Programmatic Media Buying 101: Why You Should Add Programmatic Audio To Your Media Plan?

Programmatic advertising refers to the buying and selling of digital ad space using special software like DSPs or Ad Networks, built for specifically for digital marketing transactions. It avoids traditional human negotiation and is more efficient, because ad buying in the real world between buyers and sellers can be expensive and unreliable. Programmatic allows for automation in real time satisfying both buyers and sellers.

Today’s marketers need to be savvy in using every resource around them to effectively reach their target audience and as radio becomes mostly digital, it is one of the more important and cost effective media channels that media buyers are paying attention to.


Programmatic radio inventory is beginning to rival TV advertising in terms of reach. According to research by RAJAR (Radio Joint Audience Research) 3.7 million adults listen to podcasts, which is around 6.5% of the adult population. In the today’s world radio seems to be more and more obsolete when trying to reach consumers. However, according to Nielsen, in the U.S. radio surpasses all other platforms when it comes to weekly reach, connecting with 93% of the American population aged between 12 and 54.
Programmatic radio is more than just pure reach. Radio, or audio advertising have opportunities that come from streaming services such as Spotify, SoundCloud, and Pandora. Spotify has over 100 million active users, with over 60% of users opting to use their free service which exposes them to ads. RAJAR Midas Audio Survey states that 51% of time spent with on-demand music services is also a service that features advertising.

“There is a more advanced way to think about advertising budgets. It’s about data and efficiency. As they get better at using data to be more efficient in their advertising spend, they are pushing every media type to be bought that way.”
Mike Dougherty, Jelli CEO

An important thing to note is that programmatic audio ads are unique because you can only hear one ad at a time. In today’s digital atmosphere consumers are bombarded with constant ads almost everywhere they look and usually multiple ads on a page. Consumers have become self-trained to detecting ads and tend to immediately dismiss them. With audio, there is only one ad for the listener to consume and it is not competing with all the other ads the listener would see on a webpage. They can’t listen to anything else other than the ad playing, so engagement becomes a bigger factor when placing audio ads.

Programmatic radio performs best on mobile. In the US, 75.8% of U.S. digital audio listening occurs on mobile vs. 24.2%on desktop. Mobile advertising continues to grow in popularity and effectiveness each day, with programmatic audio advertising you can get in on the action.

There’s no denying that radio – the original broadcast medium – hasn’t lost its appeal. And whether consumers are streaming music, listening to podcasts, or tuning in for the news, they  are going to be all ears.
By adding programmatic audio advertising to your media buying plan you’ll be tapping into new target audiences as well are reaching users in new places.
Contact us to learn more about adding programmatic audio to your digital media buying plan.

A Dinner Conversation in NYC About Digital & Programmatic Advertising Trends

On Tuesday, May 8th we hosted dinner and conversation at 230 Fifth Rooftop in Manhattan.  Digilant‘s Executive Chairman, Alan Osetek moderated an intimate dinner discussion on the next evolution in integrated digital marketing solutions with digital experts:

As programmatic technology becomes a commodity that everyone is using and has access to, it’s even more important to have integrated teams and strategies to get ahead of the competition. Today’s CMO will be delivering a single media strategy that includes search, social and programmatic. They will be partnering with agencies and businesses that can help them strategize, implement and optimize their digital media across audiences, formats, screens and inventory to most effectively deliver on business goals and objectives.

Alan kicked off the event conversation by asking: What industry buzzwords or shifts do you think will impact digital marketing this year?

Chris from Underscore was the first to respond by saying that he went to SXSW in Austin this year and that Artificial Intelligence (AI) was the number one thing they were talking about.  Other topics were automation of data and predicting what that’s going to look like.  From a data perspective that’s what people are interested in, using data to predict how campaigns will perform is going to be key. Lauren at eMarketer agreed that AI is definitely big as well as the focus on machine learning and analytics for understanding customers and what that will look like. Other topics that will be important are transparency, GDPR, Customer Data Platforms, voice search and what that means for advertisers.  Rob from Venbrook responded that from an insurance standpoint the industry is slow to move. The cutting edge people are having a field day with concepts like AI and other big buzzy words.  Not a lot is happening in terms of the insurance space yet but in his opinion, if you are a B2C broker then you start looking for a job because you will be replaced by a robot.  Alan summed up by saying that just like mobile, we were constantly hearing that this was the year of mobile, AI will probably take some time to really develop and there still a lot of value in people pulling the levers, but it will be interesting to see how long it will take to effect our day to day.

