Decarbonization in the Ad Industry: A Noble Quest or Just Smoke and Mirrors

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2023-08-25

In the turbulent tides of 2022, when the world’s gaze was locked on the existential threat of climate change, a new contender stepped onto the stage of environmental responsibility: the advertising industry.

Brian O’Kelley, that super-trailblazer in ad-tech, ignited the spark by co-founding Scope3, a company aimed at wrestling the carbon emissions of digital advertising into submission.

But as the curtain falls on another year, the grand implementation of media decarbonization remains a lofty ideal rather than a concrete reality. Is this drive for sustainability a true crusade, or merely a fleeting fad?

Let’s not mince words here. The advertising world, like an attention-hungry celebrity, loves to hog the spotlight. In January 2022, Brian O’Kelley’s Scope3 burst onto the scene, promising to cleanse the murky emissions of the digital ad realm.

GroupM, the colossal media buyer, jumped on board with a global framework to assess carbon footprints in the media supply chain. A

d Net Zero, the knight in this narrative, promised global standards for media decarbonization after unveiling their ambitions at the Cannes Lions International Festival of Creativity.

A year later, the skeptics aren’t entirely surprised. According to almost anyone I’ve chatted up, progress is about as slippery as a wet eel.

Yes, there’s more chatter about digital advertising’s role in climate change, and a few pioneers are inching forward, but what’s it worth if the rest of the parade is playing catch-up? And don’t get me started on the mess of measuring these emissions – it’s like trying to count raindrops in a storm.

You might wonder why this is even a thing?
After all, shouldn’t we be pointing our climate-change fingers at bigger culprits like fossil fuels?

Well, here’s a plot twist for you: digital advertising churns out a mind-boggling amount of emissions. Programmatic advertising, the fancy term for the automated buying and selling of online ads, is the sneaky villain here. Imagine thousands of little digital bidding wars happening every second, each one burning up precious computing power like a frenzied auctioneer.

Did you know that your average online ad campaign can spew out about 5.4 tons of CO2?

That’s like half the annual impact of an entire British citizen. Mind-boggling, right? Each digital ad impression can generate a shocking 1.09 grams of CO2 before offsetting, according to the science nerds who crunched the numbers. Ryan Gordon, a sustainability guru, puts it bluntly: “Trillions of digital impressions equal a lot of CO2.” And here’s the kicker: only one bidder wins, while the rest waste their energy.

But hold your applause. The industry seems to be taking this whole matter with the urgency of a snail race. Danielle Azoulay, sustainability virtuoso, drops a truth bomb: “Media buyers don’t quite get how they’re contributing to sustainability.” It’s like telling a toddler to eat their broccoli – they know it’s good for them, but they’d rather play with the shiny toy.

Now, don’t get me wrong. The media’s carbon guilt is tiny compared to the oil giants and their smoky dance. But that doesn’t give the ad industry a free pass. The internet’s contribution to global greenhouse emissions, about 3.7%, is on par with the airline industry’s pollution party. Programmatic advertising alone spews out a staggering 215,000 metric tons of CO2 per month across major economies – that’s like chugging 24 million gallons of gas. Say it with me: not small fries.

So, what’s the ad world doing to clean up its act? Well, some are taking baby steps. iRobot, the household name, is partnering up to tackle emissions with Scope3 and Sharethrough. They’re trying to target low-emission inventory and offset their carbon mess. But here’s the catch – this carbon-cutting venture isn’t exactly a sprint. Sure, there’s a finish line somewhere in the distance, but nobody’s entirely sure when they’ll get there.

But let’s take a moment to recognize the champions. SeenThis, the superheroes of streaming and data transfer, are joining forces with GroupM to measure and curb carbon emissions in digital advertising. It’s like Batman and Robin fighting the CO2 Joker. They’re tossing their hat into the ring, using their tech-savvy prowess to turn the tables on carbon emissions while keeping the ads snappy.

In the tumultuous seas of media decarbonization, the voyage is treacherous. Standards are a mess, and everyone’s too busy guarding their turf to take a leap of faith together. But remember, every empire starts with the first brick. The industry might be squabbling over timelines and strategies, but in the midst of it all, a spark of change is igniting.

So, is this decarbonization frenzy a fleeting trend? A glitzy facade to distract us from the true culprits? Or is it the dawn of a new era?

Well, my dear friends of industry, only time will tell. But one thing’s certain – with carbon emissions, there’s no room for smoke and mirrors. It’s time for the ad industry to step up, or risk getting lost in the ever-thickening haze of its own making.

Unveiling the Intricate Nexus: Decoding the Relationship Between Attention and Brand Outcomes

By

Pesach Lattin

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2023-08-24

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Let’s start here: Understanding the nuanced correlation between capturing consumer attention and achieving concrete brand outcomes has proven to be an intricate puzzle. A comprehensive study conducted over the span of 2022 and 2023 by esteemed attention measurement company Lumen Research, in collaboration with programmatic digital advertising giant Teads and ad effectiveness specialist Dynata, has thrown a spotlight on this enigma.

Termed “Unveiling the Connection,” this study stands as a pivotal meta-analysis, spanning 16 campaigns across 14 advertisers on a global scale. Its mission was to unravel the intricate link between attention and brand lift metrics. As we delve into the core findings of this study, a tapestry of insights emerges, each shedding light on a truth that has long eluded the realm of advertising efficacy.

One of the most prominent findings is the revelation that the connection between attention and brand outcomes is far from a simple equation. It is a complex interplay that unfolds over time and engagement. The allure of high attention, marked by extended dwell times and prolonged engagement periods, holds the key to enhancing various stages of the brand funnel. From the initial stages of brand awareness to the pinnacle of purchase intent, the significance of attention orchestrates a symphony of improvement.

