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How Brands Are Using In-Game Advertising

By
Pesach Lattin
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0

Video games have come a long way from the arcade and console games of the past.  The evolution of technology has brought about a new kind of immersive experience in gaming. Forty percent (40%) of GenY and millennial consumers play games on their smartphones—more than any other form of entertainment*.

In-game advertising (IGA) involves presenting digital video ads, banners, audio ads and mini-games within the gaming screen. Dynamic advertisements are by far the most popular IGA type—static ones have less reach as users tend ignore them; gamevertising is a term coined to describe if an ad takes place at in real time while you’re playing or not.

IGA has a lot to offer to brands that want to increase their visibility and reach a specific target audience. For one, IGA helps to make your brand more visible, especially on advertising channels with low competition. Additionally, by choosing the perfect in-game advertising strategy, you can easily differentiate your brand from the rest of the competition.

Here are five examples of in-game advertising and how they worked:

1) McDonald’s in “FIFA” – In FIFA, players could choose to sponsor their team with McDonald’s, and the fast-food giant’s logo would appear on the virtual stadium and players’ uniforms. This helped McDonald’s reach a global audience of FIFA fans who were already engaged with the game.

2) Mercedes-Benz in “Need for Speed” – Mercedes-Benz in-game advertising in the popular racing game, Need for Speed, helped the car manufacturer showcase their cars in a high-speed and exciting environment, appealing to the target audience.

3) Coca-Cola in “Candy Crush” – Coca-Cola in-game advertising in Candy Crush allowed the brand to reach a large audience of mobile gamers who were already engaged with the game. Coca-Cola’s in-game ads helped the brand to increase its visibility and appeal to a specific target audience.

4) Nike in “NBA 2K” – Nike in-game advertising in NBA 2K allowed the sportswear brand to reach a global audience of basketball fans who were already engaged with the game. Nike’s in-game ads helped the brand to increase its visibility and appeal to a specific target audience.

5) Subway in “Grand Theft Auto V” – Subway in-game advertising in Grand Theft Auto V allowed the fast-food chain to reach a global audience of gamers who were already engaged with the game. Subway’s in-game ads helped the brand to increase its visibility and appeal to a specific target audience.

What are some issues that brands have found about in-game advertising?

1) Ad Placement: One of the biggest difficulties for brands when it comes to in-game advertising is finding the right place to place their ad. This can be a challenge as the ad needs to be visible and engaging, but also not disruptive to the gaming experience.
 

2) Audience Segmentation: Another difficulty is understanding the target audience and segmenting them correctly. In-game advertising can attract a diverse audience, and not all of them may be interested in the brand’s products or services. Brands need to understand the demographics and interests of their target audience to ensure that their ad reaches the right people.
 

3) Ad Format: Some brands may struggle with finding the right ad format that aligns with the gaming experience. This can include choosing the right type of ad, such as a video, banner, or interactive ad, that is not intrusive and provides a positive gaming experience.

Ad Blocking: With the rise of ad-blockers, brands may find it difficult to ensure that their in-game ads are being seen by users. This can lead to a decrease in ad effectiveness and a loss of potential customers.

4) Measurement and Analytics: Measuring the effectiveness of in-game advertising can be difficult for brands. Traditional metrics such as click-through rates or conversion rates may not be the best way to track the success of an in-game ad. Brands need to find new ways to measure the impact of their in-game ads and analyze the data to improve their future campaigns.

With the gaming industry continually growing, it’s not surprising that companies have emerged to provide in-game advertising services for brands.

Here are three of the top companies that provide in-game advertising:

Unity Technologies: Unity Technologies is a leading provider of in-game advertising for mobile and PC games. They offer a variety of in-game advertising options such as video ads, banners, and interstitials, which can be integrated into a variety of games. Their platform also allows for targeting specific audiences and measuring ad performance. Unity Technologies works with a wide range of brands and game developers, making it a popular choice for in-game advertising.

IronSource: IronSource is another leading provider of in-game advertising. They specialize in mobile games and offer a variety of ad formats such as rewarded video, interstitial, and banner ads. Their platform also allows for targeting specific audiences and measuring ad performance. IronSource works with a wide range of brands and game developers and is known for its ability to generate high revenue for game developers.

AppFlood: AppFlood is a mobile in-game advertising platform that allows brands to reach their target audience through a variety of ad formats such as video, interstitial, and banner ads. They offer a variety of targeting options and real-time analytics, making it easy for brands to track the performance of their ads. AppFlood works with a wide range of brands and game developers and is known for its ability to generate high revenue for game developers.

Fortnite is a massively popular online multiplayer game that offers a wide range of in-game advertising opportunities for brands. One of the most popular ways for brands to advertise in Fortnite is through the use of branded skins, which allow players to customize their in-game characters with the look and feel of a particular brand. Additionally, brands can also take advantage of in-game billboards and other forms of in-game signage to promote their products and services.

 Another popular method is through the use of branded challenges and events that allow players to compete for prizes and rewards related to a particular brand. Overall, Fortnite offers a wide range of in-game advertising opportunities for brands looking to reach a highly engaged and active audience of players.

in-game advertising is a powerful tool for brands looking to reach a specific target audience and make their brand more visible in a competitive market. With the rise of mobile gaming, virtual reality, and streaming platforms, the opportunities for in-game advertising are only set to increase in the future. 

Companies such as Unity Technologies, IronSource, InMobi, and Vungle are leading the way in providing innovative solutions for brands looking to tap into the growing market of in-game advertising. As technology continues to evolve and more people spend their time playing games, we can expect to see an even greater demand for in-game advertising in the years to come. Brands that are able to effectively leverage this medium will have a significant advantage over their competitors.