What consequences do think these shifts have had on the marketing organizations and the way they are structured or the type of people they need to hire?

When it comes to GDPR, companies are preparing as best they can, Lauren said, people are looking to external parties to help understand what the regulations actually mean for them, most people are starting off with looking into the privacy policy and consent piece, before trying to understand the data part, how do both those things work and connect together.

Are companies taking steps for connections to happen internally or is it the agency or the brand doing it for themselves?

Lauren continued by saying that brands are working in tandem with their agency or tech partners, they have to be responsible to the consumer.  In order to do that they have to convey the message as best they can. Publishers are also being thoughtful about their technology partnerships, because they have an even bigger responsibility to be very clear to the consumer.According to Rob, the horse has left the barn, big data has gotten away from us.  As a result I think we will see a shift back to the largest publishers controlling their data… like they did 20 years or so ago. Back then advertising was controlled by publishers. When advertising was more publisher driven, publishers had the advertiser relationships and would do the data analysis work themselves and then not share this audience data with anyone. An example is with big brands like the New York Times. I believe they will focus less on “mass marketing” and more on customer engagement. The Internet at its best is a one on one medium, not a mass medium. I think there will be greater attention paid to inbound strategies akin to Kevin Kelly’s “1,000 true fans” concept. Do big brands like the NY Times want to make an extra dollar on a CPM or do they want to sell something for a $100 to 1 million people? They don’t need to go to a third party to have the relationship that they want to with their consumers.

Do you think more companies are going to be investing in marketing attribution platforms and strategies and why yes or not?

So how do we collect the data? Chris responded.  Instead of attribution, we should be asking, how is your marketing working for you.  We can’t just look at a specific channel, otherwise attribution is something people are always going to chase. I have not run into someone that has a model I believe in.  Lauren agreed with that response.  Attribution is an understanding of the health of your org, whether it’s loyalty or sales, it has to a top level business moving KPI.  I am more and more convinced that the biggest challenge for attribution is not technology but the organization, how people are compensated and ultimately how they work together that’s holding up the process.
So, how do you do it? Alan asked.  Lauren continued, it’s a culture shift, you need people at the company who are advocates of attribution and collaboration, it starts at the top level of the organization and moves down.

Someone in the audience asked, what do you think the impact of the announcement that Google just made, about no longer being able to export DoubleClick IDs, will have on attribution?

Alan responded by saying that you should think about the other big networks like Facebook and Amazon who are closed, Google in comparison was more open. This move makes Google more like the other players while it also helps them be covered for privacy laws. If you are using a true third party attribution solution like Visual IQ it’s not going to affect you, but if you are only on the Google stack it’s going to be harder.
Chris also chimed in by saying that if you are not talking to the top level of the organization, then there is no point in trying to talk about attribution, as in the lower parts of the org they are not going to be able or want to share the data you need to make the attribution possible. Companies that have Chief digital Officers, a new role that teaches organizations about digital, have more chances to make attribution successful.  Also, today we have moved further along, where more CMOs are digitally savvy, makes it easier to implement attribution.

Shifting topics, Do you think CMOs should be thinking about bringing programmatic in-house and why?

I have been at an ad agency my whole career, started Chris, you can make it work but the talent will get stagnant.  My experience is that you need to work on different things to make your career and company grow.  The challenge is to find the same quality of talent in-house, that you would get at an agency that has a variety of projects and talent.  I’ve thought about it for myself, if I moved to the brand side I would be doing the same thing in 5 years, not able to improve or grow.  Lauren added that she is hearing a lot about in-housing but what’s really behind the momentum might be the impression of cost savings but in reality it’s the data question.  As more people use first party data there are implications of where you put that data. Thinking of a lot about the guaranteed buys, premium video, you don’t want to put your data on open market.  The strategic piece is an edge a lot agencies have because they are in the marketplace and have access to all the best inventory even, if the buying does move in-house.
Chris added that it also comes down to the kind of talent you have, you are never going to be as cheap as the big guys, but we are going to be better, because it’s not a 22 year old running the business.  Clients are investing in data and insights but not doing it alone, with the agency providing all our media data, they can apply it to the data on their side, letting them see a complete picture.  In the past client and agency data were two separate data silos so they couldn’t put the picture together.  The biggest shifts for agencies was to actually share their data to keep their clients from wanting to leave them.

