Data-Labor-Technology

The guest for today’s podcast is Joanna O’Connell, vp and principal analyst with Forrester Research, who offered an unvarnished view of the ills of the industry while crediting some corners of ad tech for trying to make things better.

“In the 25 years of digital advertising, innovation has outpaced thoughtful, methodical, careful assessment of what could be done versus what should be done,” said O’Connell, sitting in the lobby of the famed Martinez hotel at the far end of the Croisette, the main boulevard that links all major hotels to the Palais (where Cannes-Lions-sanctioned content is held).

“There’s a lot happening that’s shining a light on what we do that gives us a moment, or should give us a moment, of pause,” added O’Connell. “And I say this to the biggest brands and to the biggest media platforms in the world because it is their responsibility, ultimately, to be shepherds of great experiences for consumers.”

O’Connell also address the flood of new tech innovations that create “a lot of noise,” the causes of continued fraud in the industry, what the walled gardens may face from brands, and why the idea of consumers ultimately owning data is a much more nuanced issue than it appears.

Stay tuned for our next interview Wednesday with Arun Kumar, chief data & marketing technology officer for IPG, and CEO of Kinesso, IPG’s marketing intelligence engine.

Instacart is essentially weaponizing the troves of sales data it has from consumers searching for and purchasing products online, to the benefit of ad agencies and consumer packaged goods brands, who will be able to measure impact and drive sales more effectively armed with that data.

Megan Pagliuca, Omnicom Media Group’s chief activation officer, explained the partnership pushes forward OMG’s goal to deliver analytics across various aspects of a brand’s media investment, enabling enhanced measurement to help prove advertising spend and value. 

“We can now see the people that watched Hulu or NBC, then went and made a purchase via Instacart,” said Pagliuca. “That’s huge, because think about how traditional linear [TV buying] has been [about] GRPs or reach and frequency. And now it’s about, ‘Hey, did you see an ad and add it to your Instacart list and buy it?’”

“For example, in the future, home cleaning brands can better understand how their ads on Hulu drove purchase of their products on Instacart,” added Ryan Mayward, Instacart’s vp of sales. “We can also dive deep on basket analysis and content consumption trends with Omnicom to help that cleaning supplies brand understand which products resonate most with audiences. The goal is to give CPG brands the data and shopping insights they need to better understand their business and identify growth opportunities.”

“Data is the oil, e-commerce or digital experience is the vessel or vehicle, and media is the engine that propels it forward,” said Jay Pattisall, vp and agency analyst at Forrester. “All of these things are kind of moving in tandem, and it’s part of the arms race of staying competitive in a really fast moving digital environment.”

Pagliuca also noted this move offers yet another step forward in the melding of brand and shopper budgets within agencies and among CPG brands. “Now that you see that [wall between brand and shopper] collapsing … you’re going to get much better results when you’re looking at this together, rather than looking at it as in a silo.” 

To be exact, more than half (54%) of respondents said Apple stands to gain a little to a lot from the end of the third-party cookie. Meanwhile, Google’s winning margin was a bit smaller — around a quarter of respondents said the tech giant will gain a little (23%), gain a lot (27%) and even lose a little (23%).

The list of those brand and agency execs said stand to lose following the end of the third-party cookie was much longer, Digiday’s survey found. According to respondents, Facebook, vendors, advertisers, publishers and agencies are among those who will be hurt by the death of the cookie.

Twenty-two percent of respondents said Facebook will lose a little with the end of the third-party cookie and 33% said the social platform will lose a lot. Agency and brand pros think advertisers will lose the most — 76% said they’ll lose a little to a lot — followed by publishers (63%), vendors (59%) and agencies (50%). It is worth noting that 32% of respondents said agencies will neither gain nor lose.

As we’ve said, questions still remain (read more of Digiday’s coverage on that). But the industry is heading straight for the third-party cookie’s retirement at the end of next year. Clearly, there is a good deal of self-awareness among agency and brand pros about the realities of the post-cookie world – even if there is still a lack of a concrete plan regarding what will replace the third-party cookie.

The initiative, self-funded by Ebiquity’s group chief product officer Ruben Schreurs, is a vehicle for different ways to help advertisers support quality journalism. Think creative formats, open source lists of trusted sites and thought leadership.

First up, are a series of eight HTML 5 display banners that act as a safety crutch of sorts for those advertisers who can see the benefit of advertising against intense news articles, but don’t want to run the risk of their own creative being misplaced and subsequently seen as being in poor taste. 

These display advertising banners come in various sizes, from 160×600 to 728×90, and display a “supporting quality journalism” message alongside an image of the brand (e.g. a logo). 

