Tag: Amazon advertising

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.

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.

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 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.

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.