Digiday’s Article on The Trade Desk is Pure Clickbait

By
Pesach Lattin
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0

Recently, Digiday published an article with a headline that could only be described as clickbait-worthy: “How The Trade Desk went from media agency BFF to frenemy.”

In it, the author takes aim at the ad-tech firm, accusing it of becoming less transparent, more expensive, and too big for media agencies to handle. But, let’s be real here, this article is nothing more than a hot mess of poorly researched claims and anonymous sources.

First of all, the article suggests that The Trade Desk has been seeking a closer and more direct relationship with brands, which has made media agencies uncomfortable. But here’s the thing, The Trade Desk launched OpenPath in February 2022, which gives advertisers direct access to publisher inventory. This move is actually a positive thing for agencies, as it increases transparency and can result in better deals for clients.

Another complaint in the article is that The Trade Desk has inflated its fees, shifting from a CPM fee to a percentage of media fee. But, The Trade Desk refutes this claim and states that the take rate for fees has remained around 20% over the last eight years. So, it’s not like they’re suddenly jacking up prices left and right.

The article also suggests that The Trade Desk has become more opaque in its products and services, citing that it is not participating in a Google-led program called “Confirming Gross Revenue.”

But, this program is not mandatory and it’s not fair to assume that The Trade Desk has something to hide just because it is not participating. Plus, The Trade Desk and Google are direct competitors in the DSP space — and their CEO has admitted as much, so it’s not surprising that Google would want to paint its competition in a negative light. One can only wonder how much pressure they put on Digiday to write this article right before the Google anti-trust suit was announced. It almost seems, well, planned.

Let’s also not forget that Jeff Green, the CEO of The Trade Desk, is a true cheerleader for the programmatic advertising industry. With a passion for innovation and a deep understanding of the industry, he is a respected leader in the space.

Green’s background in the industry, as well as his hands-on approach, has helped him to build a team that is dedicated to making programmatic advertising better for everyone. He has made clear through his work with the industry, that “I’m one of you, I grew up in this industry and I want to see it succeed.”

He is a true believer in the power of programmatic advertising and is constantly striving to improve the industry, and it’s no surprise that The Trade Desk has become one of the most successful companies in the programmatic advertising space under his leadership.

In short, the Digiday article is nothing more than junk journalism and should be taken with a grain of salt.

The Trade Desk has been a reliable and helpful partner for media agencies and continues to innovate and improve its services. The programmatic advertising industry is constantly evolving, and it’s important to stay informed and adapt to changes in the industry. But let’s not forget to fact-check and not believe everything that’s thrown at us.

Iron Source Provides In-Game Advertising: Examples that Have Worked

By
Pesach Lattin
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0

In-game advertising is becoming an increasingly popular way for brands to reach audiences, and one of the companies leading the charge in this field is IronSource. Founded in 2010, IronSource is a global technology company that specializes in providing in-game advertising solutions for mobile and PC games. With a platform that reaches over 2 billion users worldwide, IronSource is a major player in the industry, and one that brands should be aware of when looking to advertise in-game.

IronSource’s platform offers a variety of different advertising options for brands, including interstitial ads, rewarded video ads, and playable ads. These types of ads are integrated seamlessly into the game, making them less disruptive to the user experience and more likely to be engaged with. Additionally, IronSource’s platform also allows brands to target specific audiences, making it a powerful tool for reaching specific demographics.

One example of a brand that has successfully used IronSource’s platform is McDonald’s. The fast food giant used IronSource’s rewarded video ads to promote its McDelivery service in several mobile games. The ads offered players in-game currency or other rewards for ordering food from McDonald’s through the McDelivery app. This type of ad was highly effective, as it not only reached McDonald’s target audience but also provided them with an incentive to engage with the brand.

Another example of a brand that has used IronSource’s platform is Samsung. The electronics company used IronSource’s interstitial ads to promote its Galaxy S9 smartphone in several mobile games. The ads, which appeared between levels in the games, featured a video of the Galaxy S9 and highlighted its features such as its camera and screen. This type of ad was effective in reaching Samsung’s target audience and showcasing the product in a way that was relevant to the gaming experience.

A third example of a brand that has used IronSource’s platform is Coca-Cola. The beverage company used IronSource’s playable ads to promote its products in several mobile games. The ads, which appeared between levels, allowed players to interact with a mini-game featuring Coca-Cola’s products. This type of ad was effective in reaching Coca-Cola’s target audience and providing them with an interactive and engaging experience with the brand.

Finally, a fourth example of a brand that has used IronSource’s platform is Netflix. The streaming service used IronSource’s rewarded video ads to promote its shows in several mobile games. The ads offered players in-game currency or other rewards for signing up for Netflix or watching a specific show. This type of ad was highly effective in reaching Netflix’s target audience and providing them with an incentive to engage with the brand.

IronSource is a leading provider of in-game advertising solutions for mobile and PC games, and its platform is a powerful tool for brands looking to reach specific audiences and showcase their products in an engaging and relevant way. With a variety of different advertising options available and the ability to target specific audiences, IronSource is a company that brands should be aware of when looking to advertise in-game. The examples of McDonald’s, Samsung, Coca-Cola and Netflix showcase how IronSource’s platform can be used effectively by brands to reach their target audience and achieve their advertising goals. As the gaming industry continues to grow, in-game advertising will also become an increasingly important aspect of digital marketing, and companies like IronSource will play a key role in providing brands with the tools they need to succeed in this space.