“Brands are understandably nervous around making a decision by themselves around what would be a considerate piece of creative advertising on invasion-related content,” said Schreurs. “So we decided to create open source formats and in doing so took some of that decision making away from brands. Now at least they have a starting point.”

“News articles are effective environments,”said Schreurs. “People don’t dislike brands for appearing next to content even if it’s crisis-related. The only time this changes is when the creative doesn’t necessarily align with the content. 

The basis for the banners stems from how ads appear on perimeter boards around the sides of sports stadiums, said Schreurs. 

And just like those perimeter boards, the hope is that the banners capture people’s attention, and help reinforce the links between what people are reading and how it’s funded. In other words, Schreurs wants people to see these ads as a sign the brand is actively against this content. Eventually, the ad exec hopes to be able to articulate these benefits with effectiveness studies. After all, there are enough studies that suggest advertising against news — irrespective of how bad it is — actually works well. Moreover, it can actually be more cost effective. 

“If other brands are pulling back from news content at a time when its reach is spiking then the inventory is going to be cheaper than it normally is,” said Schreurs.

Not that any of this will be new to marketers. The argument as to whether they ought to support the news is a perennial one. So far, the only thing that’s clear is this: no one can make marketers advertise next to content they believe to be inappropriate to their brand — regardless of whether it is. It’s why the Brands4News collective has grown from one to 14 since it was founded in March. Execs from across the industry recognize more work needs to be done to frame this argument in a less divisive way. Not least because it’s not always easy for marketers to be more relaxed around news given the relentless news cycle. 

Still, Brands4News has to start somewhere. The second part of its launch focuses on domain inclusion lists that can be used by marketers to easily advertise on high quality, trusted publications during a crisis. 

The first list contains 18 Ukrainian titles that desperately need financial support to continue their reporting, said Schreurs: the second list contains 27 mainstream English-language publications that have been qualified as ‘trusted’ by The Global Disinformation Index. No, these lists aren’t final. Yes, marketers will be able to submit suggestions for additions — all of which go through a vetting process performed by The Global Disinformation Index.

“There are larger lists of trusted premium publisher sites out there, of course — The Global Disinformation Index being one of them — but we made a first selection based on traffic numbers and general position in the market,” said Schreurs. “From here, we will expand the list as a continuous effort that we undertake as a collective.” 

Plans are already underway to partner with the AdsFourNews initiative, which has its own domain inclusion lists of local news sites.

“We are on a crusade to support quality journalism,” said Schreurs, who has self-funded the initiative. “But at the same time we want to punish disinformation.” 

He came up with the idea after the furor over the placement of an Applebee’s ad next to scenes from the Russian invasion of Ukraine that were aired on CNN. The reporting of the snafu arguably stirred up the brand safety concerns among marketers as the event itself. But in doing so, it skirted over what he believed is the real issue: marketers are living in constant fear of the screenshot — the dreaded image of their brand adjacent to content seen as risky or controversial and the eruption it sparks. 

That fear has and continues to deprive news publishers of revenue, said Schreurs, who frames it as de-monetizing journalism, particularly in Ukraine where critical, local media outlets, that are sending reporters out to provide truthful, independent reporting on what is going on, are running out of money. 

The reality is that for many marketers the downside is too harsh and the upside not pronounced enough to deviate away from using targeting tools that classify domains and web pages based on topics and keywords — irrespective of how blunt they are. Indeed, these days it’s more acceptable, and more often than not probably beneficial, to have a continuously pruned white list of vetted sites. On this basis, the reputation of the site is enough to ensure brand safety. Marketers don’t always agree, even if doing so goes against their better nature. 

“It is vital that marketers work very closely with their verification partners to understand the taxonomy behind their brand safety categories,” said Lashawnda Goffin, CEO of ad tech vendor Colossus SSP. “This is especially necessary when trying to reach under-represented audiences. Same goes, if a brand is advertising along news content that focuses on multicultural communities. There are different vernaculars or cultural sayings to consider. Words such as ‘dope’ could be flagged, when in the Urban community the term means ‘good’. There’s a disconnect in the way — and it starts with language.”

Mixing and matching intellectual properties is not a new tactic, but brands have traditionally limited their IP mashups to co-owned properties, rather than partnering with rivals for cross-company collaborations.

Super Smash Bros., a fighting game in which players can fight each other using popular Nintendo characters, has been a wildly popular series since 1999, but has only sparingly included characters from other game developers over the years. In May, social media users heralded the recent Oreo x Ritz collaboration as an example of a truly bizarre mashup of branded IP, but both brands are owned by the same parent company, Mondelez International, making the collab less surprising in retrospect.

But these barriers are breaking down as brands rush to stake a claim inside metaverse platforms such as Fortnite and Roblox. Branded assets give brands control over how their intellectual properties are expressed in-game — but once the assets are coded in, players can mix them up however they like. Fortnite users masquerading as LeBron James can exchange fire with players in the guise of Marvel’s Thanos, DC’s Batman, or any one of an ever-expanding spread of fictional character skins. 

