Ad consortium based around LiveRamp’s IdentityLink boosts membership

In May, data onboarder LiveRamp announced the launch of an open digital ad consortium that would utilize a single cookie linked back to its IdentityLink ID.

This week, the Advertising ID Consortium announced the addition of 16 other demand- and supply-side members, including Videology, Kargo, Adform, AerServ, Amobee, DataXu, IgnitionOne, Sizmek and Thunder.

Additionally, demand side platform (DSP) The Trade Desk said it will make its ID compatible with the Consortium’s. In May, the t
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The MarTech Minute: Digimind’s Social Wall, Heap’s customer insight platform and more

This week we are seeing some innovative product launches, powerful collaborations and lots of career moves.
MarTech in Motion
Digimind announces its Social Wall
The social listening analytics company adds a data visualization presentation tool. Its first-to-market offering will allow brands and agencies to display simple, up-to-the-minute social listening analytics metrics and more.

CliqStudios.com selects Visual IQ’s marketing intelligence platform
The seller of custom kitchen candid
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‘Our relationship with Facebook is difficult’: The Guardian’s David Pemsel says the platform doesn’t value quality

This article appears in the latest issue of Digiday magazine, a quarterly publication that is part of Digiday+. Members of Digiday+ get access to exclusive content, original research and member events throughout the year. Learn more here

David Pemsel, CEO of Guardian Media Group, is concerned about Facebook but bullish on the ability of philanthropic contributions to fund publishing. Below is our conversation, which has been lightly edited and condensed.

Your move to a more reader revenue-focused model has resulted in reader revenue overtaking advertising. What’s the future for that?
When we started this three-year plan, we recognized that advertising alone would not secure a sustainable business model. We looked at the binary decision of either putting up a paywall, which will inevitably impact reach, or going the advertising-only road and saw a third way in which we can still have reach but at the same time optimize reader loyalty globally and domestically.

Why not a paywall?
Well-intentioned people often tell me, “Just keep cutting costs, put up a paywall and the Guardian will be profitable.” But we have to remind people of the role the Guardian plays in the world. People are anxious about what the world is right now, and our unique ownership structure, which is totally independent and free of shareholders, means people trust our independence and want to support us to keep us as openly accessible as possible.

What are the cultural challenges in moving to more of a reader-revenue model?
We haven’t always legitimized genuine collaboration. There’s tension. When you’re trying to get to a sustainable outcome, a dynamic news agenda, with finite resources, you’re pivoting from an advertising-only to a reader-contributor strategy, there’s a lot of heat in the organization. You must deploy your most precious people in a strategic way, but give them autonomy to collaborate, debate and argue their way to an outcome.

What’s the opportunity in philanthropy?

There are some conventions derived from The New York Times that X percent of your regular readers are likely to become paying subscribers, and that’s your future business model. Over time, that will cap out. You’re then stuck with a finite number of paying subscribers. There are different groups of people who will subscribe digitally and others that contribute at an article level because they feel passionate about a subject. There is no ceiling on how far contributions can go.

What’s next for publishers’ relationship with Facebook and Google?
We have a close relationship with Google from [CEO] Sundar [Pichai] down. They recognize the role of quality news within their ecosystem. So we’ve collaborated a lot around video, VR funding, data analytics and engineering resources. It’s a valuable strategic relationship.

What about Facebook?
Facebook is a different picture. Our relationship with them is difficult because we’ve not found the strategic meeting point on which to collaborate. Eighteen months ago, they changed their algorithm, which showed their business model was derived on virality, not on the distribution of quality. We argue that quality, for societal reasons, as well as to derive ad revenue, should be part of their ecosystem. It’s not. We came out of Instant Articles because we didn’t want to provide our journalism in return for nothing. When you have algorithms that are fueling fake news and virality with no definition around what’s good or bad, how can the Guardian play a role within that ecosystem? The idea of what the Guardian does being starved of oxygen in those environments is not only damaging to our business model but damaging to everyone.

Should Google and Facebook be regulated?
Regulation ensures there isn’t negative impact from market dominance, which there is with those organizations, especially in advertising. But you can’t sound anti-platform or anti-digital or anti-Google or Facebook because it’s the future. News organizations have had this narrative of “it’s unfair, look what they’re doing.” But regulation needs to be used appropriately to ensure there is fairness.

You’ve described the digital ad model as broken. How would you describe it now?
The commoditization that’s come with everything being more machine-led has meant some clients have lost sense of how to build brand equity over time. There is nothing wrong with programmatic; it’s just the safeguards in that ecosystem need to be about total transparency. Some of those data points in media planning are completely opaque, and that still needs to be solved.

