Month: October 2021

The retail giant’s retail media offerings have grown so vast that earlier this year it announced a demand-side platform (DSP) in partnership with The Trade Desk that’s gone live recently.

Though sometimes worth it, using more than one DSP creates potential headaches for agencies and clients on a few fronts, said Megan Pagliuca, chief activation officer, Omnicom Media Group (OMG). “Bringing another DSP into the equation means you can’t manage frequency, you’re making a tradeoff with unique reach, and sometimes you’re bidding against yourself. There’s a lot of waste that happens,” she said. Walmart has eliminated all those obstacles, she added.

“We listened to marketers,” explained Stephen Howard-Sarin, vp of strategy and transformation at Walmart Connect (formerly Walmart Media Group). “This ability to frequency-cap across campaigns, regardless of whether the campaign is running in a traditional TTD seat or in the new Walmart DSP seat, we didn’t know we could do. We’ve been able to eliminate this additional tax, this barrier of starting off with a new DSP accessing the data because we can now do campaign-level managing frequency so [agencies] are not bidding against themselves.” 

Walmart’s efforts are just the latest example of the growing importance of e-commerce, which supercharged the retail media space to the point where many major retailers — notably in the grocery and food space — offer sophisticated options for CPG advertisers to sell their wares on the retailers’ far more robust websites and digital destinations. And the media agency side has taken to this growing world of marketing opportunity like a fish to water. 

“Retail media is a huge part of the discussion and probably the fastest growing element we talk about with our CPG and FMCG [fast-moving consumer goods] clients,” said Sam Bukowski, group director, commerce strategy, at GroupM agency Wavemaker.

Walmart’s move speaks to the growing sophistication of the retail media space, but it’s not alone. In mid-September, grocery chain Albertson’s partner with video platform Firework to turn its websites into the “Pinterest of food,” according to Jason Holland, president of Firework. That includes adding livestreams and shoppable videos across Albertsons’ 20 store brands, from Vons to Jewel-Osco and Balducci’s. 

“We believe businesses have to start owning and controlling the connectivity to their consumers again,” said Holland. “We’re entering the platform era, where an Albertsons or a Kroger or a Macy’s or a Nordstrom all compete with TikTok and Snapchat, because we’re going to be blending on the open Web upper-funnel entertainment, or shoptainment, with lower-funnel conversion, all taking place in one ecosystem, which is a website.” 

Holland said that allows businesses to own their first-party data, they can attribute consumer views and can map it through to conversion of the sale — with greater return on investment. “The ROAS component on this is incredibly powerful. The conversion we see relative to the conversion of media exposure in the walled gardens is probably close to 5X,” he added. 

“We are aiming to bring digital shopping and online experiences closer to the … sense of discovery, freshness, and community that a customer experiences in our stores,” said Albertsons’ vp of digital marketing Usman Humayun. “It’s what today’s customers expect and their ever-growing digital engagement continues to validate this for us.”

Wavemaker’s Bukowski is watching all these developments with a careful eye. “It will be interesting to see where people [are] trying to force shift in consumer behavior versus where are the natural cues that consumers want something more,” she said.

And just because media agencies have taken to these opportunities with gusto doesn’t mean it’s easy, said Bukowski.

For one, what used to be clearly delineated budgets (shopper, trade, advertising & promotion, coop) now gets blurred with these new options, and it requires agencies to break down internal walls to effectively use retail media. For another, agencies have to keep up with constant changes and updates to the ad platforms (such as Walmart’s news above), along with their data/measurement abilities, physical ad unit capabilities and then having a perspective on all those changes.

“You have to do your due diligence on what capabilities exist, their maturity, keep in mind brand safety, and keep your own independent tracking,” said Bukowski. “And it demands a lot of agility.”

Color by numbers

Since it’s still Hispanic Heritage Month, Tubular Labs has some interesting stats on Latino audiences and their online video viewing habits.  

• In August 2021, Spanish-language YouTube content in the U.S. generated over 15.9 billion views. That’s a 30% increase since 2018.
• YouTube engagements also ballooned, growing to nearly 278 million in August 2021 from 108 million in 2018.
• Music outpaces other categories of Spanish-language videos in the U.S. by nearly 17 times. 
• Finally, since 2018, Spanish-language influencers in the U.S. have generated 245 billion views, while brands generated 8.6 billion. Influencer videos receive an average of over 51,000 views per upload, while brands attract an average 30,000.