A closer examination of this interplay uncovers a significant insight – it’s not fleeting glances that shape metrics; it’s the embrace of attentive seconds. While mere milliseconds of attentive exposure can influence metrics such as ad recall and brand awareness, deeper engagement is required to unlock the realms of lower funnel objectives. Eight “attentive seconds” are the catalyst for kindling purchase intent, while nine seconds fan the flames of consideration, and a brief three seconds are sufficient to instill familiarity.

However, the study does not stand alone as a solitary revelation. Instead, it acts as a bridge that connects the fragmented territories of attention measurement, offering a tangible roadmap for advertisers navigating the complexities of modern marketing. The days of merely tallying attention are behind us; the clarion call is now for a strategic understanding of the requisite attention levels needed to achieve desired outcomes.

The study’s significance is best captured in the words of Ben Flux, Group Investment Director at Starcom, who aptly states, “To develop a more strategic approach, understanding the sufficient level of attention needed to drive an outcome is pivotal. This study gives us a much more real use of attention and enables a far more strategic and logical approach to activation.”

As the realm of advertising confronts the impending departure of third-party tracking cookies, the importance of attention is reinvigorated. Advertisers are turning to innovative tracking technologies and contextual relevance to navigate this new landscape, crafting campaigns that resonate with audiences. With contextual targeting as their compass, marketers embark on a quest to align user preferences with brand messaging, creating a haven amidst the turbulent waves of privacy regulations.

Yet, the crescendo doesn’t halt there. Pioneers in the advertising domain, DoubleVerify (“DV”), achieve a significant milestone with their DV Authentic Attention® metrics, earning Media Rating Council (MRC) accreditation. Comprising an Engagement Index that analyzes user-initiated events, an Exposure Index that quantifies intensity, and Attention Benchmarks that guide advertisers’ endeavors, these metrics amplify attention’s role in shaping brand outcomes.

The zenith of this attention narrative is embodied in the collaboration between DV and Scibids, resulting in the creation of the DV Algorithmic Optimizer. This convergence of attention signals and AI-powered ad decisioning heralds an era where optimization algorithms are tailored to advertisers’ key performance indicators. This endeavor isn’t just about capturing attention; it’s about imbuing it with significance, crafting campaigns that deeply resonate and securing audience allegiance for the long term.

Amidst the ever-shifting landscape of the digital realm, where attention’s value is soaring, the study’s grand finale underscores a foundational truth. In the theater of advertising, capturing attention is not a fleeting dalliance; it forms the cornerstone upon which brand success is built. As attention ascends as the premier currency for advertisers, the stage is set for an era of insights, innovations, and a harmonious interplay between captivating attention and reaping the rewards of brand triumph.

AI-Driven Scams: Unveiling the Underbelly of Advertisers’ Nightmares

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Adotat Staff

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2023-08-23

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Within the expansive and constantly shifting domain of the internet, where innovation and prospects intricately intermingle, an emerging malevolent surge of exploitation has surfaced, driven by the deceitful mastery of artificial intelligence. The advent of large language models like ChatGPT has brought forth unprecedented potential for creativity and progress, but lurking in the shadows are risks that threaten the integrity of digital spaces. Among these dangers is the proliferation of AI-generated content, artfully employed to construct a facade of legitimacy around a troubling reality: the rise of junk websites scamming advertisers for profit.

Back in April, Melissa Heikkilä presciently warned of a future where AI models would become vehicles for spam and scams, inundating the online landscape. Today, that forecast has manifested into a disturbing reality, painting a bleak picture of the digital ecosystem. The unsettling truth is that AI-driven content farms have harnessed the power of generative AI to churn out an array of junk websites designed to ensnare major brands and blue-chip advertisers in their web of deceit.

The crux of this troubling saga is the symbiotic relationship between these insidious AI-generated sites and the treasure trove of ad revenue swishing around the digital sphere. A recent report by NewsGuard, a guardian of website quality, has cast light on the unsettling revelation that over 140 prominent brands have inadvertently become patrons of AI-driven content farms. These unwitting brands are bankrolling a new wave of clickbait under the guise of legitimate advertising, with approximately 90% of these ads funnelled through Google’s ad technology, paradoxically in defiance of the company’s own guidelines.

At the heart of this nefarious scheme lies the strategy of programmatic advertising, an automated system where algorithms purchase ad placements without human oversight. This loophole allows these junk websites to seize the opportunity, harnessing the algorithmic prowess to optimize visibility for their misleading content. Shockingly, even prior to the rise of generative AI, a staggering 21% of ad impressions were wasted on “made for advertising” websites, squandering around $13 billion annually.

Generative AI acts as a turbocharger for this operation. Since April 2023, NewsGuard has identified and tracked over 200 “unreliable AI-generated news and information sites”, most of which masquerade as authentic sources, often deceiving even vigilant major brands. The modus operandi involves deploying AI algorithms to detect text patterns akin to errors produced by large language models like ChatGPT. These flagged sites then undergo scrutiny by human researchers, a process that uncovers an alarming trend: these websites are often cloaked in anonymity, even boasting fake AI-generated creator bios and images.

Lorenzo Arvanitis, a researcher at NewsGuard, aptly summarizes the irony of this situation as “the name of the game on the internet.” It’s a convoluted reality where well-meaning companies inadvertently become enablers of misinformation, drawn into the competition for online attention. The underlying catalyst here is the potency of generative AI, poised to further exacerbate this scenario as it evolves and gains accessibility.

While the potential for AI-driven disinformation campaigns is certainly a looming concern, it’s essential not to overlook the sheer financial waste and resource depletion arising from this phenomenon. Major brands, in their quest for online prominence, are inadvertently bankrolling a deluge of junk content that not only erodes their credibility but also contributes to a burgeoning culture of misinformation.

