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Schiller’s Showtime: A Media Maverick’s Insights Unveiled

By
Pesach Lattin
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0

Where the landscape can shift with the wind, one name stands out as a beacon of wisdom and innovation: Scott Schiller. As a seasoned veteran of the media industry, Schiller has been a driving force behind the growth of several prominent media brands.

As Executive Vice President at NBCUniversal and Executive Vice President at Glam Media, where I personally first met him, all those years ago, he demonstrated a flair for strategic thinking and operational execution that left an indelible mark on the industry.

But Scott Schiller’s story does not stop there. He is a man of many talents, but don’t take my word. He has taken on the role of Adjunct Associate Professor at NYU Stern School of Business, where he delves into the profound impact of technology on the entertainment and media business.

As if that weren’t enough, he also serves as an Executive-in-Residence at Progress Partners, a technology-focused investment bank, advising companies on how to thrive in the ever-evolving digital landscape. As a senior media advisor, he works closely with companies to drive growth through well-articulated go-to-market business strategies and operational execution.

As we sat down with the media maverick himself, it quickly became evident that Schiller’s sharp wit and encyclopedic knowledge of the industry were a match made in heaven. We had wanted this interview for a while. Why? He can effortlessly traverse the complexities of digital media, technology, data, and monetization while vividly portraying the future of advertising and media consumption. I only wish I had asked more and better questions.

In our first tête-à-tête, we explored Schiller’s insights into the evolution of technology and its impact on the media industry.

“Technological innovation is the catalyst for change,” Schiller remarked with a knowing smile. “In the entertainment and media business, we’ve witnessed how technology has consistently unlocked new consumer behaviors since the dawn of media. The problem, however, is that our industry often moves at the speed of a snail on vacation. We saw it with the advent of streaming, from the Napster days to YouTube. Ever tried doing something different, and people around you are like, ‘Wow, why are you doing that? Can you say ‘streaming video’?”

When it comes to pivoting and transforming business models, Schiller is no stranger to the challenges that lie ahead. He pointed out that business model innovation is often hindered by the tug-of-war between current models and future growth scenarios. He has suggested pacing the rollout of new ideas and growth plans as demand scales, using the examples of traditional TV media companies grappling with declining linear viewership, while successful streaming entities strike a delicate balance between subscriptions and advertising.

Schiller’s insight into the pace of innovation within the media industry is a testament to his keen observation and experience. It is a landscape where the struggle between tradition and progress often determines the trajectory of success. “Business model innovation is a delicate dance,” Schiller quipped. “Companies find themselves torn between clinging to current models, even if they’re on the decline, and envisioning ambitious growth scenarios. It’s like walking on a tightrope without a safety net!”

As one of the co-founders of the Interactive Advertising Bureau (IAB), Schiller shared the motivation behind establishing this crucial initiative and the impact it has had on the industry. “The IAB was born out of a vision shared by a group of industry colleagues who foresaw the future business opportunities at the intersection of content, technology, and data,” he recounted. “We provided a solid foundation of common nomenclature, standards, and third-party validation of digital media’s value. Today, the IAB is a powerhouse representing the breadth and depth of the digital ecosystem.”

With the rise of Connected TV (CTV) and the increasing number of cord-cutters, we couldn’t resist delving into Schiller’s profound insights. “When someone says ‘CTV,’ I envision digitally delivered video compared to linear,” he shared. “Consumers now have the freedom to pick content and watch it at their convenience. Linear TV is becoming as antiquated as a telegram in the digital age!” Consumers pick content and watch it most conveniently. They don’t say, ‘Hey, I want to watch some linear TV!'”

Offering advice to brands hesitant about embracing CTV, Schiller’s words carried the weight of a seasoned sage. “Digitally delivered television opens doors to younger, more affluent audiences,” he affirmed. “Flexibility is key. Embrace the opportunities and realize that measurement and currency models may have their pros and cons.

Schiller’s expertise in CTV advertising technology emerged like a magician revealing a well-guarded secret. “The growing importance of first-party data and identity in transforming the TV advertising business is a game-changer,” he explained with enthusiasm. “Marketers now have the power to optimize their media spend with precision and measurability. Networks can secure premium rates for more targeted inventory. It’s a feast of opportunity!”

As our conversation delved deeper into the world of Connected TV (CTV), Scott Schiller’s enthusiasm for the topic was contagious. With a spark in his eye, he elaborated on how CTV can be a results-based option with conversion marketing, redefining the traditional metrics of audience reach.

“The TV advertising ecosystem is undergoing a profound transformation,” Schiller asserted, leaning in with fervor. “Gone are the days of one annual ‘upfront discussion’ where holding companies drove price and volume negotiations. We’re now moving towards year-round, flexible marketer-driven solutions and programs that measure tangible business outcomes in-store and online.”

In the ever-evolving media landscape, Schiller highlighted that the key to success lies in embracing innovation and quantifiable results. “Every day brings innovations and opportunities to reach and measure consumer engagement and purchase in video across multiple platforms,” he exclaimed. “From TikTok, Snap, to YouTube, the possibilities are boundless!”

However, one aspect that truly captured Schiller’s excitement was the emergence of Shoppable TV – a game-changer that could potentially explode in the years ahead. His eyes lit up as he continued, “Shoppable TV is like a revelation! Companies such as Kerv are paving the way for mainstream media to enable shopping during your favorite TV shows. Just imagine, Black Friday 2023’s NFL live football game with the Miami Dolphins versus the NY Jets, live on Amazon Prime, transforming into a consumer’s (and the entertainment industry’s) wake-up call to a broader opportunity.”

Schiller’s forward-thinking approach shone through as he emphasized that Shoppable TV opens new avenues for marketers to drive meaningful customer actions. The seamless integration of e-commerce into digital video is a game-changer for brands seeking to connect with consumers on a deeper level. With this technological leap, the lines between content and commerce are blurring, and marketers can leverage this convergence to create engaging, interactive experiences that drive immediate actions.

As he leaned back in his chair, the room buzzing with excitement, Schiller summed it up succinctly, “The marriage of CTV and conversion marketing is a match made in media heaven! We now have the tools to quantify results for marketers and measure outcomes like never before. It’s no longer just about reaching an audience but about connecting with them in ways that lead to tangible business impact.”

Go to Part 2 of our in-depth profile on Scott Schiller, where we discuss the convergence of digital and linear TV, the challenges faced by media companies in the current landscape, and the secrets to his enduring success as a media and technology industry leader. From co-founding the Interactive Advertising Bureau to mentoring and developing the next generation of talent, Schiller’s journey is one of passion, innovation, and unyielding dedication to the ever-evolving world of media and technology.

Partnerships Unleashed: Darby Sieben’s Secrets to Creating Value

By
Pesach Lattin
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0

Darby Sieben is a prominent figure in the marketing and advertising industry, currently serving as the Chief Product Officer at Unbounce. With a strong background in digital transformation and a keen interest in leveraging AI technologies, Sieben has played a significant role in shaping the success of various companies throughout his career.

Before joining Unbounce in June 2022, Sieben led RBC Ampli Inc., a consumer-focused cashback application, as part of the Royal Bank of Canada. His leadership helped transform the company into what is now known as Ampli by Avion Rewards. Prior to his work at RBC, Sieben spearheaded the digital transformation of Yellow Pages Group in Canada. Under his guidance, Yellow Pages successfully transitioned from a print directory to become one of Canada’s leading digital sellers of websites, search, and digital advertising, with a focus on the SMB (small and medium-sized business) segment.

Sieben’s decision to join Unbounce was motivated by several factors. First and foremost, Unbounce is widely recognized as an iconic brand in the landing page space. Additionally, as Sieben delved deeper into the company’s vision and dedication to helping marketers, he became increasingly excited about their use of data and AI to build innovative products.

Unbounce’s core mission has always been to empower marketers with tools that drive better performance. They believe that dedicated landing pages can outperform static websites, and their track record over the years has proven this to be true. The company has embraced AI technology and has introduced AI-powered products like Smart Traffic and Smart Builder to further enhance their offerings. With over 2 billion data points on conversions, Unbounce is uniquely positioned to provide valuable insights, benchmarking, and recommendations to its clients, giving them a competitive advantage in the market.

When asked about the impact of AI on modern marketing and advertising operations, Sieben emphasized its potential to revolutionize various aspects of the industry. From ideation and content creation to performance optimization and in-depth reporting, AI has the power to drive significant improvements across the board. Sieben encourages marketers to embrace AI tools and stay ahead of the curve, as it is inevitable that AI will play a crucial role in shaping the future of marketing.

For B2B marketing teams looking to implement AI-powered tools for the first time, Sieben suggests a few best practices. First, it is important to clearly define the objectives and problems the tools aim to solve. This will help cut through the noise and focus on the tools that align with specific needs. Additionally, teams should consider whether they require horizontal or vertically focused tools, depending on their specific use cases. Lastly, Sieben emphasizes the importance of actually using the AI tools and gaining firsthand experience, as they can provide a competitive advantage and help marketers excel in their roles.

Addressing the “AI will take your job” debate, Sieben believes that AI will not replace marketers but rather change the nature of their work. While AI can automate certain tasks and accelerate processes, there will always be a need for human marketers to strategize, execute complex problems, and make critical decisions. The key lies in leveraging AI as a tool to enhance performance and productivity, allowing marketers to focus on higher-value activities.