Alan also added the at Digilant we noticed that people who are ramping up on our self-service platform nine out of ten times they don’t manage their actual campaigns and still need help to read and look at the data.  On the other extreme companies are starting to hire data scientists who are experts at reading data.  There is nothing really in the middle, you have to share the data.  It’s a partnership, the technology and the agency are an extension of the brand. Brands are more willing to pay for data analyst than media buyers, according to Chris, even though the young people have no idea what they are doing, companies don’t see the immediate value of media buying experience. In the immediate future, brands want us to do the work and be pro-active on supporting them and telling them next steps, concluded Alan.

How are you defining transparency within your organization?

Transparency has been a huge battle for me internally for the last three years, said Chris.  We are opening up the books now, data doesn’t lie and actually the opposite, it helps create a trust. It also puts other agencies on the spot if they don’t share their data with their clients. For Lauren there are several definitions for transparency, like tech tax, who is getting what cut, it’s a cool concept but for most companies if they actually had that data they wouldn’t know what to do with it. Most companies don’t have the right people who know what reporting should even look like.  There are a lot of layers to it, but overall the vast majority, if they were given the info wouldn’t know what to do with it.  For Rob there are two types of companies, ones who say they care about transparency but do nothing about it and others who are actually doing something.

As a last question Alan asked, what can marketers be doing with their display creative to enhance their media buys?

Chris said that cost is the number one challenge, our company doesn’t do creative, so how do you produce eight sets of banners, it’s too expensive. Creative makes the most sense to bring in-house, so that you get the ability to tell them what to do and don’t have to invest more money, that’s going to be the biggest challenge – taking a chance on a campaign though one creative.  Lauren added that the sheer production of all the assets, and then the strategy is cumbersome, on top of what data am I using to power the campaign.   For some it’s a legal thing, how do you get it all approved? For others, without understanding of the customer journey it becomes a gamble.  Rob finished by saying that he agrees with Lauren and Chris,  the customer segmentation process can be the holy grail or a nightmare, having an in-house creative team is a great idea and there are tons of creative people out there who want jobs.

Again, thank you to our wonderful panelists.  We look forward to our next events in Seattle, June 5th, and Boston, June 12th.  If you are interested in attending or speaking please reach out to us info@digilant.com.

Programmatic Media Buying 101: Programmatic Creative is the Future for Display Advertising

Digital advertising that includes both high quality creative and relevant messaging is increasingly a high priority for media buyers and marketers.  Advertisers see no reason why creative, rich media, and programmatic should be mutually exclusive –­ it’s the combination that achieves engagement and results with consumers. The combination of programmatic and engaging creative offers a wide range of new opportunities – using data to precisely tailor messages.

Marketing teams are moving away from click-centric strategies as the only way to measure engagement. With all the new high-touch, high-impact ad formats and the growing popularity of native ad placements, there is a whole new world opening up to advertisers in display ads, to provide a more robust user experience while still reaping the benefits of programmatic buying.

Creative has never been more crucial to display ads as it is today and agencies and marketing teams are paying attention because they realize that a display ad’s message or creative is just as important as the channel or medium through which it’s served.

What is Programmatic Creative?

Programmatic creative has the ability to use the data collected from a programmatic display campaign to create a more personalized experiences for consumers. Rather than displaying one generic creative, new technologies, like Dynamic Creative Optimization (DCO), mean that the ad creative can be tailored to the viewer in real-time, across multiple devices, according to their location, what they are doing, and the time of day – improving the overall user experience.
Where programmatic advertising matches users to ads on a one-to-one basis in real-time, DCO supports the matching of the best creative for that user during the programmatic advertising process.

