&G have put the pressure on for greater transparency and accountability to performance,” said Michele Madaris, media director of full-service agency Boathouse. “Every partner right now is selling their ‘unique measurement’ application and touting their connections and partnerships with industry leaders to get to a more consistent and reliable methodology. It feels like an industry-wide effort to enhance measurement, so I think 2023 will show improvements that will help advertisers tie to outcomes.”

More traction for out-of-home on social and out in the world

The out-of-home (OOH) space has seen a rapid change, both in the digital transformation of digital out-of-home (DOOH) and the expansion of programmatic DOOH. As more out-of-home ads get plugged into omnichannel campaigns, momentum will continue in 2023.

“As digital burnout saturates society and consumers continue to experience the world IRL, brands will increasingly explore OOH opportunities as a means to reach and engage consumers,” said Anna Bager, President and CEO of Out of Home Advertising Association of America. “Recent OAAA-Harris Poll research found that consumers on TikTok, Instagram, etc. are regularly seeing OOH advertising creative in photos across their feeds. In addition, OOH is viewed as an advertising opportunity for brands that enhances consumer experience while they are traveling along their hyper-connected journeys.”

She added, “Marketers have a massive opportunity at hand to not only tell their brand stories, but surround people with it, delighting and surprising them which in turn, encourages consumers to follow brands across channels. Creating those special moments by connecting in the IRL environment is one of the key values that OOH brings to advertisers and it will continue to drive growth at a substantial rate.”

Universal standards for adtech carbon emissions

Brands and their adtech partners are looking for ways to reduce the energy and carbon emissions associated with the digital ad supply chain. In 2023, adtech will step up to meet this demand from advertisers.

“Over the next year, I think we’ll see the development of universal standards for best practices that can reduce the carbon footprint by making ad inventory with low emissions,” said Matt Kendall, CTO for adblock revenue recovery company Blockthrough. “Which group will lead the charge? Could be IAB Tech Lab or others.”

“Changes in adtech tend to initiate from the economic power of the buy-side and then get pushed through the ecosystem,” said Curt Larson, Chief Product Officer at omnichannel ad exchange Sharethrough. “This is what we’re seeing with the green movement — buyers increasingly instituting green initiatives and mandates. These mandates are effectively another aspect of buyers’ SPO (supply path optimization) strategies. In the past, buyers have looked at things like take rates and discounts, directness, quality, performance, or fraud when they evaluate supply paths. They will now add to the list the carbon load of any given supply path.”

More brands will address Gen Z as co-creators

Brands won’t stop advertising to Gen Z consumers in 2023. But the smarter brands will approach this group in a more collaborative way.

“Gen Z is impacting not only culture but every industry at speed and scale through their digital behavior — but brands should no longer look at them just as consumers,” said Kaeya Majmundar, founder and CEO of Swaypay, a platform that compensates shoppers for TikTok-ing their purchases. “They should look at Gen Z as co-creators. Gen Z doesn’t live on your ecommerce site — it’s not where their sense of community and individuality is being formed. You have to actively seek them out and include them not for selling, but for sharing and co-creating.”

As a result, there will be a “radical decentralization of brand control” as more of the brand narrative gets handed over to customers.

“In 2023, continuously adding value to developing the Gen Z audience will be key — and they must be rewarded for the value they create,” said Majmundar.

The post 2023 Predictions: Digital media and advertising appeared first on MarTech.

Why we care. In the early days of streaming, a lot of premium content was ad free. A major shift occurred earlier this year when top service Netflix announced it was introducing ads, and then followed through this fall.

Many viewers might still choose the more expensive ad-free tier for these services. But as inflation and subscription prices climb, more people are interested in keeping their costs down. As a result, this year has seen the number of U.S. households with ad-supported subscriptions rise at a faster rate than those with ad-free ones.

Dig deeper: Consumers don’t mind ad-supported streaming and how it affects media planners

More choice for advertisers. Adding an ad-supported tier to Disney provides more pricing options for consumers. Netflix also offers an ad-supported level priced at $7. Not only does this allow advertisers access to more consumers, it gives the advertisers premium inventory in the form of wildly popular movies and series.

“While Netflix has definitely garnered more industry attention with its launch, that doesn’t mean marketers aren’t just as excited about Disney’s ad-supported tier,” said Matt Spiegel, EVP, media and entertainment vertical, TransUnion. “It’s difficult to compare the two since Disney+ is more of an add-on strategy and the market expects more out of Netflix following its long stance of remaining ad free.”