Fortnite In-Game Advertising. How does it Work?

By
Pesach Lattin
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0

In-game advertising has become a powerful tool for brands to reach a specific target audience and increase visibility. One of the most popular platforms for in-game advertising is Fortnite, a massively popular online multiplayer game. In this article, we will take a closer look at the in-game advertising opportunities on Fortnite and provide five examples of how brands have successfully used the platform to promote their products.

Fortnite is a free-to-play game that has become a cultural phenomenon, with over 350 million registered players. The game features a variety of in-game advertising opportunities, including dynamic ads, static ads, and gamevertising. Dynamic ads allow brands to display video ads or banners on the gaming screen, while static ads are non-animated images or text. Gamevertising refers to the integration of a brand’s products or services into the game itself.

One of the benefits of in-game advertising on Fortnite is the ability to reach a specific target audience. The game’s player base is primarily composed of young people, making it an ideal platform for brands targeting this demographic. Additionally, the game’s massive player base allows for significant reach and exposure for a brand.

Now let’s take a look at five examples of how brands have successfully utilized in-game advertising on Fortnite.

  1. McDonald’s: In 2019, McDonald’s created a virtual version of its iconic golden arches within the game. Players were able to interact with the arches and collect virtual McDonald’s items, such as a fry-shaped glider. This creative approach to in-game advertising helped McDonald’s to increase brand awareness and appeal to the game’s young player base.
  2. Nike: In 2020, Nike partnered with Fortnite to release a virtual version of its Air Jordan 1 sneaker in the game. This allowed players to purchase the virtual shoe using in-game currency and also helped to promote the actual Air Jordan 1 sneaker in the real world.
  3. Samsung: Samsung used Fortnite to promote its Galaxy S10 smartphone. Players who purchased the phone were given exclusive in-game skins and emotes. This helped Samsung to appeal to the game’s player base and increase brand awareness.
  4. Coca-Cola: In 2019, Coca-Cola created a virtual vending machine within the game. Players were able to interact with the vending machine and collect virtual cans of Coke. This creative approach to in-game advertising helped Coca-Cola to increase brand awareness and appeal to the game’s young player base.
  5. Xbox: In 2020, Xbox used Fortnite to promote its Xbox Series X gaming console. Players were able to purchase an exclusive in-game skin that featured the console’s design. This helped Xbox to appeal to the game’s player base and increase brand awareness for the new console.

In-game advertising on Fortnite has become a powerful tool for brands to reach a specific target audience and increase visibility. The game’s massive player base and appeal to young people make it an ideal platform for in-game advertising. The five examples above show how brands have successfully utilized the platform to promote their products and increase brand awareness. As the gaming industry continues to grow and evolve, we can expect to see even more brands utilizing in-game advertising on Fortnite and other popular games.

Jonathan Winters named CMO of Snowprint Studios

By
Pesach Lattin
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0

Snowprint Studios are set to bring in a new chief marketing officer in the form of Jonathan Winters.

A former staffer at Miniclip, Winters served as director of performance marketing and is credited with helping to grow their global gaming audience over his eight year tenure. He joins Snowprint hot off their Best Mobile Game of the Year win at Pocket Gamer’s Mobile Game of the Year awards.

“I am very excited to join Snowprint and work with such a talented team,” said Winters in an interview with Pocket Gamer. “I can’t wait to help grow its gaming presence on a global scale. Tacticus has the potential to become a global phenomenon in the tactical segment and I’m super excited to bring the game to its full potential.”

With Winters role as the chief marketing officer, he’ll be joining a studio that has managed to accrue 1.5m players globally. Warhammer 40k, the IP that their hit game is based on, is of course the world-famous miniatures game-turned multimedia franchise. The franchise itself has seen rumours of possible Amazon show, and a formidable (and growing) catalogue of third-party video games

Is Augmented Reality the Future of OOH Advertising?

By
Pesach Lattin
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0

When you see an outdoor ad that looks like it’s been there forever, but the text is all new, it’s because it has!

Outdoor ads are becoming increasingly advanced. From simple, static advertisements to ones that use augmented reality and are easy for consumers to share on social media—the options today make outdoor campaigns more interactive than ever before.

Using AR, advertisers have transformed ordinary OOH ads into immersive experiences that bridge the gap between real and digital worlds. This allows brands to create more engaging marketing strategies while reaching a wider audience.

In 2014, Timberland was one of the first brands to use AR in a retail setting. They hung a digital screen in their store-front window and invited after-hours passersby to use their “Magic Mirror” to virtually try on different outfits. The screen scanned each person and their movements, then displayed selected apparel on a similar body type. Shoppers could save their favorites and receive them via email for purchase or social sharing.

According to estimates by GlobalData and Statista, the market for augmented reality will grow from $1.7 billion in 2018 to $25 billion by 2023; this number is expected to increase to $40 billion by 2033. With millions of businesses ready to adapt AR for their marketing activities (and with Augmented Reality at the forefront), both conventional out-of-home advertising and digital advertising have entered a new era.

Out of Home advertising is where it’s at. It’s the real thing. You can’t block it, skip it, or view it by bots. It’s always on, surrounding and immersing audiences with real, powerful advertising wherever consumers live, work, travel, shop and play. If you want to reach your audience in an authentic way and make a lasting impression, Out of Home advertising is what you need!

The immersive experience created by AR creates a bond between the user and the billboard or poster. 