The consequences of this phenomenon are far-reaching, delving into the realms of politics and democratic processes. Recent reports shed light on how political campaigns have begun leveraging generative AI, ringing alarm bells regarding its potential to corrode the democratic fabric. The corrosive effects of AI-driven deception on society are underscored, emphasizing the urgent need for regulation and oversight.

The landscape is shifting, but not without glimmers of hope. Initiatives such as Meta’s oversight board issuing binding recommendations highlight the willingness to hold tech giants accountable. However, the battle against AI-generated scams requires multifaceted efforts involving technological innovation, policy enforcement, and public awareness.

In the realm of digital innovation, where opportunities abound, vigilance is paramount. The rise of AI-driven junk websites serves as a stark reminder that the pursuit of progress must be tempered with responsible use, guarding against the erosion of trust and integrity in the digital realm. As AI continues to shape our world, it falls upon us to ensure that its power is harnessed for the greater good, rather than exploited for selfish gains.

Breach of Trust: Advertisers Beware as Google’s Crisis Deepens

By

Pesach Lattin

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2023-08-23

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Despite all the digital deception and corporate doubletalk, one truth has been glaringly illuminated in the past month: Google’s failings in the realm of child safety are a stain on their reputation. Dr. Augustine Fou, a seasoned digital researcher, put it aptly when he remarked, “It’s been a terrible month for Google.” The narrative of Google’s missteps was painstakingly unraveled by a solitary, independent investigator named Krzysztof Franaszek., who operates under the moniker Adalytics. In the aftermath of his meticulous inquiry, advertisers were confronted with the reality that their blind trust in self-reported data from tech behemoths might have been gravely misplaced.

The gravity of this exposé resides in the fact that advertisers, over the span of years, have funneled billions of dollars into platforms like Google, believing in the integrity of the data they received.

Yet, as revealed by hundreds of pages of meticulously documented evidence, the platforms’ self-reported data has proven to be riddled with inaccuracies. Dr. Fou’s incisive observation forces us to question the foundation of this digital ecosystem: “Perhaps they shouldn’t be so trusting of self-reported data, including the data in log files.” This revelation strikes at the very core of digital advertising, underscoring a fundamental flaw that has propagated unchecked for years.

Three distinct cases come to the forefront, each shedding light on a distinct facet of Google’s child safety issue. The first case, meticulously dissected by Adalytics, centers around the sale of video ads as Google’s vaunted “TrueView.” A hallmark of Google’s advertising repertoire, TrueView ads purportedly grant advertisers the assurance that they only pay when users actively choose to engage with their content. However, a piercing inquiry led by Adalytics exposed a disconcerting truth: many ads peddled as TrueView did not align with Google’s own criteria for such ads. In the damning words of Adalytics’ original research, “Did Google mislead advertisers about TrueView skippable in-stream ads for the past three years?” The implications are staggering, as this discrepancy encompassed over a thousand brand advertisers and potentially entailed billions of dollars.

The heart of this deception lay in the contradiction between the ads sold and the definition of TrueView. While TrueView ads are expected to be skippable, audible, and in-stream, Adalytics’ analysis unearthed a disturbing pattern. Over three years, a vast majority of misrepresented TrueView ads were found on Google Video Partner (GVP) sites and apps, rather than on YouTube itself. The implications for these advertisers are profound, forcing them to confront the bitter reality that their trust in Google’s data may have been misplaced.

Google’s response, however, was far from the forthrightness that such a revelation warranted. In a classic example of misdirection, Google’s official blog post addressed points unrelated to the evidence at hand. The corporation’s assertion that the “vast majority of campaigns ran on YouTube” was factual but immaterial.

As Adalytics’ extensive documentation revealed, the problem stemmed from video ad impressions occurring off of YouTube, where the ads failed to meet TrueView criteria. Furthermore, Google’s reliance on third-party verification vendors like IAS and DoubleVerify to vouch for their compliance added another layer of deception. In reality, these vendors merely performed calculations on Google’s provided data, raising concerns about the very essence of their “independent verification.”

The second case spotlighted by Adalytics is an egregious violation of child safety: non-kid ads displayed on kids’ channels and videos. The implications of this transgression are disconcerting, as advertisers find their content juxtaposed with inappropriate material. Here, Adalytics uncovered an alarming disconnect between Google’s claim of content classification and the actual content that ads were placed next to. The incongruence between Google’s self-professed policies and the ground reality was jarring, leading to a crisis of trust among advertisers. Even more damning was the revelation that Google’s Performance Max (Pmax) ad targeting algorithm was placing adult brands’ ads on channels tailored for children, an egregious violation of advertiser expectations.

This damning evidence shines a spotlight on Google’s glaring inadequacies. In an era where technology touts itself as infallible, Google’s own classifiers faltered in distinguishing “made for kids” content. This failure exposed advertisers to immense risks, as their non-kid ads found their way onto children’s channels and videos, directly contradicting their intentions. The harrowing observations made by a senior advertising executive underscore the magnitude of this failing, insisting, “There is no reasonable excuse for ads running on content intended primarily for kids.” The repercussions of such negligence have ignited calls for the Federal Trade Commission (FTC) to investigate Google, echoing previous pleas that led to the 2019 Consent Decree.

As the outcry intensifies, Google’s third case of serving behaviorally targeted and personalized ads on “made for kids” channels comes to the forefront. Despite Google’s assurances to the contrary, evidence from multiple experimental campaigns indicates that targeted ads are still pervasive on such channels. This breach of trust showcases Google’s inability to adhere to its own stated policies, leaving advertisers disillusioned and consumers vulnerable. The quagmire of contradictory claims leaves us pondering whether Google is harvesting user data for personalization or serving targeted ads blindly. In either scenario, Google’s integrity stands compromised, casting a pall over the very foundations of digital advertising.

