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Struq’s Andrew Morsy On The Company’s Place In The Eco-System, Its Relationship With Agencies, & Staying Ahead Of Retargeting Commoditisation

Friday, February 24th, 2012

Andrew Morsy is Sales Director at Struq. Here he discusses the Struq personalised targeting solution, the company’s relationship with agencies and how Struq is staying ahead of the comoditisation of the retargeting market.

Agencies are beginning to adopt retargeting now as part of their model. What is Struq’s view on this adopted agency business model?

Retargeting is critical for advertisers as it converts browsers into paying customers, lengthens customer lifetime value and increases revenue per user. Agency adoption helps educate clients about the power of ad personalisation – that in order to persuade users to buy your product or service, it is imperative you deliver a personalised relevant ad to persuade that user. That has fuelled the adoption of Personalized Video and Personalized Pretargeting (advertisers acquiring new users) by advertisers and agencies.

Can companies like Struq really work with agencies? You clearly have client direct relationships in the ecom space? Aren’t you competition for the agencies?

Agencies are experts at what they do – they are aligned to plan and buy media as effectively as possible for advertisers.

Struq’s technology enables advertisers to acquire users at half the cost of any other retargeting provider.

As a result, the majority of Struq’s business is through media agencies as they seek to provide the most efficient means to spend money that results in post-click revenue for their clients.

Does Struq really need to work with agencies? Clearly the client direct relationship has paid serious dividends? Why would Struq need to work with agencies?

Struq powers post-click performance across the marketing funnel for Marketing Directors and Media Buyers alike. Both the Media Buyer and the Marketing Director have the same objective, to persuade users to buy products at the lowest possible cost.

Struq enables media agencies and clients direct to buy Personalized Video and Personalized Display advertising that delivers lucrative post-click revenue.

Retargeting is becoming an increasingly commoditised product – how is Struq differentiating itself from the competition?

Struq works solely with the largest brands in the verticals of ecommerce, retail, finance and travel across 19 markets. All of these brands have tried multiple vendors and continue to work with Struq solely because Struq automates the delivery of a post-click CPA because we understand the value of a user and what makes a user click and buy.

Struq ascertains which users are valuable to an advertiser. We then target the right users to hit an advertiser’s post-click CPA/COS/ROI target with fully personalised creative. Struq then provides unique insight to clients, enabling advertisers to understand which products, creative elements, publishers, etc. drove post-click performance for them (which they then frequently leverage across their other marketing activity).

Struq has applied our core targeting technology across display and video to deliver lucrative post-click performance across the marketing funnel for advertisers.

Is Struq’s technology proprietary and how do you compete against the growing number of DSPs offering dynamic creative solutions – particularly Invite which, according to rumours, will have a dynamic creative component (Teracent) built into its new iteration?

Unlike the majority of the RTB market, Struq has built its own DSP, Bid Optimisation Engine, Recommendation Engine and Dynamic Creative Optimisation Engine. These needed to be proprietary to enable the data to be extensible so that we could extract the value out of data to make user level decisions. Struq determines the display ad content, media placement, targeting criteria and bid price in real time based on data intelligence. The result is that Struq acquires a user at half the cost of any other video, display or retargeting provider.

Struq is looking to position itself as the leading Ad Personalization Company in the market. Can you talk to us in more detail what ad Personalization really is?

Advertising is a communication to persuade users to buy a product or service. Struq is transforming that communication from a generic push communication to a relevant personalised communication.

Personalised Retargeting by Struq showed that by delivering relevant ads to consumers, they were 12 times more likely to click and buy a product or service. Ad personalization breaks the one-size-fits-all paradigm, it is about making each ad both personal and relevant to each user. Ultimately, it leads to greater post-click revenue for advertisers, higher quality of ads for publishers and a much better experience for end users.

Struq is now bringing that level of performance to advertisers across a user’s entire decision making process.

You are rolling new products around video. Can you tell us a more about these new products? Are you simply launching these products in response to what Brainient has starting offering in the market?

Struq’s core purpose is serving personalized, relevant, performance-driven ads to users.

