Programmatic Options Have In-House Appeal

The following article by Adam Cahill was originally published by ihaf (In-House Agency Forum).

Since 2010, the programmatic advertising category has steadily increased in prominence. Indeed, eMarketer data shows that programmatic activity has been responsible for more than 70% of the U.S. digital display market since 2016. And, the dollars involved are significant. U.S. companies will spend nearly $40 billion on display advertising this year with programmatic translating to nearly half of total digital ad budgets.
Not only that, recent surveys suggest that more brands are looking to bring programmatic in house. A report from Infectious Media indicates that many marketers (more than 4 out of 5) want increased control over their programmatic efforts, while fewer than 2% of respondents have actually taken the steps to make it happen. It’s no wonder why brands have been scrambling to figure out the best way to manage programmatic.

Throughout this process, an age-old dilemma has surfaced: Should programmatic activities be handled by external agency partners or internal marketing staff? More succinctly, should it be managed in house or out?

While this question isn’t unique to programmatic advertising—marketing execs are constantly evaluating the benefits of sourcing myriad marketing functions (media buying, creative, technology management) via internal or external resources—this particular category is a hot-button item for three main reasons:

  1. First, programmatic has grown dramatically over the past few years, and increased spending of this kind is gaining the attention of non-marketing execs including CFOs and even CEOs.
  2. Second, since the release of the 2016 ANA Media Transparency Report, which revealed how external agencies concealed financial data about advertising spend and transactions, mistrust lingers that agencies are not equipped with transparently measures and programmatic reporting.
  3. And third, if you can’t be completely comfortable sharing your first-party data about customers with your agency partners, the relationship and the media strategy won’t be efficient.

While such factors may have forced marketing executives to assess alternatives to their programmatic strategies, there are other considerations too. Given digital advertising’s rapid ascent from a tiny sliver of the ad business in 2001 to capturing one third of overall dollars in 2017, it’s not surprising that today’s marketplace has a few blind spots. Indeed, while online advertising may be more effective than offline in many sectors, it still has its problems.
It is through this lens that many of today’s brands are evaluating bringing programmatic media management in house. The appeal of insourcing is not unique to programmatic however—including the promise of greater control over data, increased financial transparency, and the possibility of reduced costs. Others advantages are brand safety and minimization of ad fraud.

So, why have fewer than 2% of companies brought programmatic advertising completely in house and what are the benefits of working with an external partner?

A Complex Environment. The current state of the marketing and advertising technology category (coined “martech” or “adtech”) is complicated, populated with at least 5,000 companies—many of which are sophisticated and deep-pocketed, and understand how to empower vast telemarketing teams to flood voicemail boxes with enticing messages promoting their solutions. It’s challenging for even the most experienced marketing manager to separate the wheat from the chaff. Marketing experts who work with not just a handful, but dozens of technology concerns, can help brands make good decisions based on their unique requirements.

The Stakes Are High, and Growing. Programmatic currently accounts for 5-25% of most marketing groups’ advertising activities. While this degree of penetration is significant, it is also expected to increase—and for some types of organizations (especially B2C), it is anticipated to expand by two-to-three times annually in the short term. Establishing a solid base to build upon will affect the health of marketing organizations for years to come.

Insurance Policy. The only thing we know for sure about the programmatic marketplace is that it’s going to evolve quickly and change dramatically in the coming months—yes, months. At its core, it is a technology industry, and in no other sector is merger and acquisition activity so prolific. Given its current scope of 5,000+ identifiable companies, consolidation is either imminent or in progress. The careers of many senior marketers will depend on the technologies they select for their corporations (as was the case for IT managers a decade ago, choosing among SAP, PeopleSoft, Oracle, and others). Having a trusted advisor involved in a programmatic transition not only ensures that the short-term project needs are addressed successfully, but that an expert is at the ready should an unexpected event require a change in strategy.

