Amazon Advertising – $1 Trillion Valuation Is Just the Beginning

On September 4, 2018, Amazon became the second publicly traded company in the United States to reach a $1 trillion valuation. Just before noon, Amazon shares reached $2,050.49, before falling slightly to $2,037, ending the day just shy of the 13-figure number. Hitting this milestone in a short month after Apple became the first company to hit this valuation leaves many to speculate which of these 2 players will reach the $2 trillion number first.

Apple, which hit the $1 trillion revenue mark on August 2, 2018, brought in $48 billion in profits last year. Amazon, on the other hand, only saw one tenth of that profit number. But, interestingly, The New York Times reported that in a Facebook poll run by a group of young Wall Street Investors, which posed the question of which company would reach $2 trillion first, the vote overwhelmingly favored Amazon. With lower revenue numbers, what makes people so confident that a company making less money will have a more profitable future?
With a very diversified plan for the future, there are a few different aspects of Amazon’s strategy that give people confidence in the company – for example its breakout into health and pharmaceuticals, AI advancements and physical stores. But the one offering that most feel will propel Amazon into their successful future is advertising. Back in January, we wrote about how Amazon took 4th place for display ad buying in 2017 and is keeping its eyes on 3rd place. This growth has not slowed down with their ad business recently surpassing $2 billion in quarterly sales. This number might seem small when compared to digital ad giants, Google – who brought in $35 billion in digital ad dollars in 2017 – and Facebook – $17.37 billion. However, Amazon has not come anywhere close to capping the advertising capabilities on their different platforms.

Before making any major additions to its advertising, Amazon just announced that they are rebranding themselves. To avoid any confusion. Amazon Advertising will now encompass Amazon Media Group, Amazon Marketing Services and Amazon Ad Platform.

  • Amazon Media Group: This group handled customized ads that required special collaboration from Amazon.
  • Amazon Marketing Services: This is where brands and agencies could participate in ad auctions and buy display, search and video ads
  • Amazon Ad Platform: This is where advertisers were able to target ads outside of Amazon

As Amazon Advertising now encompasses all of these areas, Amazon Marketing Services will be referred to ad “advertising console” and Amazon Ad Platform will now be known as Amazon DSP. Senior VP of Amazon Advertising stated, “This is another step towards our goal of providing advertising solutions that are simple and intuitive for the hundreds of thousands of advertisers who use our products.” This simple brand change will enable the company to push further into digital advertising.

Most of Amazon’s current advertising dollars come from product search results and sellers sponsor product slots. They are at a huge advantage as they collect data from consumers actual shopping habits, rather than just interests and searches. When ads are placed on Amazon, advertisers have a great opportunity to reach consumers at the critical moment when they are about to make a purchase.

Beyond this, Amazon has great opportunities to build advertising products on top of its existing properties, giving them a larger market share of the $88 billion digital ad industry. There is talk that they will soon sell ad space on their Thursday night football stream Twitch, a live streaming video platform. Twitch users could soon see ads if they opted out of the $9/month premium subscription. And, Amazon has yet to run ads on Amazon Prime Video. These are a few of the tactics that Amazon might introduce to reach $22 billion in digital ad revenue by 2020, making them the third largest digital advertiser.

Now is a great opportunity to take advantage of Amazon’s Advertising and DSP platform. If you want to learn more about Amazon’s capabilities and how it can add value to your media plan, or ask questions about Amazon’s Advertising capabilities, Digilant can help. Reach out to us here.

FIFA World Cup 2018 Infographic Part 4: Behavior, Retail, and Location Targeting


The 2018 Fifa World Cup has officially come to a close as France was crowned the champion in a very exciting championship game. Throughout the tournament many new records were set. The knockout round saw the most goals ever scored in history, Iceland became smallest country by population to participate in the tournament, and Cristiano Ronaldo became the oldest player to score a hattrick in the World Cup. These among many other statistics and records made for an extremely exciting month of soccer. The excitement didn’t stop at the games. Advertisers, media buyers and television networks saw fast shifts in viewing habits and purchasing power. This final post about the 2018 Fifa World Cup will cover all things Behavior, Retail & Purchasing Power, and Location & OOH Targeting.