This sort of brand convergence mimics how consumers have long approached their favorite IPs.

“These sorts of mashups have always existed, we just kind of had the luxury of not knowing,” said Matthew Ball, the CEO of the venture fund Epyllion, whose book on the metaverse comes out next month. “When I grew up, I had a bathtub with Spider-Man and Batman. Now, Marvel and DC like to think that the sanctity of their universes is total. But they all secretly knew that, when a kid got home, and Ninja Turtles were fighting Darth Vader, and Pokémon suddenly arrived — that’s not new. What’s new is that it’s a programmed, visible experience. What’s new is that you have millions of people co-experiencing it as well.”

In addition to opening up the potential for cross-brand IP mashups, the presence of branded assets in the metaverse has sparked an influx of user-generated content connected to those properties, creating a plug-and-play environment that can help companies ease into virtual space. “One thing that amazes me is, I speak to my clients and tell them, ‘you realize that Fortnite is already full of maps using your IP, right?’” said Margot Rodde, innovation lead at the production companies Mirada and Trailer Park Group. “‘The easiest thing you could do is call me up, tell me to look for all the great maps about Spider-Man, and we’ll find these guys and partner up with them — we don’t even have to build it from scratch.’”

Even for brands that want to build their metaverse activations from the ground up, the presence of pre-built branded assets inside Epic’s Unreal Engine inherently makes it easier for brands to plug themselves into immersive and convincing worlds. As more companies across sectors such as entertainment, fashion and automotive adopt Unreal Engine as a creation tool, the library of available world-building assets is always increasing in size. 

“The only difference is speed, because physically, Oreo and Ritz and whoever will take months or a year to do, while in the metaverse, if you have smart people in the room, you can do it in days,” said Max Pinas, executive creative director at the agency Dept, which launched a metaverse practice in March.

With game-based metaverse platforms such as Fortnite and Roblox demonstrating the power of IP mashups to generate user traffic and engagement, other developers are getting into the game as well. In a process that Ball described as the “Fortnitification of gaming,” popular game series such as Call of Duty and PUBG have started welcoming intellectual properties ranging from “Godzilla” to “The Boys” into their game worlds. In another tweet, Ball wrote that “IP mashups are to the Metaverse as Stories are to social apps.”

The result of all this activity: a game-powered virtual universe that is growing closer and closer to the vision for the metaverse described by science fiction such as “Ready Player One.” “We’re definitely looking at different IP integrations,” said Tyler Bahl, vp and head of marketing for Call of Duty at Activision. “Call of Duty is always tied into culture, and we’re going to bring culture into the game where we feel like it’s appropriate — so definitely look for more of those types of opportunities in the coming months.”

Ultimately, the popularity of IP mashups — and the way they gesture at popular fictional visions for the metaverse — backs up the argument that video games will be the precursor to a true metaverse. In particular, the buzz of activity around branded assets in Fortnite furthers Epic Games’ goal to make Unreal Engine into one of the fundamental building blocks of the metaverse to come. 

“Until now, everyone that has made an announcement about doing something in Sandbox and Decentraland — it’s more for the headline, it’s more for the press,” Rodde said. “If you want the audience, you go into Fortnite, Roblox, now Minecraft, and you do things in these metaverse worlds that already exist.”

WTF is an ERG?

ERGs are employee-led, company-sponsored groups usually formed around shared identities or life experiences, such as gender, race/ethnicity or interests. There are often ERGs at companies for Black, Asian and Hispanic/Latinx employees; for LGBTQ+ employees; and for military veterans and parents, for example.

“It’s not just a place for safety, but a place to help folks thrive and bring their whole selves to work,” said Eve Chen, USA Today travel reporter and founder of the Asian American Forward ERG at Gannett, which was created in May 2020. “When I first started at Gannett more than a dozen years ago, I was the only Asian American in my newsroom in Atlanta. Atlanta is a big city with a lot of Asian Americans,” Chen said. “I wanted to create connections for other folks who I knew would be in the same situation.”

What’s the role of an ERG?

The role of an ERG at a company is to create a safe space for people who may share a similar background or life experience. These groups often celebrate those differences and similarities, as well as highlight issues going on within these specific communities. 

ERGs can also foster company culture, too – an issue that many companies are grappling with since the pandemic struck and employees are working remotely. ERGs can help build connections and grow communities within companies, with networking and mentorship resources.

ERGs also act as a resource to others in the company. Members can help ensure language and meaning are authentic to the community they represent. ERGs often help organize training, guest speakers and workshops for the company around their communities, too. 