As much as having more control and transparency over programmatic media buying makes sense, the required investment in talent and expertise to navigate the ecosystem should not be overlooked. For now, brands should consider a hybrid model where they own the contracts and data and their agency partner owns the rest, at least for the foreseeable future.

Adam Cahill is the President of Digilant US and CEO of Anagram. A 20-year veteran of the digital industry, he went all­-in on programmatic in 2009, launching one of the first agency trading desks. Before joining Digilant, Adam founded Anagram, a programmatic media consultancy. Previously, he served as Chief Digital Officer at Hill Holliday and SVP/General Manager of Carat in Boston. Adam has been named a Media All-Star by Adweek, a Media Maven by the Ad Club, and has led teams that have twice been named Media Agency of the Year.

Programmatic Media Buying 101: How the Industry is Solving Domain Spoofing and Ad Fraud with Ads.txt & Private Marketplace

In 2018 the ad tech industry, and especially the top DSPs, are going to focus on improving inventory quality for programmatic media, as seen in our top ten trends you need to know about programmatic this year.

Download the full infographic here

What Does Inventory Quality Mean?

Over the past few years, the quantity of fraudulent ads has decreased greatly as the ability to monitor and prevent ad fraud has improved. However, there was still a significant room for improvement. Much of the development that has been made is for desktops ads. As the digital ad buying process continues to become more transparent and ad inventory quality improves, focus now needs to be centered on mobile and video ads. Video ads are extremely enticing to ad fraudsters due to high CPMs. The importance of eliminating fraud and enhancing the quality of ad inventory benefits both buyers and publishers.

On the buyer’s side, there are two major reason to ensure quality ad inventory: brand safety and media waste. If a buyer purchases fraudulent ad space and their brand is presented in a negative environment, it can greatly affect their brand image. In regard to media waste, if an ad is bought and only viewed by bots, instead of human eyes, the media spend is wasted on false impressions. Purchasing quality ad inventory ensures that an ad shows up on the site it is supposed to be published on and that human eyes are viewing it.

Publishers are primarily concerned with ensuring a quality customer experience. Customer experiences are deterred through malware or annoying ads. If the ad exchange is not properly screened, malware can arrive on a publisher’s site. If the consumer clicks on the ad, it will infect their browser, creating a very negative customer experience. Customers do not like when ads refresh, flash or are otherwise annoying. Publishers need to ensure that this is not occurring with their advertisements.

Publishers and buyers need to work together to become a trusted source of quality inventory which involves the following:

  1. Publishers sharing information with one another about negative buying experiences.
  2. DSPs need to educate their advertisers, that buying ad space from many different sources opens up the door for ad fraud.
  3. Create realistic standards for viewability. It is unrealistic to set 100% viewability goals.

Solutions for Fraud and Domain Spoofing

Private Marketplace Deals

Ad space was traditionally bought through open marketplaces. This is a process in which multiple media owners offer up their ad inventory to multiple buyers. All of the buyers compete to have their ad space placed on a page and the highest bidder wins.
Private marketplaces are auctions that are only open to select advertisers through an invitation-only format. Some of these entail only one publisher offering up ad space, others have a few. Before the auction, buyers and sellers negotiate a deal. Each deal is given a unique ID and advertisers bid on that deal only – inventory that does not meet the deal will not be bid on. This marketplace structure requires more work however, it is much more transparent. Buyers will know where their ad is being placed such as the URL of the website their ad will be shown on. The marketplace ensures a more transparent ad buying process and ensures that buyers ads show up exactly where they want them to, reaching the right audience in the right place.  

DSPs Are Implementing Ads.txt

IAB (Interactive Advertising Bureau) has released the latest mechanism that boosts inventory quality and makes the ad buying process less risky. In September, IAB released the authorized digital sellers or ads.txt. This is a simple, flexible method for publishers and distributors to clearly state which companies are authorized to use their digital inventory.