Struq is a single point for advertisers to persuade users at every stage of the buying process across any channel. Struq is able to both identify new prospective customers and convert prospective customers at scale through personalised display and video. Advertisers need to use an integrated offering across channels to gain understanding and insight into what drives customers to buy their products.

We have applied our core targeting technology across these mediums to deliver lucrative post-click performance across the marketing funnel for advertisers.

How have you seen the market evolve over the past 12 months and where do you see it heading in 2012?

The economic climate is bleak for 2012. Advertisers need people to click and buy products through their advertising to justify spending money on marketing in a tough economic climate. Struq’s Personalised Video and Display ads make ads relevant to consumers, which enables advertisers to make on average £20 in post click revenue for every pound spent. Struq’s Personalized products seek to meet the needs of advertisers in a tough economic climate.

The PostView: The Race For “First Look” Access To Premium Publisher Inventory

Thursday, February 23rd, 2012

The PostView is a new column written by senior execs working in the European online advertising industry.

The supply chain has always been in a permanent state of disruption. From ad networks to retargeting networks to SSPs to the Trading Desks – there has always been demand for a publisher’s inventory. But now, fuelled by the growth of RTB, is it becoming even more competitive and territorial?

The battle lines are being drawn for “first look” at premium inventory, which is going to result in the major disruption of the existing publisher revenue monetisation model.

For those not in the know, the “first look” is effectively a process where publishers pass inventory to a buyer or set of buyers before the rest of the market. Retargeters have profited from this for a while now. Not necessarily in real time, but taking the first ad calls on a lot of premium publisher’s inventory. Ask yourself, when you leave a retailer’s site and continue surfing the web, how quickly do you see a personalised ad? Skip from a well-known ecom site without purchasing and there is a high chance you will see a personalised ad about a product on the first pages of a premium publisher.

The “first look” market is opening up. The SSPs have now enabled the trading desks to start getting a sniff of this first impression before anyone else.

The question of who should get the first is no doubt being heavily analysed and assessed within the big publishers. But why would a publisher even enable “first look” access? Well, it helps with automation. Publishers want to automate standard inventory selling. It makes sense for them to do so from a work flow efficiency perspective.

The question remains: are they leaving money on the table? Can RTB buyers sustain the fill rates required for these publishers? Are they able to fulfil this at the higher yields, making this supply channel more profitable for publishers than their direct sales channels? The jury is still out. Publishers want to work closer with the trading desks and agencies. And “first look” (particularly with the trading desks) facilitates and strengthens trading relationships and deals. Securing “first look” from key publishers could well be a key function of the agency side trading team going forward.

There’s an argument to be made though that looks at why a publisher wouldn’t give “first look”? The reality is if the inventory is looked at by an RTB bidder and passed back, then it can be monetised into an open exchange. No risk in that case (if the publisher already sells inventory on the exchange).

The only issues are whether a) the inventory that has been allocated on a “first look” basis could have been fulfilled at higher yield and/or revenue via a direct channel or b) whether other bidders would have helped inflate the price by stimulating more competition and demand on the auction. And this is a big point. Is “first look” limiting the yield publishers could be creating?

It’s about supply and demand and publishers need to be manipulating this in their favour. If they are reliant on one trading desk, they could be setting themselves up for failure.

Regardless of industry opinion on whether “first look” RTB access to publishers is a viable, sustainable model, there is a lot of momentum being built from the trading desks. Private Exchanges are popping everywhere up, giving trading desks with “first look” access, ahead of ad networks. With the emergence of this trend, some ad networks simply are no longer getting “first look” at premium publishers. But just because a handful of deals have been done by the trading desks doesn’t mean they have locked down the “first look” access. Retargeters armed with affiliate money and client direct relationships continue to sign some big deals with publishers.

Why are they able to do this? Retargeters are arguably in a stronger position than the trading desks to monetise inventory more effectively for a publisher. Depending on the margin they are making, they have the ability to drive eCPMs higher, purely based on the CTR performance they’re currently driving. They may also have more spend flowing through them than the trading desks. For these reasons alone, they could be a more lucrative partner for publishers looking to better monetise those first look impressions.

Publishers understand the opportunity available. But the trading desks have still to play their trump card: namely, brand spend. In addition to retargeting budget, trading desks are also in a position to leverage brand spend, which could ultimately outweigh the yields the retargeting networks can deliver and probably also top their scale too.