Takeoff & landing

• Anheuser-Busch launched a global media agency review, but only considering its incumbent agencies, which include Publicis, WPP and Dentsu. The review is being handled by MediaLink. 
• GroupM’s Mediacom consolidated all of pharmaceutical giant Bayer’s business after a review, adding Germany, Russia and China to its roster. Bayer’s total media spend is estimated at $800 million. 
• You & Mr. Jones, which bills itself as a brand tech company, acquired a majority stake in DP6, a Brazil-based martech and data firm, to expand its Latin American footprint. The group said it has generated more than 50% organic growth through August 2021 compared a year ago.
• Ad platform Amobee announced a partnership with ID5 to deploy a cross-device solution that will be offered across Europe, the Middle East and Africa. ID5’s first ever EMEA-wide privacy-first cross-device graph aims to comply with Europe’s stringent privacy requirements.

Direct quote

“TikTok is probably not the right place for life insurance. However, even for a traditional brand, if it authentically is willing to take risks, make changes and look awkward a little (which is what TikTok’ers themselves do in order to gain acceptance and credibility), TikTok could be a great platform to reintroduce itself to a younger audience.” 

— Anne Hunter, vp of product marketing at consumer insights platform Disqo.

Speed reading

• Did you miss Digiday’s Publishing Summit in Miami last week? You’re in luck because senior media editor Tim Peterson rounded up the highlights from Digiday’s first in-person conference since the beginning of the pandemic. 
• Digiday’s gaming and esports reporter Alex Lee continues to cover the rapidly expanding metaverse, with the latest news being a partnership between AT&T and esports company 100 Thieves.  
• Marketing Dive offers a cogent summation of holding company WPP’s deal with Snap to jointly develop augmented reality products. 

In recent years, the social commerce space has gained momentum with both Amazon and Pinterest launching similar shoppable, virtual try-on technology. This May at Snap’s Partner Summit, the social media platform introduced a slew of new AR try-on experiences that mimic in-person shopping. For example, DTC skincare brand TULA launched an AR lens to promote an under-eye cream. Users could see themselves in the ad as it simulated the cream application and revealed what they would look like after using the product.

“We’re just getting started on taking all the things people love about [in-store] shopping and replicating them through augmented reality,” said Mark McMaster, head of emerging commerce at Snapchat, adding that the social nature — i.e. users can try on, shop and share with friends — differentiates Snap’s offering. “The camera will be meaningful to the shopping experience. Not only when people are on the go with their phones, but also when they’re actually in stores, shopping,” he added.

Since launch, advertisers have shown an interest in Snap’s technology as a way to scale and tap into the platform’s Gen Z audience. Last week, one of the largest agency holding groups, WPP, announced an inaugural partnership with Snap to help WPP clients leverage Snap’s augmented reality capabilities. Apparel brands like Puma, Dior and Hoka sneakers have already launched ad campaigns in which Snapchat users could virtually try on products. 

Moving forward, Snap’s McMaster says his team, vying for more ad dollars, plans to build on that momentum, scaling AR capabilities to more DTC and small businesses. In May, Snap launched a creator marketplace so brands interested in AR advertising can find the right resources. The platform is also touting creator marketplace studios that use machine learning to bring additional try-on capabilities into the advertiser’s campaign. 

Advertising costs on Snap fluctuate depending on advertising goals. But per Snap, those costs can start at $5 per day. For virtual try-on specifically, some brands are achieving as low as $0.01 per product try on, a spokesperson said. Snap is working closely with smaller brands that want to drive awareness as well as those driving sales through product launches. There’s a creative strategy team in place that works category by category to help advertiser, he said.

“We’re really investing in what’s already a thriving ecosystem, but continuing to grow that so that more brands can use AR,” McMaster said. 

Snapchat isn’t the only platform leaning into virtual try-ons. Call it a social commerce arms race as social media platforms like Instagram, Snap and Pinterest look to garner a bigger share of ad dollars, playing catchup as more people shop online. Thanks to the pandemic, online shopping has skyrocketed, pushing advertisers to take a second look at virtual try-on options. According to research from consumer insight company Piplsay, 34% of Americans have already experienced virtual try-on technology, mostly for clothing and eyewear. 

In this arms race, Facebook recently launched Shops, touting sales directly from its app. Quartz reports that TikTok has thrown its hat in the ring, rolling out shoppable links, livestream shopping and product galleries in ads. And Pinterest released virtual makeup try-on capabilities in January, and a new feature that automatically saves shoppable product pins back in June. 

Traditionally, social media advertising has been approached in a “creepy, invasive, bang you over the head way” with high-frequency ads, said Ellie Bamford, svp and global head of media and connections at R/GA. Still, social commerce is yet another way for small businesses and DTC brands to scale, getting in front of more shoppers in a way that’s in sync with the customer journey. 

“Snap has a unique proposition for small to medium businesses to drive DTC shopping and revenue, and this is one of the largest spaces for them as an ad platform to grow,” Bamford said, flicking at the platform’s hyper focused direct response and conversion capabilities DTC brands have gravitated towards. 

The team at Snapchat pointed to two direct-to-consumer brands in particular for this article, who recently wrapped up their own AR campaigns on the platform: CUUP intimates brand and TULA skincare. 