The implications of these revelations are profound, demanding immediate action. Advocacy groups and lawmakers alike are rallying for an FTC investigation into Google’s child safety practices. The stakes are immense, as violations could result in penalties amounting to tens of billions of dollars. The persistence of such calls underscores the gravity of the issue at hand. As Josh Golin, Fairplay’s executive director, aptly stated, “There’s more than enough smoke here for regulators to investigate.” The question that looms large is whether Google will rise to the occasion, rectify its wrongs, and usher in a new era of transparency and accountability in the digital realm.

In the midst of this storm, Nandini Jammi of CheckmyAds added fuel to the fire with a tweet that rang like a battle cry: “HAHA HOLY SHIT: While the big brains over at Google have been denying all week that they serve targeted ads on kids content (illegal), @fairplayforkids spent $10 on YouTube and found their ads for ADULTS ran 1446 times on kids shows. LET THE DRAMA BEGIN.” In a single tweet, the harsh reality was laid bare — a stark reminder that the chasm between words and actions is a cavernous pit that consumers and advertisers navigate at their own peril.

As the dust settles on this battleground of deception, the fate of Google’s reputation hangs in the balance. Will the tech giant mend its ways and emerge as a paragon of accountability, or will it remain a cautionary tale for the digital age? The answer may well determine the trajectory of trust in an era dominated by data and discourse, where the line between truth and subterfuge is thinner than ever before.

STOP LYING: No One Wants Made-for-Advertising Sites.

By

Pesach Lattin

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2023-08-22

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Where every pixel holds a promise of profit, a sinister underworld thrives – Made for Advertising (MFA) sites. These digital charlatans operate in the shadows, exploiting the vulnerabilities of the advertising industry for their illicit gain.

There is no ambiguity, no room for doubt – MFA sites are unequivocally fraudulent enterprises that deceive marketers, steal their resources, and undermine the integrity of the entire ecosystem.

It’s a staggering revelation that a Digiday writer recently contended that the industry lacks a clear consensus on what exactly constitutes an MFA site. Such assertions are not only misguided but also dismissive of the unequivocal truth: Made for Advertising sites are nothing more than dens of deception, existing solely to perpetrate fraud. They are the wolves in sheep’s clothing of the digital realm. Let’s stop lying here: they are fraud, and need no definition besides that.

Matt Prohaska, a voice of reason in the chaotic digital din, astutely captured the essence of the issue: “How lazy & shameful” it is to accept MFA sites as part of doing business. These sites exploit the intricacies of online advertising metrics, masking their malicious intent beneath a veneer of legitimacy. They adopt different personas depending on the traffic they attract, sowing confusion and evading the watchful eyes of advertising partners. The consequences are dire – advertisers’ resources are squandered on hollow impressions, while the reputation of legitimate sites takes a hit.

MFA sites exhibit shapeshifting behaviors – an eerie dance between the legitimate and the deceitful. When direct traffic arrives, the facade holds, presenting a veneer of normalcy. However, when the site detects paid traffic, a darker side emerges. Aggressive, monetized ads flood the screens, ensnaring unwitting users in their web of deception. This dynamic performance conceals their true nature from scrutiny, enabling them to dance past compliance checks unscathed.

Shedding light on this murky world, the Association of National Advertisers (ANA) unveiled disturbing findings: MFA sites accounted for 21% of impressions and a staggering 15% of advertising spend. These numbers are not merely statistical abstractions; they represent the siphoning of billions of dollars from marketers’ pockets into the coffers of the fraudsters.

The ANA’s programmatic media supply chain transparency study casts a harsh spotlight on the alarming waste rampant in online ad spend. Beyond the financial hemorrhage, the study exposes another grim truth – the average campaign sprawls across a staggering 44,000 websites. This overindulgence in quantity over quality reeks of a lack of discernment, a sin that resonates throughout the industry. Sensationalism, clickbait, and provocative content are the seductive baits used by MFA sites to lure in unsuspecting visitors. The result: a bloated ecosystem teeming with waste and deceit.

With programmatic advertising’s global market estimated at $88 billion, the ANA’s revelations prompt a critical reevaluation of the road ahead. The pursuit of efficiency is not a mere luxury; it’s a necessity, a mission to reclaim squandered resources. The ANA believes that rectifying the course, by drastically reducing MFA spending, could yield an astonishing $20 billion in efficiency gains.

However, the stakes are not merely financial. MFA sites also exhibit environmental recklessness. According to Scope3, the carbon emissions of MFA sites tower 26% higher than their non-MFA counterparts. The link between digital fraud and environmental degradation underscores the urgency of tackling this issue. The pursuit of profit must not come at the cost of our planet’s wellbeing.

The ANA’s recommendations for remediation are anchored in a paradigm shift. The seduction of low-cost inventory must be countered by a commitment to quality. Advertisers must seek inventory that is viewable, fraud-free, and brand-safe, even if it demands a premium. The balance between cost and value is not a mere dichotomy; it’s a moral imperative.

Website inclusion lists, not exclusion lists, are proposed as a beacon of efficiency. This strategic shift could trim the fat from the bloated inventory, minimizing waste. However, a caveat emerges – equity must not be compromised. Small or minority-owned entities should not suffer as a result of this transition. Transparency’s mission is not just to cleanse the ecosystem but to ensure fairness prevails.

The ANA’s clarion call to exclude MFA inventory, unless explicitly desired, resonates as a battle cry for integrity. Yet, the quest for transparency, while essential, should not overshadow the pursuit of knowledge. The potency of transparency lies not only in its revelation but also in the empowerment it bestows. Advertisers must wield transparency’s light to navigate the complex ecosystem intelligently, fostering efficiency and upholding ethical principles.