A growing global audience. In Q4 2021, audience research platform GWI found 66% of U.S. consumers watching some form of subscription streaming service in the last month. And 26% of U.S. consumers were actively streaming Disney+.

Global brands aren’t just looking to reach U.S. audiences however. And Disney+ is developing content that connects with audiences in other parts of the world, including Asia Pacific markets.

“Disney+ hopes to serve up 50 new APAC originals by 2023, producing plenty of local language content,” said GWI’s consumer trends manager, Laura Connell. “Why? Because it’s an attractive region for streaming services looking to scale up their subscriber base.”

Don’t forget about Hulu. Disney is a majority owner of OTT service Hulu, which also offers ad-supported programming for $8 per month. The two services appear to be complementary and shouldn’t eat into each other’s audiences. In addition to popular series and movies, Hulu also offers some local programming not found on Disney+.

“Disney+ and Hulu will need to introduce capabilities that address ad relevance and brand suitability in order to maintain the same expectations audiences, brands and advertisers expect,” said Field Garthwaite, CEO and cofounder of video data company IRIS.TV. “Incorporating video-level content data into their advertising solution will help Disney increase the value of their new ad supported options, while minimizing risk of bad viewing experiences and brand sentiment by eliminating any ad placements in unsuitable environments.”

“Looking at the ad market from a macro perspective, this is business as usual for Disney that will garner its own attention without competing against Hulu and its other media brands,” said Spiegel.

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Bermuda Tourism Authority is testing 3D digital out-of-home (DOOH) technology to stand out in one of the busiest, brightest locations on the planet — Times Square — to launch their new campaign, “Lost Yet Found.”

The 3D execution, developed by OUTFRONT Media for their premium Times Square inventory, includes a number of pop-out elements on the giant screen. Onlookers from the street are shown a billowy sail boat, daring cliff diver, floppy whale’s tail and 3D-rendered lettering spelling out where shivering northerners can find these warm adventures — Bermuda.

Seasonal push. The new campaign, “Lost Yet Found,” began rolling out this fall in New York, Toronto and Miami, which are primary markets, as well as secondary markets such as Dallas, Vancouver and Atlanta. Video, social media and other digital channels are in the mix, as well as out-of-home. The campaign was created by Boston-based agency Proverb, with additional creative duties carried out by Burnt House Productions, an agency based in Bermuda.

“We want travelers to learn things about the island they haven’t necessarily seen or heard about,” said Jamari Douglas, vice president of marketing, PR and communications for Bermuda Tourism Authority.

Actionable DOOH. While the eye-catching graphics in the Times Square ad are intended to make busy New Yorkers stop in their tracks, and maybe take out their phones, record and share out the spectacle, there are also important calls to action. The ad isn’t a one-off, it’s part of a journey.

The video is accompanied by a QR code throughout the 15-second ad, which is in regular rotation above McDonald’s on Broadway. Viewers are encouraged to learn more about all of Bermuda’s attractions by going to the dedicated website, GoToBermuda.com. The ad also closes with one of the best selling points for New Yorkers who are short on time. Bermuda is a 90-minute flight from JFK.

“We wanted to showcase Bermuda as a viable destination with a proximity message, but also show what’s on the island and not necessarily talked about, or show it in a different way,” Douglas said.

Everybody knows about Bermuda’s beaches, so the aim of the campaign was to highlight other activities to boost even more interest. And the advertiser chose 3D DOOH in New York as an innovative way to tell this unheard of story, Douglas explained.

Why we care. DOOH transformation has accelerated since the pandemic. The adoption of programmatic DOOH allows media planners to integrate this medium into the mix of a multi-channel campaign much more easily than in the old days when ad schedules were lined up on spreadsheets.

Dig deeper: Digital out-of-home branches out with programmatic

One other advantage to out-of-home ads is that they can become their own attraction. They aren’t just part of a campaign, they can be an event or focal point that generates buzz. The Bermuda 3D ad in New York is supported by other DOOH placements throughout the city. And the advertiser expects that as a result of social sharing, many more digital users will be exposed to the ad beyond the in-person Times Square foot traffic and cab riders.

Brands breaking into 3D DOOH. Bermuda Tourism Authority also wanted to show their creativity by being first-to-market as the first travel destination to launch this kind of 3D ad. And since this is breaking new ground, they wanted the test to be data-driven.