Behavior


In Post 3 of the Fifa World Cup Infographic series, it was very clear that there is a captive audience very enthralled with the tournament, giving advertisers a great opportunity to engage and promote their offerings. Now that the games are done, we are able to see where fans were engaging in order to ensure that in future sporting and media events like this, that digital and programmatic advertising money is being spent and optimized to drive results.
In the infographic, it was projected that 48% of soccer fans planned to use their smartphone to follow the action. As reported by digiday, Telemundo saw that between 48 and 51 percent of its live digital viewers consistently watched the games on their smartphones. However, the most popular format for watching the games was still traditional television – although many chose to stream either on desktop or laptop. When comparing this tournament to other worldwide sports competitions such as the Summer Olympics, broadcast by Telemundo’s parent company NBCUniversal, people watched the events on their phones during the week and switched to television on the weekend. The World Cup saw stable numbers, despite the day of the week, mobile watchers stuck to mobile and TV viewers stuck to that platform.



Regarding the type of advertisements and its content, despite fans saying that they were more concerned about the advertisements being entertaining and interesting than relevant to the World Cup, most advertisers still chose to use the tournament as the platform for their ads. Companies like Pepsi, Coca Cola, Budweiser and Adidas all aired ads that starred fan favorite players and action from soccer games. These ads were successful as many sites, such as Highsnobiety dubbed them the best of the tournament. Contextually relevant content is always a safe bet for digital advertisers when choosing ad content and placement. Whether viewers realize it or not, when the excitement from the games carries over in the commercial breaks, they are much more likely to stay engaged.

Retail & Purchasing Behavior

The Fifa World Cup ranks the fourth most valuable sporting event brand in the world, falling short of the Superbowl, Summer Olympics and Winter Olympics. Even at fourth place, a 2017 Forbes survey revealed that the tournament is worth $229 million. This high price tag doesn’t solely fall on the games. Many companies find that this event has a high impact on their brand and they have significant pressure to make sure they get the most out of this captive futbol-fanatic audience. Adidas, arguably the most famous soccer brand in the world, projected to sell 10 million official tournament balls, 14.9 million replica jerseys. The top five selling jerseys are for Brazil, Portugal, Argentina, Spain and France and people are most inclined to search for Ronaldo, Messi, Neymar Jr and Coutinho.

But, as was published in our  infographic, advertisers need to be weary of changing emotions based on the outcomes of the games. After a loss, with lower morale, fans may be less inclined to make purchases unless prompted by a promotion or sale.

Monetary value didn’t stop at merchandise and fan apparel, this years ticket sales were tremendous. In May, it was already reported that 2.374 million tickets to the 64 matched had already been sold, accounting for 89% of all available tickets. The Moscow Times reported that there was a  98% attendance rate in the first 61 games of the tournament. Those attending paid high prices in order to see the action first hand. Newsweek reported that scalpers were selling tickets to fans for as much as $2,300 for one match!

Location & OOH Targeting

The World Cup offered great opportunities for advertisers to run location and Out of Home Targeting (OHH). Location targeting uses programmatic advertising to deliver ads to users who have attended an event or set of events at specific locations, dates and times. In regard to the world cup, this offered advertisers a great opportunity to run ads in areas that they knew fans would congregate and around and during the times of games. This allows great opportunities, as discussed in the behavior section, for fans to continue to see content surrounding the excitement of the World Cup. After a big win, if a fan sees an ad on the metro with their favorite player promoting a certain product, the advertiser has targeted and reached that fan in an ideal setting.

With each world-wide sporting event, advertisers and media buyers learn new strategies and tips on how to best reach their audience. This World Cup saw a very captive, engaged audience both at the games and watching – whether online or on television. Fans also took to social media to interact with their favorite players and teams. They were also quick to purchase apparel and gear and fans lucky enough to be close to where the games were played, were willing to purchase high-priced tickets in order to see the action live.

The Fifa World Cup only comes around every four years, making it essential that advertisers are prepared to showcase the best content in the ideal setting. For 2018, we have broken down the audience, social, content, behavior, retail and location targeting for the tournament. Comparing this 2018 information to the 2014 tournament, noting any similarities and changes, advertisers and media buyers can note any trends and study up for the next few years to ensure that 2022 World Cup sees the best use of media and advertising.
 


Digilant’s FIFA 2018 Digital Advertising Infographic covers who the consumers are, social media trends, how the content is consumed and by who, and more!

Download the full infographic here and don’t forget to share #DigilantData.