The user is able to receive instant feedback from the ad when interacting with it, which creates a bonding experience that creates long-lasting positive feelings. A great example of this is the NHS campaign, which allows users to virtually donate blood to those in need and see the beneficial effect of their actions.

Out-of-Home Advertising is entering a new era, combining traditional advertising with the digital world.

From billboards to treasure hunts, OOH marketing campaigns are becoming more immersive and interactive. Below are some awesome examples of how businesses can incorporate AR into their OOH marketing campaigns to reach their customers.

1) Jackson Family Wines uses in-store billboards and aisle advertisements as part of their marketing revolutionary AR campaign. In partnership with the Microsoft Mixed Reality Capture Studio, RPR delivered Siduri’s Holographic Web AR Experience—the world’s first such application for a winery.

The holograms add a new dimension of interaction to the billboard or bottle, allowing users to interact with Adam Lee and learn about his critically-acclaimed Pinot Noir specialist company.

2) The SoFi Stadium in Los Angeles, California, is no stranger to innovative tech. In fact, it’s one of the first sporting venues to take part in a truly innovative AR experience: “Rams House AR.”

The Rams House AR campaign was launched in partnership with Stagwell Group and used only smartphones to create a virtual experience on top of an IRL one. Using the Stagwell-owned ARound platform (a 3D spatial computing platform), users could view giant Rams players, fireworks, enormous floating Rams heads, a gamified field goal challenge and more superimposed onto the physical stadium.

3) McDonald’s in Singapore launched an AR-based game that customers could play using their mobile devices while waiting in line for their food. The game, called “McDonald’s Treasure Hunt,” allowed players to find virtual treasure hidden within the restaurant, earning them discounts and free meals.

The McDonald’s Treasure Hunt game in Singapore likely worked well for several reasons. Firstly, it provided a fun and engaging way for customers to pass the time while waiting in line for their food. Instead of simply standing around, customers could actively participate in a game, which made the wait feel shorter and more enjoyable.

Secondly, the game added an element of surprise and excitement to the customer experience. By allowing customers to find virtual treasure hidden within the restaurant, it created a sense of adventure and discovery that they may not have otherwise experienced.

Additionally, the game incentivized customers to participate by offering discounts and free meals as rewards. This added value to the experience, making it more appealing for customers to participate in the game. It also encouraged them to come back to the restaurant to continue playing and potentially earn more rewards.

4) Coca-Cola placed AR-enabled vending machines in various locations around London, allowing consumers to interact with the machines in a more engaging way. Users could use their smartphones to scan a QR code on the machine, launching an AR experience that allowed them to play games, take quizzes, and even win prizes.

This represents a new way of engaging with customers. Traditional vending machines are passive, they only offer to dispense a product. However, by adding AR capabilities, Coca-Cola has transformed the vending machine into an interactive and engaging experience for customers. This allows for a deeper connection with customers and more memorable brand engagement.

The use of AR-enabled vending machines is also a way to create a unique and memorable experience that differentiates Coca-Cola from its competitors. This can help to build brand loyalty and attract customers to the brand.

5) L’Oreal Paris used AR to create virtual makeover experiences in several of its retail stores. Customers could use a special app to try on different hairstyles and makeup looks, allowing them to see how they would look before making a purchase.

This is awesome because it allowed customers to try on different hairstyles and makeup looks before making a purchase. This can be particularly beneficial for customers who are unsure about which products to buy or how to use them. By providing a virtual try-on experience, L’Oreal Paris was able to help customers make more informed purchasing decisions, which can lead to higher levels of customer satisfaction and increased sales.

The use of AR also allows L’Oreal Paris to create a more interactive and engaging experience for customers. It encourages customers to experiment with different looks and to take their time exploring different products, which can lead to increased dwell time in the store and more opportunities for impulse purchases.

The use of augmented reality (AR) in out-of-home advertising has shown to be a creative and effective way to engage with customers. The examples of McDonald’s Treasure Hunt in Singapore, Coca-Cola’s AR-enabled vending machines in London, and L’Oreal Paris’ virtual makeover experiences in retail stores all demonstrate the potential of AR to create fun, interactive, and memorable experiences for customers.

These types of campaigns can also add value to the customer experience by providing discounts, prizes, and the ability to try on products before purchasing.

Additionally, by leveraging the widespread use of mobile devices, these campaigns can be accessible to a wide audience and reach more people. As technology continues to advance and become more ubiquitous, it is likely that we will see more companies experimenting with AR as a way to engage with customers and build brand loyalty.

Is the Metaverse Dead?

By
Catherine D. Henry
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0

It’s official: Apple announced it will not release an AR headset. The market is indeed flooded with multiple decent industrial headsets—even Kara Swisher didn’t see this coming!

The news will likely dampen enthusiasm for the metaverse. Should it?

The short answer is no. Here’s why.


1) Apple’s first Enterprise mixed-reality headset will be unveiled this year—at $3k per set, double the price of #meta’s and very strong competitor HTC Vive. Good luck!

2) The infrastructure for the metaverse continues to advance, with powerful investments made in battery power (to make it run better), graphics processing (for faster use) and slam technology  (so that things can interact).

3) Change is coming to web payments systems (and we all hate cryptocurrency). Sure, you can hate crypto: but that doesn’t change the fact that Visa and Amex are digital currencies too. A standard will emerge—no matter how much you don’t like it.

4) The creator economy: children are earning thousands of dollars in royalties by creating mobile games that their parents play. Video games have become a serious business and continue to grow in popularity among young people. 