Who is responsible for addressing ad fraud?
There is a client at the top of this food chain. It’s their money. They can’t allow their money to be disseminated in places they don’t understand, so it’s beholden on clients being much clearer on where their money is deployed and for agencies to be more clear and transparent about where that money is going.

What’s a big trend you see in 2018?
Voice is increasingly on our radar. The translation of the written word into devices like Google Home or Alexa is starting to take off. What is the role of news organizations in a voice-activated search world with no interface? What’s the user experience? How do you get brand recognition? If you say, “Good morning, Alexa or Home,” how can you be reassured that the Guardian is the first thing that comes up in the news category? I love that challenge.

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How Instagram’s new features will impact organic reach

Last week, Instagram added two features that will alter the content in users’ feeds: The ability to follow hashtags will surface hashtag-focused posts, and a “Recommended for you” section will show posts friends have liked.

When it comes to organic reach on the platform, both changes have favorable and unfortunate implications for brands, publishers and influencers. Here’s a rundown of them:

Clutter will increase
Both changes will add increased clutter to Instagram feeds, resulting in more content users must scroll through to reach all organic content. Ever since 2016, when Instagram switched from a chronological algorithm to one that tailors posts for each specific user, brands have to pay to be seen. Instagram said the new changes will not impact where paid ads will appear within user feeds, so posts that are not backed by a robust paid Instagram strategy are likely to be further buried.

The new hashtag-related posts will follow the platform’s same algorithm. If a user follows a certain hashtag, say “#photography,” Instagram will determine which posts to show the user in their feed based on the recency and quality of the posts. There is no limit on how many hashtag-related posts appear in a user’s feed, said an Instagram spokesperson.

Meanwhile, the new “Recommended for you” section, which will include three to five posts, will appear after a user has viewed all of their new posts. Consequently, users who open and close the app more often will see the “Recommended for you” section more frequently than those that do not.

More discoverability
Both updates could improve discoverability on the platform in general, even as organic posts fall to the bottom of feeds. Take the “Recommended for you” feature.

“If Instagram follows Facebook,” said Samantha Skey, president and chief revenue officer at SheKnows Media, “I imagine we’ll see plenty of sponsored posts, which could make for strong advertising as it captures a trusted referral.” For the time being, Instagram said it has no plans to place sponsored posts in the “Recommended for you” section.

With the new ability to follow hashtags, marketers can capitalize on trending conversations. For instance, on Dec. 15, Target used #StarWars in a post to appear next to other posts that reference the opening of “The Last Jedi” movie. Now, if a user follows #StarWars, they might see Target’s post in his or her feed.

“For years, brands that had a right to be seen alongside certain hashtag-related content were buried by the algorithm,” said Matt Lang, senior digital strategist at digital agency Rain. “But now, they’ll have a chance to surface.”

Letting users follow hashtags could also boost influencers, said Kamiu Lee, vp of business and development strategy at influencer platform Activate by Bloglovin’.

Hashtags could encourage publishers to create communities related to their own brands and hashtags that audiences will want to follow, said Amy Ramirez, Instagram manager at travel publisher Culture Trip.

Hashtag abuse
Marketers don’t need big follower counts or social media budgets to do so, so it’s likely that they will add more trending hashtags to their posts as well as to their Instagram Stories, which could lead to hashtag abuse.

“The real challenge on all of us [is] determining which hashtags are actually relevant and can add value to conversations,” said Amanda Peters, group strategy director at Wunderman.

Allie Arends, social media engagement supervisor at Space150, said brands and influencers will have to start strategizing about their organic Instagram content almost like they would an SEO strategy. “The image, copy and especially hashtag usages should serve a specific strategic purpose to maximize organic reach,” she said.

Still, there’s no guarantee brands’ and influencers’ hashtagged posts will appear in users’ feeds. Lang said advertisers shouldn’t be surprised if Instagram decides to enact another algorithm that prioritizes which posts get featured for a specific hashtag that is being followed.

Either way, advertisers look forward to seeing which hashtags users end up following. Scott Lindenbaum, evp and director of digital strategy at Deutsch, said this kind of personal interest data could help make ads more relevant.

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Practical advice for planning a CRM marketing stack upgrade

The revolution in customer relationship marketing (CRM) continues with an exponential increase in the points of data available to leverage for marketing. Data is more robust, measurement tools are better, and channel capabilities are improving — not only on their own, but also in their ability to orchestrate marketing across channels. All of this is great for the industry, and it is driving investment in new marketing stacks.

When I talk about a marketing stack here, I don’t mean that
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Equifax and beyond: How data breaches shaped 2017

With so much data being collected, stored and used, it was inevitable that breaches would be on the rise. The year 2017 saw more personally identifiable information (PII) exposed through malicious intent than ever than before.

Equifax and Yahoo led in the headlines, but there were many other notable breaches. As we look back, let’s see what we can learn from them.