How important will the likes of Comscore be in this looming battle? New measurement metrics like the vCE could help demonstrate the value of a) premium publisher inventory but also b) ad calls further up the delivery chain. If these new metrics prove the value of premium inventory beyond what current click based performance metrics do, then we could see a real fight emerging. Xaxis, Audience on Demand, Accuen, Amnet, Cadreon will be looking to aggressively take on the likes Criteo, Struq, Next Performance, MyThings et al for that precious “first look” at premium publisher inventory. Things are going to get interesting.

Simplifying Display Buying: Why Ad Tech Should Be Listening More To People Like Richard Dance

Tuesday, February 21st, 2012

We are publishing another panel excerpt from the recent ATS London event. The panel in question focused on bringing brand budget into the automated channel. The panel was moderated by ExchangeWire editor, Ciaran O’Kane, and speakers included: Nathan Woodman, COO, Adnetik; Richard Dance, Director of Digital Innovation, Blue Hive; Alex Rahaman, CEO at StrikeAd; Andy Ellenthal, CEO, Peer39; and Bruce Journey, DataXu CRO.

It gave Richard Dance the opportunity to challenge some of the widely held views of our – sometimes – “navel-gazing” ad tech community. He provides some interesting commentary from the brand’s perspective, particularly around the complexities of the current display eco-system. He notes that Facebook has made it easy for marketers, and as such continues to suck up a lot of brand budget. Dance works closely with Ford on their digital strategy. He’s exactly the kind of person that should be canvassed by ad tech companies on where display is falling down. If you can’t sit through the entire panel session, you should skip to 11:25 on the video clip – where Dance suggests the simplicity of the Facebook proposition is one of the key reasons why it is attracting brand spend.

Jason Bigler Discusses Google’s Bespoke Approach In Europe, The Cross-Channel Opportunity And How We Get To $200 Billion In Display

Wednesday, February 15th, 2012

Jason Bigler is Director, Product Management at Google and is the point man for all of the company’s display products in Europe. Here he discusses Google’s European display strategy, the bespoke approach that is required, the cross-channel opportunity, and how we get to that $200 billion figure.

We hear lots about Google’s display strategy in the US. Can you give some overview on the approach to Europe’s fragmented display market?

Our general approach actually isn’t very different on the core issues. Publishers look to us to help them maximise the value of every ad impression while advertisers look to us to help them achieve the best ROI on their advertising spend. If we aren’t delivering on either of those core concepts then we don’t have a business in any market.

However in Europe, as you point out, the market is more fragmented and each country can be in a different phase of product adoption. You really have to apply a country-specific lense when examining the best approach. As an example, we are seeing tremendous growth on the DoubleClick Ad Exchange in Europe. Spend has increased more than 130% year on year and the number of buyers and sellers has increased more than twofold over last year. This is going to be a big year for programmatic buying across most of the region. But is it exactly the same in every country across Europe? Not a chance. So in some countries we’re in full commercialisation mode and in others we’re still in the evangelising phase.

Will it be more of a bespoke approach given the huge differences between markets like the UK, France and Germany?

Much of the reason I’m here is to ensure we’re taking into account all of the nuances within each country when it comes to our overall display strategy. So yes, we’re most certainly going to tailor it to individual market needs by applying that country-specific lense I was talking about a moment ago.

Why did you make the move to Europe, and what experience have you of building products for European clients?

It’s certainly a great challenge for me personally. I’ve been in the display advertising technology business for over 10 years now and for a good portion of that time I was at DoubleClick leading our buy-side platform product, DoubleClick for Advertisers. That role was inherently a global role and I spent quite a bit of time in Europe making sure we were building a relevant product for the region. Recently, I also spent time at Collective Media as their head of product and strategy. During my time there, we not only launched Collective UK but we also acquired Web TV Enterprise, a UK-based video ad network. From a strategic perspective I was very much involved in the formation of their approach to the UK market. However, I think more than anything the scope of the role is what drew me back to Google. Our display ads business just hit a $5 billion run rate and as you can probably imagine the contribution from the European region to that number is not insignificant.