On top of all this, Microsoft is currently undergoing a restructuring amid an announcement it would shed 10,000 of its employees, roughly 5% of its total workforce, and the entire MRKT team. “In the near term, we are focusing our VR efforts on workplace experiences,” says AltspaceVR. 


They’re focusing on “immersive experiences powered by Microsoft Mesh,” the tech giant’s cloud-based AR/VR platform, which will compete directly with HTC Vive and Apple’s anticipated enterprise headsets.


What’s missing from consumer VR? IP. Social VR needs more interactive storytelling/story living to truly thrive, but Altspace was a good start.I had a recurring talk show in Altspace from 2020-2021 with #MichaelBarngrover and met friends, hung out, explored new #vr worlds like BCRVR: it was magical. Microsoft has long let the platform languish, so it’s no surprise to see them pull the cord now.

Most Use Mobile, PC not VR.

 
Only about 10% of VR consumers use headsets; most use VR platforms via mobile and PC, though the number is increasing with accesible hardware like the meta Quest2 headset. While it’s clear that the market for VR is growing, we believe this is largely due to mobile headsets. 

PC-powered headsets have gained significant traction in the past year, but mobile remains by far the most popular platform for VR use.


Consumer VR has a lot of potential, but it’s still a work in progress.
The biggest tech firms are focusing on Enterprise for near-term growth, and they’re not yet ready to fully commit to Consumer VR.

Rupert Bedell Named CMO of Paysend

By
Pesach Lattin
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0

Paysend has announced the appointment of accomplished marketing specialist Rupert Bedell as Chief Marketing Officer.

Rupert Bedell joins Paysend after nearly five years as VP Marketing EMEA at American Express, where he oversaw huge digital acquisition growth, whilst overhauling the credit card provider’s digital channels.

At American Express, he led a team of 100 employees with an annual budget of $75 million. Achievements include increasing new digital accounts by over 400% in 3 years, record acquisition growth in 2021, surpassing plan by 173%, taking UK to #1 performing market for Amex business.

Abdul Kerimov, Co-Founder and Executive Chairman of Paysend, said: “Rupert brings huge experience of marketing to Paysend. We are now a genuinely global business enabling consumers in 175 countries to benefit from market leading money transfer services and I look forward to Rupert now contributing to our further success. I am delighted to welcome him to the executive team.”

Dataly Media Accused of Major Scheme to Defraud Advertisers

By
Pesach Lattin
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0

In a press release today, Ad security company Confiant claims it has identified an ongoing cookie-stuffing scheme allegedly perpetrated by Dataly Media, an affiliate marketing platform based in Ecuador.

The scheme dates back as far as 2015 and underpins a large part of Dataly Media’s business conducted since that time, according to Confiant. This means, their accusations are correct, millions of dollars was scammed from advertisers.

However, Confiant was not able to provide an estimate of how much revenue Dataly Media has earned from these practices.

Dataly Media served roughly 125 million display ad impressions in 2022 alone, Confiant estimates, but it is unclear how many of these placements were subject to cookie stuffing. In 2022, Dataly Media was active on at least four DSPs; Confiant declined to name these DSPs.

What is cookie stuffing?

“Cookie stuffing is essentially stealing conversions,” said Jerome Dangu, co-founder and CTO of Confiant. “If you are running a CPC campaign and paying for clicks on your website or app or whatever through an ad exchange.”

The Dataly Media cookie-stuffing scheme allegedly involves what Confiant refers to as a “dirty” supply path that contains invalid traffic generated by malvertising and a “clean” path that contains valid (although mostly paid) traffic.

The dirty supply path is used to hide the fact that the made for ad sites are actually being used for malicious activity. This is done by mixing up the invalid site traffic with the valid native advertising revenue.

To stay ahead of efforts to identify any purported malfeasance, Dataly Media allegedly created more than 100 ad serving domains and partnered with a wide range of advertising platforms.

For example, Dataly Media’s MFA site specializes in “Top 3” lists that promote products through affiliate links. So, if an advertiser is running an affiliate marketing campaign through ot it wouldn’t be surprised to see a large number of attributed landing-page visits coming from ther same site.

But some of those landing-page visits are manufactured via the alleged cookie-stuffing scheme and stolen from other publisher sites.

“So, if an advertiser or an affiliate platform were to look at the data, they would see they have many visitors from that site and a good amount of conversions. But the number of [valid] visitors is essentially made of traffic that is bought on Taboola for very cheap,” Dangu said.

In a recent interview, Dangu said that Dataly Media’s alleged cookie-stuffing practices create a range of problems for publishers and advertisers alike.

For advertisers, the invalid traffic degrades campaign performance and skews data used for targeting. Invalid traffic can also affect performance metrics like cost-per-click.

Meanwhile, publisher sites get bogged down by the network load required to render the iframes hidden in the ad creative, which causes latency issues for site visitors. And the lack of user consent for the use of third-party tracking pixels means unwitting parties could be on the hook for not complying with data privacy regulations like Europe’s GDPR. In fact, Confiant found that 76% of alleged cookie-stuffing ads served by Dataly Media in 2022 were served to European users in violation of GDPR.

Dangu said that this behavior is “completely hidden” in how the industry is organized to tackle this problem: “This is not bot traffic, and it’s technically not attacking users so much as creating fake impressions,” he said.

If these accusations are true, then Dataly Media has a lot to answer for, and could be brought up on criminal charges for fraud. As someone who used to prosecute criminal cases similar to this with the US Secret Service, I can tell you that if they planned it with others, they could be charged under RICO laws for a criminal conspiracy. Something like this could be a huge wake up call to the industry, that fraud would not be tolerated.