Instead of marketers and advertisers having to figure out a one-size-fits-all, mass-market approach to their creative for a campaign, now they can create hyper-relevant ads that are relevant to individual users, while reaching a larger audience.  Using the sizable amount of data that is collected from each campaign, programmatic creative can enable automatically generated ads relevant to products or services that customers are viewing, helping to move customers towards the conversion path, and returning customers into repeat purchasers – building long-term loyalty and increasing returns for those campaigns.

Programmatic Advertising has Changed the Role of Display Ads


With programmatic taking the largest share of digital marketing budgets, the role of display advertising has been reborn and redefined.  More than four in five US digital display ad dollars, or $45.72 billion, will flow via programmatic means by 2019.
It’s no secret that different formats accomplish vastly different goals for marketers and media buyers. As the role of display advertising is redefined, and programmatic has dramatically changed the landscape, marketers need their display options to emphasize relevance for each consumer and define their experience as unique rather than obtrusive.
If campaigns are to remain relevant, marketers should be considering themselves not solely as advertisers, but as storytellers.  Marketers and publishers alike are turning to programmatic creative to enhance user experience and keep the customer at the center.

7 Things Brands Need to Know Before In-Housing Programmatic Media Buying

In 2018, brands and marketers have made it clear that they  want increased control of their programmatic advertising efforts. Digital advertising spend is estimated to overtake offline spend, with programmatic already surpassing direct digital buying. In more advanced markets, the media buying industry is aimed at a programmatic future.

Marketers have grown frustrated with the current business model; they want better control of their data and more financial transparency. A report by the World Federation of Advertisers (WFA) report finds that 90% of advertisers are reviewing and resetting both business models and contracts to achieve those goals. A survey conducted by Infectious Media found that over 70% of marketers think agencies have struggled to adjust to programmatic and they do not think the agencies accurately measure their programmatic media buys.

7 Things to Consider Before In-housing Your Programmatic Media Buys

With this loss of trust, it’s no wonder why brands are taking steps to bring their programmatic campaigns in-house. However, in order for them to be successful,  there are some steps they need to take. We’ve put together a check-list of what we think brand marketers need to know. Here are 7 things you need to consider if you want to bring your programmatic in-house.

1. Budgeting, resources, and hands on keyboard

The first thing to consider is evaluating your brand’s capabilities. Is the budget large enough? How many people will be on the programmatic team? Will they be able to stay up-to-date with the latest technology?

Brands must be spending at least $20 million programmatically before they even consider taking programmatic in-house, in order to generate a high enough level of savings to make the transition worthwhile.
Wayne Blodwell, CEO of The Programmatic Advisory

On top of a high cost, programmatic technology is complex; it requires a unique skill-set and it is hard to master. The technology requires an expert or multiple specialists at the helm. Hiring and training new recruits is not a simple process, especially if your office happens to be outside of New York, San Francisco or Boston.
After deciding which kind of technology stack is best for your brand (DSP, DMP, ad server, viewability tracking, dashboard, fraud protection) there are also other aspects to consider like licensing. This includes legal documentation, adherence to privacy regulations, etc.

Other forms of digital advertising, namely search, is dominated by a single player. Programmatic, on the other hand, lives in a complex environment that has many options of inventory to choose from. Several demand-side partners that can be used to access them and also several programmatic models to navigate through, like open exchanges to private marketplaces.

This goes back to having the right personnel for the job. New roles in the organization will open because of in-housing and it is up to you to have the right training methods for current employees. As mentioned before, programmatic technology is complicated and the right people must be on the job.

2. Objectives

After a programmatic team has been established it is time to understand the short and long-term goals of the business. Key considerations and questions at this point would include: Debating whether display, native and reach based advertising would help reach the long-term business goals, or whether inbound is a better fit, is an in-house team going to be more effective because of the increased frequency of campaigns?

3. In-housing goals

Besides long-term business objectives, identifying the end-goal of an in-house programmatic process is critical too.