This specter of MFA sites looms large in the digital advertising landscape, casting a pall over the industry’s integrity. The ANA’s revelations provide a roadmap for rectification, a battle plan to vanquish the fraudsters and reclaim resources.

SHAME: Israeli Ad Tech Company IntangoMedia Doubles Down on Made-For-Advertising

By

Pesach Lattin

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2023-08-22

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In the convoluted world of online advertising, where ethics often take a backseat to profits, Israeli ad tech giant IntangoMedia has sent shockwaves through the industry with its audacious acquisition of Reignn, a content management system boasting ownership of no less than ten publications. While the $10 million deal may appear to be another innocuous business maneuver, insiders are raising red flags, declaring Reignn to be nothing short of a Made-for-Advertising (MFA) scam that egregiously manipulates the system in defiance of ethical norms and network regulations.

CEO Uri Lichter, in an exclusive disclosure to Axios, unveiled the controversial acquisition, sending shockwaves through the industry and leaving many experts deeply skeptical of IntangoMedia’s motives. Notably, A.J. Carrillo, the custodian of the master MFA list, pulled no punches as he weighed in on the matter, declaring, “These MFA companies extract billions annually from legitimate domestic U.S. publishers ranging from local papers to larger national pubs using their software to game programmatic auctions. REIGNN is a usual suspect on my master MFA list.”

Jud Spencer, a prominent voice from the influential mega-network The Trade Desk, echoed Carrillo’s concerns. “This is a pretty clear description of all MFA,” he opined, exposing the sinister underbelly of the MFA industry. Spencer highlighted a disconcerting reality: as advertising budgets remain mostly fixed, the rampant prevalence of MFA enterprises diverts a substantial chunk of resources away from journalism, leading to layoffs and a continuous erosion of the industry’s integrity.

Even the enigmatic Adtech God, shrouded in anonymity yet renowned for insights, validated the mounting skepticism, cautioning, “Don’t worry Jud. Everyone’s celebrating that people are now removing MFAs from their allow lists… 5 min later… But we didn’t have a clear definition of MFAs so those 23,698 sites seemed ok to add to the allow list.”

But why has the spotlight suddenly shifted towards these alleged “clear scams”? For Joe Zappa, founder of Sharp Pen Media, the MFA discourse’s resurgence is emblematic of a larger trend in the industry. He articulated, “The MFA discourse happening in adtech is a great marketing case study. Companies in our industry are spending millions per year to make their pet issue the dominant topic of discussion.” Zappa delved into the psychology driving the anti-MFA movement, as the crusade resonates on a profound level, reflecting not just wasted ad spend, but the pilfering of funds from legitimate publishers who are in dire need of support.

In a candid exchange, I questioned Zappa about the apparent lag in addressing the MFA menace despite its longstanding presence. His response was unequivocal, “I think industry influencers, e.g. trade press, had become so accustomed to fraud and the like that the topic wasn’t sexy. To Paul’s point, maybe because of the economic environment, it’s become sexy again, and now the snowball is rolling downhill.”

Dave Morgan of Simulmedia added a layer of complexity, pointing out that trade media’s reliance on MFA enablers for sponsorship support complicates efforts to call out their wrongdoing. The very ecosystem meant to disseminate the truth often finds itself entangled in a web of allegiances.

Enter Reignn, the centerpiece of this storm. On the surface, they present themselves as content-rich sites, a treasure trove for visitors seeking valuable information. However, industry insiders paint a damning portrait of a company adept at exploiting the system’s weaknesses. They assert that Reignn’s publications are essentially dynamically generated pages, manipulated through keyword optimization to display high-ticket ads. What ensues, according to whistleblowers who accuse the company of orchestrating scams, is a sleight of hand. Reignn, these insiders assert, purchases hefty volumes of inexpensive traffic, funneling them to pages devoid of organic traffic. Their ultimate goal? Coaxing users into clicking on ads that, unbeknownst to advertisers, are often charged at a premium rate, generating sizable profits.

The deception at play here is stark and unambiguous. This study unearths a shocking statistic: advertisers are squandering a staggering 21% of their programmatic display ad budgets on these spammy, MFA websites. Known for their clickbait headlines, subpar content, intrusive ads, and infuriating user experience, MFA sites rake in billions in ad clicks annually, duping advertisers into pouring money into underperforming, and sometimes outright fraudulent, ventures. All the while, these ill-gotten gains are facilitated by some of the most prominent programmatic exchanges globally.

For the uninitiated, understanding what MFA sites entail is crucial. These are platforms crafted with a singular objective: ad arbitrage. Publishers exploit the gap between revenue generated from users clicking on ads and the cost of acquiring these users. The modus operandi is distressingly clear—employ sensational headlines, bait users with clickbait content, and inundate pages with a deluge of ads. The core aim? To maximize ad impressions and clicks, often through manipulative pagination navigation that coerces users to click through multiple pages, inadvertently stumbling upon ads.

To add a layer of duplicity, MFA sites have managed to infiltrate even reputable ad networks like Outbrain and Yahoo Native, cloaking their nefarious activities under the guise of “native ads.” This audacious exploitation, however, stands in stark defiance of Google’s ad placement policies, which explicitly prohibit pages drowning in ads and those encouraging accidental clicks. MFA publishers, though, cunningly sidestep Google’s Adsense, resorting to unsavory ad networks like Taboola and Outbrain or others that route ad inventory through low-quality sellers.

These publishers sometimes resort to an audacious trick: they limit excessive ads only for users arriving from advertising channels, duping Google’s scrutiny while still earning the ad revenue. Consequently, MFA sites offer a treasure trove of inventory, often amounting to billions of impressions, with CPM rates 30-40% lower than legitimate sites, making it an uphill battle to dissuade marketers from indulging in this reckless spree.

