Netflix Decides Subscribers Are So Passé: The New Metrics Are in Town

2024-04-19

Netflix is slapping the streaming world around, reigning supreme like a binge-watching overlord and making corporate boardrooms and basement couches equally attentive.

With its ad-supported tier, the streaming behemoth has gone from playing it cool to full throttle on the gas pedal, sucking in advertisers like a blockbuster premiere sucks in viewers.

This isn’t just growth; it’s an explosion—40% of new sign-ups are opting for ads with their drama, and that’s just the teaser.

The Mad Rush to Advertise: A Goldmine Unearthed

Netflix’s jump into the advertising pool is less a cautious toe dip and more of a meteoric belly flop that reverberates through the media landscape. It’s not just opening its doors to advertisers—it’s rolling out a red carpet lined with LED screens, beckoning brands to broadcast their latest and greatest to the binge-watching masses. With a burgeoning base of 23 million ad-watching, popcorn-popping subscribers, Netflix has transformed from mere entertainment provider to a titan of targeted advertising. Imagine the most addictive series mingling with sneakily placed ads that viewers actually want to see—this isn’t accidental; it’s ad-genius at work.

This isn’t your old-school TV ad break; this is strategic ad placement elevated to an art form. Brands are clamoring for a spot not just between shows but as part of the Netflix experience—a seamless blend that might have you wondering whether you’re still watching your favorite drama or if you’ve wandered into an extended car commercial. With a user base glued to their screens for hours on end, advertisers have the perfect setup to make their pitch. It’s a captive audience that’s literally captive, trapped in their Netflix-induced euphoria.

And with numbers like these, who needs a Super Bowl spot when you have a mid-season cliffhanger of “Ozark” to slot your product into?

But what really turns the Netflix platform into a goldmine for advertisers isn’t just the sheer numbers—it’s the quality of the engagement. Subscribers aren’t just idly flipping channels or skipping ads with the touch of a button; they are engrossed, immersed, and engaged. This high level of viewer investment creates an advertiser’s paradise, where every ad has the potential to be as impactful as the plot twist in “Black Mirror.” Netflix has cracked the code, turning what could have been a necessary evil into a coveted slot on prime time’s new age. As brands dive into this deep pool of opportunity, Netflix sits back and watches the stakes—and the stocks—rise.

Engagement or Bust: The Viewer’s Dilemma

This isn’t about shoving pizza ads in the middle of “The Crown.” Netflix’s ad mojo is about turning necessary evils (yes, ads are still that) into moments of marketing genius. It’s about making viewers love ads the way they love plot twists. Netflix has turned watching ads into something you endure with the promise of narrative payoff—like finding out if your favorite character survived the cliffhanger while munching on the branded popcorn the previous ad just convinced you to buy.

Gone are the days of simple intermissions; now, ads are integrated so smoothly into your viewing marathon that you might find yourself reaching for products as instinctively as you reach for the remote. This platform isn’t just selling you a pause filled with product pitches; it’s selling a sophisticated, almost sublime interruption that might just enhance your viewing pleasure. Imagine being wrapped up in the suspense of a thriller when an impeccably timed ad for home security systems pops up—suddenly, the ad isn’t an interruption, it’s an augmentation of your adrenaline.

But the true magic of Netflix’s ad integration lies not in the obvious placements but in the subtle art of keeping viewers hooked. The company has essentially redefined what it means to watch TV by making advertisements a part of the binge-watching ritual. This approach is a gamble—will viewers accept these commercial co-stars or will they rebel against the intrusion into their carefully curated escapism? Netflix bets on the former, aiming to make ads as much a part of the landscape as the opening credits. And surprisingly, many viewers aren’t just tolerating this new arrangement; they’re engaging with it, making mental notes of brands and products that resonate with the content they love.

Navigating this new ad-infused reality, Netflix has to tread carefully to maintain the delicate balance between keeping shows binge-worthy and turning them into prolonged commercial breaks. Viewer patience is not infinite, and the tolerance for ads can wear thin if the balance tips too far towards commercialism.

However, Netflix’s knack for narrative does give it a unique edge—ads aren’t just sandwiched between episodes; they are crafted to fit within the viewing ecosystem, intended to complement rather than disrupt. This seamless integration is the linchpin in Netflix’s strategy, aiming to transform passive watchers into active, engaged consumers who feel that even the ads are a part of their Netflix journey.

Netflix Stops Counting Subscribers: A Numbers Game No More

In a plot twist worthy of its own Netflix original, the streaming giant has decided that subscriber numbers are so last season. Starting in 2025, Netflix will toss the traditional tally sheet out the window, opting instead to focus on… well, something else. This bold move is like a magician pulling a disappearing act on the audience count while everyone’s still clapping—it’s daring, a little baffling, and might just be a stroke of genius. Instead of playing the numbers game where every subscriber is a notch on the bedpost, Netflix is now all about the “other metrics,” a mysterious mix that’s less about how many are watching and more about how well they watch. It’s a high-stakes gamble to redefine success, hoping that depth beats breadth when it comes to viewer engagement.

So, what’s driving this seismic strategy shift? Maybe Netflix is tired of the same old scorekeeping, or maybe it’s a clever sidestep in a world where the competition is just too keen to play fair. Whatever the case, this isn’t just about changing the rules; it’s about changing the game. By unshackling itself from subscriber counts, Netflix is free to explore new realms—think viewer satisfaction levels, engagement juice, or any kind of avant-garde analytics that tech heads can dream up. It’s a move that could either be a masterclass in modern media metrics or a flub of epic proportions

Show Me the Money: The Strategy Behind the Screen

But in the past, netflix’s subscriber figures are more than just bragging rights; they’re a colossal billboard for its newfound ad-centric business model. With a whopping 260.8 million pairs of eyes glued to their screens, Netflix isn’t just streaming; it’s screaming its potential from the digital rooftops. This isn’t merely about quantity, though. The quality of these viewers—engaged, dedicated, and more prone to bingeing than a dieter in a doughnut shop—makes them prime targets for advertisers. Netflix has crafted a gold-plated invitation to marketers: Come place your ads where the viewers are not just plentiful, but passionate. This strategic shift is a clear move from playing defense with subscription-only content to an aggressive offense, blending subscription fees with ad revenue streams.

In this new, ad-augmented realm, Netflix has reimagined the value proposition of its platform. Each show isn’t just a potential fan favorite; it’s a vehicle for high-impact advertising. The environment is pristine: high-quality original content serves as the perfect backdrop for equally polished ads. It’s a marketer’s dream—premium content married to premium advertising opportunities.

This isn’t about throwing spaghetti at the wall to see what sticks; it’s about placing each ad with precision, ensuring that messages not only reach viewers but resonate on a deeper, almost personal level. Netflix’s content strategy has become a dual-purpose engine, driving both viewer engagement and ad integration, a twin-turbo approach to keeping the lights on and the cameras rolling.

Yet, with great power comes great scrutiny.

As Netflix pads its bottom line with ad dollars, it walks a tightrope of viewer expectations and advertiser demands. The challenge is monumental: maintaining the integrity of its content while monetizing every possible moment without alienating its base.

Subscribers came for the drama, not the commercials; keeping them subscribed (and subscribing to ads) is a narrative twist even Netflix’s best writers might struggle to perfect long term.

The company must continue to innovate not just in how content is created but how it’s monetized, ensuring the ads are as unobtrusive as they are unavoidable. It’s a high-stakes game of show and sell, one that could redefine how stories are told and sold on the silver screen of streaming.

A Whole New World for Advertisers

Netflix’s ad landscape is like the Wild West, but with better production value and fewer shootouts. It’s a new frontier, unspoiled by the usual ad-slinging suspects. Here, a brand can be more than background noise; it can be part of the binge-watch routine. Netflix offers a rare blend of reach, engagement, and a little bit of that showbiz sparkle—a combination that’s as enticing to advertisers as a cliffhanger is to viewers.

This isn’t merely adding a splash of commercial to your viewing cocktail; it’s about integrating advertisements so smoothly that you’ll think they were part of the showrunner’s vision. Imagine a suspense thriller that cuts to a sleek, dark-toned car advertisement just as the tension peaks—suddenly, you’re not just an observer; you’re part of a cinematic journey where even the ads are part of the narrative.

In this lush landscape, ads aren’t interruptions; they’re extensions of the viewing experience. Netflix has crafted an environment where ads are tailored to the mood and theme of the show you’re watching, making them feel less like commercial breaks and more like part of the storyline. This seamless integration helps maintain the flow of binge sessions, reducing the mental switch viewers typically feel when moving from story to selling. It’s a subtle art—ensuring that each advertisement is not only seen but felt as a continuation of the viewer’s emotional engagement. Here, advertisers have the unique opportunity to resonate deeply with audiences, embedding their messages within the context of highly curated content.

Netflix’s strategy cleverly capitalizes on its audience’s habits by offering brands a shot at premium placement among the most popular series and films. This access turns each ad spot into prime real estate, coveted by marketers who dream of their products sharing the screen with the likes of “Stranger Things” and “The Crown.” The strategic placement of these ads means they’re more likely to be watched and less likely to be skipped, providing an effectiveness that can’t be matched by more traditional, disruptive advertising methods. This is the streaming behemoth’s version of a win-win: viewers stay glued to their screens, and brands get the eyeballs they so desperately crave.

But Netflix’s ad-rich utopia doesn’t just benefit from high viewer engagement. It also offers advertisers unparalleled diversity in audience demographics. With a global subscriber base that spans various ages, interests, and countries, brands can target their ads with unprecedented precision. Whether it’s reaching millennials with tech gadgets or boomers with luxury cars, Netflix’s ad algorithms provide a scalpel where once there was only a sledgehammer. This nuanced approach allows for more strategic advertising campaigns that are fine-tuned to the viewer’s profile, increasing the chances of conversion and brand loyalty.

Navigating this new ad-scape requires a boldness typical of Netflix’s own disruptive history. For advertisers, it’s about more than just buying space; it’s about creating moments that are as compelling as the content they accompany. As Netflix continues to expand its advertising capabilities, the opportunities for innovative marketing will likely grow, offering new ways to engage audiences that go beyond the screen. Advertisers ready to embrace this evolution will find themselves at the forefront of a revolution in digital advertising, crafting experiences that entertain, engage, and elevate the commercial to something close to cinematic art.

Peering into the Crystal Ball: Netflix’s Ad-Filled Future

Netflix is eyeballing the future of advertising with the smugness of a cat who got the cream. It’s not just changing the channel; it’s smashing the remote. The streaming giant’s move from obsessing over subscriber numbers to geeking out over engagement metrics is like watching a magician swap rabbits for doves mid-act—it’s unexpected, slightly confusing, but undeniably slick. Netflix is concocting a world where ads aren’t just endured, they’re part of the spectacle, woven into your binge-watching sessions as snugly as your favorite throw blanket. With this new strategy, they’re not just hoping you’ll tolerate the intrusion; they’re betting you’ll ask for seconds, creating a viewer-advertiser lovefest that could set the standard for how ads are integrated into media.

This ain’t your grandma’s ad model; it’s a beast of a different breed. As Netflix struts further down this path, we can expect it to slap traditional ad formats in the face with innovations that could make ads as engaging as the shows they interrupt. Imagine interactive ads that let you choose your own adventure—tap here to keep the romantic subplot, swipe there to ditch the annoying side character, all while seamlessly plugging a product. Netflix could leverage its treasure trove of data to not just target ads but to make them feel like a personal shoutout from your favorite character, blurring the lines between content and commerce in ways that could make even the most ad-averse viewer crack a smile. The future of Netflix ads looks less like a necessary evil and more like a weirdly enjoyable part of your streaming diet.

Netflix is sailing into uncharted waters with its flashy ad-tier ship, and let’s just say, the seas could get a bit rough. It’s not just about throwing some ads into the mix and calling it a day; it’s about keeping the binge-boat steady while tossing in commercials without making viewers seasick. They’ve got the content down—more hooks than a pirate’s convention—but mixing in ads without upsetting the binge-watchers’ delicate diet of drama and docs? That’s the real trick. This balancing act is part diplomacy, part tightrope walking, and all eyes are on Netflix to see if they can keep the party going without turning it into an ad-laden float parade that sends viewers jumping ship.