  •       Do you simply want to purchase media in a more effective way?
  •       Do you want to maximize reach?
  •       Do you need better targeting and segmenting or are you looking to go wide?
  •       Do you want a broad mix of outbound- from display to native to video and mobile or are you limited to one or two formats?
  •       Or perhaps you also want to incorporate offline data to effectively take prospects along the typical buyer’s journey?

4. Big Data

One of the biggest and challenging tasks is being responsible for your own data. Collecting, managing, and then interpreting it for valuable insights can become rather tedious. If big data is too much to handle, hiring a separate data team can also be an option. Data-backed programmatic is extremely desirable today but it needs to be managed by disciplined professionals managing first and third party data

5. Cross-departmental Collaboration

It is important to make sure all departments are aware of the organization’s new programmatic team. Illustrate how an in-house programmatic process will benefit the whole business through increased sales, ROI, and customer satisfaction, not just the marketing department. Alignment with sales is also crucial in terms of making the most of leads generated via programmatic.

6. Implementation, testing, and execution

Different brands benefit from different programmatic models, determining which ones work best for you require testing.  Testing new tactics and programmatic strategies in-house for a short period of time may help your company adapt to the overall programmatic process before identifying a model that works best.

7. Consider a hybrid in-housing model


It may also be wise to consider using a hybrid approach. You may have a strong analytical data team, with data management experience, but not the talent or knowledge for programmatic execution. Or you might have built a strong digital marketing team, but they don’t have the skill or knowledge specifically in programmatic media buying. These are key skills that are worth outsourcing to a trusted agency of record while keeping strategy and data in house.

As much as having more control and transparency over programmatic media buying makes sense, the required investment in talent, expertise to navigate the ecosystem and budget size should not be overlooked. For now, if you are a brand considering starting the in sourcing process then you should consider a hybrid model where you own the contracts and data and your trusted partner, like Digilant, owns the rest.

Programmatic Media Buying 101: Why Are Marketers Talking About Blockchain Technology?

Will Blockchain be the technology that solves the programmatic industry woes, or is it just another buzzword that we need to add to our vernacular in case someone brings it up in a conversation?
Either way it helps to know why people are talking about blockchain technology and how it will help or change the programmatic buying industry.  The problem that most people are hoping that blockchain has the potential to solve is transparency throughout the advertising supply chain – which means advertisers having a better understanding of cost and the visibility of their ads.

What is Blockchain Technology?

First of all Blockchain isn’t a new technology, and it wasn’t developed specifically for the advertising industry.   It was originally created for managing cryptocurrencies like Bitcoin.  Blockchain is a continuous series of records – blocks – linked by encryption, that sit across a distributed database and are stored on computers all around the world. Each time a transaction is made, a message is sent to the network to agree (or disagree) that the transaction is legitimate before giving the approval.

Why Are Marketers Interested in Blockchain for Programmatic Buying?

Blockchain has the ability to create a highly secure trading network for advertisers, by publicly storing data to create a permanent audit trail with an unchangeable record of all transactions that occur within the programmatic buying marketplace. This provides marketers with full visibility into their ad buy, to better track all transactions that are taking place automatically and ensure their budget is actually being used effectively. Using blockchain technology, a record of all transactions taking place throughout the ad-buying and selling process is made and in the future marketers can use this knowledge to reduce, or even eradicate, hidden costs or fees from multiple intermediaries within the ad-buying supply chain.

The main benefits of blockchain for advertisers include:

  • Keeping track of each point where that ad shows up effectively, so that the advertiser can control the process and get more working dollars in front of users/ clients
  • It can provide more transparency with relation to ad fraud and brand safety by allowing advertisers to record exactly where their ad campaign is being delivered and whom it is reaching

For those companies who are thinking of bringing their programmatic in-house there will be some benefits from the direct line of communication that blockchain offers with data providers and other vendors.  This means more transparency on how data is collected and sourced.  So if the advertiser doesn’t have to worry about security or fraud and is able to leverage transparency they can focus on improving their targeting strategies and invest in creative and an overall better experience for their audience.

So When Should We Expect Blockchain to go Mainstream?