The story of IntangoMedia’s acquisition of Reignn serves as a stark reminder of the deep-rooted challenges within the ad tech industry, where the pursuit of profit sometimes trumps ethical considerations. As the industry grapples with these unscrupulous practices, the echo of the MFA menace reverberates louder than ever, demanding a reckoning that extends far beyond the business boardroom.

Innovation Meets Beauty: Tomoko Yamagishi-Dressler Joins Evolus as Chief Marketing Officer

By

Pesach Lattin

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2023-08-21

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The world of performance beauty is about to witness a seismic shift, as the pioneering force that is Evolus, Inc. (NASDAQ: EOLS), welcomes a luminary in the art of marketing and sales, Ms. Tomoko Yamagishi-Dressler, as its Chief Marketing Officer (CMO). In a realm where aesthetics and innovation dance in unison, Yamagishi-Dressler’s arrival marks a new crescendo in the symphony of transformation.

With a tapestry woven from years of experience in the marketing and sales fields, Yamagishi-Dressler’s journey reads like a symphony of achievements. Her career, spanning over two decades, began in 1987 with a role as Vice President at Lehman Brothers. From there, the path she blazed led her through the corridors of industry giants, each chapter adding a new note to her symphony.

In 1996, she donned the mantle of a Summer Associate at The Boston Consulting Group, an experience that refined her strategic acumen. The following year, the world of beauty beckoned, and Yamagishi-Dressler stepped into the role of Marketing Manager at Chanel, where her flair for crafting narratives of allure was nurtured. In 1999, she added a vibrant chapter to her story, taking up the role of Marketing Manager at Victoria’s Secret Beauty, where she lent her touch of creativity to a brand synonymous with elegance.

However, it was in the year 2000 that the world of beauty was forever changed by her presence. Joining Shiseido Americas Corporation, Yamagishi-Dressler embarked on a journey that would define her legacy. Within Shiseido, she held a plethora of roles that showcased her multifaceted expertise. From Global Skincare Marketing Group Leader to Vice President of Marketing, her journey was a tapestry of innovation woven through the fabric of luxury skincare.

Her tenure saw her relocation to the very heart of Shiseido’s origins in Japan, assuming the mantle of Group Leader for Global Skincare Marketing. It was here that her visionary leadership introduced a new portfolio of products, bolstering the competitive stance of the beauty behemoth. Returning to the United States, she assumed the role of Senior Vice President of Marketing & Sales, orchestrating the digital transformation of Shiseido’s ultra-prestige division.

Yamagishi-Dressler’s chronicle of triumph is further illuminated by her role as Chief Marketing Officer at Beautyblender in 2021. Here, she elevated the global position of Beautyblender, imprinting her distinctive mark on the brand’s journey through Sephora and ULTA. The convergence of these narratives paints a picture of a marketing virtuoso whose expertise is akin to a brushstroke of transformation.

Educational accolades adorn her journey, with a BA in LAW earned from Keio University. In 1997, she graced the halls of Harvard Business School, enriching her strategic repertoire. Not content to rest on her laurels, she embarked on a journey of continuous learning, obtaining a Digital Marketing Analytics certification from MIT Sloan School of Management in 2021. Presently, she is enrolled in the SHISEIDO+ Digital Academy Training Program at Circus Street, cementing her status as a lifelong learner in the realm of innovation.

David Moatazedi, President and CEO at Evolus, aptly captures the essence of this transformative juncture, stating, “This is the right time to focus our efforts on building Jeuveau® into a household name.” With the Jeuveau® rebranding triumph and the impending launch of the Evolysse™ line, Yamagishi-Dressler’s appointment assumes an almost prophetic significance.

As Yamagishi-Dressler steps into the role of CMO at Evolus, the performance beauty domain braces itself for a transformation unlike any other. Her journey, an amalgamation of innovation and experience, is a harbinger of the evolution that awaits. A beauty renaissance is on the horizon, and it is being sculpted by the hands of a visionary.

Unveiling the Future of Self-Service Advertising: An Exclusive Conversation with Johan Liljelund, CTO of DanAds

By

Pesach Lattin

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2023-08-18

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Sipping Espresso and Insights with the Visionary CTO on a Virtual Café
In a world perpetually intoxicated by innovation, the realm of advertising and media is perpetually poised for a transformational shift. As I found myself virtually seated across from Johan Liljelund, the mastermind behind the technological wonderland of DanAds, it was easy to imagine the clinking of cups in a cozy café by the beach, the comforting scent of freshly brewed coffee, or perhaps something stronger as the sun gently wove its threads through the clouds. With each sip, Liljelund’s insights flowed as freely as the conversation, offering a panoramic view of DanAds’ ambitions and strategies, all delivered in a tone that reverberated with candid brilliance.

Redefining the Media Landscape: Embracing the Power of Self-Service Advertising
In the ever-evolving dance between publishers and advertisers, self-serve advertising technologies are the music that allows them to waltz at scale. Liljelund painted a vivid picture of DanAds’ pivotal role in this tango of transformation. “Self-serve advertising technology is the enabler that allows advertisers to engage at scale with trusted publishers,” he mused, as if relishing the very essence of the statement. This, he insisted, was not merely about automation but about future-proofing the advertising landscape.

“Traditional publishers can future-proof their advertising business through automation, maintaining existing revenues while boosting margins,” Liljelund explained. He went on to hint at a burgeoning market of new publishers. These entities, brimming with first-party data but lacking scalable means of capitalizing on it, were the potential new beneficiaries of self-serve advertising technologies. Liljelund’s words resonated with a resonance that hinted at the untapped gold mines of the retail media domain.