As Netflix steers this course, it’s got to dodge icebergs like ad fatigue and viewer backlash. There’s a fine line between cleverly integrated and outright intrusive, and straying too far into commercial waters could be disastrous. The challenge isn’t just to keep the ads coming but to keep them as unobtrusive and as engaging as possible. They need ads to blend in like camouflage, not stick out like a sore thumb. If the viewers start feeling like they’re just fodder for the ad cannon, they’ll bail, and no amount of algorithmic prowess or strategic brilliance will bring them back to the fold. Netflix needs to navigate these waters with the finesse of a seasoned captain, ensuring that every ad-break is as smooth as a good scotch, not a jarring jolt back to reality.

Yet, amidst these challenges, Netflix has an ace up its sleeve—their unparalleled data on viewer habits and preferences. This isn’t just about using big data to target ads; it’s about creating a viewer experience so tailored and so spot-on that even the ads feel like part of the show. Imagine ads so integrated that you don’t know where your latest binge ends and the persuasion begins. If Netflix can pull this off, it could redefine viewer engagement, making its platform not just a place to watch shows but a hub of interactive, almost enjoyable ad experiences.

It’s a bold vision, but if anyone can lead this new age of ad-supported streaming without capsizing, it’s Netflix, with its compass set firmly on innovation and its sails filled with the winds of viewer data.

Paramount’s Lifeline or Just More Line? The Ad-Supported Gamble to Stay Afloat

Pesach Lattin

2024-04-19

Ah, Paramount+, the scrappy underdog of the streaming wars, is now waving the white flag—made entirely of commercials. At a star-studded (if you count the execs) upfront last year, the head honchos touted their shiny new ad tier like it was the second coming of infomercials. And guess what? The advertisers ate it up like it was free samples at Costco.

Marco Nobili, Paramount+’s EVP and international ringmaster, has been stoking the fires of ad mania, claiming there’s “pent-up demand” in the advertising circus. Really, Marco? Because last time I checked, the only thing pent-up were my viewers after a two-hour binge-watching session that felt more like a PowerPoint on why I should buy another smart fridge.

Now, don’t get me wrong. Paramount’s pitch is slicker than a greased-up exec sliding down the corporate ladder. They’ve got SVOD, BVOD, FAST, and probably a few other acronyms they made up to sound important. The market, even though not massive, is surprisingly voracious, gobbling up multiple streaming services like there’s no tomorrow.

Samsung’s adding fuel to the fire with research saying ad time on streaming is growing faster than my disbelief at these claims. Brands on these platforms are “five times more modern,” which is great news if you’re selling hoverboards or time machines, I guess. And Magnite’s study? It’s all rainbows and sunshine there too. People trust ads! They love ads! They want more ads! So much so that Paramount’s new ad-supported tier might just be the cheapest therapist in town, making everyone feel modern, innovative, and incredibly patient as they sit through yet another block of commercials.

But the real showstopper? Over half of those not yet streaming are tempted by ads if it means a cheaper bill. The ad-lovers, already sold on the ad buffet, are tuning in for hours, their devotion to the altar of commercials unwavering. And those purchases? They’re just a click away after that persuasive little ad works its magic across multiple devices.

With the cost of living soaring like my hopes when a new season drops, Paramount’s timing might just be perfect. According to Nobili, this is their moment to shine, a unique position to sprinkle their ad magic across the digital landscape, bolstering their offerings like a chef who’s just found truffles in the pantry.

Shari Redstone, head of this media circus, might be closer than ever to selling her stakes with talks of exclusive negotiations in the air. The plot thickens, with potential buyers circling like sharks around a sinking ship, or in this case, a floating ad platform.

Will Paramount’s ad-strewn path lead them to the promised land of profitability? Or is it just another rerun of the same old reality show where the twist is everyone sees more ads? Stay tuned—or don’t, if you’ve had enough of commercials.

Apocalypse: An Ad Agency’s Guide to Not Getting Replaced by a Chatbot

Pesach Lattin

2024-04-18

As the digital winds shift, artificial intelligence (AI) is blowing in like a hurricane on steroids, poised to revolutionize—or demolish—traditional marketing agencies. It’s high time for the ad world to face the music: AI isn’t just knocking at the door; it’s kicking it down. But fear not, agency mavens, this isn’t a eulogy—it’s a battle plan.

AI in Marketing: Embrace or Brace for Impact
Let’s be crystal clear: AI in marketing isn’t just another shiny tool in the toolbox—it’s the whole darn power plant. This beast can crunch numbers, predict outcomes, and personalize content at a pace that makes your average marketing guru look like they’re stuck in the slow lane with a flat tire. And while some may see this as the harbinger of a jobless dystopia, the savvy will see it for what it is: a golden opportunity to amplify human talent, not replace it. It’s about enhancing your insights and speed, not handing over the keys to the kingdom.

However, embracing AI doesn’t mean throwing a warm hug around every neural network out there. It requires a judicious blend of enthusiasm tempered with caution. Think of AI as a chainsaw: in the right hands, it’s a tool of incredible power and precision; used recklessly, it could wreak havoc. So, before you leap onto the AI bandwagon, ensure your agency’s hands are steady, your policies robust, and your ethical compass finely tuned. This isn’t just about integrating technology; it’s about steering it wisely to cut through market noise and deliver campaigns that resonate on a human level.

Lastly, the impact of AI on marketing isn’t just an operational shift—it’s a cultural revolution. Agencies need to foster an environment where AI and human creativity flourish together. They must cultivate a mindset that views AI as a collaborator, not a competitor. By marrying AI’s analytical prowess with human strategic thinking and creative genius, agencies can unlock new realms of possibility. It’s not just about surviving the AI onslaught; it’s about leveraging this phenomenal tool to create smarter, more effective campaigns that are as emotionally engaging as they are data-driven. So, are you ready to dance with AI, or will you be left stumbling in its shadow?

Supercharging Testing: Beyond the Old School A/B
Forget everything you know about A/B testing—it’s as outdated as dial-up internet in the era of 5G. Welcome to the age of AI-powered testing, where we can experiment with hundreds of variations faster than a celebrity changes relationship statuses. This isn’t just upgrading your old Chevy to a Tesla; it’s like strapping a rocket to your marketing strategy and lighting the fuse.

What does this mean in practice? Imagine being able to tailor and tweak ads on the fly, not just based on gut feelings, but backed by a flood of data insights that old-school marketers could only dream of while doodling on their flip charts. We’re no longer gambling on single bets but playing the entire table with a quantum computer in our corner.

So, while your competitors are still waiting for their A/B tests to conclude, you’ll be iterating at warp speed, leaving them in your pixel dust. In the world of AI-enhanced testing, it’s adapt or die, innovate or become irrelevant. Strap in, it’s going to be a wild ride.

The AI Tsunami: Sink or Swim?
Hold onto your hats, folks—the AI tsunami is here, and it’s rewriting the rulebook faster than a politician flips positions. If you’re still waxing nostalgic about the ‘good old days’ of digital advertising, you might want to check your calendar. The future is now, and it’s powered by AI. This isn’t just a gentle wave you can ride with a cute boogie board; it’s a monster wave, and it’s time to surf like a pro or wipe out spectacularly.

First up, let’s talk survival. Embracing AI isn’t optional—it’s existential. The agencies that integrate AI seamlessly into their operations will not just survive; they will dominate. Those who ignore this seismic shift will find themselves playing a very lonely game of solitaire in the ruins of their once-bustling offices. AI in advertising isn’t a gimmick; it’s the new baseline, the minimum ticket to the game. Without it, you’re bringing a knife to a drone fight.

Now, for the pragmatists among us, it’s not all doom and gloom—it’s a chance to get creative. Think of AI as your hyper-efficient, slightly overbearing co-pilot. It crunches data, optimizes campaigns, and personalizes content with an efficiency that’s almost scary. Your job? Channel this raw power into something uniquely human: creativity, strategy, and that elusive gut feeling that AI can’t replicate (yet). Use AI to clear the grunt work off your plate, so you can focus on those big, bold ideas that make clients swoon and competitors weep.

Hyper-Personalization: Mass-Produced Tailoring
This is where AI transforms from handy tool to game changer. We’re talking about crafting personalized campaigns at a mass scale—imagine bespoke suits, but for millionsThis isn’t your grandma’s idea of tailoring—no needles or threads here. Instead, imagine a digital tailor that knows your customers better than they know themselves, predicting desires before they even click. AI is spinning up personalized experiences like a DJ crafts a perfect set, each beat precisely timed for maximum impact.

With AI in your corner, generic blasts are out; ultra-customized messaging is in. It’s like having a crystal ball, but instead of murky visions, you get clear-cut data insights that guide your every marketing move. This level of customization was once only possible for the likes of the one percenters in marketing, but now we’re democratizing the ability to charm each customer in their own unique way. And let’s be real, in the cutthroat world of clicks and conversions, personal touch is king.

Now, the magic of AI-driven personalization isn’t just about being creepy precise—it’s about scaling that precision to epic proportions. Think of it as being able to whisper into a million ears at once, with each whisper perfectly tailored to its audience. Gone are the days of scattergun marketing; welcome to the sniper’s era, where every shot is a direct hit.

So, strap in and power up your algorithms. Hyper-personalization is the frontier every agency needs to master, stat. It’s no longer enough to know your audience broadly; you need to know them intimately. And with AI, you can—so let’s get personal, shall we? The future of marketing isn’t just knocking; it’s already here, and it knows what your customer wants for breakfast.

Strategic Overhaul: Redefining Agency Value
The truth is, some of the grunt work in agencies is going the way of the dodo—thanks, AI. Time to throw the old playbook into the shredder, folks—strategic overhaul is in session, and it’s about as gentle as a bull in a china shop. As AI storms the gates, it’s not just about doing the old things faster; it’s about doing entirely new things. Gone are the days when being a creative hotshot could save your agency’s bacon. Today, if your strategy isn’t wired with AI, you’re basically bringing a water pistol to a flamethrower fight.

What does this mean for the once mighty ad agencies? It means rethinking what value you bring to the table when a chunk of your bread-and-butter services can be automated by algorithms that don’t need coffee breaks or holidays. It’s about evolving from being just a service provider to a strategic partner. The new agency value lies not in what you can do manually, but what you can inspire creatively and execute with data-driven precision.

Now, let’s talk about the real juice here—the blend of human creativity with machine efficiency. This isn’t about letting AI run wild with your brand strategy; it’s about using AI to cut through the data jungle and find insights that fuel more intelligent, creative campaigns. Think of AI as the Robin to your Batman; sure, it’s great at crunching numbers, but Gotham needs the Dark Knight to plot the course.

Data-Driven or Go Home
If you’re not riding the data wave, you’re swimming against the tide. AI can munch through data faster than you can say “machine learning,” providing insights that can pivot a struggling campaign into a viral sensation. If you’re still romanticizing the “gut feeling” approach of the Mad Men era, it’s time to wake up and smell the binary. In today’s digital coliseum, data is the emperor, and it’s giving a thumbs up or down to your campaigns in real time. Ignore it at your peril.

First off, let’s get this straight: being data-driven isn’t just about hoarding numbers like a squirrel with nuts. It’s about knowing which data points to stash and which to trash. We’re talking about harvesting actionable insights that can pivot a “meh” campaign into a viral phenomenon overnight. This is the era of Big Data, where quantity meets quality, and if you’re not mining every nugget of insight from your data streams, you’re playing the game with one hand tied behind your back.

Second, embracing data doesn’t mean you throw creativity out the window—far from it. Think of data as the spice that brings out the flavor in your creative stew. It’s about using those insights to make bolder, smarter decisions that resonate with your audience on almost a psychic level. So yes, you can still have your wild, out-of-the-box ideas, but now you’ll know exactly when and where to unleash them for maximum impact.

Now, let’s talk about the tools of the trade. If you’re still stuck in Excel hell, plotting graphs that look like they were made in the Stone Age, it’s time for an upgrade. Modern marketing requires cutting-edge tools—AI algorithms, machine learning models, sophisticated analytics platforms that can predict customer behavior before the customers even know what they want. This is high-tech wizardry at its finest, and it’s available at your fingertips.