You recently released a report on publisher success on AdX. Can you give some insights on how European publishers are benefiting from automated selling compared to other sales channels?

In this particular report we demonstrated that for European publishers who make their inventory available in the Ad Exchange, automated selling beat competing sales channels 1 in 4 times. The competing channels included direct sales, other networks and backfills. And where it won over those alternatives, the revenue uplift was 73% higher. It also ended up delivering a fill rate greater than 90% for inventory where there was no other demand. I think this report demonstrates the importance of having a platform that can dynamically allocate across all types of buying relationships and deliver the best possible yield to the publisher.

How is the Admeld acquisition going to help European publishers? Can you outline some tangible benefits? Does the acquisition result in more Google-powered private exchanges popping across the continent this year?

It’s still quite early in this process to get into specifics here. We expect to be able to make Admeld’s services available to our DoubleClick Ad Exchange and DFP customers over time and to add to our publisher suite the functionality and services that Admeld provides. This will give publishers more control and flexibility in the way they manage their inventory and maximise their returns. However, it’s important to note that we will continue to invest in and evolve the current Admeld offering as we finalise our integration plan.

Google owns a DSP, an ad exchange, an SSP and both a buy-side and sell-side ad server. How do you respond to this “conflict of interest” argument – and the vagaries of the “end-to-end” ad stack?

The reality is we’ve built an open platform that we feel is the best in the business. For publishers, it helps them maximise the value of every single ad impression. For advertisers, it helps deliver the best ROI on their media spend. Long before today’s “app marketplace” plays and “neutrality” rhetoric we’ve had a platform where customers can integrate their own technologies or utilise their own point solutions should they make that choice. In fact, quite a few of our customers have made that choice. It is this inherent openness that makes the “conflict of interest” argument fatally flawed.

Your role at Google covers several channels, including video, display, rich media and mobile. How does this cross-platform perspective help Google’s clients in the European market?

At Google we have plenty of folks who are laser-focused on ensuring each of these channels is a best-of-breed solution, but I think it’s critical that we also have people thinking about how these channels can impact one another, how we can build complementary cross-product offerings, and most importantly, how these combined solutions can benefit our clients. In my role I’m certainly going to be influencing how we develop and commercialize these cross-platform solutions across Europe.

Your boss, Neal Mohan, reckons display could go to $200 billion in a matter of five years. Is this really possible, and how are we as an industry going to get to that figure?

What we know for certain is that there is still a significant imbalance between the amount of time users spend in a particular form of media and its associated ad spend. We’re betting that this imbalance is going to correct itself over the next several years while consumer consumption of digital media will continue to accelerate. As the line between online and offline blur, eventually we’ll see an entire reclassification of spend where there is no more offline versus online, it will simply be digital spend. That’s how we get to $200 billion.

In terms of how we’re going to get there, I don’t think it’s rocket science. Consumer behavior is what is driving the success of the industry and will continue to do so for the next decade. Think of all the types of devices/services we use today that didn’t exist 10 years ago. Think of what will exist a decade from now. That’s what makes our industry such an exciting place to be. Our goal is to help grow the industry to that $200 billion number.

Edgar Baudin Discusses The Gamned Model, Real-Time Media Buying In France. The Generalist Versus Specialist Argument And The Sapin Law

Tuesday, February 14th, 2012

Edgar Baudin is Co-Founder & Managing Director at Gamned. Here he discusses the Gamned offering, the state of the French exchange marketplace, the generalist versus specialist argument and the effect of Sapin legislation on real-time media buying in France.

Is much of the data-driven ad spend in the French market still coming from DR budgets and are brands still avoiding automated channels?

Most of the spending in France is still related to DR campaigns, i.e. acquisition and retargeting. The first group to adopt this technology was composed of merchants who focused on ROI, and that explains why they drive the biggest parts of the investments.

Now that brands have access to transparency and ad verification, they’ve started to switch part of their budget over to RTB campaigns. There’s still a lot of work to be done, informing and educating marketers, for them to increase their budgets and go from the test campaign phase to long-term RTB integration in their media plans. Branding campaigns will need a strong increase in data offering which is a must-have for audience and targeting setups.