Beyond his expertise in marketing and partnerships, Sieben also shares valuable insights on building impactful partnerships. He views partnerships as opportunities to create value for all stakeholders involved and stresses the importance of thoroughly understanding the finance, IT, legal, and operations aspects of the partnership. By being well-versed in these areas, marketers can extract the most value from partnerships and navigate the complexities of executing successful deals.

In conclusion, Darby Sieben’s career journey has been marked by a deep understanding of digital transformation, AI technology, and strategic partnerships. As the Chief Product Officer at Unbounce, he continues to drive the company’s mission of empowering marketers through AI-powered products and data-driven insights. His expertise and insights make him a respected figure in the marketing and advertising industry, and his dedication to staying at the forefront of emerging technologies ensures that Unbounce remains a leader in the field.

In addition to his roles and accomplishments, Darby Sieben has always been passionate about staying ahead of the curve and driving innovation in the marketing and advertising industry. He believes that continuous learning and adaptation are crucial in an ever-evolving digital landscape.

Sieben recognizes the importance of staying connected with customers and understanding their needs firsthand. He encourages marketers to spend time on the front lines, engaging with customers, vendors, and stakeholders. By actively listening and having focused conversations, marketers can gain valuable insights into consumer behavior and make informed decisions that drive their businesses forward.

Another key aspect of Sieben’s approach to successful partnerships is effective communication. He emphasizes the need to tailor communications to specific stakeholders and keep them concise and to the point. Leading with the conclusion and focusing on the “why” rather than the “how” can help stakeholders understand the value proposition and facilitate smoother decision-making processes. Additionally, Sieben highlights the importance of pre-selling at every stage of a deal, ensuring that all stakeholders are aligned and any potential surprises are mitigated.

Sieben’s expertise extends beyond marketing and partnerships. He is well-versed in the financial aspects of business, with a deep understanding of reading financial statements, financial modeling, and the implications for companies and their partners. This knowledge allows him to extract maximum value for stakeholders and make informed decisions based on comprehensive financial insights.

With his diverse background and experience, Sieben has established himself as a thought leader and a trusted advisor in the industry. His insights and recommendations have helped numerous businesses navigate the complexities of partnerships, digital transformation, and AI integration. He continues to contribute to the industry through speaking engagements, articles, and mentoring aspiring marketers and entrepreneurs.

As technology continues to advance and shape the marketing and advertising landscape, Darby Sieben remains at the forefront of innovation, driving the adoption of AI-powered tools and strategies. He firmly believes that AI is not a threat to marketers’ jobs but rather an enabler that allows them to focus on higher-level, strategic initiatives. By embracing AI technologies and leveraging them effectively, marketers can enhance their productivity, deliver better results, and create impactful campaigns.

Darby Sieben’s career and contributions serve as an inspiration to marketers and industry professionals worldwide. With his wealth of experience, deep understanding of partnerships, and commitment to innovation, he continues to make a lasting impact on the marketing and advertising industry, driving businesses towards success in the digital age.

Unleashing the Power of Words: Nancy Coleman’s Journey to Comms Greatness

By
Pesach Lattin
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0

Nancy Coleman is an accomplished professional with over 25 years of experience in integrated communications, PR, and marketing roles. She has held senior leadership positions in various companies, including her current role as the Senior Vice President of Corporate Communications at DigitalOcean, a purpose-driven organization in the technology sector.

Before joining DigitalOcean in April, Nancy served as the SVP of Corporate Communications at Skillsoft, a leading SaaS company specializing in corporate digital learning. In that role, she oversaw corporate communications, media planning, social and digital media, and corporate social responsibility initiatives. Prior to Skillsoft, Nancy held the position of Chief Marketing and Communications Officer at Maxar Technologies, a prominent global provider of advanced space technology solutions for commercial and government markets.

Throughout her career, Nancy has been dedicated to building and retaining brand equity, guiding organizations through periods of change, and executing effective communication strategies that enhance visibility, awareness, and employee engagement. She has worked with several publicly-traded technology companies, including DigitalGlobe and GeoEye, helping them establish and reinforce their brand presence in the market.

At DigitalOcean, Nancy is focused on amplifying the organization’s purpose-driven story and ensuring it reaches key audiences. She is responsible for overseeing internal and external communications, collaborating closely with the executive team, and expanding DigitalOcean’s social impact program. By leveraging her extensive experience in communications, Nancy aims to bring DigitalOcean’s vision, values, and achievements to the forefront, driving positive engagement and furthering the company’s social responsibility commitments.

In her approach to B2B corporate communications, Nancy emphasizes five fundamental aspects that she believes many B2B brands overlook. First and foremost, she emphasizes the importance of clear and consistent messaging across all communication channels. Maintaining a cohesive brand message builds trust and recognition among the target audience.

Nancy also highlights the significance of strengthening internal communications and alignment, especially in the context of remote and distributed workforces. She recognizes that transparent and frequent communication is essential for helping employees feel connected, motivated, and aligned with the company’s vision and priorities. This alignment not only boosts employee engagement but also contributes to a more consistent customer experience.

Simplifying complex information and tailoring it to the specific needs of different audiences is another area Nancy emphasizes. Given the overwhelming amount of information people encounter daily, effective communicators understand how to translate messages and meet audiences where they are.

Preparedness for crises is a crucial aspect that Nancy stresses. Drawing from her own experiences, she acknowledges the importance of having a robust crisis communication plan in place to effectively manage and mitigate potential crises. Such preparedness minimizes risks to a brand’s reputation and facilitates prompt decision-making during challenging times.

Finally, Nancy emphasizes the significance of continuous evaluation and adaptation. Regularly assessing the effectiveness of communication strategies, adapting to market changes, and optimizing approaches ensure long-term success. While measuring the return on investment (ROI) of communications programs can be challenging, Nancy encourages the use of available tools designed to align communications with business outcomes.

For marketers who are involved in communication-related tasks, Nancy suggests creating more unified messaging and processes with the rest of the brand’s marketing team and campaigns. She advises working from a shared playbook that encompasses a foundational brand strategy, brand guidelines, and messaging architecture. By remaining adaptable to external and internal factors while prioritizing the brand’s purpose, promise, and values, marketers can create stories that resonate with their target audience and differentiate their brand in a crowded market.

To newcomers in similar roles, Nancy offers several tips and thoughts. She advises them to begin by examining the brand’s mission and values while actively listening to the team and customers. Genuine feedback from these stakeholders provides valuable insights into the brand’s perception in the market. Nancy also emphasizes the importance of understanding principles and best practices for change communication, given the rapid pace of change in the tech industry. Effectively communicating changes and earning buy-in from employees helps build and maintain trust, a crucial element in any successful organization.

Moreover, Nancy highlights the growing importance of corporate social responsibility (CSR) in today’s business landscape. Demonstrating a commitment to being a responsible business is no longer optional, as it is expected by employees, customers, and investors alike. Nancy recommends including CSR as part of the corporate communications program and overall brand narrative. At DigitalOcean, she is actively engaged with the Social Impact team, working to support initiatives with deserving non-profit organizations worldwide, in line with DigitalOcean’s Pledge 1% commitment.

Nancy Coleman’s extensive experience, leadership roles, and dedication to purpose-driven communications make her a valuable asset to DigitalOcean. With her strategic insights and focus on clear messaging, employee alignment, simplicity, crisis preparedness, and continuous evaluation, Nancy strives to elevate DigitalOcean’s brand presence, engage key stakeholders, and drive positive social impact.

Jason Emanis Appointed as Chief Marketing Officer of GAIN: Fueling Growth in the Travel and Hospitality Industry

By
Pesach Lattin
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0

Growth Advisors International Network (GAIN), a renowned global travel, hospitality technology, and innovation advisory firm, recently announced the appointment of Jason Emanis as its Chief Marketing Officer (CMO), effective July 1, 2023. With a wealth of experience in marketing and a proven track record of driving business growth, Jason brings exceptional expertise to his new role. This in-depth article will explore Jason Emanis’s background, his remarkable accomplishments at his previous position, and the strategic vision he is expected to bring to GAIN as the new CMO.

Jason Emanis has established himself as a highly skilled marketing professional with an impressive career spanning multiple industries. Prior to joining GAIN, he served as the Vice President of Marketing at Sceptre Hospitality Resources (SHR), where he consistently demonstrated his ability to deliver exceptional business results, drive team performance, and lead successful marketing initiatives.

During Jason’s tenure as Vice President of Marketing at Sceptre Hospitality Resources, the company experienced a period of explosive growth between 2016 and their record-breaking year in 2019. This remarkable period witnessed a staggering 190% rise in revenue, showcasing Jason’s strategic vision, creativity, and commitment to excellence.

Under Jason’s leadership, Sceptre Hospitality Resources implemented a series of innovative marketing strategies that contributed significantly to the company’s success. He was instrumental in developing and executing comprehensive marketing campaigns that effectively positioned the company as a leading provider of hospitality technology solutions. By leveraging his expertise in digital marketing, branding, and market analysis, Jason successfully enhanced the company’s visibility and reputation, attracting a substantial number of new clients and driving revenue growth.

Jason’s ability to identify market trends and consumer preferences enabled Sceptre Hospitality Resources to stay ahead of the competition. By implementing cutting-edge technologies and refining their customer acquisition strategies, the company was able to expand its market share and establish a solid foundation for sustainable growth.

As the newly appointed CMO of GAIN, Jason Emanis will play a pivotal role in shaping and implementing the company’s marketing strategies to further strengthen its position in the travel and hospitality industry. Given his extensive experience in the field, Jason is well-positioned to guide GAIN towards achieving its growth objectives and maintaining its reputation as a global leader in advisory services.