Finally, remember that data is only as good as the hands it’s in. Data-driven marketing requires a new breed of marketers: part analyst, part creative genius, and all cyborg. These are the folks who can look at a spreadsheet on Monday and draft a heart-wrenching narrative on Tuesday—all while their AI assistant churns out custom reports. So, are you ready to join the ranks of the data elite, or will you be left in the digital dust? The choice is yours, but remember—this train isn’t waiting for stragglers.

Ethical Boundaries: Navigate Carefully
Let’s not forget, with great AI power comes great AI responsibility. AI opens up a Pandora’s box of ethical questions—from privacy concerns to the potential for biased algorithms. As we hurl ourselves headlong into the age of AI, it’s not just about what we can do; it’s about what we should do. And let me tell you, the ethical pitfalls are more treacherous than a dinner party debate about politics.

There’s the ever-present specter of privacy invasion—AI can slice and dice data in ways that would make a ninja look clumsy. But just because you can micro-target a consumer based on their breakfast cereal choice doesn’t mean you should. The power of AI requires a new level of responsibility. Agencies need to walk the tightrope between using data to enhance consumer experiences and not creeping into Big Brother territory. It’s a fine line between being informatively helpful and invasively creepy, and falling off on the wrong side could be a PR nightmare.

Then there’s the issue of bias—AI is only as unbiased as the data it’s fed. Garbage in, garbage out, as they say. But in this case, the garbage can be subtly prejudiced algorithms that skew your marketing efforts and reinforce harmful stereotypes. Are you checking where your data comes from? Are you analyzing it for inherent biases? If not, you’re setting yourself up for a fall. Every campaign you run needs to be scrubbed clean of potential biases, or you risk alienating whole swaths of your audience—and in today’s cancel culture, that’s a sin that won’t be easily forgiven.

Let’s also talk about the AI transparency conundrum. As your tools get smarter, the processes behind them can become more opaque. But here’s the rub: trust is the currency of the realm, and if your audience smells something fishy in the algorithmic waters, they’ll jump ship faster than you can say “data breach.” Being upfront about how you’re using AI not only sets ethical standards but also builds consumer trust. This isn’t just about avoiding the shady side of tech; it’s about pioneering a path that others will want to follow.

Navigating these ethical waters won’t be easy, but it’s essential. The agencies that get it right will be the ones who don’t just survive the AI apocalypse—they’ll thrive in the brave new world that lies beyond. So strap in, set your moral GPS, and let’s make sure this journey is one we can all be proud of.

Conclusion: The AI Revolution is Here
Ladies and gentlemen, hold your horses—no, scratch that—release them, because the AI revolution isn’t coming; it’s already kicked down your door, raided your fridge, and is now lounging on your sofa with its feet up. The game has changed, folks. AI in advertising isn’t a distant thunderstorm on the horizon; it’s a full-blown tornado tearing through the industry, rearranging the landscape as it goes. And just like any good tornado, it’s tossing around those who aren’t anchored down by innovation.

What does this mean for you, the stalwarts of the ad world? It’s time to evolve or get swept away. The AI revolution offers a chance to rewrite the rules, to turn every challenge into an opportunity. For agencies, this means diving headfirst into AI integration, not timidly dipping your toes in the water. Use AI to supercharge your creative processes, hyper-personalize your campaigns, and deliver data-driven masterpieces that resonate on a human level. It’s about becoming a hybrid powerhouse where silicon meets neuron, where the cold precision of AI meets the warm intuition of human creativity.

So, embrace the whirlwind. Yes, the AI landscape is fraught with challenges—from ethical dilemmas to the risk of homogenized creativity—but these are not insurmountable. Navigate carefully, innovate wildly, and let your agency be a beacon of how to do AI right. The revolution is not just about surviving; it’s about thriving, transforming, and being part of something spectacularly new. Buckle up, adjust your mirrors, and drive headlong into the future. After all, the AI revolution isn’t just a battle to be won; it’s the new ground on which the next era of advertising will be built.

Andrew Casale’s Rogue Gallery: Exposing MFA Sites in the Adtech Avengers

Pesach Lattin

2024-04-18

Welcome to the murky depths of programmatic advertising, where the promise of transparency often seems as opaque as a pint of stout. In an industry that’s been revolutionized by technology, one would expect fraud to be on the endangered species list.

Yet, here we are, listening to Andrew Casale, President and CEO of Index Exchange, explain over at Digiday how the ad tech landscape not only harbors but in some cases nurtures its darkest elements under the guise of progress and transparency.

Casale, speaking with the candidness of a whistleblower mixed with the acumen of a tech veteran, dives deep into the ongoing issues plaguing programmatic advertising—namely, the persistent problem of MFA (Made for Advertising) sites and their role in the murky waters of digital advertising fraud.

“10 years ago we had sites that we didn’t call MFA… that looked a lot like MFA sites of today,” Casale remarks. He outlines a shift from the early, primitive days of bot-driven traffic to the current era’s human-driven, yet equally questionable traffic. This isn’t your old-school botnet; it’s fraud dressed up in Sunday’s best, looking eerily human.

“The only difference 10 years ago was the sites had non-human traffic. Today, they have human traffic but of dubious value,” Casale explains. It seems as though the industry has evolved, but instead of eradicating fraud, it’s merely shifted its shape—more sophisticated, yes, but also more insidious.A

Despite advances, Casale points out a critical flaw: “There’s so much more transparency in the market today than there ever was before,” yet this transparency isn’t utilized effectively. It’s a paradox at the heart of modern ad tech. Tools and data that could illuminate shady dealings are available, yet consistently underused. “The challenge that I see is that a lot of it isn’t really used,” he notes, highlighting a frustrating oversight.

Every ad exchange, including giants like Google, declares their ad sellers openly via accessible JSON files on their websites. “You can literally see all of our customers,” says Casale, offering a rare window into the operations of ad exchanges. However, the industry falls short in leveraging this available data to track and eliminate fraud effectively.

Why is this valuable transparency so often overlooked? Casale blames the industry’s obsession with KPIs (Key Performance Indicators). “It’s all too easy to allow the KPI to drive the bus,” he critiques. In the relentless pursuit of meeting these indicators, the quality and legitimacy of traffic often take a backseat. The result? A landscape where superficial metrics overshadow meaningful engagement and real value.

Turning his attention to the latest protagonists in this ongoing drama, MFA sites, Casale is unequivocal: “MFA Publishers do not belong in exchanges.” These sites, optimized purely for generating ad revenue through questionable content and traffic, undermine the integrity of the entire ecosystem.

“We’ve been ruthless at terminating anything that smells of MFA,” he declares, setting a benchmark for industry conduct. Casale argues that the ad spend on these sites doesn’t disappear but rather redistributes to legitimate publishers, enhancing the overall health of the ad ecosystem.

Casale’s narrative is not just a critique but a call to action: clean up the system from the ground up. “The supply side needs to cut these customers right at their core,” he asserts. This would involve not just identifying but actively eliminating MFA operators from the market, ensuring they find no harbor within reputable ad exchanges.

In his frank disclosure, Andrew Casale not only outlines the complexities facing the ad tech industry but also challenges it to rise above the inertia of complacency. By advocating for a realignment towards genuine transparency and utility of data, he invites the industry to not only chase but also achieve a higher standard of integrity and efficacy in digital advertising.

In this age of information, where data is plentiful but wisdom is scarce, the programmatic advertising sector stands at a crossroads. Will it continue to allow KPIs to “drive the bus,” potentially off a cliff, or will it seize the steering wheel, redirecting its course towards a more transparent, ethical, and valuable future? The path chosen will resonate far beyond the servers and data sheets, shaping the very fabric of digital commerce and communication.

Is Adalytics the Robin Hood of Adtech or Just Another Merry Man? Industry Insiders Weigh In

Pesach Lattin

2024-04-18

Welcome to the raucous arena of digital advertising, a spectacle where data jugglers and proclamation ringmasters vie for your attention. Amidst the vibrant chaos, a new contender has emerged from the shadows, shaking the foundations of the established order. This challenger, Adalytics, steps into the limelight with a swagger, ready to stir the pot with revelations that might just as much serve their own agenda as they purport to cleanse the adtech realm of its sins.

Here at ADOTAT, while we’ve been vocal about our own take on the fraud and multifarious issues plaguing the industry, we believe fervently in airing a spectrum of viewpoints. I’ve been told that I have not been completely fair, and while I disagree– In this spirit, we dive into the discourse surrounding Adalytics, presenting not just our insights but also those from voices across the battlefield.

Whether Adalytics is a beacon of truth or merely a crafty opportunist in this digital quagmire is the million-dollar question we aim to explore.

Chris Harihar, the EVP of Crenshaw Communications and adtech’s resident curmudgeon, casts a long, dubious shadow over the rising star Adalytics, with a tone that’s more eye-roll than applause. “Adalytics has made quite a name for itself,” he states with a snort, drawing attention not to their achievements but to the meteoric, almost suspicious, speed of their ascent. This isn’t mere skepticism—it’s borderline conspiracy theorizing about the new kid on the block who’s suddenly sitting at the cool kids’ table.

He dives deeper into his bag of doubts, pulling out concerns with the theatrical flourish of a magician revealing his next trick. “Yet, somehow, the previously barely known company’s expertise, methodology, and even agenda seem to have completely escaped scrutiny,” he declares. Here, Harihar paints Adalytics not so much as a beacon of transparency, but as a stealthy ninja creeping through the foggy landscape of adtech, possibly more interested in slicing off a fat piece of the digital ad pie than in cleaning up the industry.

And let’s not forget, Harihar’s own dance card includes a major client, DoubleVerify, known itself for some adtech slip-ups that could make a saint swear. This relationship might just color his take on Adalytics’ saintly crusade, suggesting maybe his barks against Adalytics are not just about market integrity, but about keeping his own garden free of weeds. Could it be professional jealousy? Or perhaps a veteran’s instinctive sniff at what he perceives as a disruptor dressed in sheep’s clothing? Either way, Harihar’s not buying what Adalytics is selling without a few more peeks under the hood.

Nandini Jammi, co-founder of the Check My Ads Institute and a watchdog with a bite as sharp as her bark, launches a full-throttle counterattack on the establishment from her digital soapbox. Her target? The convoluted mess that is DoubleVerify’s dual allegiance. “I love this new hit piece about Adalytics from DV’s PR guy Chris Harihar—it’s so important for us to talk about conflicts of interest,” she tweets, her words dripping with a venomous mix of wit and sarcasm. Jammi isn’t here to play nice; she’s here to stir the pot, and maybe slap a few industry faces while she’s at it. Her analogy slices through the complexity with the precision of a samurai: “It’s like hiring a lawyer who represents both me and the guy suing me—trust me, it works.”

But Nandini doesn’t stop at just calling out the perceived absurdities of industry conflicts. She throws her support behind Adalytics, championing their model of openness as a beacon for the industry. Jammi heralds the auditable nature of Adalytics’ methodologies, a stark contrast to what she sees as the ‘proprietary’ shadows in which companies like DoubleVerify operate. “Where is DoubleVerify’s data? I would like to see it — but it’s ‘proprietary,'” she scoffs, suggesting that DoubleVerify might as well be the magician who refuses to reveal his tricks, except these tricks determine the flow of billions in ad dollars. In her view, Adalytics isn’t just another company; it’s a necessary disruptor, pulling back the curtains to let some much-needed sunlight disinfect the murky corners of adtech.

Jammi’s fervor for transparency isn’t just for show. She genuinely sees Adalytics’ approach as a blueprint for what the adtech world could be if everyone stopped playing spy games. By publishing their methods at the bottom of each report, Adalytics invites scrutiny and replication, elements that are music to the ears of any true reformer. Jammi argues this openness not only enhances credibility but also builds a foundation for genuine industry reform—something she’s been baying for amidst the cacophony of corporate doublespeak. Her stance is clear: if you’re going to claim you’re cleaning up adtech, you better not be sweeping dirt under the rug.

Mike Ryan from Smarter Ecommerce steps into the chaotic whirlwind of the Adalytics debate like a tightrope walker at a circus, where the ropes are opinions and the stakes are sky-high reputations. With a wary nod to Chris Harihar’s scathing skepticism, Ryan acknowledges, “The thesis that this is PR & lead gen for an adtech company is obviously correct,” tipping his metaphorical hat to the circus ringmaster’s call. But don’t think for a moment he’s fully in the skeptic’s camp; Ryan’s not ready to throw the baby out with the bathwater just yet.