If blockchain is so powerful, why has it not being used more widely?  After all, it’s not a new technology, what’s holding the ad-tech business back from implementing it?
First of all, it’s really bad for the environment!  Blockchain inherently uses an immense amount of energy.  It’s by nature a space-hungry technology because the series of blocks become very large very quickly and become hundreds of gigabytes in size.  And as the chains get bigger you need more storage and capacity is limited.  Then that data needs to load every time you make a transaction, which is not practical for any type of programmatic buying, which involves millions of transaction per second.  That’s a lot of blocks.
So this probably not going to be the year of blockchain for Real-Time Bidding (RTB) but it doesn’t mean it can’t be implemented in other parts of the ecosystem.  For instance, it can be used to authenticate the publishers advertisers are working with when they set up private marketplace deals.  Even though PMPs are meant to be safer or fraud free they are still subject to domain spoofing. Using blockchain to set these deals up could give advertisers another layer of verification.  So blockchain still has some possibilities.  We are keeping an eye on it but haven’t seen it move the needle in any direction as of yet.

Facts and Figures For Programmatic Media In-Housing

In 2018, more and more media buying and marketing teams are being asked to draw up proposals and plans for taking the programmatic portion of their budgets in-house.  While the claim behind this strategy is to innovate and take control of a brand’s programmatic future, the economics might point to something besides a complete in-house strategy as the way to go.
There are also different ways of in-housing. For some brands it means setting up their own agency trading desk and using that to deal directly with demand side platforms (DSPs). For others it involves bringing on board an ad tech partner or an agency of record that will be part of setting the strategy, but also responsible for pushing all the buttons when it comes to ad buying execution.

But let’s start at the beginning, why is in-housing taking off in the first place? The short answer is that marketers came to realize that a large share of their budgets were not being used to buy ads, but to fund the 5000 companies that have become part of the ad-tech LUMAscape. While in-housing doesn’t solve for all of that undisclosed share of the budget, it does force marketers to demand a more open or transparent business model from their agency or ad-tech partners.


Recent surveys suggest that more brands are having a serious look at bringing 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, but 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 their programmatic budgets.

The Challenges to Bringing Programmatic In-House

So what has been the challenge for advertisers to bring programmatic in house?  We’ve narrowed it down to what we think are the four most obvious issues.

  1. PROGRAMMATIC TECHNOLOGY IS COMPLEX:
    Requires a unique skill-set, technology in-house requires an expert or multiple experts at the helm.
  2. A FRAGMENTED ECOSYSTEM:
    Unlike other forms of digital advertising such as search, the market is not dominated by a single player but instead there are endless sources of inventory, numerous DSPs, multiple programmatic models to navigate. Marketers have to string together six to eight specialized solutions to accomplish their programmatic buying goals.
  3. TALENT POOL IS RELATIVELY SMALL for programmatic experts, with most professionals based at agencies in tech hubs such as San Francisco or New York.
  4. In addition to programmatic execution, brands also need to consider factors such as PLANNING, ANALYTICS AND BRAND SAFETYMost of which are enabled by 3rd party platforms and require expertise.

With most companies only being able to afford one or two internal programmatic experts, it seems that the budget has to match the resources necessary.

Brands must be spending at least $20 million programmatically before they even consider taking programmatic in-house, in order to generate a high enough level of savings to make the transition worthwhile.

– Wayne Blodwell, CEO of The Programmatic Advisory

The Solution is a Hybrid Model

At the end of the day most marketing and media buyers want the ease and safety of a single solution for their marketing services.  As much as having more control and transparency over programmatic media buying seems more cost efficient, the required investment in talent and expertise to navigate the ecosystem should not be overlooked.

The advantages of going direct make sense; control over their own first party data, disclosed contracts and platform logins, but until larger players absorb point solutions in the ad-tech LUMAscape your budget needs to start at something like $20 million to make the investment worthwhile.  Frankly not everyone is ready to jump in at $20 Million, so for those of you who are not there yet you should consider a hybrid model where you own the contracts and data and your agency partner, like us, owns the rest, at least for the foreseeable future.