One of Jason’s key responsibilities will be overseeing GAIN’s marketing advisory professional services platform and leading the marketing team responsible for servicing GAIN’s global travel and hospitality clients. With his deep understanding of market dynamics and his strategic mindset, Jason will be able to identify untapped opportunities, devise effective marketing campaigns, and provide invaluable insights to help clients thrive in an ever-evolving industry.

Furthermore, Jason’s role as CMO will require him to collaborate closely with other departments within GAIN, including the technology and innovation teams. By fostering cross-functional cooperation, he will be able to drive synergies and ensure that marketing initiatives align with the company’s broader strategic objectives.

The appointment of Jason Emanis as Chief Marketing Officer of GAIN marks an important milestone for the company. With his exceptional marketing expertise and demonstrated success at Sceptre Hospitality Resources, Jason is well-equipped to lead GAIN’s marketing efforts and contribute to its continued growth and success in the travel and hospitality industry.

Is Netflix is Building is Own Advertising Server?

By
Pesach Lattin
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0

Netflix, the streaming giant that revolutionized the way we consume entertainment, is apparently considering a major shake-up in its advertising strategy. After partnering with Microsoft for its commercial-based subscription tier, Netflix is now contemplating building its own in-house adtech system for streaming advertising. Yes, you heard that right—Netflix wants to dive headfirst into the world of ads. And while it may seem like an unusual move for the platform that became famous for ad-free streaming, there might be some method to this madness.

The current partnership with Microsoft, which provides the technology behind Netflix’s commercials, is set to run for two years. But rumors suggest that Netflix might be eyeing a different path once the agreement expires. According to insiders, the streaming giant is exploring the option of building its own ad infrastructure or even acquiring Microsoft’s existing technology outright. It seems Netflix is determined to take control of its advertising destiny.

To understand Netflix’s motivation behind this potential shift, we need to look at its competition. With the rise of ad-supported streaming services like Disney+, Max, and Peacock, Netflix is feeling the pressure to keep up. It has been in talks with ad buyers to experiment with “episodic” campaigns, where ads are presented in a series of sequential spots rather than repeated ad nauseam. Such campaigns require direct relationships with consumers and advertisers, necessitating an in-house solution. Netflix wants to play in the big leagues and give its competitors a run for their money.

But why is Netflix considering parting ways with Microsoft? Well, let’s just say that Microsoft’s ad sales prowess in the connected TV (CTV) space is less than impressive. Even Xandr, the platform Microsoft acquired, is struggling to establish itself in CTV. Netflix, being the ambitious disruptor it is, wants to explore other options that align better with its vision and objectives.

So, what are the alternatives for Netflix? One possibility is to license or acquire smaller players in the adtech space, such as Magnite Streaming, Innovid, Publica, or Smartclip. These companies work with CTV publishers but might not offer the scale that Netflix requires. Another option is to acquire a smaller AVOD (ad-supported video on demand) or FAST (free ad-supported streaming TV) service with existing in-house adtech solutions. Fubo TV and Tubi are potential candidates, having built their own ad-serving capabilities over the years.

However, Netflix’s choices are somewhat limited. Most major AVOD streaming services have already acquired the necessary tools to support ads. Netflix finds itself playing catch-up in this regard. If it decides to build its own system, it can start from scratch or use existing frameworks like Kevel to expedite the process. With its substantial revenue of $30 billion per year, Netflix certainly has the resources to pursue this route.

But building an in-house tech stack is no easy feat. It requires expertise, time, and seamless integration with existing infrastructure. Netflix needs to assemble a talented team and gain enough experience to navigate the complexities of the advertising world. It’s a long journey, and it may take more time than initially expected.

While the ultimate outcome of Netflix’s adtech deliberations is uncertain, it’s clear that the company is serious about expanding into the ads business. The hiring of Jon Whitticom, a former Comcast executive, as an advertising platform advisor underscores Netflix’s commitment to exploring its options. With its massive subscriber base and unparalleled original content, Netflix has the potential to become a major player in the advertising world. And let’s face it, they could use the additional revenue to fund those extravagant production budgets.

Netflix’s foray into advertising hasn’t been without its challenges. When the commercial-based subscription tier was first introduced, media buyers were taken aback by the high CPM (cost per thousand impressions) prices quoted by Netflix. It was a rocky start, but the company has been quick to learn from its initial missteps and course-correct.

One thing is clear: Netflix is determined to disrupt the advertising landscape, just as it did with traditional television. By exploring options beyond its Microsoft partnership, the streaming giant is positioning itself to take control of its advertising destiny. Whether it chooses to build its own ad infrastructure, acquire existing technology, or form strategic partnerships, Netflix wants to be the master of its own advertising domain.

However, Netflix’s ambitions shouldn’t come as a surprise. The company has always been known for its bold moves and willingness to challenge the status quo. From revolutionizing binge-watching to producing award-winning original content, Netflix has shown time and time again that it’s not afraid to take risks.

If Netflix successfully builds its own in-house system for advertising, it could revolutionize the way ads are delivered and consumed. With its vast user base and sophisticated recommendation algorithms, Netflix has the potential to create personalized and targeted ad experiences that truly resonate with viewers. Gone would be the days of generic, repetitive ads. Instead, we could see innovative “episodic” campaigns that tell engaging stories and captivate audiences.

Of course, there will always be those who lament the introduction of ads on Netflix. After all, one of the platform’s biggest selling points has been its ad-free experience. But let’s not forget that ads have been a staple of television and other streaming services for decades. If Netflix can strike the right balance between ads and content, it has the opportunity to offer a unique and compelling advertising experience that sets it apart from the competition.

So, will Netflix succeed in building its own in-house advertising system? Only time will tell. But one thing is certain: Netflix is not content with resting on its laurels. It’s constantly pushing boundaries and exploring new avenues for growth. And whether you love them or hate them, you can’t deny that Netflix knows how to make a splash. So, brace yourself for the next chapter in the Netflix revolution—the era of Netflix ads.

The Right Way to Measure Media

By
Daniel Aks
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0

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” The quote, from retail magnate and marketing pioneer John Wanamaker, is over 100 years old.

 Despite digital media’s promise of accountability, many retailers still struggle with this attribution conundrum.

The goal of understanding how marketing and advertising resources are consumed and determining the return on those efforts is necessary to optimizing the marketing mix. Attribution model after attribution model is developed, with endless amounts of touch point data attempting to determine the magic ingredients that drove consumer behavior. Using the wrong models and approaches can lead to exactly the wrong conclusions, thereby being precisely wrong rather than vaguely right. Many are waiting for the perfect model. The situation seems to closely parallel Waiting for Godot, and for those who implore more rationality in media measurement, bringing a rope in the final scene echo as well!

We’ve written this paper because we’ve witnessed first-hand the misleading results of ham-fisted and sometimes lazy models. At Undertone, we offer unique High Impact digital circulars, recipe ads, and more, all personalized through a slew of AI- driven selected variables that drive sales lifts leading to 15x to 19x ROAS. These state-of-the-art products can stymie old and tired media models. This is because, in some retailer attribution models, high-impact display is treated with the same modeling considerations as boring, small, and entirely missable standard display ads. 

Of course, this is plain wrong, yields misleading results, and is hurtful to retailer aspirations.
 

This note attempts to better explain what drives retail store visits, and perhaps a simpler and more effective means of being largely right in motivating people to make a trip to the local grocer, department, or specialty store.

Let’s review first the slew of issues in attribution when using digital channels to encourage physical store visits:

1. Last Touch importance. It’s hard to believe that some modelers still give credence to this model, dismissing or trivializing all prior upper/mid funnel activity that influenced the final touchpoint. Last touchpoints are the results of many initiatives to stimulate desire and exploration. Perhaps useful for very shorter-term, one-time campaigns and products, at best. One-time inventory liquidation might be a good use. Sadly, last touch attribution is the default positioning for most tools, even Google Analytics. It is just preposterous to consider all marketing spend can be attributed to the last link in a strategic chain.

2. First Touch models which believe that simple PPC ads suddenly drive consumer desire! First touchpoints may be relevant for driving to a specific supplier, but desire was created long before. This model completely ignores the effects of other consumer interactions after the initial touchpoint.

3. Multi-Touch, with all its various alternatives (linear, non-direct, customized, time decay, U-shaped)1 modeling has the appealing promise of optimizing media to drive consumers down the purchase funnel. Multi-Touch attribution (MTA) is directionally much better in that at least this modeling attempts to understand that many factors drive behavior, and that multichannel marketing is a proven technique. Still, in the attempt to be precisely wrong, multi-touch models are assigned percentage effectiveness in many cases. Those percentages are highly critical variables and are certainly precise, but almost universally are inaccurate. 

For example, marketers will develop percentages for video and display, attributing more sales to a video campaign. But what happens when hybrid ad units are used, or dynamic creative is installed, or if both display and video are intertwined strategically? MTA solutions are limited to marketing channels where direct response can be tracked via touch points and consumer identifiers.