“The reports seem legit & substantive,” he concedes, peppering his speech with a seasoning of reason. This isn’t a man who sees the world in black and white; instead, he appreciates the grey nuances of a possibly genuine effort underpinning Adalytics’ flashbang headlines. Mike suggests that maybe, just maybe, there’s a method to this apparent madness—an inkling that behind the smoke and mirrors of aggressive PR tactics, there could be a kernel of truth worth examining.

Then there’s James Hercher, the AdExchanger reporter with a nose for news and an eye for detail, who barges into the discourse with the tenacity of a terrier sniffing out a hidden bone. He’s not just here to observe; he’s here to dig, and dig deep. “KF provides access to his experts and methodology for extensive fact-checking on background,” he asserts, throwing a lifeline to Adalytics’ credibility amidst the sea of cynicism.

Hercher’s stance is clear: this isn’t just some backyard mudslinging contest Adalytics is engaging in for giggles. They’re serious, and they’re armed with transparency as their weapon of choice. If there’s dirt to be uncovered, you bet they’ll find it and show it to the world, not just to play in it. This commitment to openness isn’t just commendable; it’s crucial in an industry often clouded by opaque dealings and shadowy figures.

On the other side of the ring, however, stands George Ivie, the CEO of the MRC, wielding a frosty bucket of reality to douse the flames of any overly enthusiastic Adalytics fanfare. Ivie, a seasoned veteran in the ad verification arena, isn’t one to get swept up by the bombastic claims of newfound industry saviors. “Where they have been strongly lacking is in the estimates they have made of the materiality of their findings,” he critiques with the precision of a surgeon.

Ivie’s cautionary words serve as a sobering slap to those who might be dazzled by Adalytics’ bravado. He commends their gusto—sure, they’ve got spirit—but waves a big, bold flag of caution about the actual impact of their findings. To him, it’s all about the materiality, the real-world effects, which seem to be more of a whisper than the roar they’re presented as.

In the cutthroat circus that is the adtech industry, where every click can be a scandal and every report a bombshell, Adalytics has strutted onto the scene like a cowboy at a rodeo. Here at ADOTAT, as we parse through the melee of high-flying claims and sharpshooters, we’re inclined to tip our hats—somewhat amusedly—to Adalytics. They’re stirring up the dust with their findings and, frankly, we think they’re mostly on the money. Their deep dives into the shadowy corners of ad delivery and the often-illusory ad spends are not just eye-opening; they’re as needed as a lighthouse in a foggy bay.

But let’s not kid ourselves—adtech is a playground where the slides are slick with clickbait and the swings set you flying towards headline fame. In this game, making Goliaths like Google and DoubleVerify look like the bad guys can sometimes feel like a well-played move to buff one’s own underdog shine. It’s a classic tale of David and Goliath, but here David is armed with APIs and analytics instead of a simple sling. Skepticism about Adalytics’ motives isn’t just wise; it’s essential. After all, when you’re gunning to make a name for yourself, slinging mud at the big wigs can look suspiciously like a brilliant PR strategy.

Wrapping this rodeo up, the buzz around Adalytics is a perfect snapshot of the adtech wild west—a land where heroes and villains swap hats faster than you can say “click fraud.” As we navigate these turbulent waters, we champion a call for relentless transparency and a hawk’s eye for scrutiny, no matter the size of the behemoth in question.

Whether Adalytics is truly the sheriff in town or just another cowboy looking to make a quick buck, they’ve definitely kicked up a storm that’s worth watching.

For now, they seem to be shooting straight, but in a land of quick draws and quicker headlines, everyone’s watching their back. Let the games continue, and may the most honest player win—or at least survive until the next scandal breaks.

Hyundai Takes a Stand: Withdrawing Ads from X Amid Hate Speech Controversy

Pesach Lattin

2024-04-17

In a bold move signaling corporate responsibility, Hyundai Motor America has decisively pulled its advertisements from X, the platform previously known as Twitter, following alarming reports that its ads were showcased alongside content promoting white supremacy and Nazi ideology. This withdrawal marks a pivotal moment for the social media site, which has been under intense scrutiny since its acquisition by tech mogul Elon Musk.

The controversy erupted when an investigation revealed that ads from reputable brands were appearing next to profiles that endorsed hateful ideologies. Among these, a “premium” account on X was found posting pro-Hitler sentiments and antisemitic propaganda—content disturbingly stamped with Hyundai’s advertisements. This mishap not only sparked immediate backlash from consumers but also put the spotlight on the platform’s flawed content moderation practices.

Responding swiftly, a spokesperson for Hyundai confirmed the company’s decision to retract its advertising presence on X, emphasizing the need for more stringent controls: “We are immediately removing our ads from the site. We are updating our parameters to avoid other instances similar to this.” This move by Hyundai highlights a growing concern among corporate advertisers over the type of content their brands are associated with, especially on platforms struggling with content regulation.

Further investigations have shown that Hyundai’s situation was not an isolated incident. Numerous other companies have found their promotional material next to accounts promoting violence against minorities and Jews. The exposure of Hyundai’s brand alongside such extremist content has not only caused reputational damage but also ignited a conversation about the ethical responsibilities of advertising on social media.

Hyundai’s prompt response involved not only the immediate cessation of their ad campaigns on X but also a comprehensive review of their ad placement strategies. By updating their advertising parameters, Hyundai aims to establish stricter safeguards to prevent similar occurrences in the future, setting a precedent for other companies to follow.

Hyundai’s departure is part of a larger exodus of advertisers from X, driven by the platform’s increasing association with extremist groups and hate speech. Over the past year, high-profile companies including IBM and Comcast have similarly suspended their advertising after reports surfaced of their ads appearing alongside pro-Nazi material. This trend underscores a critical challenge for X: maintaining a balance between upholding free speech and regulating hate-filled content.

The loss of these major advertisers speaks volumes about the platform’s current state under Musk’s leadership, where policy enforcement appears sporadic at best. Patrick Riccards, executive director of Life After Hate, commented on the situation, stating, “For those who are already driven by hate, it is a big warm hug. They’re wanting to find individuals to take physical action when the time comes.” This environment not only fosters radicalization but also poses significant risks to the brands inadvertently associated with such content.y

As more companies like Hyundai take a stand against associating their brands with hate speech, the pressure is mounting on X to overhaul its content moderation strategies. The platform’s ability to attract and retain advertisers will be crucial as it navigates the repercussions of its content policies and Musk’s controversial management style.

In this era of digital consciousness, companies are increasingly held accountable for where and how their advertisements are placed. Hyundai’s proactive approach could inspire more brands to demand higher standards from social media platforms, advocating for a safer and more inclusive online environment. As X faces these growing challenges, the decisions it makes now will define its path forward in the competitive landscape of social media.

From Siberia to Server Rooms: Oleg Korenfeld’s Tech Trek

Pesach Lattin

2024-04-17

If ad tech were a rock concert, Oleg Korenfeld would be the lead guitarist, playing the riffs that make the industry headbang to his tune.

Pesach Lattin, the charismatic conductor of this wild ride, sat down with Oleg, the CTO of CMI Media Group, on the latest episode of the Adotat Show. Buckle up (or don’t—Oleg prefers a smooth ride), because this is not your standard corporate snoozefest.

Pesach kicked things off with his usual flair, “All right, everyone, fasten your seat belts and hide your cookies,” a playful warning to the audience about the electrifying conversation ahead. Oleg’s response? A casual “Hey, how are you?” proving that even ad tech wizards keep it cool under the spotlight.

Road Show Revelations
Oleg shared that he’s been “definitely traveling more” to CMI’s various offices, prepping for a company-wide roadshow. “Technically in New York,” he says, but their biggest hub is Philly. This tour isn’t just about shaking hands and kissing babies. It’s about rallying the troops around CMI’s new platform, Empower, which Oleg likens to the “Godzilla of health marketing tech.”

Asked to reveal the “juiciest tidbit” from his travels, Oleg disappointed gossip enthusiasts everywhere with a deadpan, “Very boring life, all is well.” Classic Oleg, keeping the cards close and the data closer.

From Siberian Snows to the Ad Tech Glow
Oleg Korenfeld’s journey to the ad tech summit began in a place colder than the server rooms housing today’s complex ad platforms: Siberia. At the tender age of 12, he embarked on a monumental migration that would transplant him from the icy expanses of the Soviet Union to the bustling streets of Brooklyn, New York. “Leaving Siberia and moving to the United States at the age of 12, how’s that? That’s where I was born,” Oleg reminisces about his epic journey. This wasn’t just a change in longitude and latitude; it was a leap across worlds—trading snow drifts for skyscrapers and a repressive regime for the frenetic freedom of New York City. His early life in Siberia is a far cry from his current role, but it’s a foundational part of his narrative that shapes his resilience and perspective—a true testament to the notion that sometimes, the best prep for a career in cutting-edge technology is a childhood wrapped in old-world challenges.

Upon arriving in America in 1990, the culture shock was as palpable as the New York summer humidity. The young Oleg found himself navigating a new language, a new school system, and a dizzyingly different cultural landscape. “Culture shock was probably the biggest piece of it because I lived in Soviet Union… It took us about six months to actually get to United States because at the time you couldn’t just go directly. We left as Jewish refugees. There was a process that we had to follow,” he explains. This wasn’t just a move; it was a complete overhaul of life as he knew it. The seeds of adaptability and keen situational awareness were sown here, traits that would later flourish into a career that spans the globe and the gamut of digital advertising technology. From a childhood navigating the stark realities of the Soviet era to pioneering the future of ad tech, Oleg’s story is as much about the worlds he’s navigated as it is about the data streams he now commands.

Empower: Not Your Average Monster
Let’s cut to the chase: Empower isn’t just another cog in the healthcare marketing machine—it’s the Godzilla in the room, smashing old tech like Tokyo skyscrapers. This platform from CMI Media Group is like your high-tech Swiss Army knife in a world where most are still fumbling with dull scissors. It integrates data, delivers insights, and drives campaigns with the kind of precision that would make a neurosurgeon weep with envy. Think less Franken-tool, more sleek, all-seeing oracle of health marketing—a must in an industry where a misplaced decimal can mean more than just an oopsie.

With Empower’s full SaaS capability, Oleg Korenfeld might as well be throwing a rave for efficiency enthusiasts. Why juggle with multiple platforms when you can party on just one? This system brings everyone to the same dance floor—agencies, clients, publishers—and guess what? They’re not stepping on each other’s toes. It’s a single login to utopia, a seamless integration that not only saves nine but also shaves hours off your day previously wasted syncing the unsyncable. If efficiency had a VIP lounge, Empower would be the bouncer deciding who gets in.

Dive deeper, and it’s clear that Empower’s true beast mode activates through its data capabilities. We’re talking about a treasure trove of high-caliber health data that’s as curated as the guest list at an Elon Musk space launch. This platform doesn’t just use data; it wields it with the finesse of a marketing samurai, slicing through the clutter with targeted campaigns that are so on point they could pinpoint your appendix in the dark. In the labyrinthine corridors of health marketing, where navigating regulations and patient needs often feels like threading a needle with a boxing glove, Empower stands out as the platform that doesn’t just keep up but sets the pace.

The Magellan of Ad Tech
Navigating the choppy waters of ad tech, Oleg Korenfeld has charted a course that would make Magellan look like he was just paddling around the pond in Central Park. This ad tech veteran started his journey at DoubleClick in 1998, a time when “programmatic” was just a twinkle in the industry’s eye. “Oh my God. So yeah, it’s been a 25-year journey. Last December, I celebrated 25 years in this industry,” Oleg recounts, mapping out his quarter-century trek from tech, to media, to the agency side. His career reads less like a resume and more like an epic saga of digital marketing’s coming of age.