In 2018, Mobile Video Spend Will Dominate Programmatic Media Buys

In 2017, programmatic digital display ad spending reached $32.56 billion and is projected to continue to grow rapidly throughout 2018 and hit $45 billion in spend by 2019. With this rise in programmatic ad spend, there also comes a shift in where advertisers are buying ad space. Another shift in programmatic ad buying is the rapid rise in mobile placements over desktop. The move to mobile is not surprising considering that on average, people in the United States are spending over 5 hours a day on their mobile devices. Media Buyers are set to capitalize on this shift, in 2018, programmatic investment on mobile will reach $30 billion, over 3x the amount spent on desktop. This is in large part due to the popularity of mobile video consumption and mobile-friendly sites such as YouTube, Facebook and Snapchat.

In 2018, Programmatic investment on mobile will reach $30 billion, over 3x the amount spent on desktop -eMarketer

This year, it is projected that mobile video ad spending will surpass non-mobile ad spend. This is due to the rise in popularity of consumers watching video online. It is projected that this year people will spend on average 36 minutes watching video on their phone or tablet compared to 18.5 minutes on non-mobile devices. Around the world, people will watch 25% more video on phone and tablets whereas computer and laptop video consumption is expected to decline. Smart TV streaming continues to rise, but not quickly enough to make up for the mass decline in non-mobile platform viewing. Mobile video ad spending alone is expected to reach $18 billion, a 49% growth. With more consumers watching videos on their phone, media plans are also being adjusted to include larger budgets for mobile video ads and creative.

Mobile Video Ad Boom Driven by Social Platforms

The move towards mobile video consumption is largely due to mobile-friendly apps like Facebook, YouTube and Snapchat. Over 500 million hours of YouTube video are watched everyday. 65% of people who watch the first three seconds of a Facebook video will watch for at least 10 seconds, and 45% will watch for 30 seconds (Facebook, 2016).  These stats clearly explain why Google as well as Facebook have the largest share in mobile advertising. Advertising agencies put aside a portion of their media budget for Facebook ads and although these agencies don’t necessarily plan to use this money for mobile, it is where the audience is going, as most of Facebook’s audience is through mobile. Views for branded video content on Facebook has increased 258% in 2017 making it a great media buy for advertisers. With 10 million videos watched on Snapchat everyday, the company is estimated to experience the fastest mobile ad revenue growth between 2016-2019. As more companies make their websites mobile friendly, the shift to mobile advertising will continue to grow, leaving desktop ads behind.  

By 2019, $45.72 billion will flow via biddable media, more than four out of five US digital display ad dollars. Mobile ad spending will be credited for more than $30 billion of this amount. The era of mobile programmatic advertising is just beginning as advertisers and brands spend more time and budget optimizing their campaigns for mobile.

Read about the other nine trends that we are predicting will be the key to success for programmatic buying teams in 2018 here.

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 on native advertising and more than 30 other topics.  Need more information, you can also reach out to us here.

2018 Trends: Generation Z vs Millennials, What Programmatic Media Buyers Need to Know?

In the last five years, digital media buyers and brand marketers have been hyper-focused on finding and targeting millennials, forgetting about an extremely influential and profitable demographic, Generation Z. Generation Z defines the group of people born between 1996 and the mid 2000s. They have different purchasing habits and need to be targeted differently than millennials. Most importantly, their influence on the market is tremendous and if brands don’t adapt to fit their needs, they have a great possibility of getting left behind.

Instagram Stories blow past Snapchat with 200 million daily active users as Generation Z becomes more valuable to most organizations than millennials -Statista


Generation Z has very clear and unique preferences that advertisers need to understand. Influencer marketing is very successful with Gen Z. Rather than looking at informational sites, they are likely to head to YouTube and watch a trusted influencer’s video for their information. Although many of them grew up with technology in their hand, this isn’t where they do their shopping. Millennials are much more likely to shop online than Generation Z who prefer shopping in person. Although millennials and Gen Z share short attention spans and the ability to toggle between multiple pages, Gen Z takes this to an extreme level. People in Gen Z have an average attention span of 8 seconds and usually switch between at at least 5 different screens. Advertisers had already seen a decline in television advertising success but now with an even shorter attention span, Generation Z is not the audience to target with TV spots. Gen Z wants real content that makes them feel like they know the brand and the person behind the content. Most importantly, this age demographic wants their independence. They are not interested in loyalty programs but rather want to interact with the advertiser on their terms. Brands that understand the unique preferences of this age demographic and can build media plans, creative and overall programmatic marketing campaigns that have better results.
 