Today, trading desks have a key role to play explaining the new paradigm which allows marketers to consider Display Advertising as a much more powerful channel. By enabling total control of frequency and reach, brands can now consider GRP’s in their ad campaigns.

What’s Gamned’s position in the current ecosystem? How do you help advertisers?

Gamned has been a Real-Time Media Desk since 2009 and our clients are advertisers and agencies. One of our strengths is R&D, with six of our 20 employees devoted to developing in-house technology and tools which are at the service of our customers.

Our belief is that real-time trading is not enough: in order to properly benefit from real time advertising, we’ve worked on improving real-time messaging and segmentation. To that effect we have, for example, developed our own dynamic banner technology which enables us to deliver a personalized message to each unique impression which we purchase on exchanges.

Our approach helps advertisers to better understand the benefits offered by real-time advertising, and of course to generate better results.

These results should of course be measured using ROI-related KPI’s on DR campaigns, but also in terms of the teachings of segmentation, data usage and creatives. We work closely with all our customers to define the targets together before launching any campaign.

How are French marketers taking to data-driven media buying? Is there still a knowledge gap among French CMOs?

Some CMO’s consider data-driven buying to be one of the main advantages of RTB buying. “Don’t buy ad space, buy targeted audience”, is the magic motto.

It is, however, very complex to implement data-driven buying as there is no “one size fits all” method.

Most CMO’s will need to define in more detail their tactical and strategic needs concerning data, and to learn how to distinguish more precisely between transactional data, social data, intent data, behavioral data, occupational data and so forth. Gamned has chosen to work very closely with its customers in that department, as we know very well that automated buying by itself is not enough.

We have seen some excellent results when combining first and third party data, with impressive improvements in performance. The volumes are, however, often limited. Ultra-segmentation does work and can teach us priceless lessons, but the scalability of this technique remains difficult.

In your opinion, what are the trends going to be in the French data-driven display market?

In early 2011, the number of unique segmented cookies available was much too limited, but things are finally starting to evolve in a good way. Thanks to the great work done by data suppliers such as Exelate, Weborama or DataVantage, more and more publishers are realising the potential revenue which can be generated by monetizing their data.

Another very effective way to increase volume and relevancy is by leveraging Facebook data from ad campaigns and fan pages, like we have been doing for the past months.

What about the argument of specialists versus generalists in the new exchange eco-system? Do you think there is a need for ad traders with deep domain knowledge in the French market?

This is a recurring question which we discussed at the ATS in Paris last year! From our (pure player) point of view, the RTB ecosystem definitely requires specialists. The environment is changing so rapidly that the only way to efficiently address advertisers’ needs is to offer a proper setup. It’s not just a question of choosing a DSP, buying a bit of third party data and managing campaigns. Our entire trading desk has been developed with the aim of delivering real-time advertising and this is our one and only focus. With one third of our team dedicated to R&D this is the key to our success and efficiency.

How is the Sapin legislation affecting the new exchange eco-system? Is it an issue for new ad traders?

The aim of the Sapin legislation is to fight corruption by giving advertisers total transparency in regards to their ad investments. The entire Sapin process is however technically impossible to implement on RTB buying. As we already guarantee our advertisers full transparency on their media costs and margins, we consider ourselves to be Sapin-compliant. This legislation has however always been considered a complex issue in regards to internet advertising.

Euro Round Up: Criteo To Hit $400 Million In Revenue This Year; StrikeAd Informs On Mobile Ad Tracking; Hi-Media UK Inks New Deal With Thomas Cook

Tuesday, February 14th, 2012

Criteo To Hit $400 Million In Revenue This Year

Criteo has become a colossus in the European ad tech space. The French company, founded by Jean-Baptiste Rudelle in 2005, has a client list which includes some of the biggest names in e-commerce (Office.co.uk, Zoopla, Glasses Direct, Boden, among others).

Last year the company generated $200m in turnover, compared with $60m in 2010 and $9m in 2009. If the trend continues, Criteo could double its revenues in 2012. There are already plans to hire 250 people this year, bringing the workforce to 750 employees. At this rate, Criteo could possibly become the largest Internet company in France.