Did you read all four parts or our FIFA World Cup 2018 Infographic series? Start with Part 1 learning about the facts and figures of the World Cup here.

 

FIFA World Cup 2018 Infographic Part 3: Content

Knowing that the United States was not competing in the 2018 Fifa World Cup, people were skeptical about how many Americans would tune in to watch the other countries compete. Now, as the semi-final games approach, it is clear that not having a home team to root for, the United States is simply not as interested in this year’s competition as they were in 2014. Bloomberg has reported that the number of American viewers watching the games has fallen by 44%. In 2014, the games averaged about 3.55 million viewers, and this year its around 1.98 million.   
       

Fox and NBCUniversal’s Telemundo, who together paid more than $1 billion, for the rights to the 2018 and 2022 tournaments, were somewhat expecting this decline. After the announcement in October that the US would not be competing, Fox lowered the audience it guaranteed advertisers as much as 20%. In order to still prompt excitement for the games, these networks focused their attention on Mexico’s appearance in the competition, hoping to gain viewership from bilingual fans. This found success as Telemundo’s most watched game, with 6.6 million viewers, was Mexico vs. Germany on June 29.

Despite the lack of World Cup interest in the United States, other countries all over the world are bringing in record-setting viewer numbers. 19.9 million people tuned into BBC to watch England beat Sweden to advance to the semi-final game. Those numbers only reflect people watching in their living room, not taking into account the hundreds of people that gathered at pubs to watch the game. When these fans are taken into account, the total number of people that watched that game, jumps closer to 30 million people.


Whether the number of viewers watching in respective countries is higher or lower than the competition four years ago, media analysts are focusing on the number of fans tuning in on their mobile device or streaming. BBC has reported that their online platform has had more than 31.2 million people watch the group match round. This is shocking when compared to the 32 million viewers who used an online platform throughout all of the 2014 tournament in Brazil. It is clear that the shift in favor of cable cutting is affecting all areas of television, even one of the most-watched global events.

More and more people are shifting away from cable, but still finding ways to tune into the games. Streaming, online or mobile, or choosing to watch the games at a pub or bar is making it trickier to track the specific number of viewers so far in the tournament. However, it gives advertisers more ways to reach consumers. In MediaMath’s World Cup Infographic, they outlined trends to watch during the tournament. Some of the best ways to reach fans were on streaming sites such as espn.com and sites where people can easily check scores, such as skyscore.com. We will have to wait until a final winner is decided and the games conclude, to see how the numbers from this year’s tournament compare to 2014 – who’s final match alone had 1.013 billion viewers. But for now, as media consumption trends change, advertisers need to stay up to date on the plethora of ways to reach fans, beyond cable television.


 


Digilant’s FIFA 2018 Digital Advertising Infographic covers who the consumers are, social media trends, how the content is consumed and by who, and more!

Download the full infographic here and don’t forget to share #DigilantData.

Interested in learning more about the impact on retail during the World Cup? Check out Part 4 of our FIFA World Cup 2018 Infographic series here.

 

 

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.

Why Media Buyers Need to Focus on the Consumer Using a Journey Map

By Mike Addonizio, Director, Platform Solutions at Digilant

Stop the Channel Obsession

The complication of today’s digital media landscape has confused advertisers. It seems advertising’s most proven and basic principles, such as communicating the right message to the right person at the right time, are getting lost to an infatuation with channels and irrelevant metrics. It comes at a time when digital advertisers should have an easy time targeting the right audiences and being efficient at managing their ad spend. Instead, as publishers like Facebook and Google build barriers between their ecosystems, brands are mirroring them by organizing their internal agencies and teams in the same way. Social, search, display, and owned channels are siloed instead of synergized and are being evaluated by misguided KPIs, such as clicks or engagements they generate.


The problem is obvious. Pitting channels and vendors against each other and measuring only channel specific metrics, will ultimately lead to wasted dollars. It prevents team collaboration and undermines customer-centric strategies. It results in brands arbitrarily devoting portions of spend to “high-performing” channels with short-term campaign goals in mind. Teams are likely double-counting revenue dollars due to the lack luster attribution models, and certain channels are receiving more (or less) credit than they actually deserve. Somewhere in this narrative of media buying execution, marketers are forgetting that the only common fabric between these channels is the consumer. When they return to thinking about the customer first, advertising becomes less complicated.

