App Advertisers Give Low Marks To Facebook’s Instant Articles And Audience Network

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Apps lean heavily on Facebook for their paid user acquisition efforts, but they also want more control over how and where their ads run. And Instant Articles? No thanks. When Pixelfederation, a game studio based in Slovakia, tested Instant Articles, the return was nil. “The impressions were almost nonexistent, and all of the impressions weContinue reading »

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TV Measurement Is A Chaotic Mess; First Price Auctions Comes With Risks

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Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here. Gold Mine Of Information People are watching more television, but less measurably. “We know the audience is there,” GroupM US managing director Ed Gaffney tells Mike Shields for a Business Insider on the chaotic state of TV measurement. “TV is not dying, it’s evolving.Continue reading »

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The merging of advertising and entertainment has led to talent shortfall

As spending on branded content has grown, agencies, publishers and brands are increasingly searching for people with skills more commonly found in entertainment fields than in advertising. But finding those people has turned out to be easier said than done.

In a December study, tech firm Conductor surveyed 500 marketing execs and found that 76 percent said they would increase their content marketing spend in 2018. Meanwhile, a December survey by The Creative Group of 400 agency and company execs showed 43 percent cannot find the talent they need. According to the second survey, content marketers are the most in demand, followed by interactive and social media roles.

Marketers are looking for people with skills in user experience, experiential, digital design, 3-D motion graphics, virtual effects and artificial intelligence, said Sarah Pak, vp of strategic accounts for staffing firm The Creative Group.

“Traditional advertising usually sits or gets shared only on the site it originated on,” Pak said. “But since branded content is content shared across different sites, such as a Facebook video being shared on Instagram, then again on Twitter, creative professionals need to understand how to customize the content and design for the various channels.”

Advertisers are seeking these new kinds of talent because they’re pressured to make ads more entertaining as people consume more content on mobile phones, video-streaming channels, social media platforms and technologies built for entertainment such as virtual reality and augmented reality. In-house content shops at publishers like The New York Times, BuzzFeed and Vice Media are called on to create articles and videos that rely not only a brand’s slogan or product, but the story behind the brand or a brand’s stance or positioning or topic.

“Traditional advertising has shape-shifted from traditional display to a kind of entertaining branded content,” said Chris McLoughlin, svp of The Foundry, a content studio started by Time Inc. and now owned by Meredith Corp. “Consumers are so bombarded by commercial messaging these days that if a brand can’t entertain us, we just won’t pay attention.”

Writing in The Atlantic, Derek Thompson pointed out that for the first time in history, the number of advertising jobs has fallen, according to the Bureau of Labor Statistics. The article posited that the rising investment in branded content has meant a decline in traditional ad jobs as brands simply market themselves differently.

McLoughlin said The Foundry tends to look for writers, editors and videographers. For instance, John Godfrey, vp and creative director at The Foundry, is a former editor at Glamour and Family PC. Michael Rivera, a creative strategist of branded content and partnerships at The Foundry, worked in music licensing at the Branded Entertainment Network and Warner Bros. Records for years.

Not all creative people are so eager to come over to the business side, though.

“As advertising professionals, we are not the best storytellers in the business,” said Fede Garcia, executive creative director at Huge. “We are not even close. Television showrunners are, movie writers are, novelists are, comic book writers are, directors are. Not advertising creatives. We need creatives that can ‘see’ ideas in terms of ‘entertaining value’ on top of their uniqueness or originality.”

The competition for this kind of talent is evidenced by an increase in counteroffers. In a separate survey by The Creative Group, 14 percent of 200 advertising and marketing execs at companies surveyed said the number of counteroffers extended by their company to people including branded-content strategists has increased in the past six months. Nineteen percent of the 200 ad execs at agencies said counteroffers have been more common in the past six months.