In addition, MTA solutions are quickly becoming impossible to implement with the degradation of current consumer identification solutions. Rules based MTA solutions use qualitative judgment and largely touchpoints to determine which channel receives credit, ignoring the full impact of media exposure. Because of the requirements to deploy MTA, media providers often focus on what works to drive strong MTA results, chasing bottom of the funnel touches, reach and/or high frequency, which counterintuitively might not be what is optimal to drive sales. MTA is thus a flawed methodology:


● Association of a sale to a single channel ignores the full value of media in favor of operational convenience. The 99% of exposures that don’t generate touchpoints are significantly undervalued or not valued at all.
● Due to different delivery frequencies, MTA often obscures the value of high impact media formats such as video and rich media.
● Many MTA solutions are not incremental and thus inflate the performance of media by attributing sales that would have happened without media to various marketing efforts.
  
 The final nail in the MTA coffin is the loss of consumer ID solutions as the global privacy movement gains steam. MTA solutions will not be able to track funnel behavior and have large gaps in data collection. Lost signals include, for example:


● Publisher 1st party opt-in requirements
● App Transparency Tracking (ATT) – Apple’s app tracking initiative
● Cookie deprecation (Google’s back-and-forth threats to shut down cookies on Chrome)
● Closed social platforms
For digital marketers, the issue of media effectiveness using newer methods is not just difficult, but getting harder as ID deprecation further scrambles the picture.


INTRODUCING “INCREMENTAL RETURN ON AD SALES, OR iROAS”
It is time for a bit of “back to the future”, and shift from models that try to capture everything happening all at once, andinstead do the hard work of determining the incremental sales driven by discrete marketing endeavors. We call this the “iROAS” model. Determining incremental sales relies on the hard work of TEST and CONTROL. This method may not appeal as something new and sexy; it is as old as the hills. Because each market has some set of unique aspects around competition, income, weather, time of day, and many more exogenous variables, there are no complex yet simultaneously simple-minded holistic models that can predict local retail campaign outcomes. The notion of “iROAS” is to do the painstaking work of holding all media constant market by market, then creating test and control vehicles to isolate the single change in media that can explain sales, traffic or other variable changes.
 

A NEW APPROACH TO MEASUREMENT
At Undertone, we work closely with Incrementlogy, Inc. to create improved approaches to using media to drive incremental
sales. The tents of Incrementology’s approach are:
● Use causation to isolate the full value of media exposure, rather than just touchpoints.
● Deploy machine learning to quickly measure each media channel and calibrate the brand’s entire media portfolio to achieve their goals and implement through an intuitive platform empowers brands to test, measure, and action often to ensure performance.
● Do not depend on consumer identification to measure media value, rather using it for granular insights if/when it is available.

 USE POWERFUL MACHINE LEARNING TO MODEL AND SIMULATE OUTCOMES
● Both Channel Measurement & Portfolio Calibration – Use machine learning to quickly measure the full value of individual media channels, as well as providing calibration recommendations for media weight across a brand’s media portfolio.
● Speed to Market – Machine learning replaces the expensive and lengthy integration of solutions such as MTA and media mix modeling (MMM).
● Comparable Metrics Across Channels – Different channels have different performance indicators. Search, display, video and social all have different KPIs. Causal measurement provides the brand with comparable metrics across channels.
● Measurement of Closed Channels – While closed social channels often prevent the identification of consumers to outside media providers, most allow for the use of geography to test for causality. This is something MTA solutions simply cannot provide.


FIND CAUSALITY
● Use machine learning to quickly identify store-level markets (or other geography) with similar sales to identify both test and control markets.
● Causal inference models estimate expected sales in the test markets before the media is launched.
● After media campaigns launch sales in the test and control markets are used to simulate what sales in the test markets would have been without marketing.
● This method does not require consumer level tracking or complex media integration.
CALIBRATE CHANNELS
● Employ machine learning to determine the best calibration or mix of media channels to drive incremental sales.
● Channel calibration can be fine-tuned with inputs from Incrementology’s Incremental Sales Analysis and/or other individual campaign or channel measurement results.
● Using advanced regression techniques and probability distribution methods both the optimal weight and allocation of media channels are determined.
● These same models also provide insight on the effects of each media format across the purchase funnel.


Media measurement and attribution is a critical tool for retailers, yet deployed in ways that drive the wrong conclusions. It is possible to be both directionally accurate and precise when shifting from naive media measurement effectiveness models to models that focus on incremental sales, executed by identifying causality with advanced machine learning and regression models. The hard work this entails may not sound exciting, but it is what must be done.
 

Additional Authors:

Brian Pozesky is the Co-Founder and President of Incrementology. He us an incremental measurement pioneer with 20+ years’ experience building and scaling start-ups. Builder of data science, operations, product and programmatic media groups. Developer and designer of business intelligence tools and large-scale data systems. Holder of patented creative optimization and testing algorithms.


Paul H. Van Wert is the Co-Founder and is the leader of Incrementology’s analytics and Products Marketing capabilities. He is a measurement expert and performance advertising innovator. Experienced in developing retail media networks, leading agile development teams and managing analytics organizations. Product designer at multiple high-growth start-ups using cutting-edge data & machine learning technologies to deliver strategic insights and accurate measurement of marketing investments.

Unraveling the Effects of MediaMath’s Bankruptcy on the Advertising Ecosystem

By
Pesach Lattin
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0

The recent Chapter 11 bankruptcy filing of MediaMath, once celebrated as a leading player in programmatic advertising, has sent shockwaves throughout the advertising ecosystem. With substantial debts owed to a vast array of ad tech businesses and creditors, the collapse of MediaMath is expected to have profound implications for various stakeholders within the industry. This comprehensive article delves into the financial turmoil faced by MediaMath, the extent of its creditor obligations, and the far-reaching effects of its bankruptcy on the advertising ecosystem.

MediaMath’s bankruptcy filing has laid bare a distressing financial landscape, as the company grapples with significant debts owed to a multitude of creditors. The outstanding debts range from hundreds of thousands to millions of dollars, with a comprehensive list of major ad tech businesses finding themselves as creditors. Notably, some of the highest creditors include industry giants such as Magnite, owed a staggering $12,585,259.99, followed by Pubmatic and Sonobi, each owed $5,307,213.23. Other major creditors on the list include Xandr ($4,014,169.96), Adswizz ($3,413,217.97), Smart Adserver ($3,371,083.93), and TripleLift ($2,792,438.13), among many others.

The substantial debts owed by MediaMath have raised concerns about the financial stability of the affected ad tech businesses. The inability to recover these significant amounts could potentially strain the operations and liquidity of the creditors, which may, in turn, trigger a ripple effect across the ecosystem. Smaller ad tech companies, in particular, could face severe challenges, as they may lack the financial cushion to absorb such substantial losses. The ecosystem as a whole may experience a wave of reevaluations and adjustments as the industry recalibrates its financial relationships.

MediaMath’s sudden closure has resulted in immediate disruption for its clients, as campaigns were abruptly halted and access to the platform was abruptly terminated. Advertisers and agencies that relied on MediaMath’s services have been scrambling to find alternative partners to ensure the continuity of their campaigns. While some clients have managed to transition smoothly to other demand-side platforms (DSPs), the unexpected situation has underscored the importance of having contingency plans and diversifying partnerships to mitigate risks. The disruption caused by MediaMath’s closure has not only affected its immediate clients but has also reverberated across the advertising value chain.

The financial struggles of MediaMath did not materialize overnight but had been brewing for several years. The ousting of founder Joe Zawadzki as CEO and subsequent recapitalization by Searchlight Capital Partners failed to stabilize the company’s financial position. The recapitalization, which resulted in the equity of Series A and B investors being wiped out, added another layer of complexity to MediaMath’s financial woes. The company’s inability to find a suitable acquirer or strategic partner further compounded its downfall. Industry insiders have pointed out that MediaMath’s financial issues were exacerbated by its failure to adapt to evolving market dynamics and technology trends.

Several industry experts have shared their insights and reflections on MediaMath’s bankruptcy, shedding light on the larger implications for the advertising ecosystem:

Shiv Gupta of U of Digital highlighted the irony of MediaMath’s situation, noting that the company had seemingly met industry demands for transparency, APIs, and agnosticism. Despite these efforts, MediaMath’s financial troubles persisted.

Another commentator emphasized the critical role of machine learning (ML) in the future of ad tech and thedependence on tech giants like Google and Meta, who have the resources to delve deep into ML. The commentator expressed concern that while industry executives proudly speak about the potential of genAI, which leverages ML, the actual value derived from it remains minimal.

Jeremy Gold drew attention to the impact of Google’s dominance and its intentional operation at a loss to eliminate competitors. This strategy, aimed at cornering the market, invites calls for oversight and regulation. Gold argued that it might be too late to address this issue effectively.

As MediaMath undergoes bankruptcy proceedings, the immediate consequence is the loss of over 300 jobs for its employees. Only a small number of individuals will remain to handle basic functions during the process. The type of bankruptcy filed, Chapter 11, offers a chance for reorganization and recovery while paying back creditors, as opposed to liquidating assets entirely.

Given MediaMath’s prominent role in the advertising ecosystem, the void created by its closure will be quickly filled by other DSPs eager to capture its market share. The Trade Desk, Viant, and Google, among others, will likely seek to attract former MediaMath clients and capitalize on the opportunity. Notably, Macy’s, which used MediaMath as its primary DSP, may become a desirable target for other platforms competing to secure this valuable account.

MediaMath’s trajectory, from being hailed as a pioneer of demand-side platforms to facing insolvency, serves as a cautionary tale for the advertising industry. The company’s financial struggles, missed acquisition opportunities, and failure to adapt to shifting market dynamics highlight the challenges of remaining competitive in a rapidly evolving landscape.