Equifax makes all the headlines

Attackers hit more than 145 million Equifax customers this September. They stole names,
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Lotame’s prep for GDPR highlights big changes in data management

As data management platform (DMP) Lotame gears up for compliance with the upcoming General Data Protection Regulation (GDPR), some of the far-reaching changes are coming into focus.

First, there’s the matter of tracking consent by users across what General Counsel and VP of Global Privacy Tiffany Morris calls “the chain of custody.” This reaches from the time the user’s data is generated or collected at, say, a publisher’s website, through the various ways in which the data is use
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Drug and Alcohol Deaths at U.S. Workplaces Soar

The number of American deaths at work from unintentional drug and alcohol overdoses jumped more than 30% in 2016, new government data shows, showing that the U.S. struggle with a deadly opioid epidemic is migrating to the workplace.
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The BBC is using facial coding and eye tracking to prove its branded content works

Proving the effectiveness of branded content has been an industry fixation in 2017, BBC StoryWorks, the branded-content arm of the broadcaster’s commercial division BBC Global News, is offering clients facial-coding and eye-tracking tools to show its branded content works, the fruits of two years of research.

Chinese phone maker Huawei is the first client to use these tools for its four-part video campaign “The Explorers.” One of the two-minute videos features an interview with former NASA astronaut Ron Garan. The content is viewed by a sample of the BBC’s global panel of 12,000 members — for Huawei, the sample was 400 — with facial-recognition and eye-tracking software activated through their desktop webcams. Facial movements are recorded on a second-by-second basis and then divided into six possible emotions: sadness, puzzlement, happiness, fear, rejection and surprise. Eye-tracking software indicates which part of the content, which could also be text-based, triggers the emotion.

After the campaign, StoryWorks offers analysis on how the content delivered against brand metrics. Compared to a control group, those who saw the Huawei campaign recorded a 216 percent increase in brand awareness, a 23 percent uptick in brand association and a 19 percent increase in purchase intent, according to the BBC insights team, which couldn’t share exact numbers.

“We want to use science to ascertain the emotional impact of content,” said Richard Pattinson, svp of BBC StoryWorks. “We see a clear correlation between audience engagement and brand impact; we want to use this when we commission with our partners. My focus in 2018 is to understand engagement better. We’re long past engagement [for content] being dwell times and pageviews.”

BBC Global News’ insights team has been researching how emotion relates to brand metrics for the last two years. Its “Science of Engagement” study, in partnership with facial-coding company CrowdEmotion, has won awards.

“We see a strong correlation between serious emotions like fear and positive uplifts in brand awareness,” said Pattinson. “Eliciting more challenging emotions is legitimate. It demonstrates empathy and understanding as a brand.”

Understanding which part of content elicits an emotional response can play into a brand’s distribution strategy. For instance, audiences might feel puzzled during a certain section of a two-minute video, which could then be cut and distributed on social media with the idea that more people will share it.

As with most data-related decisions, these tools are more likely to reinforce hunches rather than break new ground. Pattinson notes that they are not used to create ideas but achieve better cut-through in a crowded content market. “This is the science that helps the art show its full potential,” he said. “It demonstrates why it has been effective for the brand.”

Pattinson also said the tools could help brands understand what content relates to which part of the purchase funnel, which could inform distribution cycles, depending on the campaign objectives. For Huawei, the campaign objectives were more about driving awareness than driving purchase. Four other brands are using StoryWorks’ tools to help demonstrate brand outcomes as a result of emotional engagement, although StoryWorks couldn’t disclose their names. With this added research, the hope is clients are more likely to renew contracts with StoryWorks. Media companies like Vice and The Telegraph are increasingly beefing up the information they can give to clients to prove the effectiveness of their ads.

Since April, StoryWorks has closed over a hundred branded-content deals globally. In early 2016, Pattinson said revenue from branded content was roughly 30 percent of overall ad sales; now, he said it’s closer to 45 percent. StoryWorks has offices in London, New York, Singapore and Sydney with roughly 36 employees, including strategists, project managers, writers, developers and social media managers, among others.

As StoryWorks offers the tools to more clients as planned, it will need to hire more staffers, particularly because post-campaign analysis is bespoke, depending on campaign objectives. “This can only be valuable with the right degree of attention,” said Pattinson, “but bits of it are very scalable.”

Image courtesy of BBC StoryWorks

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Publishers are underwhelmed by the payoff from hitting viewability standards

Publishers are bending to the will of advertisers to make their ads more viewable, but some publishers are finding the payoff isn’t as great as they anticipated.