The talent crunch has led to a cottage industry of companies trying to connect brands and agencies with content creators. In October, mobile photo- and video-editing app Vsco launched Vsco Connect, a platform that links brands and agencies with creators. Brands like Nike, Chobani and Timberland are testing the feature. A new app called Hollyfy connects brands and agencies directly with celebrities and social media stars.

Still, some of the best talent may not be available at any price.

“The talent exists, but you won’t find them inside the agency anymore, and you might not be able to hire them because they are simply not interested in advertising,” Garcia said.

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Digiday Research: 56 percent of brands plan to move more marketing in-house

At the Digiday Marketing Summit in December, we sat down with over 30 industry executives from major brands across the U.S. to discuss developing trends such as making branded content work. Check out our earlier research on brands’ level of concern about brand safety here. Learn more about our upcoming events here.

Top findings:

  • Fifty-six percent of brands plan to move more of their marketing in-house in 2018.
  • Almost seven in 10 (69 percent) conduct over half of their marketing internally.
  • By the end of 2017, all brands conducted at least some of their marketing in-house, compared to 12 percent that did none of their marketing in-house at the beginning of that year.

2017 was the first year since the Great Recession that the advertising industry lost jobs, according to the Bureau of Labor Statistics. It appears that trend could continue, based on the results of Digiday’s recent survey. Digiday’s survey also revealed a spike in how much marketing brands did internally in 2017, with all brands saying they performed at least some of their marketing in-house by year-end, up from 88 percent at the beginning of the year.

This article is behind the Digiday+ paywall.

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Facebook’s new branded-content guidelines will force some publishers to abandon a business model

One by one, Facebook is cutting off access to the cheap traffic pipelines publishers used to tap on the platform, and it’s forcing some publishers to abandon tactics that defined their businesses.

Last month, Diply, a publisher that gets 85 percent of its desktop traffic from Facebook, according to SimilarWeb, informed the owners of many of the Facebook pages that Diply pays to distribute its content, saying it would soon stop sending them content to share, according to multiple publishers that work with the same influencers Diply works with.

Diply said in a statement that it had not made a final decision on the matter. “We have heard other publishers are pausing their influencer program,” the statement read. “We’re using our data to determine any next steps for Diply.”

The move was a response to a change Facebook made to its branded-content guidelines on Jan. 25, which stated that page owners were not permitted to accept “anything of value” in exchange for sharing content that they did not have a hand in creating through their pages. Failure to abide by these rules, which take effect March 1, would result in warnings or, in cases of repeated violations, the shutdown of offenders’ pages.

Facebook’s guidelines are designed to limit the practice of Facebook pages sharing links to third-party websites in exchange for money. The practice, which for celebrities including George Takei has become an open secret as well as a major source of revenue, started boosting traffic for sites including Elite Daily and ViralNova several years ago. Other celebrities that distribute content for pay include Lil’ Wayne and Marlon Wayans. The new guidelines do not affect publishers that engage in link-sharing agreements, where two publishers share links from one another’s pages.

While the regulations contain some gray areas that some publishers say they’re exploring, multiple publishers say the new rules create a distribution problem with no easy solutions.

“There were publishers who had built entire businesses on this content model, and as recently as six months ago, they were saying everything was great,” said the founder of one company that distributed Facebook content that way. “Gone are the days when social publishers enjoyed relatively cheap distribution of their low-quality content through influencer pages.”

Some publishers believe they’ve identified workarounds for the new rules. Gary Lipovetsky, the CEO of Providr, a Canadian publisher that creates content then distributes it using a network of hundreds of influencers’ Facebook pages, including those belonging to Marlon Wayans and Lil’ Wayne, said in a post that he believes that if an influencer adds a paragraph-length description or caption to the post, it satisfies Facebook’s requirements.

To further insulate itself against the changes, Providr is also building software that will add page owners’ names to the content it distributes on Facebook.

“I understand why Facebook’s doing it,” Lipovetsky added. “Their mandate is to continuously improve the user experience on their platform. I actually believe this is going to improve pages’ organic reach.”