Criteo is committed to continuing its big innovation push. Gazagne Gregory, General Manager for France, Southern Europe and Latin America explains: “We have been profitable since July 2009 and reinvest all our profits in R&D. Our offices in Paris are the second largest algorithmic research centre on advertising in Europe behind Google in Zurich.” R&D doubled last year and engineers represent 40% of the total workforce. Criteo now has over 2,000 customers in 30 countries and has 15 offices around the world. More on the Criteo growth story here.

StrikeAd Releases White Paper On Conversion Tracking In Mobile Advertising

London and New York-based mobile advertising DSP, StrikeAd, released its new white paper on ad tracking in mobile. The white paper looks to provide a guide for agencies seeking to understand how to track mobile ads and conversions in a transparent and safe way.

The report examines in detail the problems surrounding device identifiers (UDIDs) when it comes to tracking mobile app downloads. It goes on to explain how cookies can be the key to tying an ad impression to a particular download and consequently yielding better results for agencies in mobile ad campaigns. Although it is necessary for the process to be adopted by the triumvirate of advertiser, agency and media in order to utilise them to best effect.

Alex Rahaman, CEO of StrikeAd, explains why they are releasing this report now: “Since StrikeAd launched we’ve had many agencies ask for help with their tracking across phone and tablet ad campaigns. In direct response to this, we wrote this white paper based on our tools to try to clear up any confusion and clarify for agencies how to track mobile ads and conversions in a privacy-safe way.”

You can download the white paper in full here.

Thomas Cook Joins Hi-Media’s Premium Network In The UK

Thomas Cook, one of the best-known names in travel, has partnered with Hi-Media in the UK to increase its online advertising revenues from the market, it announced in a press release last week. Hi-Media, a European leader in monetising Internet audiences, will work with leading advertisers and their agencies to develop bespoke advertising solutions to reach Thomas Cook’s audience of travel intenders.

ThomasCook.com has millions of unique visitors per month. Stuart Adamson, Head of Media Solutions, Europe at Thomas Cook Online, explains their value: “We have a large and loyal customer base across Europe visiting our sites to research and book their travel options. We know this is a highly valuable audience, so partnering with Hi-Media helps us gain traction with major brands looking to reach purchase decision-makers. We selected Hi-Media as a partner because of their understanding of quality brands and online consumer behavior.”

Mathieu Roche, Managing Director of Hi-Media UK, is equally happy with the partnership: “Thomas Cook is a brand with an incredible heritage, delivering a highly engaged audience who visit the site with purchase intent. We will work with advertisers and their agencies to offer them a wide variety of branding and performance advertising solutions to reach this premium audience.”

Euro Round-Up: The French Get “Serieux” About RTB; mediascale Reports Strong 2011 Growth; Jemm Goes All-In With AppNexus

Thursday, February 9th, 2012

Le Trading Media

In an epic twenty-seven pages on the potential of RTB in the French market, IAB France has outlined an impressive overview of the entire market. The report goes into great detail on the emerging data-driven advertising market in France, with explainations of key constituents in the exchange eco-system. It even includes some Q&As with leading ad execs in France, including recent ATS Paris speaker, Arthur Millet, Directeur Commercial at Amaury Medias Digital. Further insight on the growth of automated buying and RTB is provided by industry heavyweights like Sébastien Robin, Directeur Des OpérationS, at AFFIPERF. You can download the IAB report on the growth of RTB in France here.

mediascale Reports Strong 2011 Growth

mediascale, one of Germany’s leading independent digital agencies, reported a gross income of €5.6m last year – an increase of 17 per cent compared to 2010. The billings for the same period rose 22 per cent from €59m to €72m.

mediascale uses its own cross-platform targeting tool NE.R.O, together with Plan.Net, to develop solutions for clients and agency partners. Julian Simon, managing director of mediascale, is bullish on future growth for mediascale:

Right now we are running about 35 per cent of all campaigns on NE.R.O. By the end of 2012, we want to increase that by 40 per cent or more. This targeting will aid not only in direct sales support but also image and brand communications. It’s more about planning for consumer-relevant criteria such as purchase decision stages, interests and attitudes of the user. There is great potential in targeting, especially for content and creative solutions. The system combines information from the user profile with the matching design, text, product or price for the dynamic creation of promotional materials. Thus, advertising effectiveness and efficiency of the campaigns increase significantly.