The bankruptcy filing and the subsequent redistribution of MediaMath’s clients and resources may result in a reshuffling of market power and relationships within the ecosystem.

Ad tech companies will need to reevaluate their financial strategies, partnerships, and risk management practices to safeguard against potential disruptions caused by the collapse of key players.

MediaMath’s bankruptcy sends shockwaves through the advertising ecosystem, impacting not only its creditors but also clients and industry stakeholders at large. The substantial debts owed to a broad range of ad tech businesses raise concerns about the financial stability of the affected companies.

The immediate disruption faced by MediaMath’s clients highlights the importance of contingency plans and diversification in partnerships within the advertising value chain.

Industry experts’ reflections underscore the need for adaptability and foresight in an industry driven by technological advancements. The closure of MediaMath will undoubtedly create a void that other DSPs will scramble to fill, potentially leading to a reshaping of the market landscape. As the industry reflects on MediaMath’s downfall, it serves as a reminder of the ever-changing nature of the advertising ecosystem and the importance of financial resilience and strategic agility.

Google Responds to Accusations of Video Fraud

By
Pesach Lattin
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0

Well, well, well, it seems like Google’s video ad woes just keep piling up. If you read yesterday our featured article in the newsletter, you’d know that advertisers are now questioning the value they’re getting from Google video ads, thanks to a new report that claims brands have been swimming in a dark pool of low-quality websites instead of basking in the glow of well-lighted YouTube videos. 

If you aren’t paying attention, according to Adalytics, an ad measurement firm, Google may have “misled” advertisers by serving video ads that didn’t meet Google’s own standards. This report has reignited long-standing concerns about digital advertising, including the perennial question of whether anyone even saw the ads in the first place. It’s like the age-old adage: if an ad plays on a spammy website and no one’s around to see it, did it really make an impact?

Naturally, media executives are not thrilled about this revelation. One anonymous executive working for an agency mentioned in the report summed it up perfectly, saying, “All of this suggests that what they’ve done is create an environment where Google makes money and advertisers get ripped off.” Ouch! That’s not exactly the kind of feedback Google was hoping for.

Adalytics found that TrueView ads were playing on sketchy websites with hidden video players and muted autoplaying ads. Not exactly the YouTube experience advertisers were hoping for. Eric Hochberger, co-founder of Mediavine, summed it up well, saying, “TrueView is supposed to be the most valuable video on the web. Advertisers expect that ‘YouTube experience’ when they buy it.” Can’t blame them for wanting what they paid for!

In the aftermath of this report, brands and ad agencies are scrambling to comb through their historical Google video campaigns, searching for any discrepancies. If ads were shown in places they shouldn’t have been or didn’t meet the standards, brands have the right to request refunds from Google. It’s time for the tech giant to pay up for its ad missteps.

But here’s where things get a bit murky. Some brands and agencies are still unsure if they can opt out of running ads on Google Video Partner sites. Google’s response on Twitter clarified that for video action campaigns, brands can work with their account reps to exclude GVP inventory. However, it seems like not everyone fully grasps the intricacies of Google’s ad platform. One anonymous executive from an ad tech firm partnered with YouTube explained, “It’s not that hard to figure out if you’re going to run on YouTube or off YouTube for most advertisers.” Oops, seems like some folks missed the memo.

Google, of course, has its own version of the story. They claim that the report used “unreliable sampling and proxy methodologies” and that the claims about Google Video Partners were “extremely inaccurate.” But hey, it’s hard to trust a response from the very company in question, right?

All in all, this latest Google advertising fiasco is causing quite the stir among advertisers. It’s high time for Google to step up, take responsibility, and address the concerns raised by this report. Advertisers deserve transparency, accountability, and the value they were promised. After all, if they’re paying for actual views, they should get exactly that—views that are worth their weight in digital gold.

The sarcastic remarks from disgruntled industry execs and industry experts highlight the frustration and skepticism surrounding Google’s video ad practices. It’s not surprising to see comments like, “I’ve paid for Google video ads in the past, and really had the feeling that it wasn’t actually being viewed by any humans. So I stopped using it.” Ouch! That’s a damning indictment of Google’s credibility in the eyes of advertisers.

Ruben Schreurs, CPO at media investment consultancy Ebiquity, minced no words when he described the report as a “structural misrepresentation of advertising products at best, and downright fraudulent misleading practices at worst.” These strong words underscore the seriousness of the situation and the potential consequences Google may face if it doesn’t address the concerns raised by advertisers.

While Google has attempted to defend itself by claiming unreliable sampling and inaccurate claims, the fact remains that advertisers are questioning the value they’re getting for their ad spend. The issue of ad fraud and the lack of transparency in the digital advertising ecosystem have plagued the industry for years. It’s high time that Google takes a proactive approach to address these concerns and rebuild trust among its advertising partners.

In the wake of this report, advertisers should take a closer look at their ad campaigns and evaluate the performance of their Google video ads. If discrepancies or questionable placements are identified, they should not hesitate to demand refunds or seek compensation from Google. After all, advertisers deserve to get what they paid for—ads that reach the right audience in a brand-safe environment.

Moving forward, Google needs to prioritize transparency and accountability in its video ad ecosystem. It should provide clearer guidelines and options for advertisers to opt out of running ads on third-party sites if they choose to do so. Moreover, Google must improve its ad placement algorithms and ensure that ads are served in premium, brand-safe environments that align with advertisers’ expectations.

The Google Video Partners scam, as some skeptics have labeled it, needs to be thoroughly investigated and rectified. Advertisers deserve better, and it’s time for Google to step up and deliver on its promises. Only then can it regain the trust and confidence of advertisers, and truly provide a video advertising experience worth investing in. The ball is in Google’s court, and the advertising industry will be closely watching how they respond to this wake-up call.

The Unforced Hybrid: An Intrinsic Motivator Worth Exploring

By
Louise Peddell
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The pandemic has rocked everyone’s world, from the way we live, the way we socialize, to how we think about life itself. Many of us are still dealing with the horrors of lives lost, of which we can never truly recover. For most of us it has drastically changed the way we work, from the where to the how. And although it has been over three years now since the world shut down, the impact it has on our lives continues whether we are aware of it or not.

How Work Has Changed for Most

In the very beginning of the pandemic, the corporate world worked entirely from home. We utilized tools like Zoom and Slack like never before in order to keep the business going and stay connected to one another. Most companies had to either make cuts or furlough a chunk of their people. Some did so out of necessity to survive while others used it as the catalyst to “trim the fat.” The realization of having less people did not always equate to efficiency was a hard lesson learned, particularly if you cut too thin. The 9 to 5 quickly became the 7 to 10, working from the crack of dawn to late at night. The costly effect of burn out soon took hold resulting in regrettable churn. That, coupled with the YOLO (You Only Live Once) philosophy sweeping the workforce by storm, had countless companies losing great talent. We were no exception.

As time passed and the fear of Covid dissipated, most companies forced a hybrid model upon their employees. Some, particularly within the finance and legal sectors, reinstated pre-Covid norms demanding their people come in five days a week: a shock to their employees’ new way of life, no doubt!

How Undertone Charted Its’ Own Course

In such a competitive market, it is crucial to separate yourself from the rest of the pack. Although it was important to understand what our competitors were doing, we were not in the business of mimicking policies just because they were popular mandates from the big wigs who sat in ivory towers far removed from the pulse of their people. Unlike most companies in our space, we listened to our people carefully, empathized with their feelings, and most important, saw the writing on the wall. “Why do we need to go back to the office when we have been more successful these past few years at home than ever before?”, “Why force us to lower our quality of life by traveling into a dangerous city on an even more dangerous public transit system?”,

“We are so much more productive at home”, “We are saving so much money not having to commute,” “We moved to different states during the pandemic,” and so on and so on. All of these sentiments were true and could not be denied with a straight face. The veil had been lifted. The bottom line was we were more successful than we could ever have imagined, and our people were far happier.

It became clear to us very quickly that we couldn’t go back to business as usual. And if we were being truly honest with ourselves, there were some major advantages for the company as well. Significant savings in rent and pantry items could not be denied. Our footprint in one of the

most expensive cities in the world was shrinking. We were finding great talent everywhere in the country because we were no longer handcuffed to a certain geographical radius.

While all this sounded logical, we knew that eventually, people would want and need human interaction with their coworkers. We have always had such an incredible culture at Undertone and the last thing we wanted was to jeopardize that! We understood the risks: less human interaction leads to weaker relationships, which leads to higher attrition. There is also the issue of career development, particularly for the Gen Z population. Heck, the New York Times recently wrote an article based on a working paper from economists at the Federal Reserve Bank of New York, the University of Iowa and Harvard, on how remote workers are likely to pay a hidden professional penalty. The paper basically claimed that while remote work does indeed foster higher productivity, it diminishes the amount of real time feedback, a crucial factor in career development. The theory is that younger people are less likely to learn, improve their skills or get promoted, and therefore, will be more likely to jump ship. This seems very reasonable and makes sense, right? But if this is truly a sound theory, why wasn’t it happening to us? Why were we seeing just the opposite? What was our secret sauce?

So, we asked ourselves how can we create something unique? We wanted to chart our own course and saw this as an excellent opportunity to be, to a degree, pioneers in this area. With that came the birth of our Unforced Hybrid Model; a Work from Anywhere policy that truly tapped into some of the most powerful of motivators: being heard and being valued. We understood how important intrinsic motivators are and used them as our compass. Whenever we introduce a policy or program, we always ask ourselves the following questions: “Will this program foster employee engagement and wellbeing? Will this enhance the employee’s feeling of purpose, of being respected and appreciated? Does the success of this policy rely on trusting our employees and do we have the courage to take that leap of faith?” For us, the answers were a resounding “yes!”