Lastly, ERGs can help companies achieve DE&I goals around hiring, retention, mentorship and professional growth.

“It was intended to be a place to share and celebrate our cultures, but it also was a place where we could be there for each other and also help guide discussion areas and coverage areas for our newsrooms as a company. We really were shining a light on a lot of the attacks [on the AAPI community] around the country,” Chen said.

What do ERGs do?

ERG members are advocates within a company for their points of view, said Valerie Di Maria, principal at The 10 Company, a marketing and communications executive coaching firm. A member of an ERG for families, for example, may push for better parental benefits at a company. An LGBTQ+ group might suggest company training on the trans community.

ERGs “will be the ones to catalyze change in some areas and say, ‘No one’s paying attention to this. We need people to be looking at this…’ They bring up areas of concern, attention, or something they would like to do,” said Daisy Auger-Domínguez, chief people officer at Vice Media Group.

ERGs often host events around significant times of the year for their community, such as for Asian American and Pacific Islander Heritage Month in May and Juneteenth on June 19. 

“They’re ideating on what could be possible for the organization and helping generate interest and enthusiasm and then leaning into our brands team, our editorial team, our marketing team and trying to figure out who can help put together the programming and the initiatives,” said Auger-Domínguez.

Di Maria believes ERGs should be thought of as “a strategic business unit… where they have strategic insights that they share with a company about their company’s culture, about product and service development and about how they interact with customers.”

What’s the typical structure of an ERG? Who runs them?

ERGs are open to all employees at a company – including those who are part of the community the group represents, and its allies. “Leads” or “chairs” are often chosen for each ERG. At Gannett, there are two co-leads per ERG, for example.

ERGs are also a direct communication channel to top executives at a company. ERGs usually have an “executive sponsor,” or a member of a company’s executive leadership team to work directly with the ERG to support their work and advocate for their interests. They also serve as a point of contact for ERG members to address any questions or issues. 

“It really is a way, especially for junior members of the staff, to see what it looks like to be an executive within Forbes – that typically they won’t get to see up close – and really be able to work from an operations side with HR and with folks like the chief product officer to bring initiatives to pass so they’re getting that exposure,” said Sadé Mohammed, vp of Forbes’ representation & inclusion practice.

At VMG, ERGs also work with the communications team to reach out and invite employees to ERG-hosted events, for example. There is also often a member of the HR team that works directly with ERGs. VMG has a designated HR person dedicated to its ERGs (called “community groups” at the company). They meet with ERGs bimonthly.

“I know that I can send a DM to our CEO and president and that I will get a response. That’s what’s huge,” said Chen at Gannett. “If you have your company support behind you, it makes it so much easier to help create that environment for employees. When your company is valuing your identity, it makes it so much easier for you to help share it.”

Gannett’s ERGs meet monthly. They meet quarterly with a broader group, including their executive sponsor, an HR liaison, the CEO, Chief People Officer and marketing team, among others, said Gannett’s Johnson.

Are people who take part in ERGs paid?

Most of them are not. Participation is voluntary. However, ERG leads sometimes get small bonuses. This is the case at Vice Media Group, for example. Vice’s HR team also reminds managers every year of the leadership role an ERG lead took that year, to be considered as part of their annual review, said Auger-Domínguez.

This year, Gannett launched an ERG bonus program for leaders, Johnson said.

ERGs also get budgets from the company to use for outreach, events or even swag. At VMG, a budget gets distributed by each community group on a per capita basis, managed by Auger-Domínguez’s team. 

How has the role of ERGs evolved at companies since 2020?

As companies increasingly work on their DE&I initiatives, ERGs can be a valuable resource. They can help with networking and retention of employees from different backgrounds – a real issue for many companies. It’s one thing to hire more diverse people – it’s a whole other thing to ensure they feel supported at the workplace and want to remain at the company. 

“It’s easier to attract talent and keep talent, if they feel there are people who look like me or who have the same issues that I have at the company and they’re succeeding and doing well,” said Di Maria.

“Not only are [ERGs] now a resource to employees, but they’re a resource to the overall business as well, said Johnson at Gannett. “We have developed an overarching ERG operating strategy that is aligned with Gannett’s overall inclusion strategy, to assist and achieve business goals, [understand] the transformation of the global marketplace and the needs of our employees, customers and the communities that we serve.”

She added, “Our businesses tap into ERGs for storytelling for our news division, as we think about creating new products to ensure they are inclusive and accessible to all, and for our recruiting and retention efforts.”

In the video embedded below, Publicis Media’s Jess Simpson, Omnicom Media Group’s Marc Rossen, IAB Tech Lab’s Shailley Singh and Optable’s Bosko Milekic discuss data clean rooms’ interoperability issue and the potential for industry standards to solve the situation.