Over the past year and a half, advertisers have continually pounded their fists, demanding that they’ll only buy ads that are guaranteed to be seen by a user. The push for viewability gave the impression that advertisers would spend branding campaign dollars with publishers that had highly viewable ads, said Erik Requidan, vp of programmatic strategy at Intermarkets, which helps publishers including Drudge Report and The Political Insider market their ad inventory to buyers.

Instead, the sites Requidan works with continue to be relegated to getting performance-based ads, he said. Those sites might see a few dollars increase in their CPMs if they boost their viewability, but big-brand dollars haven’t materialized.

“If something is 90 percent viewable, shouldn’t that unlock a whole lot more money or a bigger price point?” he asked.

When listicle publisher Ranker tweaked its site layout last year, page-load time went down 60 percent and average viewability rates doubled from 35 percent to 70 percent. Those factors helped Ranker increase its average CPMs by about 75 percent, but the prices of its least and most viewable ads don’t differ much.

Ranker’s ad viewability ranges from 62 to 82 percent. But there’s only a 13 percent difference in the CPMs for these ad units, said Ranker CEO Clark Benson. Given how much advertisers and their tech vendors emphasize that campaigns perform better when ads are 80 percent viewable, Benson expected Ranker’s most viewable ad units to command a higher price.

“So far, the promise of viewability quickly filtering out bad actors and improving yields for the good ones seems to be only a half-kept one,” he said.

It’s a similar story elsewhere. Stephanie Layser, vp of ad tech and operations at News Corp, said there’s no significant difference in price between the publisher’s least and most viewable ads. Remedy Health Media, the publisher of health sites like HealthCentral and TheBody.com, has seen little lift in its ad rates since increasing its viewability, said Aryeh Lebeau, evp of client operations there.

Some publishers said they’re satisfied with the pricing lift they’re getting for highly viewable ads, which is a function of their expectations of their advertisers.

Lebeau wasn’t bothered by the lack of lift in ad rates because advertisers never promised Remedy higher rates in exchange for higher viewability.

A programmatic specialist at a comScore 200 entertainment publisher, requesting anonymity because he wasn’t authorized to share financial details, said a 30 percentage-point lift in viewability at his company’s websites tends to increase CPMs by about 20 percent. This person emphasized that it’s difficult to isolate viewability’s impact on ad rates, so these figures are rough estimates. The source still felt his company was being compensated fairly for its highly viewable ad placements.

Another source, Danny Khatib, CEO of 100 percent programmatic publisher Granite Media, said high viewability rates can boost Granite’s CPMs by a few dollars, which he saw as significant.

“We never expected new branding budgets to come online solely because of viewability improvements,” he said. “That seems like wishful thinking.”

In an Integral Ad Science survey of more than 1,000 advertisers, 68 percent of respondents said they transact on viewability and another 25 percent said they wanted to do so. Although buyers are regularly transacting on viewable metrics, viewability is less likely to influence ad rates if it isn’t a primary KPI.

The reason rates haven’t risen right along with viewability has to do with how programmatic buying works. David Lee, programmatic lead at media-buying agency The Richards Group, said that even in a private marketplace setup, most buyers don’t place bids on individual publishers but place bids across hundreds, if not thousands, of sites at a time.

So if viewability is being used as a secondary KPI, then buyers’ bids will be restricted to the publishers that meet a certain viewability threshold. But since buyers aren’t bidding on individual publishers, they’re not intentionally setting out to pay specific publishers more based on their viewability gains. And since viewability rates are rising across the industry, publisher improvements in viewability are less likely to increase publishers’ CPMs than they were a year ago.

Another issue with rising viewability is that in an effort to appease advertisers, many publishers are doing whatever they can to make sure their ads are viewed just long enough to be counted as viewable. Most viewable ads are in view for just one second, according to IAS data. That amount of time happens to be the standard the Media Rating Council uses to define viewability.

As publishers increased their volume of viewable ads by refreshing pages, sticking ads in photo galleries and using interstitials, users got turned off and buyers caught on. IAS found that the average time that a desktop display impression was in view declined from 9.8 seconds in May 2016 to 7.7 seconds in May 2017.

“We’ve seen some publishers game the system in using ad placements that provide a less than optimal consumer experience but have higher rates of viewability,” said Stephani Estes, svp of media strategy at ad agency Cramer-Krasselt. “In those instances, we’re not willing to pay more for higher viewability.”

It’s understandable that publishers get miffed by low returns on highly viewable ads. But in programmatic environments, the highest CPMs come from programmatic direct deals, not the open exchange. And to entice ad buyers to set these deals up, publishers need to have viewability rates above 65 percent, according to three publisher sources.

Viewability isn’t necessarily a way to lift rates, said Mort Greenberg, svp of ad sales at Sightline Media Group, which owns government-focused sites like Federal Times and Military Times. “However,” he added, “high viewability will keep you on a plan.”

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