Empowering the Underdogs: SMEs as the Focal Point of Self-Service Advertising
Small and medium-sized enterprises (SMEs), often relegated to the shadow of tech giants like Google and Facebook, find their voice through the DanAds’ ecosystem. “SMEs seek engagement with trusted publishers, yet have historically been locked out from anything beyond the confines of Google and Facebook,” Liljelund observed. DanAds, as a digital knight in shining armor, presents a doorway to access high-quality inventory and audiences on reputable platforms.

Liljelund delved into the specifics, detailing DanAds’ user-friendly interface, an oasis of accessibility paired with automatic support, an ecosystem akin to an e-commerce platform. He narrated the journey of one of their clients, who witnessed a meteoric rise in their advertisers, from a mere 2000-3000 to an astounding 70,000. It was a testament to the incredible potential that lay dormant, now unleashed by the self-serve advertising revolution.

Unraveling the DanAds Magic: Aggregating Publishers’ Inventories for Maximum Efficiency
The art of aggregating publishers’ inventories takes center stage in DanAds’ symphony of success. But Liljelund demurred, suggesting that such aggregation had not been a prime focus historically. “We have a few initiatives in our labs department,” he confided, teasing the concept of a platform where connected publishers could opt-in to share their treasures with other demand sources.

The cornerstone, however, remains the seamless self-serve advertising platform, the fulcrum upon which DanAds’ empire pivots. “Today, self-serve advertising platforms are the only scalable means for publishers to capitalize on their first-party audiences,” Liljelund asserted. He elucidated the pivotal shift from traditional direct sales towards a future where all direct sales flowed through self-serve and automation, heralding a potential sixfold increase in margins.

Navigating Stormy Waters: The Challenges of Self-Service Advertising
Even in a future painted with the lush colors of self-serve advertising, storms and challenges loom. Liljelund acknowledged that a self-serve advertising platform demanded a thorough Go-To-Market strategy. After a decade of embedding self-serve platforms for global publishers, DanAds was well-versed in navigating these uncharted waters. “We guide our clients,” Liljelund intoned, his voice dipped in experience, “allocating resources, budgets, target audiences, integrations, and user experiences.”

His words painted a vivid image of the multifaceted nature of launching such a platform—much more than a mere tech project, an entire ecosystem poised for metamorphosis.

IPO Dreams and Global Aspirations: DanAds’ Journey Forward
Lilejund revealed DanAds’ IPO dreams, a glimpse of financial magic expected to transpire within the next 12 to 18 months. However, with wisdom born of experience, he acknowledged the tempestuous nature of financial climates and suggested a delay might be prudent. The company’s financial position, bolstered by a credit facility from the European Investment Bank, lent them stability and flexibility, enabling them to navigate these treacherous waters with grace.

But it was not just about financial security. “Main reasons for an IPO,” he articulated, “has always been to give more security to our clients in terms of ownership.” It was an insight into the intricate interplay between financial strategies and fostering trust within the client ecosystem.

A Global Symphony of Talents: The DanAds Workforce and Expansion Plans
As the conversation meandered, he unveiled the beating heart of DanAds’ workforce—220 individuals, a mix of direct employees and subcontractors. Their US presence, a burgeoning entity, was a testament to their global ambitions, anchored in offices in New York, Denver, and Montreal. “Our belief has always been that if you have the ambition to be global, you need to have a global organization,” he remarked, a philosophy woven into their very fabric.
The power of diversity underscored their narrative, with employees hailing from over 10 different countries. “Inclusion and diversity, paired with the chance to collaborate with some of the largest publishers in the world, makes DanAds an exceptionally attractive workplace,” Liljelund concluded.

Liljelund offered an unvarnished take on the talent shortage in Sweden, a candid acknowledgement of the urgent need for expansion in the IT sector. Their multi-vendor strategy, as he put it, offered not just scalability but also cost diversification and control. “Our multi-vendor strategy has forced us to take full control,” he shared, unveiling an intricately orchestrated ballet of talent and control.

Ukraine had once been a talent hub for DanAds, a nexus that had to be rerouted due to unforeseen geopolitical turmoil. A multi-vendor setup now spanned various countries, underscoring the power of resilience in the face of adversity.

Looking Beyond: The Enigma of Emerging Technologies and their Influence
The conversation swirled into the realm of emerging technologies—augmented reality, virtual reality, AI, and beyond. Liljelundradiated an air of wisdom as he maintained a holistic outlook. “We have always had a very holistic view of the industry,” he stated, a testament to DanAds’ commitment to innovation across various media channels. From display to print, from OTT to retail, their arms were open wide, embracing all that the future held.

And then, the revelation of the Audio Ad Creation module, a marvel of AI that turned text into speech in mere seconds, democratizing audio advertising. It was emblematic of DanAds’ ethos—an unflinching march towards the future, embracing innovation as the harbinger of change.

In a world where data privacy and ad-blocking reign supreme, Liljelundnavigated the challenges with aplomb. Privacy regulations, in his eyes, shaped an environment of transparency and control, laying the foundation for advertisers and publishers to dance harmoniously. “Privacy regulations play an important role,” he emphasized, asserting that DanAds offered the tools for legal compliance with user preferences intact.

As we rounded the conversation, Liljelund turned his gaze to the future, where data privacy concerns, ad-blocking technologies, and the impending dearth of third-party cookies painted a landscape fraught with uncertainties. Yet, he was undeterred. “We believe the industry will adapt,” he said with conviction, outlining DanAds’ roadmap to conversion tracking supremacy.

In conclusion, the words of the man behind the DanAds magic echoed in my mind. “We want to be the global leader in making this happen,” he asserted, a beacon of hope and innovation for an industry on the cusp of revolution. As the conversation ended, the virtual café by the beach began to fade, leaving behind a trail of insights, wisdom, and a promise of transformation.