OUTFRONT’s dedicated group, XLabs, is tasked with innovating DOOH as the world opens up after pandemic lockdowns.

“There was been a lot of backchannel work and a digital build-out,” said OUTFRONT’s Chief Marketing Officer, Jodi Senese. “We fast-tracked this over the last couple years, while people have gotten more socially engaged. The convergence of those two — social media and out-of-home — are tremendous bedfellows.”

DOOH is also responding to, and measuring, behavioral changes seen since the pandemic. For instance, people were beginning to use QR codes more once they began using them for common tasks like restaurant menus, Senese said.

“DOOH ads are allowing us to have new conversations redirected from other channels,” explained XLabs VP, head of digital creative Chad Shackelford. “We’re not just bowling them over but really enticing them. And we’re just scratching the surface with new levels of interactivity.”

DOOH creative in the Bermuda campaign will be triggered by weather, for instance. But part of the test with this new campaign will be other live triggers in real-time based on contextual relevance.

While travelers are learning more about a destination they thought they knew, Bermuda’s campaign will be learning from what gains attention online and out on the street.

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What Taboola gets. Taboola — which The Wall Street Journal refers to as a “clickbait giant” — will be the only source of native advertising for all of Yahoo’s digital properties for the next three decades. The two companies will share revenue from those ad sales, which they said will generate at least $1 billion in revenue annually.

What Yahoo gets. In return, Yahoo is taking 24.99% of Taboola’s outstanding shares and installing a representative on its board of directors. This will also let Yahoo use Taboola’s technology to manage its sizable business in native advertising.

Dig deeper: New Taboola feature fights fake news on social media

Yahoo, which was taken private in a $5 billion deal last year, says it reaches nearly 900 million monthly active users via properties which include AOL, TechCrunch and Yahoo Sports. Taboola, which went public this year, says it partners with 9,000 publishers and reaches 500 million users every day. The company’s stock price, which was down 61% prior to today’s announcement, was up 55% in mid-day trading.

Why we care. Digital advertising will rebound from its current slump. No other channel has its reach or targeting capabilities. Yahoo CEO Jim Lanzone knows that and is positioning the company for it. The 30-year exclusivity may mean nothing, but got everyone’s attention as it was designed to.

The post Yahoo and Taboola sign “30-year” exclusive ad agreement appeared first on MarTech.

Here’s how brands are approaching this year’s FIFA World Cup.

Younger viewers on streaming. Viewing habits have changed. To cover all the bases in a fragmented media landscape, OTT and CTV are an essential part of mix.

“Younger viewers tend to stream sports across a variety of devices, and OTT advertising is a smart way to drive scale against that demographic,” said Hall.

OTT/CTV measurement. “One of the most exciting evolutions for performance marketers who want to reach World Cup streamers is the ability to use mobile measurement partners to evaluate cross-screen conversions and website traffic coming from OTT advertising,” Hall said.

Dig deeper: Brands are betting heavily on CTV

Cross-channel domination. Best CTV practices include cross-channel calls to action and tie-ins.

“To cut through the clutter, brands need to build engaging CTV ads that direct users to an app or website with a strong end card,” Hall explained.

She added, “Brands should capitalize on the fact that the industry is evolving rapidly away from linear broadcast domination towards streaming and social.”

For instance, McDonald’s FIFA World Cup campaign is featuring Jason Sudeikis, in-character as Ted Lasso, from a TV series that launched on streaming (Apple TV+). To round out the lineup, the campaign also drafted TikTok influencer Khaby Lam and Twitch streamer Edwin Castro.

Dig deeper: How marketers are preparing for the future on Twitch and in-game ads

Sticking to the brand message. To mitigate brand risk from their involvement in a controversial World Cup, brands are sticking to their own message.

“I predict a lot of advertisers will be focused on cultural values and feel-good moments,” Hall said. “It’s not just about selling a product or tagline but using a storyline to pull on consumers’ heartstrings or associate the brand with mission-driven messaging. I’m thrilled to see brands that are emphasizing diversity and inclusion within the talent.”

Why we care. World Cups and Olympics are global events that result from years of planning. Viewers, billions of them, are watching all over the world. The convenience of streaming games over multiple channels on-demand increases the CTV and OTT opportunities for advertisers. While short-form content is preferred on a platform like TikTok, the month-long duration of the tournament allows brands to tell a story through each round of the competition.

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