Companies drop a text file on their website that lists the different companies authorized to sell inventory on their site. This will enable buyers to see which programmatic firms have authorization to sell ad space on specific websites, ensuring validity in their purchase. The upkeep for this process is also simple. Someone will have to monitor additions to an ads.txt list to stay up to date with authorized sellers.

If you haven’t already, there is no time like 2018 to get on the programmatic bandwagon.  If you need to get started Digilant University has all the information you need to get up to speed and get going.  Need more information you can also reach out to us here.

10 Programmatic Media Buying Trends for 2018 That You Need to Know About

As we kick off 2018, it’s important as marketers, media buyers or media planners to be confident that we are making the right choices, spending valuable dollars in the right places and overall making the returns for those dollars that everyone is expecting.  How do we know for sure we made the right decisions?  We read, we discuss and we read some more on what’s next and how we can outsmart others by being ahead of the trends or implementing the newest ad technology before anyone realized they even needed it.

Our team at Digilant has spent a good amount of time doing the research for you.  We narrowed it down to 10 big trends we know will affect programmatic media buyers this year.  In 2018 you will be hearing a lot of talk about in-housing, ads.txt, OTT, DOOH, native, transparency, attribution and how digital media buying will be going fully programmatic in the next couple of years. We will cover all these topics and more over the next couple of weeks but in the meantime we offer you 10 things you need to know about programmatic for 2018.

Download the full infographic here or read it below. 
If you haven’t already, there is no time like 2018 to get on the programmatic bandwagon.  If you need to get started Digilant University has all the information you need to get up to speed and get going.  Need more information you can also reach out to us here.

Digital Game Changers for Super Bowl LII (Infographic) – A Digital Marketer’s Playbook Part 2

Almost everyone knows at least a few football super fans whose sole priority on game day is to stay glued to the TV, tracking yards, catching instant replays, and keeping a close eye on the ref’s calls. However, for most of us the Super Bowl is more than just a game. It’s a time to gather with friends and family over food, play games of your own, and build up excitement along the way. In other words, LII will be an experience and in order for advertisers to reach their target audiences, it’s critical that they successfully integrate themselves into and contribute towards the experience.

In last week’s first segment of #DigilantData’s Playbook for winning Super Bowl campaigns, we covered who’s planning to watch and what they’re looking for before kickoff. Today we’re sharing the next page out of our playbook where we reveal how these fans are taking brand-consumer engagement to a new level, forcing savvy digital marketers to implement game changing tactics to effectively target and convert these consumers.

After this past Sunday’s AFC & NFC championship games took place, fans are beginning to solidify their plans and the buzz around the second Patriots vs. Eagles faceoff is growing. These rivals were cheered on by the very same fans tuning in this year back in 2005, but brands and advertisers are faced with a very different digital ecosystem to navigate for this year’s rematch. At the advent of social media, the Super Bowl was hardly viewed as an opportunity for digital marketers to capitalize on. In fact, New England and Philadelphia’s fan bases didn’t even have many options to turn to if they wanted to make score predictions with friends or find their favorite influencer’s recap of the half-time show. Facebook was a platform exclusively for college students, YouTube was just a few weeks from launching, while all of the other major social networks that marketers and consumers enjoy using didn’t even exist.




This is a strong contrast to recent years where successful advertisements relied on diverse tactics to capture consumers’ attention across a variety of platforms. In 2017 over 90% of Facebook interactions took place on mobile and video content overwhelmingly yielded the highest engagement. Access to versatile native and video inventory, geo and cross-device targeting to reach fans, and a strong programmatic partner to implement an effective media buying plan are a few ways that brands can get the most from their digital ad dollars and celebrate their campaigns’ success on Super Bowl Monday.