So, what does an Unforced Hybrid Model look like? Our policy allows employees to utilize the office as much or as little as they like. With our headquarters in New York City and shared office spaces around the country, employees can come and go as they please. Apart from the occasional mandatory meetings a few times a year, our employees have the invaluable flexibility of working in a way that works for them.

Don’t get me wrong, this was not a decision made free of reticence. It was never done before and with all new things, there is always an element of risk and gamble. Fortunately, this bet paid off, in fact, we hit the jackpot! Since we introduced this policy back in 2021, we have seen employee satisfaction, productivity and retention go up, climbing higher with each passing year.

The Secret Sauce

A good culture is important in any organization’s survival. A great culture is key in having an Unforced Hybrid Model work. I often hear “Wow, you are all so very close! How do you have such an amazing relationship with your team, especially not working in person with one another on a regular basis? What is your secret sauce?” “Honestly,” I reply with the fear of sounding too sappy, “it’s authentic love and respect for one another.” Nothing works without this critical

ingredient. You must truly care about your team. You must see and treat them as people, not as human resources. Hiring great talent results in building a work family that shares these values. Authenticity can be felt regardless of dimensionality. The best laughs or most heartfelt conversations have occurred on Zoom because the old saying is true: love has no bounds.

But like another great saying, sometimes love is not enough. To retain great talent, you
must develop great talent. Whenever possible, we conduct trainings in person as we find them most effective. We have a robust training program that offers both internal and external sales training, management training, interview training, soft skills training such as time & stress management training, in addition to our Tuition Reimbursement Program where employees can expense up to a certain amount for outside classes that will up their skills or just make them more well-rounded as individuals. We are big believers in giving an employee the ability and the tools to continue to grow, whether in or outside their current field. As a career path can be more of a lattice than a ladder, we encourage cross-pollination with our internal mobility program as well as our big investment in learning and development.

Another essential ingredient is feedback, providing it often and in real-time. Out of sight cannot be out of mind. That is unacceptable. We provide our managers with a minimum guideline of the social and behavioral expectations we have of them. There are so many touchpoints. From daily, to weekly, to monthly, to quarterly to yearly, managers develop a customized plan that best suits the needs of their teams. Some teams need more in person collaboration while others work best on their own; another example of how we don’t force fit a one size fits all approach.

It’s fascinating to see how people actually do come in on a regular basis, not because they have to but because they choose to. It’s purely psychological: if they were forced to come in, they would most likely do so begrudgingly. Some teams enjoy coming in 1-2 times a week while others prefer 3 times a week. Some teams will meet in person only on a quarterly basis due to distance or preference. And that’s ok too. It’s work that works for you. To ensure everyone meets on a company-wide basis, Undertone conducts a yearly offsite Summit where we all get together to strategize and socialize. This is an awesome venue to meet especially the new hires in a fun and relaxed environment.

If you were to speak to every single one of our new hires, they would all say our Work from Anywhere/Unforced Hybrid Policy was a major deciding factor in accepting our offer. When you hear a new sales executive say, “I told my spouse I can’t wait to make loads of money for Undertone because of how they treat their people,” it makes us proud and encourages us to continue on our path. This model, without a doubt, works. But only with the right attitude, the right people and the guts to trust in one another.

Inside the Google Video Ad Scam

By
Pesach Lattin
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0

It’s bad. It’s actually worse than everyone was saying. Google may owe advertisers billions of dollars and face huge lawsuits after scamming advertisers. For years, many people, including myself, have questioned the ecosystem of online advertising, particularly Google’s enormous advertising growth that seems to be backed by junk and scam sites. Now, new research reveals that Google has violated its promised standards when placing video ads on other websites, raising serious concerns about the transparency and integrity of the tech giant’s online ad business.

The Scam Unveiled:

According to Adalytics, a firm that helps brands analyze their online ad placements, Google violates its own standards about 80% of the time when placing video ads on third-party websites through its Google Video Partners program. Advertisers pay YouTube substantial amounts of money to run their ads on the YouTube platform before or after a video. However, YouTube has been running these ads on embedded videos across various third-party websites, commonly known as Google Video Partners.

Google has positioned these partner sites as equivalent to the YouTube ad experience, promising sound-on, fully viewable, and skippable ads. However, the reality is far from what advertisers have been paying for. Instead of the promised experience, advertisers have been getting ads that are muted, auto-played videos off to the side, and unskippable, violating the standards they were guaranteed. This scam has been going on since at least 2020, with advertisers unknowingly paying exorbitant amounts for nearly worthless ads.

To put this epic scam into financial context, according to Nandini Jammi of CheckMyAds, advertisers have been paying $100 for ads that are actually worth only $5. Google has been charging them a staggering 20 times the actual value of these ads. The implications are enormous, and advertisers are rightfully questioning where their ads have actually been running. The answer is a far cry from the “high-quality” and “carefully vetted sites” that were promised. Instead, these ads have been found on disinformation outlets, pirated content platforms, and other forms of garbage, betraying Google’s claims of upholding inventory quality standards.

The implications of this scandal are significant, according to Jammi. Google, already facing two antitrust lawsuits and experiencing a decline in its search ads business, is now caught in a potential multi-billion dollar scam. Advertisers and industry experts are expressing their outrage and demanding accountability. 

Joshua Lowcock, global chief media officer at ad agency UM Worldwide, stated that Google’s breach of trust is unacceptable and called for full refunds for affected clients. The Wall Street Journal independently confirmed the validity of the research findings, and digital ad-buyers and engineers supported the evidence presented.

Major brands such as Johnson & Johnson, American Express, Samsung, Sephora, Macy’s, Disney+, and The Wall Street Journal itself were among those whose Google video-ad placements did not meet the promised standards, according to Adalytics. Even government agencies, including Medicare, the U.S. Army, the Social Security Administration, and the New York City municipal government, fell victim to this deceptive advertising practice.

Experts in the advertising industry are astounded by the revelations.

 Ari Paparo, advertising expert and CEO at Marketecture TV, expressed surprise at the extent of YouTube’s audience extension practice and the potential impact on programmatic advertising. The research by Adalytics also raises concerns about the validity of Google’s TAG Certification and MRC Brand Safety accreditation. The findings suggest that Google has allowed its ads to run on copyright-infringing sites, Russian propaganda platforms, and even delisted or side-loaded apps from sanctionedcountries like Iran.

Adalytics shared an advanced copy of its report with Ebiquity, a leading marketing and media consultancy that assists brands in auditing their ad buys. Ruben Schreurs, the Chief Product Officer of Ebiquity, acknowledged the highly incriminating nature of the findings and described them as a structural misrepresentation of advertising products at best and fraudulent misleading practices at worst. With over 75 of the top 100 brands under their purview, Ebiquity pledged to initiate a large-scale review of the issue and eagerly awaits a detailed response from Google.

Dr. Augstine Fou, a recognized advertising authority, emphasized this scam’s significance, not just within Google but in the entire industry. He pointed out that ad fraud has been a pervasive problem for years, with a majority of ad impressions purchased through programmatic channels being fake. Even reputable companies like AppNexus admitted to selling fraudulent impressions in the past. The implications of such widespread fraud cast doubt on the integrity of the entire digital advertising ecosystem.

According to Fou, One of Google’s flagship ad formats, TrueView, has also come under scrutiny in the wake of this scandal. TrueView is a choice-based cost-per-view ad format that serves on YouTube, millions of apps, and across the web. The concept behind TrueView is that advertisers only pay for actual views of their ads, rather than mere impressions.

However, Adalytics’ research uncovered a major flaw in the distribution of TrueView views. For a significant infrastructure brand, only around 16% of its TrueView skippable in-stream video ad budget was spent on YouTube.com or YouTube’s apps. The remaining portion was dispersed across various platforms, raising serious questions about the validity and effectiveness of these placements.

This shocking revelation underscores the critical importance of campaign data and proper tracking mechanisms. With robust naming conventions and tracking taxonomies in place, detecting and preventing such fraudulent activities would have been relatively straightforward.

As the scandal unfolds, industry experts and advertisers are demanding accountability from Google. The tech giant must rectify this breach of trust, provide full refunds for fraudulent ad placements, and address the systemic issues within its advertising operations. Failure to do so could have severe repercussions, tarnishing Google’s reputation and reliability as a digital advertising partner.

The Google Advertising Fiasco, labeled as a multi-billion dollar scam, has sent shockwaves throughout the advertising industry. Google’s violation of promised standards and the revelation of fraudulent ad placements on third-party websites have exposed significant flaws in the transparency and integrity of its online ad business. Advertisers are rightfully demanding refunds and seeking legal recourse, while industry experts are calling for a comprehensive review of Google’s practices.

This scandal serves as a wake-up call for the entire digital advertising ecosystem (yet again!) highlighting the need for increased transparency, accountability, and vigilance against ad fraud.

The implications of this scam extend far beyond Google, shedding light on the pervasive nature of fraudulent practices that have plagued the industry for years. It is crucial for advertisers, agencies, and tech platforms to work together to restore trust and integrity in digital advertising, ensuring that brands’ investments yield the expected results and provide a safe and reliable environment for consumers..