The company also opened a new office in Vienna last year to service the fast-growing Austrian market.

Jemm Goes All-In With AppNexus

Jemm Group has chosen AppNexus as its exclusive ad technology platform, the company publicly announced this week.

Julia Smith, Global Communications Director at Jemm, is looking ahead:

By leveraging AppNexus’ technology platform, Jemm is able to deliver a strong proposition to buyers and sellers. We have moved away from a traditional ad network model and are now focused on working with other like-minded players in order to deliver a compelling offer for the publisher market.

Since migrating to the AppNexus platform, Jemm has seen click-through rates dramatically increase. In the first month alone, CTR tripled across campaigns delivered via the AppNexus platform. According to AppNexus’ proprietary reporting, the European market for RTB is growing rapidly, with an average of 25 billion advertising impressions served each month during Q4 2011 via the AppNexus platform. Over the last year the number of global impressions served via the AppNexus platform has increased by 859 per cent.

Moving On From Retargeting: Why Prospecting In Display Is Good For The Industry

Wednesday, February 8th, 2012

Lee Puri is Co-Founder at Media iQ Digital. Here he discusses the centralisation of re-targeting and why prospecting in display will be good for the industry.

Many advertising agencies and clients made moves in 2011 to take direct control of display buying, probably the most notable of which saw the move to centralise retargeting in-house. Many networks and media owners are seeing their budgets shrink as the agencies look to secure increasingly larger share of media budgets for internal trading; for many third parties their clients could ultimately prove to be their nemesis.

The ad network’s ability to continually re-invent itself has essentially guaranteed its survival over the years with ever constant demand side pressures at play. However, the challenge centralising retargeting poses to third-party trading companies is a far greater threat than ever before – and far more dangerous for those players that are not on top of their game. A good elevator pitch and an expensive media lunch will no longer ensure continued presence on a plan. It’s more and more about delivering those incremental results, and let’s be honest, this is what it needs to be.

The gulf between agencies/clients when it comes to display trading tactics is no longer insurmountable. The accessibility factor combined with RTB has seen to that. The reliance on retargeting for many ‘black box solutions’ or ‘killer data platforms’ appears to be uncomfortably apparent for all to see on a campaign basis. The simple fact is retargeting has papered over the cracks for many display trading businesses for years now and the client has found out.

So why is centralisation of retargeting a good thing for the market?

Centralisation of retargeting brings huge efficiencies on an advertiser level, the rationale of which speaks for itself. Reduced risk of bid inflation, reduced duplication, lower frequencies to users, higher conversion rates, tighter control of data, etc. Whatever way you look at it, centralisation is the natural and most efficient next step for the market. This doesn’t necessarily mean the end of display trading outside of the agency trading desk. Far from it. To co-exist on a media plan alongside the ATDs, third parties – ad networks or publishers direct – need to be able to prove their ability in delivering incremental value. In other words, focus on prospecting.

The agency move to centralise retargeting could actually be the making of digital display – as it might allow, for the first time, third-party buyers to collectively focus on growing advertisers’ businesses through innovation in trading/optimisation, attribution and measurement. We now find ourselves in a market that is in transition: value propositions that have defined this space for years are becoming redundant, with new innovative means of trading gradually gaining resonance within the space.

Working outside of retargeting is probably one of the biggest challenges to face the ad network model since its inception in the late 1990’s. Campaign-based pressures to identify performing user bases and domains outside of retargeting means trading models need to be air tight. The need for trading expertise and/or campaign analytics is paramount in delivering out incremental value.

Agencies and clients find themselves at an interesting place at this point in time. Campaign efficiencies can be hugely stimulated through internal centralisation of retargeting – but delivering performance at scale often means there needs to be fresh, new activity at the top of the purchase funnel to ensure continual growth of sales. Hence the rise of demand for the prospecting network.

So what exactly is prospecting? What part can ad networks play alongside ATDs who can also prospect? How does this enhance the publisher direct position? How do centralisation of retargeting, attribution, measurement and policing practices come together to aid online display in growing advertisers businesses? These issues and more are fully deserving of further discussion – and will doubtless be addressed by the industry in the coming weeks and months.


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