California Avocado executed a phenomenal 2016 Super Bowl campaign, taking a few pages from this playbook, launching recipe videos across social media played in real-time  right after food and beverage ads during the game, responding with a pairing of their avocados with the products on screen. Similarly, PepsiCo, whose sponsored the Super Bowl for five consecutive years, worked with Snapchat to create live content during the game and a hashtag #FanCountdown on Twitter to hype fans up while driving sales before the main event.
This year is going to be bigger than ever, so bring your A-Game with #DigilantData’s 2018 Super Bowl Infographic. Check out part 2 and download the full playbook below.
Our second infographic covers the following information:

  1. How do fans consume media?
    • 84% TV
    • 82% Smart Phone
    • 11% Computer
    • 9% Tablet
    • 9% Game Console
  2. Where do they watch the game?
    • 75% at home with TV & Mobile
    • 7% Bars, Restaurants, & Pubs
  3. Which social platforms will users be most likely to turn to while watching the game?
    • 49% Facebook
    • 26% Instagram
    • 24% Snapchat
    • 22% Twitter
    • 18% YouTube
    • 30% Only focused on the game


Download the full Super Bowl Infographic Here
! Don’t forget to share #DigilantData.

Super Bowl 2018 Infographic – A Digital Marketer’s Playbook Part 1

Despite the recent exodus of many television viewers from broadcast TV, on Sunday, February 4th it’ll be hard to come by someone who doesn’t plan to tune in to Super Bowl LII on NBC at 6:30pm EST. Whether you’re a religious football follower or a fairweather fan, a cable subscriber or a cord-cutter, you’ll probably check in to make sure that your preferred team stays ahead or to catch a glimpse of some of the most engaging commercials of the year. Reigning in an average of 111.3 million viewers last year, Super Bowl LI was the fifth most-watched tv broadcast in history.


However, it’s not just on game day and during TV ad time that advertisers can cash in on the Super Bowl fanfare. As the AFC & NFC Championship games on Sunday approach  and fans firm up their plans for the big game, digital media buyers have a phenomenal opportunity to tap into this audience through tactfully planned campaigns with both incredible reach and precision. In this first segment of #DigilantData’s 2018 Super Bowl Infographic, we’ve laid out who your digital media campaigns should reach and what these consumers are looking to purchase.

One of the first things to note when planning your digital media buying for these weeks leading up to the Super Bowl is the increasing diversity in demographics that the event attracts. According to Reuters, female viewership increased 26% from 2009 to 2013 and last year 45% of the audience were women. There’s also a growing number of younger fans that are beginning to watch and host gatherings. In 2015, 69% of NFL fans were millennials and 26% of millennial Super Bowl viewers declared that they solely watch to see the ads. It’s important that digital advertisers reflect these broadening demographics and the diversity of the audience in their creative and strategy.

For marketers that want to score a touchdown and get the biggest return for their digital advertising dollars before football season comes to a close, they need to get smarter by diving into the data. Digilant is here to help.  This post is the first in a two part series of infographics that reveal everything you need to know about Super Bowl viewers and consumers.

Our first infographic covers the following information:

  1. Who are the customers?
    • 74% male
    • 69% female
  2. What are they shopping for?
    • 79.5% food & beverage
    • 10.7% team apparel & accessories
    • 7.7%%  TV
    • 7.7% decorations
    • 3.3% furniture
  3. When  do they shop?
    • Last minute, with the exception of beer
    • Friday & Saturday: apparel, decorations, furniture, & TV’s
    • Sunday: food & beverages

 

Download the full Super Bowl Infographic Here! Don’t forget to share #DigilantData.

Digital Advertising Lookback for 2017

What Happened in 2017?

Although your newsfeeds and inboxes have likely been inundated over the past few weeks with content and messages reflecting on the events from this past year, the digital marketing world really never pauses or slow downs. Since last January, global digital ad spend has increased 15%, surpassing TV ad spend for the first time ever. According to Statista, 2017 marked the first year in which mobile traffic composed more than half of all web traffic. It’s clear that the way that people consume content, interact with brands, and navigate the buyer’s journey is changing. Before you finish ramping up your marketing for the new year and embark on new digital ventures, we wanted to outline these major developments from 2017 to help you keep up with advancements being made today and anticipate transitions that advertisers will need to make tomorrow as we move into 2018.