The decision Diply and other publishers have made to stop sharing this kind of content has created a knock-on effect. Some influencers, apparently willing to risk running afoul of Facebook’s new guidelines, have been hunting for alternative sources of content they can distribute for money, according to an audience development executive at a publisher that’s used influencers for social distribution. That executive said his company has been fielding such inquiries from influencers lately.

“Influencers are absolutely panicking,” the executive said. “There’s guys out there that have built the pages, and they live off monetizing them in this fashion.”

Facebook’s move is its latest effort to limit traffic arbitrage on its platform. Over the past several years, a small cottage industry of publishers and influencers has used one another as cost-effective distribution nodes inside Facebook, offering site visits for as little as a penny per visit, below the going rate for distribution on Facebook.

The referral traffic that powered these traffic deals will not be easily replaced, which could jeopardize the existence of some publishers. “There’s nothing else that delivers this kind of traffic,” said the founder of one company that used Facebook to distribute content in this manner.

The determining factor, he added, will be how aggressively Facebook polices its platform. “It all comes down to enforcement,” he said. “How is Facebook supposed to know if George Takei posted something because he liked it or if he posted it because he got paid?”

The post Facebook’s new branded-content guidelines will force some publishers to abandon a business model appeared first on Digiday.

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In the #MeToo era, agency bosses worry diversity hiring will lead to tokenism

The CEO of a top advertising agency has a dilemma. He wants a woman on his all-male management team but can’t find the right candidate. He thinks female leadership would banish any lingering misogyny from his boardroom, but doesn’t want the candidate to be a token hire. Finding the right person is so hard, the CEO said, that he’s “given up the ghost on finding the right female leader because the pool [of talent] is too small.”

The executive, who spoke to Digiday on condition of anonymity, knows he could look harder for senior women but argued, “If there isn’t the talent that is either right for my business or good enough, then why should I be punished for a [gender inequality] problem that is far bigger than just advertising?”

It’s a conundrum the agency boss shares with many of his peers, with misogynistic corporate culture in the spotlight. The #MeToo backlash against sexual harassment has rightly put workplace inequality in sharper focus. It’s also making agency bosses nervous about how they recruit women for senior roles.

Several male senior managers from agencies have expressed their concerns about having an all-male leadership team, said Helen Kimber, managing partner at headhunting firm The Longhouse. The worry about those discussions is how easily hires can turn into “tokenism” rather than best-in-class hires. In many instances, the woman hire is a valid one. “But if she’s not, there’s a huge concern that agencies settle for appearances rather than making the best hire,” she concluded.

Hiring’s double-edged sword
The M&C Saatchi situation illustrates this dilemma. Prior to M&C Saatchi London’s chief creative officer Justin Tindall’s claim that he was “bored” of the diversity debate in October, he had presided over a male-dominated creative department, according to two separate sources. Industry condemnation followed, which led to more women being hired in the creative department and chief marketing officer Kate Bosomworth, head of culture and inclusion Sereena Abbassi and chief strategy officer Raquel Chicourel filling senior roles across the wider M&C Saatchi group.

M&C Saatchi’s female hiring catch-up didn’t get the company off the hook entirely, though.

“Diversity isn’t only about women, which makes the agency’s recent hires even more of a joke,” said an M&C Saatchi executive, who spoke to Digiday on condition of anonymity.

“When you become aware that you’re really out of kilter, then of course there’s going to be a remedy put in place, and part of that may be that the next X number of hires make you more mindful about some of them being female,” said Kathleen Saxton, the founder of executive headhunting firm The Lighthouse Company. But the agency can’t lose sight of what skills are needed to support the business. “You can’t just hire more women because you need more women,” concluded Saxton.