Does Programmatic Even Work?

By
Pesach Lattin
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0

Last week, I had a conversation with Robert Regular—a friend and colleague of mine who I have known for over 25 years. We talked about many things throughout our discussion, but one topic kept coming up: does Programmatic advertising even work?

The media loves to seize on new technologies and turn them into must-haves before people have even learned how to use them. And as artificial intelligence improves, you can be sure that the hype cycle around it will only get worse—especially since we’re in a post-Turing world where anything seems possible!

Because of this, you see large companies and small businesses alike investing nearly all their advertising money in programmatic ads.

Just as the Wild West was filled with settlers looking for a better future, so too is your industry today—with hordes of brands like yours vying for success.

Both Bob and myself have heard from many different businesses of all sizes, who have tried programmatic advertising over and over again—sometimes with no success at all.

At events we’ve both experience the same, where people have often come up and asked us if programmatic advertising “even works?” Story after story we’ve been told from random strangers to potential clients– that they have been extremely burned by programmatic advertising with little or no proven results given for often budgets wasted in days.

How can this be? We’ve been told for almost a decade that programmatic is the key to online advertising, that it doesn’t just make things easier, but it is highly effective.

With programmatic, advertisers no longer have to do deals with publishers directly and speak to those audiences—the audiences themselves become decoupled from context.

The assumption is that the real audience you get through programmatic isn’t just vague like customer profiles were in the past; it’s a true representation of who people are as consumers today. That through “data” programmatic targets people based on real interests, and “science” proves it.

However, despite all the claims of immensely great targeting, the main reason large budgets are drawn to programmatic is because of the promise of scale. That using these complex algorythms, they promise to scale your campaigns almost infinitely, finding large audiences and inventory that was never known before.

Agencies especially have gobbled this idea down, especially when it decreases CPMs and they can show their clients they reached “millions more people.”

Some adtech vendors and agencies have convinced advertisers that the lower price of programmatic advertising is evidence of greater cost efficiency, when in fact it simply represents inferior targeting capabilities.

“Advertisers have been addicted to programmatic media for the last ten years, because of the enormous scale, cost efficiency, and high performance. The large quantities of ads comes from bot activity, fake sites, and fake mobile apps. The low CPMs are due to fake sites selling ads at low prices because they have no costs for making content. The high clicks are from bots, programmed to click on the ads to create the appearance of performance.” – Augustine Fou

While adtech companies have made a killing off programmatic models, networks and “magic,” it’s the brands—not them—who suffer most. This isn’t a realistic business model, relying on advertisers to ignore that stuff just doesn’t work.

So what is the real issue of programmatic besides just obscene amounts of fraud?

1) These are ads no one wants to see. For example, a consumer is surfing the web looking for recipes for gingerbread cookies to make with her daughter. She visits a recipe website but finds that many of its pages are covered in pop-ups and interstitial ads. The assumption is that “based on data” she will be interested in all the ads popping up about “Spanx” underwear. Why? Because someone claims that since she visited Oprah.com and then her phone was used to buy a calendar, she is “more likely” to want to buy Spanx products.

She may not even be able to find the recipes she needs, as food websites have deteriorated particularly badly. Did she want to see any of that sponsored content? Of course not, she is there to find a recipe and at the time would be most interested in products related to cooking and those things that interest her right there. She is prime for buying cooking products, maybe a new pan, but instead of targeted site-specific ads, she’s being shown “programmatic” targeted ads that are irrelevant.

When you hassle people in this way, they tend not to like it. In practice, the success rate of programmatic advertising is not much better than simply placing those ads completely randomly sites because minimal attempts are made to target them based on the content of their pages—the advertiser seeks no information from people who visit. This flies in the face of everything we’ve been taught about how marketing and advertising works. Throwing “stuff” at the wall, and then paying attention to what sticks may not actually be a real model.

2) It’s bad for Publishers, Destroying Targeted CPMS. Anyone remember site-specific buys and sponsorships? This used to be the core of most media buys, back “in the day.” Where brands would buy ads on a specific site, integrate their brand into the site through skins, giveaways, content and the such. This stopped when media buyers, frankly, became lazy and overpaid. It was too hard to “scale” they said, and despite being highly effective, it doesn’t peak the interest of the tech gods.

The race to the bottom in terms of pricing has meant that independent publishers have seen their ad revenue steadily decline. Indeed, it is easy to place advertisements on your site and start earning money from them—but only if you have a massive number of visitors. People’s work on a website, when there were site-specific buys and brands “worked” with publishers, used to make a living. No longer.

When you’re buying directly from publishers on Hulu, Pluto and other similar sites, it’s much less risky than through third parties. “The process is cleaner and fraud is far less likely to occur since content owners are more willing sellers who don’t need the additional revenue stream provided by advertisers or media agencies’ trading desks,’ said Dave Campanelli, Executive VP/Chief Investment Officer for Horizon Media

Researchers from the University of Minnesota, University of California, Irvine and Carnegie Mellon University found that data targeting through the ecosystem contributes only 4% more revenue for publishers than standard online advertising.

The “ad tech tax,” which refers to the portion of each dollar spent on programmatic ads that goes toward middlemen’s fees rather than directly paying publishers for their content, eats up 60 cents out every dollar.

The proliferation of fake news and clickbait has helped to drive the Internet towards a state where programmatic impressions reign supreme, since that generates traffic for sites by whatever means necessary.  

The $200 billion programmatic ad market presents a more lucrative stomping ground for criminals than even international drugs rackets: There is no product to move, hardly any risk of getting caught or punishment if you do get caught—and then there’s the sheer volume at which ads can be sold. Real publishers can’t compete with this.