Amazon Now Has Its Own DSP

Through the consolidation of many DSPs last year, we were left with one major surprise: Amazon Advertising Platform (AAP) exceeded Google’s DoubleClick Bid Manager (DBM) as the most used DSP. Despite remaining fairly below the radar, Amazon’s DSP is quickly gaining popularity because of its low agency fees, self-service option and unique commerce and purchase data. When ad buyers were asked for their preferred DSP, 23% answered Amazon. This tops the next choice, AppNexus, which falls at 19%. As the number of DSPs not owned by walled gardens, telcos, enterprise clouds or media companies decreases, differentiation becomes the key challenge.

Innovations in Transparency Hold Advertisers & Publishers More Accountable

Facebook updated their transparency policy to require political and retail-focused advertisers to reveal all ads they are running publicly in their feed. In October, Facebook announced, “Starting next month, people will be able to click ‘View Ads’ on a Page and view ads a Page is running on Facebook, Instagram and Messenger — whether or not the person viewing is in the intended target audience for the ad.” All ads must be associated with a page during the ad creation. This is a huge shift towards leveling the playing field for advertisers as they will be able to view all other ads that are running on these networks and gain competitive insights to optimize their funnels. In the past, advertisers could run dark posts, which permitted advertisers to run as many ads as they wanted without ever appearing on the brand’s own feed. This means that your competition could run multiple target specific tailored ads and you would never see them. With Facebook’s new policy, regardless of demographics, advertisers will be able to see the ads that their competition are running.

Although this initiative stemmed from a need for greater democratic transparency, Facebook’s new initiative is helpful for all parties in the digital advertising sphere and they’re not the only ones advocating for more honest advertising practices. The IAB has taken major strides to keep publishers accountable for any counterfeit inventory served to advertisers through their ads.txt project. The Ads.txt buying method confirms that each webpage uploads a file to its root domain detailing which SSP (Sell Side Platform – a tool that manages the programmatic advertising on a publisher’s site) offers its inventory, its Placement ID and its relationship with that SSP. The publishers publicly indicate who is actually authorized to market their advertising space eliminating inventory fraud. In 2018 we’ll begin to see many DSPs offer only inventory tagged with an ads.txt ID to their brand partners.

Retail eCommerce Flourishes as Online & Offline Experiences Blend

2017 was an extremely busy year for retail eCommerce with a 4.9% increase in U.S. sales and a number of mergers and acquisitions. Amazon acquired Whole Foods for $13.7 billion and Walmart acquired a number of eCommerce brands like Bonobos and Moosejaw. Despite the closure of many physical retail spaces, brands with brick and mortar stores are leveraging the data they’re gathering online to improve the offline customer experience, even implementing AI and AR to better understand and communicate with the customers. Conversely, strictly eCommerce brands like Casper mattresses and Harry’s shaving are partnering with traditional retailers like Target to bring online products to consumers more accustomed to offline shopping.

Cord Cutting Becomes More Popular & Advertisers Work to Gain Viewability

TVs, gaming devices, smart set-top boxes, desktops, laptops, tablets and smartphones that all stream Amazon Video, Youtube TV, Netflix, Hulu, and HBO can be blamed for the slow death of cable TV. According to eMarketer, 22.2 million Americans, an 33% increase from 2016, have officially cut the cord and no longer pay for traditional cable, satellite or telco services. It’s forecasted that by 2021, 30% of adults won’t have traditional pay TV.

As online companies observed the increase in the number of streamers and the profitability this area brings, they were quick to jump onboard. In August, Facebook launched its new video service, “Watch.” This platform offers both live and pre-recorded videos that Facebook users can upload content to, similar to YouTube. However, they also partnered with Major League Baseball, the NBA, Nasa, Time Inc., National Geographic and NASA who pay to add their content to the viewing options. Facebook is not the only newcomer as Snapchat, Disney, Philo and countless TV networks created both paid and unpaid streaming platforms.