With each transition, Oleg didn’t just move jobs; he absorbed the essence of each sector, allowing him to “apply it every day in my work.” His holistic insight is akin to having a triple-threat in Hollywood—except this isn’t Tinseltown, it’s tech, and he’s working with algorithms instead of actors. “And it’s interesting, like looking back at it 25 years. And I think that’s what kind of makes my perspective work for me and kind of, and apply it every day in my work,” says Oleg. His journey through companies like DoubleClick, various media pioneers, and finally to the agency world has endowed him with a panoramic view of the ad landscape—priceless in an industry where many are still trying to zoom in with binoculars.

The real kicker? Oleg sees his broad experience as the key to his current role. Connecting the dots between technology providers, media outlets, and advertising agencies has equipped him with a unique vantage point to foresee and leverage shifts in the ad tech ecosystem. “In 25 years, I spent about equal amount of time at this point on the technology side of things,” he explains, ensuring that his strategies are not just well-informed but prescient. His role as the CTO at CMI Media Group isn’t just about keeping the lights on; it’s about illuminating the future of ad tech, ensuring that while others may be content to follow maps, he’s busy making them.

Switching topics quickly, When the clock strikes midnight, Oleg’s snacking on pistachios—not celery, thank you very much—and perhaps headbanging to Judas Priest’s latest, proving you can mix health tech with heavy metal and keep things rocking.

Navigating Through Ad Tech’s Legal Landscape
When it comes to navigating the Sargasso Sea of ad tech regulation, Oleg Korenfeld steers the ship with the ease of a seasoned captain. The tightening of privacy laws could send less prepared firms into a tailspin, or as Pesach Lattin phrased it, “tighter than my jeans after Thanksgiving,” but for Oleg and CMI, it’s just another day at the office. “It is an interesting question because of who we are. As a healthcare media agency, we’ve had to deal with regulation always,” Oleg elucidates with the calm of someone who’s faced more than his fair share of regulatory storms. For CMI, navigating HIPAA is not a distress call but a standard operating procedure. This isn’t about scrambling in the face of new regulations; it’s about utilizing a well-oiled compliance machine that’s been humming along for years.

HIPAA, for example, isn’t just a box to check off for CMI, it’s a part of their DNA. Oleg mentions, “It’s not a kind of freak out thing for us… What are we doing? We know how to work within regulations. We’ve worked within them for the entire life of the company.”

This seasoned approach allows them to pivot and partner effectively, ensuring that every campaign not only meets but dances gracefully within legal frameworks. “We’re in a good place, we’re working with a lot of great partners to help us keep everything kosher,” he adds, highlighting the importance of strong partnerships in maintaining compliance. In an industry where many are playing catch-up with the rules,

CMI’s forward-thinking compliance strategy places them at the forefront, ready to face whatever regulatory challenges come their way without missing a beat.

Looking Ahead: No Retirement in Sight
For Oleg Korenfeld, the notion of retirement is about as appealing as a dial-up connection in a gigabit world. “Five years definitely still disrupting the entire world. I am a workaholic. I cannot see myself retiring ever, which is scary,” he declares with a blend of foresight and fervor that’s rare even in the high-octane realm of ad tech. Oleg’s career drive doesn’t just run on high; it’s seemingly got an inexhaustible power source. Much like his forebear in the relentless pursuit of business innovation, his father, who at 70 is juggling three different businesses with no plans to slow down. Oleg looks to this family legacy as both a roadmap and a challenge: to continue pushing boundaries, exploring new technologies, and perhaps most importantly, loving the game far too much to ever step away from the table.

The idea of basking on a sunny beach while the world of ad tech spins on without him seems unfathomable to Oleg. Instead, he pictures a future still deeply entwined with the ever-evolving digital marketing landscape. His vision is clear: keep disrupting, keep innovating, and keep being indispensable. “And it’s amazing. Still in it, still love it. And 25 years later, I still find so much new and exciting things to do. I’m not,” he muses, trailing off as if the thought of not being involved is too boring to even finish the sentence. For Oleg, retirement isn’t just a distant prospect—it’s an irrelevant one. In the relentless pace of ad tech, he’s not just keeping up; he’s setting the pace, ensuring that as long as there are new challenges to tackle, he’ll be right there on the front lines, clipboard and code in hand.

The Final Word
Oleg Korenfeld’s final thoughts in the interview ventured into the philosophical underpinnings of the ad industry—a space where egos often collide and the next big thing is always around the corner. He relishes open, candid discussions that strip away titles and pretense, where the real meat of the industry can be chewed over with intellectual honesty. “The beautiful thing about our industry and obviously the people that I’ve worked with, I don’t think there’s anything that is off the table. We can be as honest and direct with one another,” he notes, emphasizing the value of transparency and directness in fostering a dynamic work environment. It’s these unrecorded, ego-free zones that fuel his continued passion for ad tech—a sentiment many veterans share but few articulate with such candor.

Continuing, Oleg reflects on the role of AI in this fiercely competitive sector. Far from viewing it as a potential dystopian nightmare, he sees AI as a tool that, if wielded wisely, can enhance efficiency and precision across the board. “Take a very pragmatic and practical approach, understanding the types of AI that is available to us and just because we can do something, should we be doing it,” he advises, promoting a balanced, thoughtful integration of AI capabilities. It’s about using technology to enhance human decision-making, not replace it—ensuring that AI serves the industry’s needs without crossing into the eerie valley of overautomation.

Wrapping up, the discussion veers towards the personal touchpoints that keep him grounded despite the high-flying nature of his career. Oleg’s adventurous spirit is evident, not just in his professional life but in his personal anecdotes, like his move from Siberia to the US, which he describes as the “most adventurous thing I’ve done in life.” This blend of personal history and professional foresight makes Oleg a uniquely insightful figure in the digital marketing world—one who respects the past’s complexities while eagerly navigating the future’s possibilities. His story is a vivid reminder that behind every tech innovation and strategic maneuver, there’s a personal journey, driving each click, code, and campaign forward.

This episode wasn’t just a peek behind the curtain at CMI’s operations—it was a masterclass in navigating the ad tech labyrinth with wit, wisdom, and a little bit of rock ‘n’ roll. Stay tuned for more unfiltered insights from the front lines of digital marketing on the Adotat Show, where the future of ad tech is debated, dissected, and delivered with a dash of irreverence.

Middlemen and Mayhem: Dodging Digital Tollbooths on the CTV Highway

Pesach Lattin

2024-04-17

Oh, to be an advertiser in the frenzied, fragmented frontier of Connected TV (CTV) advertising! It’s like playing a high-stakes game of Twister—blindfolded and on a moving train.

You think you’ve found the perfect spot to place your ad, only to discover that you’ve foot-faulted into a pricier or entirely wrong segment of the complex CTV landscape.

Welcome to the pandemonium of Supply Path Optimization (SPO) in the realm of CTV—where the spaghetti-like intricacy of routes can make even the most seasoned media buyer feel like they’re herding cats in a zero-gravity chamber.

Brick (Chung Jung) Liao, a seasoned pro in the data-driven trenches of the ad world and current Head of Integrated Data Solution at 91APP, unravels the somewhat tangled threads of Supply Path Optimization (SPO) with a keen eye. He notes, “The concept of SPO is optimizing the advertising supply process. An excess of middlemen leads to a more complex process, which erodes the profits between the buy and sell sides. Conversely, simplification can increase the profits for one or both parties.” In essence, SPO is about cutting out the unnecessary middlemen—or as Liao succinctly puts it, “de-intermediation.”

The rise of Header Bidding, celebrated for its openness and convenience, inadvertently invited a swarm of ad tech middlemen to the party, expanding their chances to snag ad inventory and bombard the buy side with requests. This innovation, while groundbreaking, wasn’t without its drawbacks. As Liao points out, when media outlets connect to multiple SSPs through Header Bidding, it might lead to a bidding frenzy over the same ad spot.

This results in a DSP receiving multiple bid requests for what is essentially the same ad impression. It’s like being asked out on several dates by the same person using different email accounts; confusing much?

Thus, even if a DSP decides to respond to every echo of a request, they can only win the ad spot once, leading to a dizzying but ultimately pointless bidding war. This redundancy not only clutters the process but can inflate costs without adding value, highlighting the critical need for SPO strategies that streamline the path between advertisers and publishers, ensuring efficiency and integrity in the ad bidding arena.

The Maze of Monetization: Where Every Path Is a Puzzle
Navigating the CTV supply chain is not for the faint-hearted. With up to 114 different supply paths leading to a single TV app, finding the most efficient and cost-effective route is akin to solving a Rubik’s Cube—while juggling fire. And just when you think you’ve mastered the sequence, the puzzle rearranges itself, thanks to the ever-changing dynamics of ad-supported platforms and viewer habits.

Consumers, those elusive creatures, are continually reassessing their subscriptions. With a third eyeing ad-supported options, the terrain becomes even more rugged for advertisers aiming to capture attention without annoying repetition. Imagine reaching the same viewer through multiple apps, bombarding them with the same ads until they can recite your commercials verbatim. It’s no wonder there’s a growing chorus of viewers pleading for an ad break, literally.

Pricing Perplexities: Paying for the Privilege of Confusion
Imagine stepping into the ad market with your hard-earned budget, ready to snag some prime CTV real estate. You pick a path that seems promising, only to find out that another advertiser, using a different route, paid far less for the same outcome. That’s the reality in today’s CTV advertising market, where price disparities are not just common; they’re colossal. A variation of up to 250% in pricing is not just a quirk—it’s the norm. For the uninitiated, this can mean the difference between paying for a luxury espresso machine or settling for instant coffee, both fetching the same number of eyeballs on your brand’s message.

This bewildering price variability stems largely from the tangled web of supply paths that advertisers must navigate. Each path, be it direct from a broadcaster or through myriad layers of digital intermediaries, comes with its own pricing structure, hidden fees, and mark-ups. As these ads traverse the digital ecosystem, each hand they pass through adds a layer of complexity and, often, cost. The same ad could travel through a direct publisher’s path at one price and through a reseller’s circuitous route at another, drastically inflated price, leaving advertisers to wonder if they’re paying for performance or simply lost in the ad maze.

The role of intermediaries and resellers in this process complicates things further. These middlemen often present themselves as gateways to better pricing and access, but they can also obscure the true cost and value of ad placements. With each intermediary taking a cut, the final cost can balloon, distorting the original value proposition. Navigating this landscape requires a savvy understanding of where these costs are incurred and a strategic approach to supply path optimization that minimizes wasteful spending. Advertisers need to sharpen their negotiation skills and demand transparency, ensuring that their advertising dollars are spent efficiently, reaching potential customers rather than lining the pockets of unnecessary intermediaries.

The Illusion of Choice: More Isn’t Always Better
In the carnival-like world of CTV advertising, marketers are tempted by a buffet of options that promise the eyeballs of every Tom, Dick, and Harriet streaming their favorite binge-worthy series. But don’t be fooled—this feast is less an all-you-can-eat and more of a mirage in a media desert. The myriad platforms and convoluted pathways resemble a choose-your-own-adventure book where half the pages are glued together. Advertisers think they’re getting a VIP pass but might as well be wandering in a maze blindfolded.

And then enter the intermediaries—those not-so-merry middlemen. They swoop in with promises to pave your path to advertising Shangri-La, only to lead you down a rabbit hole of inflated costs and diluted impacts. These guys are the tollbooth operators of the digital highway, eager to collect their due at every turn. The more layers between your ad and its audience, the murkier and pricier the journey becomes. What was supposed to be a direct route turns into a scenic tour through your budget, draining your resources without adding value.

To navigate this funhouse, advertisers need to arm themselves not just with a map, but with a machete to cut through the thicket of BS. It’s about getting smart, going lean, and demanding transparency. Rip off the blindfold and insist on a direct line of sight to where your ads are going. Because in the end, simplifying the journey isn’t just about saving pennies—it’s about regaining sanity and making sure your ad dollars actually land you in front of eyes that want to see your message, not just the ones paid to look.

A Path Forward: Simplifying the Complex
Welcome to the thunderdome of CTV advertising, where the only thing more convoluted than the content offerings are the pathways to place your ads. So, what’s an advertiser’s first move in this high-stakes game of chess? Breathe deeply—preferably not into a paper bag, but I wouldn’t blame you if you did. The next step? Begin a relentless campaign for transparency. You wouldn’t buy a car with a locked hood that only the dealer could open, so why settle for less with your ad placements? Demand clarity and straightforward tools from your CTV partners. It’s about knowing where your ads will land, not just tossing them into the digital abyss and hoping for the best.