The Rise of Pay-Per-Call: Unleashing the Power of Intent and High-Value Leads

By
Pesach Lattin
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0

Aragon Advertising Crowned Best Pay-Per-Call Network for the Sixth Consecutive Year

In the ever-evolving landscape of digital marketing, where leads and conversions are highly sought after, there is one form of interaction that stands out above the rest: the phone call. Phone calls carry an unparalleled level of intent, with callers actively expressing their interest in a product or service. Recognizing the immense value of these live interactions, businesses have turned to pay-per-call marketing solutions to harness the potential of this high-conversion medium.

Aragon Advertising, the leading provider of pay-per-call marketing solutions, has been at the forefront of the industry for years, solidifying its position as the Best Pay-Per-Call Network for an impressive six consecutive years in mThink’s Blue Book Survey. With over 100 direct brands and a vast affiliate network comprising thousands of publishers, Aragon Advertising has established itself as an industry leader committed to delivering outstanding results.

“We’re incredibly proud and honored to have been voted Best Pay-Per-Call Network for the sixth consecutive year. This recognition is a testament to our dedication to delivering exceptional service to our clients, and a source of motivation for us to continue innovating and leading the industry,” says Todd Stearn, CEO of The Aragon Company.

Phone calls are not merely a mode of communication; they represent a powerful indicator of immediate purchasing intent. In an era where instant gratification is paramount, consumers who pick up the phone to call a business demonstrate their strong desire to acquire a product or service promptly. This heightened intent makes phone leads the most coveted and valuable type of lead for businesses.

Compared to web leads or online purchase forms, phone calls boast significantly higher conversion rates. It is not uncommon to witness conversion rates as high as 20%, 30%, 40%, 50%, or even 70% when customers make the effort to engage in a phone call. The urgency and enthusiasm expressed during these conversations further contribute to the increased likelihood of a successful sale.

The financial potential of pay-per-call marketing is astounding. Click-to-call revenue has been on a steep upward trajectory, surpassing $20 billion in 2022, a substantial increase from the nearly $6 billion recorded in 2015. The continuous growth in click-to-call revenue is a direct result of more consumers choosing to make phone calls for significant and essential purchases. The ease and convenience of initiating a call have propelled click-to-call to the forefront of the marketing landscape.

Phone calls hold significant value due to the nature of the purchases they typically involve. Everyday items like laundry detergent do not require human assistance, but complex and high-value transactions such as mortgages, insurance policies, or emergency services necessitate personalized interactions. Businesses recognize the importance of phone leads for such big-ticket items, as they yield tremendous returns on investment.

Pay-per-call advertising thrives on high advertising spend from the biggest industries worldwide. This revolutionary marketing approach caters to multi-billion and trillion-dollar sectors that require high-value leads to support their operations. The sheer scale of advertising expenditure in these industries fosters a fertile ground for pay-per-call campaigns, creating an exciting opportunity for call commerce.

The sustainability and longevity of pay-per-call are guaranteed by the unwavering demand from the world

‘s most prominent businesses. Pay-per-call is here to stay, driven by the relentless pursuit of phone calls by these industry giants. This is excellent news for affiliates and marketers looking to tap into the power of pay-per-call, as it ensures a stable and thriving marketplace.

Unlike fleeting advertising campaigns or short-lived affiliate programs, pay-per-call is deeply rooted in the infrastructure, sales processes, and investments of these established brands. Their unwavering commitment to phone calls as a pivotal part of their business strategies ensures the long-term viability and growth of pay-per-call as a marketing channel.

For aspiring affiliates or marketers interested in venturing into the world of pay-per-call, the future is bright. The continued demand for phone calls, coupled with the stability of the industry’s leading players, offers a reliable and lucrative opportunity. Whether it’s driving a few calls a day or aiming for more substantial campaigns, the potential for success and profitability remains consistently high.

In an era where lead generation and advertising permeate every aspect of our digital lives, the value of a genuine phone call with a human on the other end cannot be overstated. The inherent desire for immediate assistance or crucial information drives consumers to pick up the phone and seek personalized interactions. As a result, businesses are increasingly recognizing the importance of pay-per-call as a highly effective marketing tool.

The rise of pay-per-call signifies a paradigm shift in digital marketing, where intent-driven leads take precedence over mere website clicks or form submissions. The human connection established through a phone call cultivates trust, reliability, and a genuine interest in the products or services being offered. This transformative approach to customer acquisition has revolutionized the advertising landscape and elevated the significance of pay-per-call as the ultimate form of lead generation.

As technology continues to advance and consumer behaviors evolve, pay-per-call remains steadfast in its position as a marketing powerhouse. The innate desire for immediate solutions and the complex nature of significant purchases ensure that phone calls will remain the gold standard for businesses seeking high-value leads. With pay-per-call firmly entrenched in the strategies of global industry leaders, the future of marketing is undoubtedly ringing, one call at a time.

In a world saturated with digital noise, the power of a single phone call cuts through the clutter, signaling a genuine connection between businesses and consumers. Pay-per-call has emerged as the unrivaled champion in leveraging this connection, offering businesses a direct line to customers actively seeking their products or services. With Aragon Advertising leading the way as the Best Pay-Per-Call Network for six consecutive years, the industry’s future shines brighter than ever.

As the demand for immediate solutions and personalized interactions continues to drive consumer behavior, pay-per-call will remain an indispensable tool in the marketer’s arsenal. The rise of this groundbreaking marketing approach has forever changed the advertising landscape, emphasizing the importance of intent-driven leads and high-value interactions.

In a world where every call represents a potential sale and every conversation holds the promise of a lasting customer relationship, pay-per-call has firmly established itself as a force to be reckoned with.

Who is PubMatic Co-Founder Mukul Kumar?

By
Pesach Lattin
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0

PubMatic’s Journey: Scaling Ads, Targeting, and Innovation

In a world saturated with advertisements, it’s easy to overlook the complex technology and psychology behind their placement. To shed light on this intricate process, we sat down with Mukul Jumar, the Co-Founder and President of Engineering at PubMatic. With over 17 years of experience, Jumar provides valuable insights into PubMatic’s founding principles, the architecture behind ad placement, and the innovative services the company offers to its clients.

Jumar takes us back to 2006 when PubMatic was born out of an idea scribbled on a paper napkin. Jumar, along with his co-founders Amarin and Rajiv, embarked on an exciting journey of building a groundbreaking product. Working from a three-bedroom house in Pune, India, the team started with just two laptops and a clear vision. In a matter of months, they launched their alpha version and served their first thousand ad impressions. Today, PubMatic serves over 500 billion ads a day, a remarkable testament to their growth and success.

While consumers encounter countless ads daily, they rarely consider the technology and psychology employed in their placement. Jumar emphasizes two crucial aspects: targeted ads and scale. Targeting ensures that ads are personalized and relevant to the viewer, optimizing their browsing experience. Jumar explains the intricate process of ad targeting, involving extensive data analysis and consent from the users. Additionally, PubMatic’s ability to handle the staggering scale of over 500 billion daily ad impressions showcases their expertise in building software that can process massive volumes of data seamlessly and deliver ads in under 200 milliseconds.

PubMatic offers a range of products catering to both publishers and buyers. For publishers, they provide PubMatic SSP, Connect, and Identity Hub, empowering them to monetize their inventory effectively. On the buyer side, PubMatic offers ProBid, SSP Connect, and recently introduced Activate, a groundbreaking product enabling direct connections between buyers and publishers for video inventory. With a strong foothold in video advertising, PubMatic helps publishers in India and the US, such as Z5 and Voot, maximize their revenue in the rapidly growing CTV and OTT space.

As the Co-Founder and President of Engineering, Jumar oversees the entire technology landscape at PubMatic. His responsibilities span research and development, engineering, innovation, and infrastructure management. With a dedicated team of developers, testers, and infrastructure managers, Jumar ensures the seamless operation of PubMatic’s vast data centers spread across the globe. Jumar’s passion for innovation and high-performance systems drives PubMatic’s continuous pursuit of cutting-edge technology.

Adapting to a Changing Landscape: Jumar acknowledges the rapidly changing technology landscape and its impact on PubMatic’s research and innovation processes. He highlights the importance of staying at the forefront of emerging technologies, such as AI and machine learning, to deliver superior ad targeting and optimization. PubMatic embraces the evolving landscape, constantly exploring new avenues and architecting innovative solutions to meet the evolving needs of their clients.

PubMatic’s remarkable journey, spearheaded by Mukul Jumar, exemplifies the power of innovation, scale, and targeted ad placement. From humble beginnings to serving billions of ads daily, PubMatic has revolutionized the advertising industry. Through their range of products and unwavering commitment to research and development, PubMatic continues to shape the future of digital advertising, empowering both publishers and buyers in an increasingly digital.

The Cannes Festival that Rewrote the Marketing Rulebook

By
Pesach Lattin
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0

The Cannes Festival of Creativity, held annually in Cannes, France, is a highly anticipated event in the advertising and marketing industry. This year, the festival was abuzz with discussions and activities centered around various key themes.

One of the prominent topics that had everyone talking was brand safety and suitability, with the leading company DoubleVerify at the forefront of the conversation. Their smart social media post about their yacht created quite a buzz, showcasing the power of effective social media marketing. Attention, AI/UGC, and brand safety were hot topics of discussion, and advertisers were eager to learn how AI is impacting the advertising industry.

The festival featured a panel discussion moderated by Jack Smith from DoubleVerify, with industry experts from Google, TikTok, dentsu, Omnicom Media Group, The HEINEKEN Company, and Smartly.io. This panel explored how advertisers, ad tech companies, and social platforms are working together to protect brand reputation in the age of AI.