With this change in viewing preference, advertisers are finding new ways to reach these viewers. Many of the streaming platforms require users to watch a 15-60 second spot before their content plays. An advantage to this is that these ads are 100% viewable – there is no way to skip the ad. If advertisers are able to create clear, creative video that captures the attention of the viewer and seems more like an additional piece of content, this new shift will increase lift and be a great addition to many brand’s media mix.

Artificial Intelligence Knocks on Everyone’s Front Door

In 2017, artificial intelligence (AI) branched out from the areas where we were used to seeing it, like inside of our cars, smartphones and aircrafts, and is quickly integrating itself into our homes. Over the holiday season, Amazon said they sold “millions” of their Alexa products, including the Echo, Echo Dot, Echo Plus, Echo Show, Echo Connect, Echo Spot, Amazon Tap, Amazon Echo Look, and Amazon Fire TV stick. Google also saw success with their line of home products.

Luckily for these search and retail giants, consumers’ attitudes towards AI has shifted from fear that the technology would take their jobs to appreciation. 75% of Americans now believe that AI is here to help humans and that those who don’t embrace its benefits will be without a job in the future. As it becomes increasingly present in our lives and continues to collect rich voice data, in-home AI devices will soon lend just as much of a hand to digital advertisers as it does consumers. As 2018 moves forward, advertisers will begin to map out the uncharted territory that lies within the data accumulated from these devices.

Apple Says Goodbye to the Home Button

Apple decided to make their newest phone’s screen as large as possible and to make space for more phone, they eliminated the home button. A once standard feature on every iPhone, adjusting to the new process to unlock the smartphone via facial recognition will take time. Chief Design Officer, Jonathan Ive, spoke to the change and some of the initial opposition it faced in a recent interview with Time. Ive said that “[he] actually think[s] the path of holding onto features that have been effective, the path of holding onto those whatever the cost, is a path that leads to failure.”

The world’s most valuable brand and owner of approximately 15% of the global smartphone market share believes that its 2013 purchase of Israeli 3D sensing company, PrimeSense, powering this technology will continue to position Apple as a mobile leader. Providing greater security and ease for users when accessing their phones, the disappearance of the home button fulfills Steve Jobs wish to create a more simplified login. The iPhone X is Apple’s most personalized phone to date prompting users to say that it feels almost like the phone is magical, and projections to sell 265 million iPhones in 2018 support this sentiment.
Videos and Visuals Dominate

Four of the fastest growing social media platforms are Snapchat, Instagram, Pinterest and Tumblr and the common denominator within all of these platforms is visual content. People are no longer satisfied with solely written content and in order to stay engaged, especially for consumers in the Millennial and Generation Z demographics, they are actively changing the way they view content. The average person gets distracted in about 8 seconds, so incorporating popular features such as photos, infographics, memes, illustrations and videos is essential. With 81% of people skimming the content they read online and image-related posts receiving a 650% higher engagement, it’s clear that captivating visual and video content is only going to become more important in 2018.

$10 Billion Spent on Data

According to a study from the IAB Data Center of Excellence and the Data & Marketing Association, US companies spent $10.05 billion on third-party audience data and $10.13 billion on solutions to support its activation in 2017. The $10.05 billion breaks down into $3.5 billion spent on email addresses, names, street addresses and other personally identifiable information, $2.9 billion on transactional data and $2 billion on digital identifiers. In regard to solution support, $4.3 billion was spent on supporting data integration, processing and hygiene, $4.2 billion spent on hosting and management solutions and $1.63 billion spent on analytics, modeling and segmentation solutions.

Snapchat Improves its Ad Tracking

Snapchat has had a very eventful year with many successes and challenges. Despite its devaluation after its IPO in March, the social platform has been very resilient. Snapchat boasts about 178 million daily users that spend an average of 30 minutes per day on the app and if you look at users under the age of 25 (about 60% of all users), this jumps to around 42 minutes of Snapchatting a day, making it more frequently used than its competitor. For brands looking to reach these users, there are a variety of ways to leverage the platform to promote their offerings, such as filters, geotags, and in-app ads that viewers see between viewing friends’ and publishers’ stories.