3) It Doesn’t Actually Perform

For every single campaign that I’ve seen, programmatic display and video is more expensive than social, for both reach and clicks, drives less qualified traffic and almost zero viewability. Most show on the screen for a second and then disappear.

The idea that programmatic is cheaper doesn’t take into account the real costs of advertising and realistic KPIs.

Part of this is an extreme overlap of the ecosystems. Agencies will often buy from one vendor, and then buy from another, not realizing that like almost all of the display programmatic companies, they are showing on the same exact sites. So while the reach seems “better,” it’s just showing the same ads over and over again to the same users.

Most advertisers want to buy from as many ad systems/exchanges as possible, thinking that gives them more reach. Looking at the top 10 domains by volume for a campaign run on 4 different systems according to Dr. Fou—Trade Desk included—reveals almost no difference between any of those supply sources.

The NYTimes even noticed this issue, and wrote an article about how Chase bought ads on 400,000 sites and had the same exact results as buying on 5,000 sites.

This data suggests that the fraud rate in their first media buy was at least 99%, meaning that entire ecosystem is just plain dirty and bad.


What is the result of all this? What is going to happen?

For a while I thought that advertisers were just too stupid to realize that they are being ripped off by the plethora of questionable programmatic vendors. However, it seems that people are starting to pay attention.

53% of marketers expect that they will spend less on programmatic advertising this year than last year, largely because companies are investing more money in walled gardens.

A survey commissioned by identity platform Lotame and conducted by PureSpectrum has found that 15% of marketers expect to reduce programmatic spending more than 50%, while an additional 20% plan on cutting it 26%-50%.

Chris Kane, founder of ad-tech consultancy Jounce Media, said that by bidding for ads across the open internet—on web, mobile and CTV (television) —the risk is too high for buyers to inadvertently advertise on low-quality inventory.

In a survey conducted by Jounce, ad-tech professionals estimated that 12% of the most common inventory marketers bid on were poor investments for the typical marketer. The actual numbers are likely much higher.

In an effort to avoid ad exchanges and keep consumers loyal, many industries have developed direct-to-consumer marketing campaigns. And TikTok — let’s be honest. Programmatic is taking a back seat to that right now, and people realize that social media is killing it in comparison when it comes to actual measurable results. 

Six Reasons to Use Native Advertising in 2023

By
Pesach Lattin
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0

Native advertising has become increasingly popular as a way to promote brands and products online. It allows advertisers to blend in seamlessly with the content on a website or app, providing a more natural and less disruptive experience for users. This has led to increased trust from consumers and a more effective way of getting attention and generating traffic.

The discontinuation of cookies has led to advertisers reevaluating their reliance on behavior targeting. Additionally the growing fraud issue in programmatic display advertising has made them re-examine their budgets, making native advertising even more powerful than in previous years. This is because native ads allow advertisers to place their content in an environment where the target audience is likely to see it, giving them more control over their ads.

However, it’s important to consider that not all products and services are suitable for native advertising. If you have a niche product or service, it may not be appropriate for this type of marketing. Additionally, it’s important to ensure that native ads align with your brand’s positioning.


Why use Native Ads now?

1. One of the best things about native advertising is that it allows advertisers to place their content in an environment where the target audience will see it. This means that customers feel empowered to watch native ads because they are not imposing, and they blend naturally into the content around them.

2. Native ads have been designed for mobile devices, making them responsive and able to easily adapt to any screen size or resolution.  This means that advertisers who use native ads can be confident in their ability to reach audiences on mobile devices, as these ads are perfectly suited for these platforms.

3. Another advantage of native advertising is that it is not disruptive like other forms of advertising. They blend naturally into the content around them and don’t try to draw attention away from what you’re trying to say or read by shouting at your audience with huge bold headlines.

When you post a native ad on Facebook or Twitter, it appears directly in your followers’ feeds so that they can easily engage with it without having to leave their feed at all, and without having any distractions.

 This makes it much easier for people who see your ad to actually interact with it, which means higher engagement rates for advertisers who use this type of ad.

4. One of the most important benefits of native ads is that they provide so much opportunity for innovation. Native advertising allows advertisers to blend in with the main content on a platform, and it’s no surprise that this kind of technology has been embraced by both marketers and publishers.

5. A main advantages of native advertising is its cost-effectiveness. By appearing on standard news pages and other types of websites, native ads can reach a large audience without the need for expensive advertising campaigns. This is especially true for companies that are looking to promote their products or services globally or locally, depending on their needs.

6. Another advantage of native advertising is its ability to blend in seamlessly with what users expect to see when visiting a particular website or app. This makes it more effective than other forms of online advertising, which can often be disruptive or off-putting to users. This is why consumers tend to trust native ads more than conventional ones, as they are entertaining and thought-provoking, leaving a lasting impression on the viewer.


What companies are leading the pack in Native Advertising?

1. RevContent.  Revcontent is the leading content marketing and native advertising platform that leverages lightweight, customizable technology to empower the web’s leading publishers and marketers to reach and exceed their revenue, engagement and growth goals. 


2. Outbrain. Outbrain is a native advertising platform that connects brands with publishers. The company was founded in 2006, headquartered in New York City with offices spread globally. They help brands curate and publish content across multiple channels, including social media, video platforms and web pages.

Their platform features smart editorial controls and analytics for judging impact among others.