Agencies have a responsibility to look out for their businesses, so they need to hire on merit, said Zaid Al-Zaidy, CEO of creative agency Above+Beyond. “We would be doing diversity a huge disservice, and it would only serve to patronize women, the LGBTQI community, the disabled, the socially disadvantaged or people from BAME [black, Asian and minority ethnic] backgrounds to hire people who aren’t up to the job simply because of their gender or background,” he said.

Of course, a counterargument is that companies created this dilemma for themselves by not ensuring their workplaces were diverse in the first place, and fear of tokenism shouldn’t be an excuse for not remedying imbalances.

Expanding the hiring pool
Some agency bosses navigate that complexity by thinking more broadly about the sectors they recruit from and the senior leadership roles they create. It’s easier to find female chief strategy officers than female CEOs, for example. The Longhouse has compiled several CSO search lists recently, and most (70 percent) have been dominated by “brilliant women,” said Kimber. There’s a prevailing wisdom among some recruitment consultants that senior-level women overindex in strategy and production roles because they lend themselves to flexible work schedules, and women don’t lose momentum after returning from maternity leave.

When one agency boss, who asked not to be named, searched to fill the roles of president and creative chief, one thing stood out on each candidate list: The list for the president position had a mix of male and female candidates, whereas the one for the creative role had no women.

Whether it’s true or not, agency bosses believe there’s a shortage of women available for senior roles. Less than a third (30.9 percent) of C-suite roles in the U.K. ad industry were held by women last year, up from 30.3 percent in 2016, according to the trade body Institute of Practitioners in Advertising. But the numbers don’t tell the full story.

Women-friendly HR policies
Part of the reason there aren’t more women in senior roles is because many feel they are overlooked should they want to start a family.

When creative agency Quiet Storm recently sought to hire a business development director, most of the applicants were male, said managing director Rania Robinson. Robinson suspected the shortage of women stemmed in part from women being held back for promotions due to maternity leave.

“I never really felt held back in my career until I started thinking about having a child,” she admitted. “I don’t think it’s unreasonable to say that men of a certain generation think that women will deprioritize work and won’t be as driven or committed as they once were now that they have children.”

Not every ad agency struggles to hire senior women or achieve gender equality across their business.

Mother and Livity, two independent agencies, point to good maternity packages and how they invest in junior executives and recruit talent from beyond the advertising industry as reasons why they don’t have the same problem with diversity that some agencies do.

Mother’s creative shop is led by Ana Balarin and Katie Mackay-Sinclair alongside Hermeti Balarin and Chris Gallery in the U.K., and 67 percent of its department heads are women. The agency’s challenge is making sure its staff is diverse enough. Both Mother and Livity claim they’ve always had a suitable woman ready and waiting in the wings when they have a senior role to fill. Alex Goat, for instance, joined Livity in 2012 as client services director, became managing director in September 2015 and ascended to CEO last year.

At Livity, there are a lot of women known as “boomerangers” — people who leave for a short period before returning once they’ve reached a senior level — “because they know we’re a company that provides a good environment to be challenged and excel,” said Stacey Stollery, head of people and culture at Livity.

Since it launched in 1996, Mother has always had “runners,” people who haven’t gone to college but are brought in to work effectively as assistants across the business. It is in the early phases of working with schools close to its Shoreditch, London, office so that students come into the agency for a week as part of their final year. These moves can help attract people from diverse income backgrounds. Furthermore, the agency started working with Jolt, a diversity-training and internship initiative, last year.

“The management team at Mother has never sat down and thought, ‘How can we bring more women in?’” said Mackay-Sinclair. “We’ve never had to. There are women leading departments and moving up into senior positions because we have a diverse pool of talent of both female and male at all levels. … Mother isn’t macho. That’s always been part of the natural culture here.”

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European publishers look to digital subscriptions to reduce platform dependency

Publishers are looking increasingly to reader-revenue models, not just to secure a sustainable business model but also to reduce their dependency on the duopoly, according to a report from Axel Springer. The report is the first of its kind from the publisher and was released to coincide with its first international paid-content summit last week.