Stephen Sumner lays it out with unvarnished clarity for advertisers caught in their own costly loop: “Advertisers that don’t turn off the multiple dozens of exchanges in a media buy are essentially bidding against themselves and costing themselves more money.” The only ones laughing all the way to the bank? The ad tech middlemen, who slice off a hefty chunk of those inflated CPM bids. This leaves us pondering a crucial question: How many of you advertisers knew you were unwittingly bidding against yourselves, or have the means to check if you are—or aren’t? If the answer is as murky as a back-alley deal, it’s high time for a transparency tune-up in your ad buying strategy.

Now, onto embracing those direct deals. Think of these like farm-to-table dining for your ad dollars—fresh, straightforward, and satisfying. Direct deals cut out the middlemen who are too eager to slice up your budget like it’s Thanksgiving turkey. They leave you dealing directly with the source, which not only provides peace of mind but also increases your ad’s impact. When you eliminate the intermediaries, you’re not left wondering if your ad spend is being used as filler in someone else’s budgeting gaps.

But let’s be real: Sometimes you can’t avoid the labyrinth of third-party paths. It’s like deciding to make a simple sandwich and suddenly finding yourself in a five-star restaurant kitchen. When you do have to go down this route, arm yourself to the teeth with data and a rock-solid Supply Path Optimization (SPO) strategy. Think of it as your digital Excalibur—cutting through the fog of war in the marketplace to secure visibility and efficiency. This strategy isn’t just a fancy accessory; it’s your main line of defense against paying for phantom views.

Of course, in the CTV realm, simply being prepared is only half the battle. The other half? Staying nimble and well-informed. You’ll need to pivot with the grace of a ballet dancer and the speed of a street racer—ready to shift gears at a moment’s notice as the digital landscape morphs. This part of the game requires not only keeping your eyes on the prize but also having your ear to the ground, listening for the subtle shifts that signal when it’s time to jump on a new opportunity or dodge a potential setback.

Finally, gear up and sharpen those media buying skills. Yes, navigating CTV advertising is akin to riding a rollercoaster designed by a mad scientist—thrilling, unpredictable, and not for the faint of heart. But for those who master this art, the rewards can be substantial. Like conquering Everest, the view from the top of a well-orchestrated CTV campaign can be breathtaking.

Here we are at the climax of this CTV circus, where navigating ad placements feels more like a game of whack-a-mole with your budget on the line.

Let’s drop the curtain on the pretense that this is a straightforward affair. If you’ve kept up thus far without reaching for the antacids, kudos to you, my intrepid advertising adventurers.

Remember, it’s not just about surviving this madhouse—it’s about mastering the art of the savvy spend and getting your brand’s message across without accidentally bankrolling the murky middleman’s new yacht.

And for our grand finale, let’s dream big but plan meticulously. It’s time to don your metaphorical armor and dive headlong into the fray. Arm yourself with data, insist on transparency, and maybe—just maybe—try to enjoy the ride. After all, navigating the labyrinth of CTV is not just a task; it’s an art form, where the brave prosper and the unprepared become cautionary tales.

Here’s to not just playing the game, but changing it.

Let’s make some noise, disrupt the disruptors, and maybe, just for fun, turn this whole crazy game on its head.

How to Succeed in The Ad World Without Really Crying: The Jeff Minsky Method

Pesach Lattin

2024-04-16

If you’ve ever wondered who’s really pulling the strings in the world of advertising technology, let me introduce you to Jeff Minsky. Not your average tech guru, Jeff is a cross between a visionary and that crazy uncle who accidentally predicts the stock market’s next big leap. He’s the Lead Industry Analyst at MyersBizNet, but to box him into just that role would be like saying Howard Stern is just a radio host.

Jeff Minsky’s journey through the labyrinth of ad tech, media planning, and digital innovation isn’t just a career—it’s a full-blown epic saga. Imagine if “The Wolf of Wall Street” ditched stocks for ad slots and mixed in a good dose of Silicon Valley (the show, not the place—though both are equally absurd). From his early days wielding an economics degree from Yeshiva University to his refusal to become another soul-sucking lawyer, Jeff veered into the ad world, where contracts and negotiations weren’t just part of the job—they were the job.

In a recent no-holds-barred chat with Pesach Lattin, Jeff served up a hefty slice of his mind, dishing on everything from the seismic shifts in ad tech to the wild misadventures that have punctuated his storied career. And let’s be clear, when Jeff talks about the ad industry, it’s less about the nuts and bolts and more about the fireworks and facepalms.

So, strap in—apologies, Jeff, strapping in is mandatory here—and brace yourself for a whirlwind tour through the tumultuous, often insane world of advertising, as only Jeff Minsky can narrate it. Expect a mix of unfiltered candor and sharp tech insight, crafted into an experience that’s utterly unique and wholly unpredictable.

Let’s rewind to the start. Imagine a young Jeff Minsky, fresh out of Yeshiva University, clutching an economics degree and a firm resolve to avoid anything resembling a law career. Why? Because the mere thought of wading through contracts till the wee hours was less appealing than a dentist appointment. Little did he know, he’d end up doing just that—and loving it—for the juggernaut that is the ad tech industry.

Jeff’s foray into advertising wasn’t born out of a love for late-night infomercials or an unhealthy obsession with “Mad Men.” No, it was more a matter of practicality and, dare we say, destiny calling through the less glamorous backdoor of media buying and planning. Starting at Dewitt Media, he was the guy tasked with making sure Hebrew National’s ads didn’t run on the Sabbath. The irony? Most of those ads aired exactly when they weren’t supposed to, turning every Sabbath into a bonus bonanza—clearly, the advertising gods have a sense of humor.

But it wasn’t all divine comedy. Jeff quickly became the designated ‘out of home guy’, juggling billboards along with print and TV, proving his mettle in the traditional trifecta of media long before digital was the cool kid on the block. His time at Dewitt wasn’t just a job; it was the boot camp that prepped him for the wild west of emerging digital media.

As the plot thickened, so did the tech. Enter the scene where our hero, armed with more experience and guts than a Silicon Valley boardroom, takes on MasterCard. The stakes? The 1994 World Cup campaign—a sprawling, ambitious affair that turned into a logistical comedy show involving 976 physical banners, a convertible, and a cameo by a white Bronco that refused to make the right turn for national TV glory.

Yet, through every misadventure, Jeff’s love for the ad tech industry grew, fueled not by the mishaps that would make lesser men cringe but by a genuine joy for the game. It’s a twisted love story, really—between a man and his ever-complicated mistress: advertising technology.

If Jeff Minsky’s career was a movie, it would be an ensemble cast blockbuster, filled with twists, turns, and a dash of the unexpected. Through the analog days of media to the digital disruptions of the new millennium, Jeff was not just a participant but a pacesetter in the ad tech revolution.

Early Days and MasterCard Marvels Starting at the bottom wasn’t just a step for Jeff; it was a leap into a pool of opportunities. At Dewitt Media, his initial playground, he played a pivotal role in pioneering media strategies that would define his career. It was here that Jeff put Hebrew National on the map in the most honest mistake-filled fashion, ensuring their ads steered clear of the Sabbath, except when they didn’t—thanks to some scheduling snafus that turned into unexpected airtime gifts.

The true crucible of Jeff’s early days, however, was the MasterCard account during the 1994 World Cup. This wasn’t just another campaign; it was a mammoth undertaking involving hundreds of physical banners across the U.S. cities. The drama peaked when Jeff and his team chased these banners across Los Angeles in a convertible, ensuring each one was hanging proudly—a sideshow set against the backdrop of the infamous white Bronco chase. This bizarre twist not only marked the banners’ placements but also symbolized the chaotic charm of traditional media’s last great days.

Digital Dawn at Ogilvy and OMD As the digital age dawned, Jeff found himself at Ogilvy, right at the crux of its transformation into a digital powerhouse. Here, Jeff wasn’t just witnessing change; he was stirring it. He navigated IBM through its nascent digital media endeavors, ballooning a modest $150,000 budget into a whopping $30 million digital spend. This wasn’t merely growth; it was an explosion, with Jeff at the detonator, meticulously wiring the charges.

At OMD Digital, Jeff’s role expanded as he embraced the title of Emerging Media Dude, a moniker that barely scratched the surface of his influence. He wasn’t just part of the digital transformation; he was its maestro, conducting symphonies of new media strategies that would become benchmarks across the industry.

A Philosophy of Practical Innovation Throughout his career, Jeff has adhered to a philosophy that blends skepticism with a visionary’s foresight. Dubbed “The Minsky Method,” his approach involves a pragmatic evaluation of new technologies—a no-nonsense, trial-by-fire method that filters out the ephemeral from the enduring. This method has not only saved millions in potential wastage but has also positioned his teams on the leading edge of industry innovation.

In a world rife with buzzwords and fleeting trends, Jeff’s insights have been a grounding force. His leadership through the various phases of digital media’s evolution has been less about jumping on every new bandwagon and more about steering clear of the pitfalls while capitalizing on genuinely transformative opportunities.

Legacy and Forward-Looking Impact Jeff’s narrative isn’t just a tale of personal achievement but a blueprint for navigating the tumultuous waters of ad tech. Each campaign, each strategic pivot, and each innovative leap was a thread in the larger tapestry of an industry at the crossroads of tradition and innovation.

As we move forward, the lessons from Jeff’s career are clear: embrace change, but do it wisely. Be bold, but be smart about it. And perhaps most importantly, in a world where technology often outpaces wisdom, let experience be your guide. In the roller coaster ride of ad tech, Jeff Minsky has not only survived but thrived, and his stories are not just entertaining—they’re educational gold.

The world according to Jeff Minsky is one where ad tech serves as a bridge between creativity and analytics, transforming data into compelling advertising narratives. As digital landscapes evolve, Jeff envisions an ad tech ecosystem that not only responds to immediate marketing needs but anticipates future trends.

Virtual Reality and Beyond:
Embracing VR, Jeff has seen first-hand its potential to revolutionize engagement. His experience playing ping pong with friends across continents via VR illustrates a future where immersive experiences become commonplace in advertising, transforming passive viewers into active participants.
Jeff’s cautious optimism about AI reflects his balanced view of technology. He recognizes its potential to transform the ad industry by automating mundane tasks and generating innovative content. However, he remains wary of its ability to fully understand human nuances—a skepticism born from witnessing too many failed tech demos.

Digital Twins and E-Commerce:
Looking ahead, Jeff is particularly excited about the prospects of digital twins in e-commerce. By creating 3D models of products, online shopping could mimic the in-store experience, potentially revolutionizing retail. This move, however, requires a seismic shift in how businesses view their online platforms, urging them to adopt a more immersive approach to digital customer interaction.
Jeff’s insights into the ad tech industry provide not just a roadmap for current marketers but a vision for the next generation. His belief in the power of technology to enhance human connection rather than replace it offers a hopeful perspective for an industry often criticized for its reliance on impersonal data.

In a world buzzing with technological possibilities, Jeff Minsky’s narrative remains a critical beacon for those navigating the ever-changing seas of advertising technology. Through his stories, we gain not just strategies for today but principles for a sustainable future in ad tech.

Every seasoned veteran has their share of battle scars, and Jeff Minsky is no exception. Reflecting on his illustrious career, Jeff openly shares the lessons learned from the front lines and the missteps that have shaped his approach to ad tech. One standout anecdote involves a seemingly lucrative job switch that promised great heights but quickly spiraled into a career low point. This episode, characterized by a swift exit following a change in company direction, highlighted the volatile nature of the ad tech industry and reinforced the value of stability and foresight in one’s career choices.

Key Lessons:

Resilience in Face of Failure: Jeff’s ability to rebound from professional setbacks underscores the importance of resilience in the ad tech sector. His philosophy? Learn from every misstep and use it as a stepping stone for future success.
Strategic Patience: The allure of new opportunities can be tempting, but Jeff’s experiences teach the importance of strategic patience and due diligence before leaping into new ventures.

