The problem with ad exchanges is in part an issue with the inventory of the exchanges themselves, and in part with the agencies doing the buying. While Cost Per Thousand Impressions Rates (CPM) and Cost Per Click Rates (CPC) are lower on ad exchanges, the logic that these lower costs make exchanges a better option than direct buys is flawed.
Tags: ad exchanges, advertising, Digital Marketing, online advertising, online marketing, programmatic buying, Strategy
Posted in Ad Networks, Ad Serving, Media Planning & Buying, Opinions, Targeting | 2 Comments »
In today's world of non-stop reportage, social journalism, and grab-and-go newsfeeds, brands need to respond to breaking news quickly. Financial firms likely have a vested interest in an economy threatening to fall off a cliff, while a home furnishings company may want a voice around sudden news of housing-market improvements. Traditionally, this type of responsiveness has been the domain of brands’ owned and earned media channels to get a message out quickly.
But the rise in real-time ad buying has created a new opportunity for brands to own their destiny in the face of unpredictable news and events. As a result, there are now paid-media opportunities to add to your marketing arsenal.
For example, let’s say you lead an airline brand and a competitor is under fire for repeated mechanical issues and associated delays. This provides the perfect opportunity to proactively message your own carrier’s investment in the newest fleet of planes, or highlight a positive track-record of on-time arrivals as a counterpoint to your competitor’s negative press. Or, should a massive heatwave suddenly hit the headlines, it’s a natural fit if you market sunscreen, air conditioners or convertibles. There are endless examples of cases in which a brand could benefit from... Read more
Ad spends are increasingly moving to ad networks, thanks to new technology-based platforms.
I always look forward to reading Eric Picard.He is a champion of our industry and a deep thinker. As usual, his most recent article got me thinking about the health and well-being of the online advertising business.
Eric thinks we're in a death spiral of online ads not covering the cost of the content that hosts them. I know many of our leaders, such as Steve Goldberg, share the same fear. But I'm not so sure that the economics are THAT far out of whack.
I have always assumed, as have many others, that oversupply of display impressions has been the primary culprit in the cratering of CPMs. But looking at Eric's chart showing cross-media impression volumes, it becomes clear that display volume, on a relative basis, is not out of line with other media types; in fact, newspapers have the highest impression volume. This tells me there is much more than pure over supply at work here. Seeing this was a "myth-buster" moment for me.
Eric also raises a good point about how much money, time and energy is spent on optimizing ad performance and direct response while brand marketing gets lost. And his point about enlarging creative units makes... Read more
I chuckled at the recent article by research firm McPheters & Co. commissioned by Conde Nast, which found that relevant website content was a key factor in ad recall.
I didn't laugh just because someone found it necessary to do a study to confirm that readers of a food magazine might find food ads relevant. Rather, I laughed because they published the statistic that put the recall at "61% higher than ads in unrelated content".
Is Conde Nast trying to convince us all not to buy their content??
Look, it doesn't take a study to tell you that website content matters – it absolutely counts, both for audience targeting and for message relevance. But if you are a branded content publisher, this study does not make your case. In fact, it is pegging your "CPM premium" at only 61% higher than untargeted run of network (RON) inventory!
Hey you media planners out there…tell Conde Nast you are only willing to pay them 161% the price of what you pay for RON on a network or exchange, and cite their own research. That should get you premium inventory at less than $2.50 per thousand!
But all sarcasm aside, how important... Read more