Cara Lewis, the Chief Investment Officer of dentsu international, shared her experiences at Cannes, highlighting the importance of building relationships and the value of speaking about personal journeys. She emphasized the significance of capturing consumers’ attention in advertising and the need to make attention a priority. As marketing spending plateaus, Cannes becomes more competitive, leading to bigger and splashier presences from brands.

Ana Milicevic, a well-known digital media executive, shared her observations at Cannes, including notable sponsors and their creative campaigns. She mentioned MNTN’s unique wraparound across the Palais and Criteo’s smart move to wrap their shuttles, making them easily recognizable. She also highlighted the presence of Teads, Ogury, DoubleVerify, RTL, Stagwelll, Telly, Madhive, Ampersand, and Reddit, Inc. in the festival. Tubi’s adorable activations, including the McFlurry van, were also a hit among attendees. Beet.TV’s art panels added a nice touch to the overall experience.

Evening performances by Spotify, Yahoo, and Amazon kept the festival attendees talking, with some trying to find ways to attend despite not having RSVPed. The lively atmosphere spilled out into the streets and side street bars, suggesting that expense report companies would be busy processing claims.

In recent years, purpose-driven marketing was a dominant theme at Cannes, but this year, the focus shifted to authenticity in a polarized society. Major brands like Bud Light, Miller Lite, and Adidas faced backlash for their “woke” campaigns, leading marketers to reconsider the authenticity of their purpose-driven messages. While only a handful of panels addressed this topic, the impact of woke marketing and the need for authenticity were clearly on the minds of attendees.

The festival also highlighted the under-leveraged potential of gaming as a marketing platform. Vanessa Goff-Yu, Marketing & Comms Director at TAG, spoke about the untapped opportunities in the gaming industry for brands. She emphasized the importance of finding the right entry point and building relationships with experts to create effective in-game campaigns. The focus was on the brand safety and suitability of gaming as a media channel.

Throughout the festival, conversations revolved around the current economic uncertainty and the need for smart investments. Advertisers discussed the changing media landscape, the rise of attention metrics and connected TV (CTV), and the role of technology in marketing. The impact of artificial intelligence on staffing and industry practices was also a key area of interest.

Industry leaders, including Jacki Kelley from dentsu Americas, discussed the transformations occurring in the marketing world and explored ways to create resilient teams and embrace technology without compromising creativity. The power of customer connection, sustainability, and the future of sports media were also important topics of discussion.
One of the key takeaways from the festival was the increasing importance of data-driven marketing strategies. With the rise of technology and digital platforms, marketers are now armed with vast amounts of data that can be leveraged to understand consumer behavior, personalize advertising messages, and optimize campaigns. Data-driven marketing was a recurring theme in several panel discussions and workshops, with experts emphasizing the need for marketers to embrace data and analytics to drive results.

Another noteworthy aspect of the festival was the growing influence of influencer marketing. Influencers have become powerful voices in the advertising world, with their ability to connect with audiences and shape consumer perceptions. Brands and marketers discussed strategies for effective influencer collaborations, emphasizing the importance of authenticity, transparency, and alignment with brand values. Panelists shared success stories and insights on how to build genuine relationships with influencers and measure the impact of influencer campaigns.

Sustainability and corporate social responsibility (CSR) also took center stage at the Cannes Festival of Creativity. As consumers become more conscious of the environmental and social impact of brands, companies are increasingly integrating sustainability into their marketing efforts. Brands showcased their eco-friendly initiatives, responsible sourcing practices, and social impact campaigns. The discussions revolved around the importance of purpose-driven marketing, where brands align their values with those of their target audience to create meaningful connections.

The festival also explored the evolving landscape of media consumption, particularly the rise of streaming platforms and the decline of traditional television. The emergence of connected TV (CTV) and over-the-top (OTT) content has opened up new opportunities for advertisers to reach their target audience in a highly targeted and personalized manner. Ad tech companies and media platforms discussed innovative advertising formats for CTV, programmatic advertising strategies, and the measurement of campaign effectiveness in this evolving media landscape.

In addition to the panel discussions and workshops, the Cannes Festival of Creativity showcased some of the most creative and groundbreaking advertising campaigns from around the world. The prestigious Cannes Lions awards celebrated the best of creativity, honoring campaigns that stood out for their originality, impact, and effectiveness. Attendees had the opportunity to witness the power of storytelling, visual design, and innovative marketing techniques through the award-winning campaigns, inspiring them to think outside the box and push the boundaries of creativity in their own work.
Overall, the Cannes Festival of Creativity served as a platform for industry professionals to come together, exchange ideas, and explore the latest trends and innovations in marketing and advertising. From discussions on data-driven marketing and influencer collaborations to the importance of sustainability and the impact of streaming platforms, the festival provided a comprehensive and inspiring experience for all attendees. As the industry continues to evolve, events like Cannes play a vital role in shaping the future of marketing and advertising, driving innovation, and fostering collaboration among industry leaders.

Criteo’s Compliance Woes: Regulators Show They Mean Business

By
Pesach Lattin
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0

In a stunning turn of events, adtech firm Criteo has found itself in hot water with regulators, facing a hefty penalty of 40 million euros (U.S. $44 million) for multiple alleged violations of the General Data Protection Regulation (GDPR). The French data protection authority, CNIL, recently announced the fine, which sent shockwaves through the industry and left Criteo employees feeling like their yacht had suddenly transformed into a funeral barge, with no explanation for this colossal punishment.

The core issue at hand revolves around Criteo’s data processing practices and its failure to obtain proper consent from European Union citizens. Criteo employs a cookie tracker that collects browsing data from internet users, enabling the company to serve them relevant advertisements. While Criteo claims that it doesn’t collect names, the sheer amount of data it gathers—about 370 million identifiers across the EU—has raised concerns about the potential identification of individuals.

The CNIL’s investigation into Criteo’s practices was initiated in January 2020 following complaints from Privacy International and the European Center for Digital Rights. The regulator uncovered five violations of the GDPR, including Criteo’s failure to demonstrate valid consent, lack of transparency in its privacy policy, inadequate provision of information to individuals exercising their right of access, failure to comply with requests to withdraw consent and delete data, and absence of proper agreements between joint controllers.

While Criteo’s proposed penalty was initially set at €60 million (U.S. $66 million), the final fine was reduced. However, even with the reduced amount, the company remains determined to appeal the CNIL’s decision, claiming that the sanction is disproportionate and not aligned with industry standards. Criteo’s Chief Legal Officer, Ryan Damon, stated that the CNIL’s interpretations and applications of the GDPR are inconsistent with European Court of Justice rulings and even the CNIL’s own guidance.

The timing of the penalty announcement, coinciding with the prestigious Cannes Lions International Festival of Creativity, is noteworthy. Some industry observers perceive this as a deliberate signal to the adtech sector that regulators are willing to take action, even against France’s own ad-tech darling. Eric Lamy, a lead customer data project manager at Endeavor, noted that regulators are not shying away from scrutinizing major U.S. big tech companies and that the case underscores the significance of specifying responsibilities in joint controller agreements.

At the heart of the case lies Criteo’s use of tracker cookies and its handling of data for personalized advertising. The CNIL discovered several infringements, including the absence of evidence validating user consent and insufficient transparency. The regulator also criticized Criteo for not respecting individuals’ right of access, failing to comply with requests to withdraw consent and delete data, and neglecting to establish proper agreements with data controllers. The CNIL took into account Criteo’s vast database of 370 million identifiers and the company’s monetization model when determining the fine.

Privacy researcher Lukasz Olejnik suggests that this high-stakes case could have far-reaching implications for the adtech industry, speculating that it might even reach the European Court of Justice. The ruling received mixed responses, with groups such as NOYB and Privacy International celebrating the outcome, while others expressed disappointment that the technical aspects of the case were not adequately addressed.

Criteo’s decision to appeal the fine reflects its stance that the allegations do not pose risks to individuals or cause them harm. The company emphasizes its commitment to protecting user privacy and asserts that it uses only pseudonymized, non-directly identifiable, and non-sensitive data in its operations.

This penalty against Criteo is just one of several enforcement actions taking place across the European Union, highlighting the increased regulatory focus on the adtech industry. From data privacy rulings to antitrust cases, regulators are actively examining the practices of tech giants. The CNIL itself is reportedly investigating complaints related to privacy violations involving ChatGPT, and the watchdog recently released an “action plan for AI” that centers around generative AI.

Moving forward, companies reliant on third-party data will need to ensure proper consent agreements with first-party data providers and be prepared to audit publisher data. As privacy lawyer Luis Montezuma suggests, organizations must identify a legal basis when utilizing personal data for advertising purposes and be diligent in meeting GDPR requirements.

Adding fuel to the fire, insiders claim that Criteo is currently under scrutiny by the Federal Trade Commission (FTC) for past misconduct. Allegedly, Criteo shared personal health information with advertising platforms and companies like Facebook, Google, and others, directly contradicting its promise to users that their health data would never be shared. While these claims remain to be proven, they add another layer of concern to Criteo’s compliance woes.

The CNIL’s penalty against Criteo serves as a stark reminder that regulators are taking data privacy seriously, and no company, regardless of its stature, is immune to the consequences of non-compliance. As the adtech industry navigates the evolving regulatory landscape, it must prioritize transparency, consent, and data protection to maintain public trust and avoid finding themselves on the wrong side of the law.

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