Jeff Minsky’s life outside the whirlwind of ad tech is as rich and varied as his professional endeavors. A family man, avid gamer, and community participant, Jeff brings his whole self to everything he does. His personal stories, from negotiating media buys to navigating digital landscapes at home, paint a picture of a man who integrates his work and personal life seamlessly. This integration not only enriches his professional perspective but also grounds him in a set of values that transcends the corporate environment.

As we look ahead, Jeff Minsky’s insights offer more than just a reflection on the past; they provide a vision for the future of advertising technology. His dual focus on cutting-edge tech and human-centric design points to a future where ad tech not only reaches new heights of innovation but also fosters deeper connections between brands and consumers.

In an industry often criticized for its cold efficiency, Jeff’s emphasis on personal values, community, and genuine engagement offers a refreshing perspective. His career serves as a beacon for upcoming professionals in the ad tech field, illustrating that true success comes from a blend of professional acumen and personal integrity.
Jeff Minsky’s journey through the ever-changing landscape of advertising technology is a testament to the power of resilience, innovation, and human connection. As we embrace the future, his story reminds us that in the world of ad tech, the best way to move forward is by keeping one eye on the next technological breakthrough and the other on the very human experiences that make technology meaningful.

From Cocaine to Cookies: The Highs and Lows of Adtech’s Party Gods

Pesach Lattin

2024-04-15

Welcome to the digital frontier, a sprawling cyber-scape where every click enriches the coffers of the adtech industry—an industry as notorious for its ethical ambiguities as it is for its economic prowess. This neon-lit playground isn’t just a market; it’s a raucous casino where personal data is the house currency and privacy is played fast and loose.

At the heart of this digital bacchanalia is the concept of programmatic advertising—a frenzied auction house operating at the speed of light, where your personal details are up for grabs to the highest bidder. This system is more than just an intricate dance of algorithms and automated transactions; it’s a shadow play orchestrated by adtech ‘bros’—the self-proclaimed ad gods whose ethical considerations are often as absent as their humility.

These denizens of the digital deep, the adtech bros, are indeed a breed apart. Born in the neon-lit nurseries of early internet advertising, they’ve surfed every wave of technological innovation like Silicon Valley’s own version of the Beach Boys—only with less harmony and more hidden agendas. Every leap forward, from cookies to complex data algorithms, has been a step deeper into the invasive, the intrusive. It’s a perpetual motion machine of monetization, where each innovation is less about solving consumer needs and more about pilfering through their digital pockets. The thrill isn’t in the creation but in the conquest, with nary a pause to ponder the consequences laid waste in their wake.

Paradoxically, these wizards of the web are as detached from the real world as they are embedded in the virtual one, operating in bubbles that are as opaque as the algorithms they adore. They are the incels of the advertising world: isolated, insular, and often ignorant of the very lives they intrude upon. Their kingdoms are built on codes and cookies, their moats filled with data streams rather than water. Hidden behind their screens, they conjure up campaigns that resonate with precision yet miss the mark on personal touch, treating users less like people and more like pixels on a heat map.

In their quest for omnipotence within their domain, they’ve managed to alienate the very audience they seek to engage. It’s a grand irony that the closer they zoom in on their targets, the further they drift from genuine connection. These adtech aficionados manipulate mountains of data to tailor ads with surgical precision, yet remain blissfully unaware of the growing disdain for their tactics. With every click tracked and every preference predicted, they build not just profiles but walls, ensuring that while they may know everything about their audience, they understand nothing.

And let’s not skirt around the truth: the parties, oh the parties! They are the stuff of legend—decadent affairs echoing the excesses of Wall Street’s worst, awash with cocaine and the desperate antics of elder statesmen of ads vying for a piece of the digital pie. These gatherings reflect the industry itself—high on its own supply, drunk on data and the power it wields.

Yet, amidst this revelry, there looms the slow, inexorable demise of the third-party cookie. Chrome has already begun to phase out these digital trackers, a process that started with a modest 1% and aims for total eradication.

This isn’t just a minor pivot; it’s a seismic upheaval promising to topple empires built on invasive tracking.

The bros are watching their playground crumble as Chrome’s cookie detox threatens the very foundation of their gilded cage.

The complexity of adtech isn’t a bug; it’s the main event—a labyrinth deliberately constructed to be as convoluted as possible. Why? Because clarity is the enemy of exploitation. The harder it is to understand, the easier it is to hide the sleights of hand, the data breaches, and the ethically dubious practices that are the industry’s stock in trade.

Enter the privacy debates—akin to a gladiatorial combat in the digital arena where new regulations are the weapons of choice. Each legislative proposal, each call for transparency, is met with resistance, a testament to the industry’s knack for finding and exploiting every loophole. Privacy policies are their shields, crafted not to protect but to obfuscate, a veneer of compliance painted over practices that often skirt the edges of legality.

The irony of the adtech industry could not be more piquant if it were a lemon squeezed atop a fresh wound. This digital behemoth, a Frankenstein’s monster stitched together with user data and behavioral algorithms, feeds the very hands that should throttle it—the media, the watchdogs, the whistleblowers.

These groups dine at the banquet of the internet’s profits, nourished by the same controversial practices they often decry. The presses that print the exposes on privacy breaches are greased with advertising dollars, making them part of a complex dance of dependency and defiance. It’s a twisted symbiosis where each party needs the other to survive, but each bite of the hand that feeds comes with the risk of biting off more than they can chew.

Yet, it is precisely this precarious game that underscores the necessity for biting, for gnawing at the hand of the giant, to reveal the hidden bones of deceit beneath. If the media and the guardians of public trust do not challenge the system, who will?

In this grand feast of digital exploitation, filled with the opulence of unchecked data harvesting, it takes more than a little courage to stand up and proclaim the emperor’s nudity. Someone must pull back the curtain on the adtech wizards, showing not only the mechanisms of their magic but also the sleight of hand that distracts us from the loss of our digital liberties. It’s a perilous game indeed, where the stakes are nothing less than the very privacy rights and freedoms that form the bedrock of our digital society.

Therefore, the call to arms is not just for the brave few, but for all those involved in this digital ecosystem. As we teeter on the brink of significant change—faced with the cookie apocalypse and rising demands for privacy—those who have benefited from the system are uniquely positioned to reform it. It is their responsibility to wield their pens and platforms not just for profit, but as tools of truth, to chip away at the gilded cage of adtech. For if they do not, the narrative remains controlled by those who have the most to gain from its continuation.

In the end, the story of adtech will not only be about those who built it, but those who dared to reform it, ensuring the internet could be a space of respect as much as it is one of connection.

Looking forward, the challenge is Herculean. The industry needs more than regulation; it requires a revolution—a complete rethinking of how personal data is treated in the digital age. Can we reforge the internet into a space where privacy isn’t just an optional extra but the foundation upon which all else is built?

As we stand on the brink of potential change, watching the adtech titans grapple with the impending cookie apocalypse and the rise of privacy as a public mandate, we must choose our path. Will we continue to revel in the chaos, or will we seize this moment to advocate for a new digital ethos—one where respect for the individual trumps the rapacious hunger for profit?

In the end, the internet remains our grandest social experiment, and adtech, with all its flaws, a significant part of that narrative. The party might be wild, and the cleanup daunting, but the story is ours to write. How it unfolds will depend on our willingness to challenge the status quo and envision a net that respects as much as it connects.

The question remains: are we up to the task?

FTC Impersonation Rule Now in Effect

Richard B. Newman

2024-04-15

The rule gives the FTC stronger tools to combat those that impersonate government agencies and businesses, enabling the FTC to file federal court cases seeking civil penalties

The Federal Trade Commission’s new rule on government and business impersonation is now in effect.

This new rule is particularly important given the Supreme Court’s April 2021 ruling in AMG Capital Management LLC v. FTC, which significantly limited the agency’s ability to require defendants to return money to injured consumers.

For example and without limitation, the new rule would enable FTC attorneys to directly seek monetary relief in federal court from scammers that:

Use government seals or business logos when communicating with consumers by mail or online.
Spoof government and business emails and web addresses, including spoofing “.gov” email addresses or using lookalike email addresses or websites that rely on misspellings of a company’s name.
Falsely imply government or business affiliation by using terms that are known to be affiliated with a government agency or business (e.g., stating “I’m calling from the Clerk’s Office” to falsely imply affiliation with a court of law).

The FTC is also accepting public comments until April 30, 2024, on a supplemental notice of proposed rulemaking that would prohibit the impersonation of individuals and prohibit providing scammers with the means and instruments to execute such scams.

Richard B. Newman is an FTC defense lawyer at Hinch Newman LLP. Follow FTC defense attorney on National Law Review.

Informational purposes only. Not legal advice. May be considered attorney advertising.

Telemarketers and Lead Generators Take Note of FTC’s New TSR Recordkeeping Rules

Richard B. Newman

2024-04-15

As blogged about recently, on March 7, 2024, the Federal Trade Commission announced a final rule extending telemarketing fraud protections to businesses and updating the Telemarketing Sales Rule’s recordkeeping requirements. Specifically, the final rule implements updates that prohibit deceptive and abusive practices in all business-to business calls; updates the TSR’s recordkeeping requirements; and proposed an amendment to the TSR that would extend the TSR to over inbound telemarketing calls involving technical support services.

The new FTC attorney recordkeeping requirements (have a limited exemption) are by-and-large required in order to assert a DNC safe harbor defense. For example and without limitation, records such as: (i) the calling number’ (ii) the number called; (iii) if the call was placed to an individual or a business; (iv) certain customer information; (v) certain records establishing the existence of an established business relationship (if relied upon by the caller); (vi) certain records establishing consent, including verbal consent (if relied upon by the caller); (vii) whether the call was pre-recorded (and copies pre-recorded messages), (ix) the time date and length of the call, (x) certain records pertaining to opt-out requests, (xi) and the outcome of the call, including information pertaining to the products or services purchased.

Importantly, certain records of the National DNC version utilized and the service providers used to disseminate outbound calls must also be maintained. Applicable records must now be maintained for five (5) years.

With regard to the safe harbor, the new rule provides for a safe harbor of thirty (30) days from the date of discovery of a failure to maintain accurate records in order to fix unintentional deficiencies. Note that the failure to maintain proper records is deemed a violation of the TSR and subject to monetary civil penalties of up to $51,744, per violation/call. So, relying upon a tenuous safe harbor rather than ensuring the implementation of compliance protocols is risky business.

Takeaway: Telemarketers and lead generators should consult with an experienced FTC attorney to discuss recent changes to the Telemarketing Sales Rule and Telephone Consumer Protection Act in order to implement robust compliance, training and audit processes, including recordkeeping.

Richard B. Newman is an FTC defense lawyer at Hinch Newman LLP. Follow FTC defense lawyer on National Law Review.

Informational purposes only. Not legal advice. May be considered attorney advertising.

Forbes Scandal Breakdown: The Ad Disaster Everyone’s Talking About!

Pesach Lattin

2024-04-12

Forbes: Once a bastion of business journalism, now caught pants down in a scandalous cha-cha with adtech sleaze. Let’s paint the picture: imagine adtech as the unwanted party crasher who not only drinks all your booze but also swaps your vintage champagne with cheap fizz while you’re not looking. That’s pretty much what’s happened here, as uncovered by Adalytics. And boy, does it reek of desperation and deceit.

Back in the day—think rotary phones and fax machines—ad servers were pristine, untouched by the grubby hands of opportunists. Fast forward through a couple of tech booms, and it’s an all-out buffet.

Every adtech player has had a hand in the cookie jar, turning once noble publishers into their personal ATM machines.

The margins that were once plump and healthy? Sucked dry faster than a Capri Sun at a Little League game.

Then came 2024, a year that dangled a juicy carrot in front of publishers: the death of third-party cookies.

A chance to break the chains and reclaim their data like a plot twist in a daytime soap.

But here’s the kicker: coordinating this grand plan requires more teamwork than a reluctant group project. And we all know how those turn out.

In the other corner, the adtech gladiators, not ready to let go of their golden goose, are plotting to keep their grimy paws on those industry earnings. It’s a digital tug-of-war, and the rope is fraying.

Now, let’s zoom in on Forbes, which turned its subdomain into an MFA sideshow, right under everyone’s noses. This wasn’t just slipping through the cracks; it was building a whole new floor under the radar. Forbes’ little secret? A subdomain (let’s call it “The Phantom Zone”) that hosted a circus of ads, unbeknownst to the high and mighty of the ad buying world. This phantom realm trafficked in the dark arts of arbitrage, where ads multiplied like rabbits on fertility drugs.