What’s most promising about Snapchat is its users’ disposition towards ads, with 50% receptive to or neutral to the ads they’re served. Brands are hoping to see positive results from their Snapchat campaigns and are also excited that they can now track them much more effectively. The recent release of the “Snap Pixel” allows advertisers to add a pixel to their ads and track campaign metrics and data analytics in real time. For the past three years since Snapchat began using advertising, it’s been making it easier for brands to automate campaigns, bid on ad space and measure the performance. With these advances and the platform’s sustained engagement of young millennials and Generation Z consumers, Snapchat is maintaining its position as a major player in digital advertising.

Summary

With an overwhelming amount of new players and shifting paradigms that have arisen in the digital ecosystem throughout 2017, there’s a lot to keep track of and a lot of opportunity waiting to be taken advantage of in 2018.  Having a strong digital partner to manage your brand’s digital ad buying is crucial and Digilant is ready to step in to help.  Reach out to us here to learn more about our digital media buying solutions and services and how to maximize your brand’s digital advertising potential in 2018.

Programmatic Media Buying 101: Amazon Invests in Ad Tech with its DSP AAP (Amazon Advertising Platform)

Interested in learning about Amazon’s DSP capabilities and how it can add value to your media plan? Reach out to us here and learn about Digilant’s unique partnership with Amazon’s AAP (proprietary ad platform).

Amazon is now everywhere, seemingly moving into every industry and recently making great strides in ad tech with its growing DSP business, opening up self-service programmatic ad products, and offering training programs to make direct connections with ad buyers. Its Transparent Ad Marketplace is the most popular server-to-server wrapper in the ad industry.

According to eMarketer‘s latest report, Amazon’s advertising revenues will total $1.65 billion in 2017 —far below that of Google or Facebook, but above brands like Twitter and Snapchat.
By investing in it’s demand-side platform (DSP), which is now one of the largest in the US, Amazon has a larger share of the US digital display ad market. With 3.0% of net US digital display ad revenues, Amazon takes 4th place for display ad buying in 2017 and is keeping it’s eyes on 3rd place. By offering Headline search ads, Amazon can compete with Google and Facebook for ad dollars.  Amazon is the most popular site for customers to search for consumer products online and by offering headline search ads, they are now dipping into Google’s search engine market share.

Amazon is Changing Digital Advertising as we Know it!

The one thing marketers hate is spending media budget to buy ads and then having to prove that they are converting with attribution methods.  Amazon is promising its programmatic ad buyers that if you buy ads on their DSP platform, you’ll know that they work and they will show you data to prove it. Because marketers not only want to be able to place ads in the right place and at right time, but they also want the right relevance.  Amazon offers measurement metrics from impressions and clicks to deeper data on sales information, full shopping journeys and things like a customer’s worth over a lifetime, giving media buyers what they need to prove their ads are contributing to conversions.  Amazon has a gigantic pool of real-time data, not just likes and habits, but actual purchases – what people are buying and how they are doing it -, you will know what ads work in actually driving people to make purchases — and then be best positioned to target those ads.

Their timing couldn’t be better, as Amazon’s DSP is growing in popularity, ad buyers are cutting back the number of DSPs they use. Media buyers and CMOs are choosing to use less DSPs and self-service platforms are on the rise in the ad tech industry, specifically for brands who are bringing all of their digital media buying in-house, with the goal to trim fees and have more control over their overall go-to-market strategy.  Amazon has greatly benefited from the programmatic in-housing trend. It offers agencies and brands a programmatic self-service model, and its DSP fees are among the lowest in the market.

If you want to know more about Amazon’s DSP capabilities and how it can add value to your media plan, or ask questions about Amazon’s AAP (proprietary ad platform) Digilant can help.  Reach out to us here.

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