CTV’s Cash Tsunami: Ad Spend Surfs to $1 Billion in June

By

Pesach Lattin

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2023-08-17

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In a resounding display of the rapid growth of the advertising landscape, connected TV (CTV) has achieved an unprecedented milestone, with June witnessing a staggering $1 billion in advertising expenditure. These findings, unveiled by Vivvix, a leading ad-research company formerly recognized as Kantar, underscore the escalating dominance of CTV as a preferred platform for advertisers.

A key driver of this surge has been the remarkable performance of specific industry sectors. Household supplies and beverages have surged by an astounding 300% on a year-over-year basis, demonstrating the adaptability of CTV advertising across diverse markets. This upward trajectory can be attributed to the diverse array of streaming platforms, including Hulu, Peacock, Paramount+, Pluto, Discovery+, Max, Tubi, Roku, and the recent entrant, Disney+, which have collectively contributed to this watershed moment.

The influence of CTV extends well beyond the confines of traditional platforms, as exemplified by the substantial allocation of advertising dollars towards YouTube and its manifold properties. Notably, YouTube has secured an impressive $1.4 billion in ad spend during the same period, a testament to the platform’s formidable reach and efficacy.

Amid the broader context, Vivvix’s retrospective analysis of 2022 provides illuminating insights into the steady rise of ad-supported video-on-demand (AVOD). This segment has experienced a remarkable 79% year-over-year growth, establishing its place as a formidable contender within the digital advertising spectrum, accounting for a notable 5% of all online video consumption.

As the industry continues its forward momentum, eMarketer, a trusted authority on market trends, anticipates an even brighter future for CTV advertising. Their projections indicate a substantial 21% expansion in CTV ad spend, with the figure expected to scale to an impressive $25.9 billion in 2023. This prediction follows the successful 2022 campaign, which recorded a notable $20.69 billion in CTV advertising expenditure.

Vivvix’s meticulous analysis is underpinned by March 2023 estimates, encompassing an expansive scope of digital advertising across CTV devices. This includes an assortment of ad formats, ranging from display advertisements on home screens to in-stream video ads that grace the screens of CTVs. The platforms encompassed within this purview span the gamut, encompassing heavyweights such as Hulu, Roku, and YouTube.

In a landscape characterized by constant evolution, the exponential growth of CTV advertising expenditure reflects the inherent dynamism of the industry. As households continue to shift their consumption patterns, advertisers and marketers alike must adapt to the ever-expanding array of possibilities presented by the CTV revolution. With projections pointing skyward, the allure of CTV as an advertising platform is poised to reach new heights, reshaping the contours of the advertising industry for years to come.

Measuring Up: Dave Morgan’s Cross-Platform Reality Check in the Age of CTV

By

Pesach Lattin

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2023-08-17

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In this BeetTV interview with Dave Morgan, the CEO of Simulmedia, conducted by Mike Shields, Morgan delves into the complex and multifaceted issues plaguing the world of streaming advertising. His analysis reflects a critical eye on the lack of transparency, challenges in cross-platform measurement, the impact of a recent report on YouTube’s advertising practices, the ongoing waste in programmatic advertising, and his personal connection to Ukraine’s tech industry.

Morgan initiates the conversation by addressing the lack of transparency in streaming advertising, particularly within connected TV (CTV). He attributes this opacity to the dynamics of supply and demand. The scarcity of supply in CTV advertising, compounded by ad-free streaming and minimal ad presence in other streams, has led to mislabeling and subpar content entering the supply chain. This has caused concerns among publishers about show-level transparency and overall quality of content. Morgan acknowledges that the market will eventually reset, but stresses the urgent need to address these issues.

The discussion then shifts to the challenge of cross-platform measurement, a longstanding concern in the industry. Morgan acknowledges that progress has been made in this area, but he points out that there’s still a significant gap between what buyers expect and the current capabilities. He highlights the discrepancies between linear and digital buyers, as well as the presence of multiple currencies, which create confusion. His perspective underscores the need for more standardized and calibrated cross-channel measurement systems.

When asked about a recent report on YouTube’s advertising practices, Morgan highlights that the issues raised in the report are not limited to Google alone; they are reflective of industry-wide problems. He emphasizes that self-registration of inventory leads to policing challenges, advocating for a shift toward a stricter whitelist approach. He also raises concerns about ad servers’ impact on analytics reports and pricing optimization, which can distort market dynamics.

The conversation then turns to programmatic advertising waste, with Morgan drawing parallels between this issue and the previous ones discussed. He references the AMA’s findings, which revealed excessive campaign traffic to a vast number of sites. He underscores the significance of a white list approach over a black list, and stresses the dangers of pollution within the open Internet concept.

Towards the end of the interview, Morgan opens up about his involvement in the Ukrainian tech industry. He emphasizes his connection to Ukraine’s development work and the critical role the tech industry has played. He describes his recent visit to Ukraine and the resilience he witnessed in the face of economic challenges. He encourages the advertising industry to collaborate with Ukrainian tech firms and creative agencies, highlighting the potential for mutually beneficial partnerships.

Dave Morgan’s insights as shared in the interview provide a nuanced and incisive understanding of the intricacies and challenges within the streaming advertising landscape. His commentary reveals a deep awareness of systemic issues, a call for transparency, a demand for standardized measurement practices, and a commitment to international collaboration in addressing shared industry concerns.

We always appreciate the insights from @DaveMorganNYC of @Simulmedia, and were happy he joined us at the #BeetRetreatBerkshires. Special thanks to @Magnite @KERVInteractive & @TransUnion for sponsoring our series: https://t.co/rnxS8QaR7c #crossplatformvideo #tvadvertising pic.twitter.com/ww0GE2M3xG
— Andy Plesser (@Beet_TV) August 16, 2023

STOP LYING: No One Wants Made-for-Advertising Sites in their Media Buys

By

Pesach Lattin

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2023-08-17

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