Agencies, those supposed sentinels of spend, were clueless. Decades of experience, and yet they missed a scam brewing under their schnozes? The cash blown on this digital Bermuda Triangle isn’t just embarrassing—it’s a masterclass in professional negligence. And let’s not forget the verification firms—oh, the irony! Integral Ad Science, DoubleVerify, and their ilk are supposed to be the Gandalfs at the gate, yet here they were, napping as the orcs breached the walls.

Forbes’ response to the unfolding scandal was as nonchalant as a teenager shrugging off a curfew violation. They claimed that the subdomain—now exposed as an ad-tech black market—was as significant to their sprawling media empire as a garage sale in a ghost town. A quaint, insignificant blip that somehow managed to churn out a circus of ad inventory bloat unseen since the heydays of banner farms. This was not just sweeping dirt under the rug; it was hiding a whole quarry.

But oh, the damage—a spectacular display of corporate faceplanting. The revelation had agencies recoiling from Forbes as if it had just announced a plague outbreak on its pages. These agencies, once lined up cap in hand, eager to throw their clients’ money at Forbes’ sterling reputation, are now sprinting in the opposite direction. It’s a mass exodus typically reserved for sinking ships or maybe movie theaters airing sequels no one asked for.

The speed at which they paused their programmatic purchases could give Usain Bolt a run for his money. “Fraud” isn’t just whispered in the hallowed halls of media buying; it’s being shouted across conference rooms with the kind of urgency that precedes disasters. Forbes, a titan in the publishing world, has been relegated to the kids’ table, with agencies treating them like a leper at a pool party—unapproachable and definitely not partnering for a swim.

In the broader sense, this isn’t just about a hidden subdomain turned ad-slum. It’s about the seismic shudder it sent through the network of trust that used to anchor such institutions. Forbes’ casual dismissal of the subdomain’s significance did little to quell the storm. Instead, it highlighted a disconnect that might as well be measured in light-years between what publishers think small mistakes are and what a scandal smells like to the sniffing bloodhounds of media buying.

Now, every programmatic handshake with Forbes is suspect, scrutinized under a microscope usually reserved for petri dish cultures. The trust is shattered, and rebuilding it is going to take more than just PR spin and reassurances. It’s going to take a Herculean effort to clear the aisles of the marketplace of doubt that now clouds the Forbes brand. Can you imagine the pitch meetings? “Trust us, but verify with your own, heavily-paid-for third-party verifiers because, well, you know…”

Meanwhile, Forbes stands somewhat aloof, still puffing out its chest in the corner of the adtech party, insisting it was all a misunderstanding that blew up into a spectacle. But in the eyes of the digital ad world, they’re no longer the belle of the ball. They’re the guest who clogged the toilet—a necessary attendee, perhaps, but one whose invitation might get conveniently lost in the mail next time around.

It’s not just a scandal; it’s an art form. Forbes and Media.net have taken the classic bait-and-switch to levels that would make even a Times Square con artist nod in respect. Imagine this: the bustling, neon-lit chaos of New York’s infamous hustle spot, but instead of three-card Monte, it’s ad impressions and URLs that are shuffling faster than a blackjack dealer with a mortgage payment due. And at the heart of this digital shell game? Media.net, an outfit that’s been flagged in the ad community’s collective consciousness as the not-so-magical maestro of the murky.

Let’s just say Media.net’s reputation in the ad tech world is about as polished as a subway car after a graffiti spree. Industry insiders have been side-eyeing these folks for years, whispering in the shadowy corners of conferences that if there’s a gray area to exploit, Media.net isn’t just stepping in it—they’re doing a tap dance. This latest escapade with Forbes’ MFA subdomain is just the public unveiling of their backstage antics. It’s the kind of performance where you clap because the audacity is just too impressive to boo.

Dig a little deeper and you’ll find that the warnings about Media.net have been piling up like unpaid parking tickets. From blog posts penned by disgruntled former partners to hushed warnings at industry meetups, the signs were there. This isn’t a one-off “oops” in judgment; it’s a pattern as predictable as a sitcom plot, where the shady neighbor always ends up being the villain in the Halloween special.

Now, with the spotlight scorching their scheme, Media.net and Forbes have executed a denial dance that’s about as convincing as a toddler with chocolate smeared all over his face insisting he didn’t touch the cake. They claim it was all a misunderstanding, an accidental shuffle of the digital deck. But anyone who’s been around the ad tech block rolled their eyes so hard they spotted their own brain. An ‘accidental coding error’? Please, that’s the oldest trick in the book, and even the book’s tired of it.

This debacle strips bare the uncomfortable truth: the ad industry’s trust in “premium” publishers is about as robust as a house of cards in a hurricane. Here we are, witnessing a spectacle where high hopes crash spectacularly amidst a whirlwind of ineptitude. It’s a veritable carnival of incompetence and missteps, with executives and agencies tripping over their own feet, and everyone seems to have two left shoes. This is the dance of digital duplicity, and it’s choreographed with the grace of a drunken stumble in the dark.

The grand takeaway? The adtech ecosystem is less a well-oiled machine and more a swamp festering with deceit. Here, the occasional snake oil salesman pitches the next big “solution” with the zeal of a revival tent preacher.

These are the folks selling peace of mind—as effective and solid as a placebo or perhaps a screen door on a submarine. It’s a promise as empty as a politician’s vows, a flimsy shield against the onslaught of digital deception that keeps the ad dollars flowing.

As the story unfolds, we’re left with a sketch of an industry in dire need of a cleanup. This isn’t just a one-off scandal—it’s symptomatic of a pervasive rot, a malaise that promises to keep the tabloids in business for years to come.

And through it all, Forbes, with its legacy tarnished by adtech’s Midas touch (turning everything to lead), might just become a cautionary tale told in marketing seminars, whispered in the hallowed halls of business schools as a grim reminder of what not to do.

So, grab your popcorn and settle in. The Forbes fiasco isn’t just a scandal; it’s a saga, complete with villains, fallen heroes, and a chorus of industry pundits crying into their keyboards. The ad world’s dirty laundry isn’t just out for a spin—it’s billboard material, lit up in Times Square for all to see. And as the layers peel back, revealing the grime underneath, one thing becomes crystal clear: in the world of adtech, it’s every man, woman, and server for themselves. Welcome to the jungle, folks. It’s wild out here.

Corporate Espionage & Martini Mixers: The Adstra-Kinesso Acxiom Affair Unveiled

Pesach Lattin

2024-04-11

Let’s skip the small talk.

Yesterday, we grazed the surface in our newsletter, dabbling in the initial juiciness of the Adstra versus IPG’s Kinesso and Acxiom skirmish.

But today, we dive deep into the belly of the beast. Grab your snorkels—or martini glasses—and let’s wade through the muck of corporate espionage, data warfare, and good old-fashioned deceit.

The Dirt
So, here’s the scoop, and trust me, it’s better than your grandmother’s gossip. Adstra, in a seemingly clear-cut contract, handed over the keys to their data kingdom to Kinesso. The plan? To let Kinesso use this treasure trove for something called identity resolution. If you’re scratching your head, think of identity resolution as the digital marketing’s Holy Grail—knowing you’re the same Jane Doe on your tablet, phone, and laptop. Priceless, right?

But here’s where the plot thickens into a stew of controversy. Acxiom, the supposed sidekick in this drama, decided to take a walk on the wild side. Allegedly, they took Adstra’s secrets, flipped them, and spun out a competing product faster than you can say “data breach.” It’s like watching your best pal swipe your winning lottery ticket.
Underneath the legal jargon and the suits throwing punches in court, this scuffle isn’t just a tiff over tech toys. It’s a sprawling battle over who gets to control the gold mine of digital identity data. And as we peel away the layers, what do we find? A delicious core of potential deceit, strategic maneuvering, and the kind of drama that would have Shakespeare taking notes.

Kinesso and Acxiom’s alleged shenanigans with Adstra’s data could be a classic tale of Silicon Valley hubris meeting Wall Street guile—or maybe it’s just business as usual, depending on how cynical you are. The implications here stretch far beyond these companies; this could reshape how data is traded, guarded, and weaponized in the marketing wars to come.

The Bigger Picture
Now, let’s zoom out a bit. Every Tom, Dick, and Harriet with a modem is now sitting on data that could be worth the proverbial and literal fortune. In a world where data slips through digital fingers like fine sand, the Adstra vs. IPG lawsuit might just be the canary in the coal mine for how businesses handle the power and pitfalls of digital identity.

Let’s be real, this legal drama between Adstra and the IPG subsidiaries isn’t just a posh slap fight in court. It’s setting the stage for a grander saga about how data—this generation’s gold—is handled, hawked, and safeguarded. As we stand on the precipice of data’s brave new world, it’s clear that ethical data use isn’t just a nice-to-have; it’s the bedrock of future enterprise, shaping laws and norms faster than you can type a privacy policy update.

Oh, the irony of innovation! Here we are, crafting these magnificent digital spears known as identity resolution tools, not realizing they might double as weapons against us. The quest for the Holy Grail of data is as perilous as it is promising. Balancing on the tightrope between cutthroat competition and noble innovation is more than a circus act; it’s a survival strategy in the concrete jungle of digital marketing.

As this case carves its initials into the weathered bench of legal history, it’s not just a spectator sport. It’s a warning flare for businesses everywhere, signaling the need for transparency and fairness in the data game. Regulators, sharpening their pencils and powers, are peering over the horizon, eager to script the next act in the data drama if the players don’t step up their ethical game.

Zoom out and you’ll see the tsunami of data looming on the horizon. By 2025, the digital universe is expected to belch out around 463 exabytes of data daily. That’s not just a flood; it’s a full-on deluge that could drown the unprepared in its depths. Companies are scrambling to build arks—think data lakes and ethical frameworks—to stay afloat, but the waters are rising fast, and not everyone will make it.

How does one navigate these treacherous waters? It starts with acknowledging that data ethics is more than a checkbox on compliance forms—it’s the compass that guides the corporate ship through murky moral waters. From ensuring algorithms are free from bias to guarding against data breaches, the ethical handling of data is as critical as the data itself. Missteps here can cost more than money; they risk your reputation and, potentially, your right to operate.

Alright, let’s cut the fluff and get into the nitty-gritty because navigating this digital data labyrinth is more like a no-holds-barred cage match than a tiptoe through the tulips. Good intentions are worth squat if they’re not backed by the kind of ironclad, concrete actions that would make a mob boss envious. What we need are governance frameworks with the muscles to flex under today’s regulations and the agility to pirouette past whatever legal curveballs the future might lob our way.

It’s high time companies stopped treating data ethics like a dusty compliance manual on the bottom shelf and more like the lifeblood of their operations. We’re talking about a cultural overhaul here, folks. Imagine a world where data ethics is the main dish in the executive dining room, not some side salad they push around their plates. From the big guns in the boardroom to the wizards in the server room, everyone’s playing by the same rulebook—a rulebook that’s written in stone, not sand.

But let’s be real, setting up this kind of ethical empire isn’t for the faint-hearted. It’s an undertaking that demands a blueprint as strategic as a military campaign.

Companies need to be nimble, proactive, and ready to pivot with the kind of precision that would make a ballet dancer weep. This isn’t about being compliant; it’s about being a step ahead, ready to adapt and enforce the hell out of these policies before they get slapped with a fine or, worse, a viral scandal.

And why stop at the company border? Throw open those gates and let’s get collaborative. There’s strength in numbers, and by banding together to standardize data ethics, businesses can form an impenetrable front. It’s about pooling resources, syncing standards, and battening down the hatches together to weather the storms of data misuse and privacy breaches.

It’s a team sport, and everyone’s got skin in the game.

In the end, what companies are really building with all these ethical gymnastics isn’t just a fortress against penalties; it’s a legacy. They’re laying down the kind of foundational ethics that will ensure their brand not only survives but thrives in the digital age. This is about making a mark that lasts, proving that in the wild west of data, your company is the one wearing the white hat.

So let’s get down to business and show the digital world what real data integrity looks like—it’s showtime, baby!

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