3. Taboola Taboola is the world’s largest discovery platform. Through our exclusive partnerships with many of the world’s top publishers, we serve 360 billion content recommendations to over one billion people across the web each month.

Native advertising is a powerful tool for promoting brands and products online. Its cost-effectiveness, ability to blend in seamlessly with the content on a website or app, and the opportunity for innovation make it an attractive option for advertisers. 

Leslie Berland named CMO of Peloton

By
Pesach Lattin
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0

Former Twitter executive Leslie Berland has been named Chief Marketing Officer at Peloton Interactive Inc (PTON.O), the once high-flying connected fitness equipment company said Tuesday.

Berland, who previously served as Twitter’s CMO and Head of People, will assume the role at Peloton from Wednesday, the company said.

Peloton, in recent times, has undertaken a slew of cost-cutting measures and made new executive appointments in a bid to slow cash burn and return to profitability as fitness enthusiasts go back to gyms. It has tweaked bike prices, offered its products through third-party retailers and focused on digital subscription plans to stimulate demand. Nevertheless, shares fell 78% in 2022.

Leslie Berland says that when one is the CMO of a large company, the employees are critical. The employees are the biggest supporters but also the biggest critics. She needs their feedback because sometimes she sees companies fall into the trap of doing all these external campaigns without taking time to allow employees to absorb what it means.

When they do anything externally, the first filter is the people. They are the litmus test of what they do and how they do it.

In her new role, Berland will oversee brand and product marketing, creative, consumer insights, membership and global communications, Peloton said.

Twitter’s Revenue Crashes 40%, Musk Plans Possible Bankruptcy

By
Pesach Lattin
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0

Twitter is facing a crisis in its core ad business, as more than 500 of the platform’s top advertisers have paused spending since Elon Musk took over in October, according to a senior Twitter manager.

This revelation came during an employee presentation, in which Siddharth Rao, an engineering manager overseeing the engineers working on Twitter’s ad business, also stated that the company’s daily revenue was 40% lower than the same day a year ago, according to a person with direct knowledge of the matter.

Musk’s plan for Twitter is to diversify its revenue away from ads in the long run, but the continued deterioration of the ad business could make it difficult for the company to break even on a free cash flow basis in 2023, as Musk had predicted three weeks ago.

The success of this plan may hinge on the company’s ability to generate $3 billion in revenue this year and pay $1.5 billion a year in interest related to the debt raised for the $44 billion acquisition. For comparison, Twitter generated $5 billion in revenue in 2021, the last full year for which financial statements were published.

The newsletter Platformer first reported the 40% revenue drop. The Wall Street Journal also reached out to Twitter for comment, but has not yet received a response.

the question on many people’s minds is whether or not CEO Elon Musk is going to bankrupt the company. While it is certainly true that the platform’s ad revenue has taken a significant hit since Musk’s takeover in October, it is important to consider the long-term plan he has for the company.

Musk has stated that he plans to diversify Twitter’s revenue away from ads in the long run, and it is possible that this strategy could ultimately lead to success. It remains to be seen if Musk’s leadership and strategy will be able to steer the company out of this crisis and secure its long-term viability.

According to a Financial Times report, Elon Musk may be facing the first interest payment on the debt he took on to buy Twitter as early as this month. The report cites three people familiar with the matter, and notes that given Twitter’s high level of indebtedness, Musk may have to weigh options including the sale of more Tesla shares to finance the repayment, or even initiating bankruptcy proceedings for the struggling social media company.

It is important to note that Musk acquired Twitter for $44 billion in October, financing the deal with $13 billion of borrowings from banks including Morgan Stanley and Bank of America. The debt is held by Twitter rather than Musk personally, and the company is required to pay back around $1.5 billion a year in interest payments, according to the Financial Times.

A bankruptcy for Twitter would not only be a significant setback for the company, but it could also have serious consequences for CEO Elon Musk. Furthermore, Twitter’s assets could also be sold off to a new buyer during the bankruptcy process. This would mean a change in leadership and a shift in the company’s direction, which would be a significant disruption for Twitter and its stakeholders.

As the situation develops, investors and industry experts will closely monitor Twitter’s ability to address and mitigate the crisis in its core ad business.

Forced Advertising Hurts Attention Metrics

By
Pesach Lattin
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0

Advertising is an essential aspect of the marketing mix for businesses, and the way in which an ad is presented to consumers can have a significant impact on its effectiveness.

Forced advertising, such as non-skippable pre-roll videos or interstitial ads with small close buttons, tends to capture a lower quality of attention compared to voluntary advertising.

When people are forced to watch an ad, they tend to be less engaged with it and more likely to tune out.

On the other hand, voluntary advertising, such as skippable video ads or larger coverage ads, tends to capture a higher quality of attention. When people choose to spend time with an ad, it becomes a stronger signal of their interest and choice.

This indicates that they are more likely to engage with the ad and take the desired action, such as making a purchase or visiting a website.

Research has shown that forced advertising needs double the amount of time to deliver the same impact as voluntary ads.

This means that paying a premium for a 10-second compulsory pre-roll video ad might not be the most cost-effective strategy. Instead, businesses should focus on creating ads that are engaging and relevant to their target audience, and present them in a way that allows the audience to choose whether or not to engage with them.

The way in which an ad is presented to consumers can have a significant impact on its effectiveness. Forced advertising tends to capture a lower quality of attention compared to voluntary advertising, and businesses should focus on creating engaging and relevant ads that are presented in a way that allows the audience to choose whether or not to engage with them.

By doing so, they can increase the chances of capturing a higher quality of attention and achieving their desired marketing objectives.

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