At present, about 10-15% of CUUP’s media spend goes toward Snapchat, the third largest portion of budget behind Facebook and Google, according to CUUP’s director of growth, Sophie Duncan. The DTC brand has advertised on Snap for the last two-and-a-half years to retarget shoppers who were already in the market, she said. But with the recent introduction of virtual try on technologies, the company said there are plans to increase Snap spend.

So far, CUUP has run two shoppable AR lens campaigns as a brand awareness play and to diversify ad spend, something that’s top of mind for many retailers as data privacy measures continue. The first was from last October through December and the second from May of this year through July. 

“Ideally it’s something we want to basically have as an always on strategy,” Duncan said, noting that the brand has seen an increase in site traffic as well as sales, (but declined to share specific figures) “Having that engagement and that exposure through that lens, just skyrockets all the things we care about.”

“We’re not alleging fraud,” said John Murphy, chief strategy officer of Confiant. “We’re just alleging that they’re tracking in an unauthorized fashion.”

Because Confiant has its technology integrated directly with publishers’ pipes, the company can observe the actual behavior of ads and trackers in real-time across tens of thousands of websites and compare it with the information showing whether people have consented to it. Most of the allegedly unauthorized activity Confiant has detected has been enabled by lesser-known ad tech firms, according to Murphy, who declined to provide names of any vendors enabling unpermitted tracking. He added, “The vast majority of the time there is not malicious behavior.”

Sourcepoint, another privacy tech firm that helps companies assess ad tech vendors, scanned 266 publisher sites across the U.K., France, and Germany between June and September. It found that on average, around 37 vendors allowed on domains scanned in the U.K. dropped cookies before getting consent from visitors. For domains scanned in France, the average number of vendors dropping cookies without permission was around 30, and in Germany around 29. The company also declined to provide names of any of the vendors that dropped cookies without permission.

Transparency and consent framework forensics

There are lots of cogs moving at once in the digital ad machine, of course. Although the systems relied on by website publishers to manage consent are built to broadcast people’s data collection preferences throughout the ad ecosystem, those consent management platforms don’t necessarily monitor the validity of people’s data tracking choices that are being passed by other ad tech players. Those choices are reflected in the so-called consent string, which is attached to the bid requests that publishers send when an ad slot is available for advertisers to purchase through programmatic ad systems.

“The [consent management platforms] are there for information collection,” said Kaileigh McCrea, a privacy engineer at Confiant. “This is about the [ad tech] vendor who should be responding to that information accordingly.”

The consent string passed around by consent management platforms and observed by ad fraud watchdogs can indicate when people’s choices don’t match up to actual ad tech activity, in part, because there is a standard framework for encoding and passing those signals. That’s the TCF, the Transparency and Consent Framework devised by the Interactive Advertising Bureau’s Tech Lab for its counterparts in Europe as a way to comply with the demands of the GDPR. 

The TCF has its fair share of detractors, though, and is under investigation by the Belgian data protection authority for infringing European data privacy rules. Indeed, it is not clear the technical method for passing people’s privacy choices through the programmatic ad marketplace is curbing tracking that violates GDPR. In its aforementioned study, when Confiant evaluated specific advertisements included among the ad impressions found to contain consent discrepancies, the company found that on average 51% of those discrepancies were enabled by vendors that were not registered to use the IAB’s framework. Even still, 45% of the consent mismatches were enabled by vendors who were registered with TCF, but enabled tracking for purposes those vendors did not have consent for or legitimate interest in doing.

“There is a potential for companies to misrepresent things. An ad request is just a set of fields that’s transmitted out to a bunch of different parties,” said Alex Cone, senior director of product management at IAB Tech Lab, who helped create TCF. He said that exposing inconsistencies in the consent and ad data chain “is the first step in shutting down [those problems].”

Punishing publishers and tech firms

As the face of digital media, publishers can be held liable for the shady data practices they enable on their websites. France’s data protection regulator Commission Nationale de l’Informatique et des Libertés, for example, fined newspaper publisher Le Figaro 50,000 euros for allowing third-party companies to drop tracking cookies without people’s permission. Google was also fined for violating GDPR rules around cookie tracking permissions.

“As a publisher, I feel like I was lulled into a false sense of ‘I am good because nobody’s come with an enforcement action against me, and I would probably be one of the first they’d fine,’” said a publishing exec during a closed-door discussion at Digiday’s recent Publishing Summit. The exec, who spoke on condition of anonymity, continued, “There’s definitely been a false sense of ‘we’ve done the right thing.’ I very much suspect we haven’t done the right thing. They’re just now coming to look at us, and those enforcements really are actually picking up.”

Global data protection authorities, after meeting in early September, said that the way most websites get people to agree to tracking is not good enough. They wrote, “Action is needed to ensure that web users are able to meaningfully control the processing of their personal data as they browse the internet, in tandem with promoting high standards of data protection by websites and acting to tackle harmful practices.” 