It’s All About the Journey Map

As publishers build walled gardens for their user bases, advertisers must render the obstructions useless while maintaining cross-channel identity and journey context. When we factor in mobile phones as a primary means of receiving and sending communication, this complexity only becomes more aggravated and will continue as new devices appear in the future. The solution is a synergy between technologies that focuses on the consumer.
From a tech standpoint, there needs to be a convergence of DMPs (Data Management Platforms) and CRM (Customer Relationship Management) systems. One solution looks like the image bellow.

Winning with A Customer-First Ad-Tech Solution

  1. Successful media buyers will use CRM systems to inform their DMP of the current customers that should be suppressed, receive different messaging, or pass high-value customers lists for optimized lookalike modeling.
  2. A good data strategy should include using a DMP to inform a CRM of the user journey prior to acquisition as well as other relevant attributes about the context of current customers.
  3. Segmentation must occur across the two platforms, and audiences must exist in a delivery environment that is channel agnostic.

This combination of technology, consumer focus, and working with the right media partner like Digilant has proved to be a winning recipe for digital marketers.

Programmatic Media Buying 101: Advertising Data & Privacy Best Practices

Since the mid-1990s, digital advertising technology has been accessing user data to make ads more relevant and effective. This collection of user data has continuously raised concerns about privacy for consumers. Cookies were one of the first technologies used by digital advertisers to store a small amount of data on the user’s computers. This method is still used by programmatic buyers for frequency capping, creative rotation, as well as targeting against a small amount of user behaviors.

advertising cookie tracking

Geo-location

A long-time standard, location targeting was initially done using IP addresses. Geo-location data collection has evolved to more accurately identify where users are. Geo-location data is now collected via mobile device GPS technology, wireless routers, fitness trackers, smartwatches, and more.

Privacy

As programmatic targeting tactics became standard for marketers, so did the need for maintaining consumer trust through privacy regulations.

In 1996, the Interactive Advertising Bureau was founded to support this need through advisory boards, research, standards, legal support, and also education — for both the industry and its audiences.

In many countries, the government is also involved in ensuring that consumers are aware of their privacy rights and choices. In 2009, the United States’ Federal Trade Commission began investigating advertising technology platforms that collect consumer data for advertising purposes. While recognizing the need for stricter regulations and privacy protection, they tasked industry leaders to develop a self-regulatory program. Multiple organizations across the advertising industry came together to set up self-regulations guidelines and resources forming the Digital Advertising Alliance.

AdChoices Opt-out Program

Most notable from these efforts is the AdChoices program.  AdChoices encourages advertising platforms to include the option icon on ads or webpages where data is collected and used for behavioral advertising.
adchoices advertising opt-out programThe AdChoices icon serves to inform consumers and give them the ability to opt-out of behavioral or interest-based ads. The user has to click on the icon to trigger the pop-up message, which varies depending on the environment in which it is served.
Fortunately for advertisers the icon is small, unobtrusive and most consumers don’t notice it. Viewers have to roll over the icon to see the word “AdChoices” and click on it to view the pop-up in which enables them to opt-out.

Consumers have become more knowledgeable about privacy and data. In 2016, about 20% of iOS device users in the United States were limiting ad tracking through the settings on their device, and in South America less than 10% of iOS devices have the “limit ad tracking” feature turned on.

Most consumers appear to be comfortable or at least accustomed to certain types of targeting.

Users who’ve abandoned items in their shopping carts have come to expect or sometimes even appreciate being retargeted. In 2016, 1 in 5 shoppers completed a purchase after a retargeting reminder.

Cookies and geolocation are still important data points, but a lot has changed since the 1990’s. With the rise of mobile and the growth in programmatic, targeting technology has shifted to include behavioral data — forcing a shift in how privacy is treated across the industry.

The best thing that marketers can do is stay informed about privacy regulations. Although that can be daunting for global brands, marketers need to earn the trust of their consumers — and respecting their privacy remains critical to supporting effective advertising as an industry.

Summary

  • The use of cookies and geographic data has been causing privacy concerns for consumers for several decades.
  • In a 2009 decision, the FTC placed self-regulatory responsibilities around privacy in the hands of the advertising industry.
  • AdChoices was developed to give consumers a choice that remains unobtrusive to advertisers.
  • Consumers are becoming more “data-savvy” which will require marketers to stay on top of regulations if they want to continue to build critical trust with their audiences.
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