Snapchat vs. Instagram

Brands that are looking to buy programmatic media that targets a younger demographic need to stay up to date with Gen Z likes and dislikes. Especially when it comes to social media advertising. Snapchat, one of the biggest social media platforms with 150 million daily users is starting to fall behind in market share as they realize their competitors are resonating with Gen Z more effectively. Although Facebook, who also owns Instagram, added the “stories” feature and have been accused of copying Snapchat, they already have more active daily users than Snapchat. Instagram started with a larger install base, at over 800 million active users, and have been able to successfully copy what Gen Z users love about Snapchat and adapt it in their own app. This leaves Snapchat to figure out how best to target Gen Z so the users come back to their app and don’t leave them behind in the likes of Facebook and Twitter.  
 

In Summary

What do we need to know about Generation Z?

  1. Trust influencers over direct brand advertising and would prefer to see a YouTube video from someone they follow vs. a TV spot from a brand they might like.
  2. Prefer to do their shopping at a brick and mortar store rather than online.
  3. Have a super short attention span, and are often toggling between 5 screens.
  4. Are super independent and don’t want to be defined by a brand, so advertisers that want to succeed with them need to celebrate the individual rather than trying to group them into categories or audiences.

Read about the other nine trends that we are predicting will be the key to success for programmatic buying teams in 2018 here.

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 on native advertising and more than 30 other topics.  Need more information, you can also reach out to us here.

In 2018 Native Becomes the Leading Ad Format for Programmatic Media Buying Platforms

Native advertising was established to make ads appear more natural on a web page. Rather than making it overtly obvious that the ad is not part of the original page, native advertising uses the page’s design and layout to design the ad so that it appears as just a part of the webpage.  Programmatic native advertising takes this to the next level by targeting a person based on specific data parameters, with the goal of providing the right message to the user in the context of the page/ and or platform that they are on. This provides relevant and helpful information to the user at the right time.

Increase demand for more native experiences will drive programmatic native spend, reaching $24 million by years end, compared to 13.24 billion in 2016 – eMarketer

In 2018 native digital display ads will make up more than half of all digital display ad spending in the United States. This stems from both publisher and advertiser demands. Publishers are pursuing higher value and more mobile friendly content while advertisers are interested in more engaging, less intrusive ads.  This is a trend that programmatic media buyers need to pay attention to as it will be front and center in 2018 media plans. With the advances of machine learning and AI native advertising will become even smarter and which will likely increase the already enticing engagement metrics. Also, it is easier for publishers to guarantee a viewable and fraud free experience providing brands with a more reassuring level of transparency.

Native Gained Popularity Through Social Media Platforms

Native advertising has gained traction through social media platforms, the trend having started with Facebook. In 2017, 84.2% of native display ads appeared on social platforms, which resulted in a $18.59 billion spend. Because most people consume social media on their phones, the focus native advertising development is equally been mobile heavy.  In 2017, $19.5 billion was spent on native mobile display which encompasses 88.3% of all native advertising, and the share is only growing. However, the social platform trend is slowly shifting as other publishers outside the social platform walled gardens are incorporating in-feed ads and videos allowing media buyers to scale their native programmatic ad buys, especially for those brands who are seeking higher rates of engagement. In the coming months, it is projected that more non-social publishers will quickly move to accommodate native programmatic ad buying.

As non-social sites incorporate programmatic native ads, social platforms continue to incorporate these ads to accommodate demand from both publishers and advertisers for this advertising format, and we predict that the trend will be that in 2018 native programmatic advertising will continue to take share away from display ads. The numbers back up this trend. It is estimated that the total ad spend will reach $24 billion which will make up more than 50% of all display ad spending in the United States.

Read about the other nine trends that we are predicting will be the key to success for programmatic buying teams in 2018 here.

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 on native advertising and more than 30 other topics.  Need more information, you can also reach out to us here.

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.

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