The Guardian, Financial Times, Le Figaro, Schibsted, Axel Springer’s Bild and Business Insider, along with U.S. titles including The New York Times, were among the 33 publishers that participated in the survey, whose purpose was to discuss the future of subscriptions models.

Publishers are feeling more buoyant about the future of subscription models, with most respondents (70 percent) saying they have evidence that readers’ willingness to pay for content has increased in the past year, according to the report.

A flurry of publishers in Germany, France, Spain and Scandinavia, including Spiegel Online and Die Zeit, have recently launched new paid content models, said Stefan Betzold, managing director of Bild Digital.

“Unlike ad revenue, where the big platforms like Facebook and Google take such a large proportion, digital readership revenues and the relationships we can develop with readers provide another revenue stream that helps us reduce dependency on platforms,” Betzold said.

Betzold also acknowledged that Google and Facebook have made efforts to support publisher subscriptions. Last October, Google ended its first-click-free policy for subscription publishers’ content that required subscription-based publishers to let readers see at least three free articles in order to have the publishers’ content surfaced in search.

Facebook has also been testing subscription sales with publishers including Axel Springer, The Economist and The Washington Post through its platform. However, these tests are running just on Android devices and Betzold said Bild has seen little to no data on what impact the test has had.

“It took us two years of discussions with Facebook to get them to understand the future of news and journalism and what’s needed, and that resulted in these [subscription] trials,” Betzold said. “But we still need them to show more commitment to it, to bring product people together and help us work on it and analyze it together.”

He added that Facebook’s plans to purge its news feed of publishers and brand content do not directly address publisher attempts to monetize digital subscriptions via Facebook, though he said if news is dramatically reduced in the feed, promoting content that’s paid for on the platform will be harder.

Publishers surveyed in the report noted Google as the platform that’s made the most effort to work closely with them, whether via the Digital News Initiative or by ending first click free. In contrast, Amazon wasn’t rated as an important partner, while they deemed Apple News less important than Google and Facebook.

Source: Axel Springer

For Bild, however, Apple News has performed the best out of the platforms by far, Betzold said. “Apple News is an important partner for paid content distribution, despite it taking a revenue share, it’s an ecosystem that works well for us, much better than Google Play,” he said. “I’d put Apple News ahead of Google and Facebook for driving subscriptions.”

Ensuring the continued health of paid content models depends on a number of factors, including optimization of user flow, investment in editorial content, a better understanding of data in the newsroom and churn prevention — all things the publishers surveyed in the report plan to invest in.

Source: Axel Springer

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In play for customer data, TD Ameritrade rolls out Twitter trading bot

TD Ameritrade is blending tweeting and trading into a single customer experience.

The brokerage firm released a Twitter bot Thursday, allowing stock investors to execute trades, get market updates and browse educational content through direct messages. For the brokerage, encouraging traders who use Twitter to transact will give it, the hope is, a rich source of user data to offer personalized customer experiences and product recommendations. It also offers the company an opportunity to promote the company’s employees as resources for customers 24 hours a day.

This is the second major social media trading feature the brokerage firm launched within the last six months; it rolled out a Facebook messenger bot in August. TD Ameritrade’s forays into using social media are part of a bigger industry trend to meet the needs of an increasingly social generation of traders who often share information through digital channels.

Read the full story on tearsheet.co

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Unilever Threatens to Reduce Ad Spending on Tech Platforms That Don’t Combat Divisive Content

Unilever says it will pull back advertising from popular tech platforms, including YouTube and Facebook, if they don’t do more to combat the spread of fake news, hate speech and divisive content.

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Broadcom Secures as Much as $100 Billion of Debt Funding for Qualcomm Bid

Broadcom sought the debt financing for its hostile bid for Qualcomm and enlisted two more big private-equity firms, strengthening the chip giant’s hand in the takeover battle.

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