IAB Europe itself has begun to crack down on consent management platforms and other ad tech vendors for dropping cookies or firing ad tags without permission from people. The trade group in the last six months has sent warning letters and suspended consent management platforms for failing to comply with guidelines associated with the TCF, according to Filip Sedefov, legal director for privacy at IAB Europe. 

“Hopefully that can serve to tackle some of the problems around that,” said Sedefov. The organization recently launched a vendor compliance program to complement its program for monitoring compliance with TCF standards by consent management platforms, he said. 

Efforts are also underway at IAB Tech Lab to fortify the signals passed inside TCF consent strings against fraud and falsification. A recent update to the IAB’s framework for enabling buying and selling of programmatic connected TV ad inventory incorporates cryptographic security methods. Down the road, Cone told Digiday, cryptographic or tokenized security measures could be used to ensure the signals passed in TCF consent strings can prove that entities operating in the ad chain are who they say they are. He added, “We want to make privacy-signaling even more credible as a thing that companies can rely on to comply with the law.”

The implications are significant, but the timeframes for the change underway differ from one marketing team to another. While some are out front, leading the shift from traditional brand marketing mindsets to performance — or at least a brand-performance hybrid — some are continuing to take a wait-and-see approach. 

In the three case examples that follow, brands, their agencies and the teams running their campaigns are following varying paths to the future of CTV in their marketing mix. The common thread running through all of the cases? No team has been left untouched by the shifting nature of TV in the connected age. 

How a branding agency program became a performance marketing moment

The ways that performance and brand marketing work together in the wake of CTV’s ascendance are changing. For example, in a recent campaign that MNTN ran with a well-known national rental car brand, the project started with a familiar approach to awareness from the company’s branding agency but soon became a performance moment for all teams.

“In this case, the client was monitoring their Google Analytics account and started noticing that they were getting a tremendous volume of traffic incoming,” said Ali Haeri, vice president of marketing at MNTN. “And by the way, this traffic was actually converting. 

“So the campaign was doing exactly what it should have,” he continued. “However, the client was so curious about the uptick that they reached out to us directly … they were fascinated that they were seeing that these TV campaigns that their branding agency was actually running for them were resulting in a lot of great performance for their brand.”

The takeaway: Teams aren’t always aware at the outset of what CTV can deliver. As traffic lifts, the nature of the channel becomes apparent, and it’s a prime learning opportunity for the brand team. Furthermore, it’s an essential part of the opportunity for CTV on the sell-side to educate and inform marketing clients that the connected TV campaign is now poised to deliver performance.

Not every CTV campaign is moving in the same direction

Evolution is a process. When it comes to legacy brands and advertising campaigns rooted in longstanding expectations and goals the outcomes do not always align with the opportunities.

“A major movie studio was using our platform to run campaigns and support for an upcoming movie,” said Haeri at MNTN. “And during the onboarding process, we advised them: ‘Here are the pixels that you’re going to put on your website to track conversions.’ And they said, ‘We don’t need that. We just want the ad to be seen by as many people as possible.’

“So they were in the frame of mind of having no expectations from a measurability standpoint; they really approached it from a linear TV stance,” he added.

The bottom line is that CTV is a new element in a well-established channel, and there is still a place for brand awareness as the primary outcome. On the other hand, as even the most august brands watch their competition fold performance into the awareness mix, the likelihood of a more profound and permanent convergence of the two metrics for success seems virtually assured. 

For teams leaning into performance, CTV is driving metrics

Metrics are the measure of the CTV transformation underway. The delta between what television could do in 2002, or even 2012, stands in increasingly stark contrast to what advertisers are discovering about the connected opportunity on the cusp of 2022. 

In an example from what can be thought of as a slow-to-change industry, Haeri pointed to a financial services client making the leap from the measurement expectation of before to the multi-screen visibility already in the marketing team’s hands.

“The thing that really sold the brand team in this example was they loved the fact that they could measure something like a visit rate,” he said. “In the past, they would run linear TV campaigns, throw a URL up on the screen for the website that was customized for that ad campaign, and there was no assurance that someone who saw that ad was necessarily going to use that link. 

“They loved the fact that through cross-device measurement we were able to calculate a visit rate of everybody who was served the ad that went onto their website,” Haeri said. “That was really what hooked the brand marketers.”

If incoming estimates are accurate, marketers are staying on that CTV hook. According to eMarketer, in 2021 alone, advertisers will increase their upfront CTV video ad spending by almost 50% year over year to $4.51 billion. 

As connected TV finds itself at the top of the heap when it comes to advertising with sight, sound and motion, the ways advertising teams are working together are radically different than even several years ago. There’s an evolution going on, and for advertisers to compete, success will count on keeping up with it.