Challenges for Programmatic Exchanges

programmatic-concerns

These data from Strata and eMarketer tell a story that should raise concerns for mega-exchanges.  They say that transparency is a real problem, that agencies cannot verify the source or the quality of the supply and they question its cost.  To reinforce the point, they are voting with their participation: 13.2% fewer agencies are using programmatic buying according to this year-over-year view.

The lesson for exchanges: auction prices have to be revealed and agency fees have to be lower.  Time for exchange 2.0: mPoint’s MarketPlaceTM.  Source: eMarketer

Taking the Positive View

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Business Sentiment for October sits just below the 52.5 average for the last 13-months, but safely above the positive/negative line of 50.  This marks the seventh consecutive month in which overall business view has been positive and the sixth month in which the future outlook was also positive.  Source: The Westpac MNI China Business Sentiment Indicator

To Separate or To Integrate

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Five years ago direct deals defined digital advertising.  Today, programmatic sales is a major, new approach.  But companies are lined up on each side of the divide. Some companies have two separate departments making the case that programmatic sales require an additional level of technical selling and discussions about audience data that are not relevant in the direct sales area – thus two separate sales forces within the same company.

Other companies make the case that a sale is a sale and the way it moves through the pipe is irrelevant.  These companies have one sales force selling the impressions that are available in whatever way the buyer is comfortable. This approach is best expressed by the head of advanced TV for Hulu, Doug Fleming, who believes the integrated sales force model is inevitable over time. Fleming declares, “In three to five years, programmatic won’t be a thing. It will just be how we do advertising.”  Source: AdExchanger

More Steady Subscription Growth

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One would think that the growth in the mobile market would begin to slow as it climbs toward total saturation.  That is not the case.  There appears to be plenty of room at the top.  With October delivering another 22.3 million 3G/4G subscribers, penetration of smart mobile device subscriptions has reached 78.2% – leaving still more room to grow.  The average monthly growth over the last 13-months has been just under 22 million as the replacement of un-smart phones continues.  Sources: China Mobile, China Telecom, China Unicom

Repetition is Key to App Download Success

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A TUNE, Inc. mega-study called, “How Brand Impacts App Install Volume,” that aggregated a number studies from September 2015 to June 2016 revealed the factors consumers consider on the way to downloading an app:

  1. App ratings & reviews
  2. App descriptions
  3. App video
  4. App title
  5. App maker/publisher app screenshots
  6. App icon

Based on this list, brand has little to do with the download decision, but data to the contrary suggests brand identification is a major factor. TUNE noted that the top 10 apps account for 80% or more of installs on both iTunes and Google Play.  The implication for lesser known brands is that pounding the above list is critical to cracking through.

In addition, approximately two thirds of the time consumers do not download on the first impression. Sources: TUNE; Marketingland

Following the Established Pattern

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This year’s pattern of steadily increasing industrial profits mirrors the pattern from 2015.  The difference is that profits are running measurably higher this year in spite of noise to the contrary.  These data counter the story line that China’s industrial sector is in decline.  It seems to be growing on pace with the service sector. September 2016 saw industrial profits grow to $677 billion compared to the $626 billion registered in September of 2015, an 8.2% increase.   Sources: Trading Economics; National Bureau of Statistics

Strongly Upward Manufacturing Outlook

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October’s purchasing index jumped a point more than predicted to 51.2, the highest level since July 2014.  Positivity has been generated mostly by rebounding new orders. To add perspective, the average of this index for the last 13-months was 49.3 making the gap of almost 2 points even more impressive.  Source: Markit Economics

Creative and Media Folks Coming Together

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On his way back from Cannes Lions International Festival of Creativity, Rob Perdue, The Trade Desk’s CEO commented on his observation that the creative side and the media side, which had been going down parallel, but different paths, appear to be coming together.

He said, “I think creatives are becoming less intimidated by the rise of programmatic than ever… there’s a better understanding on the creative side. But frankly, there’s a better understanding on the programmatic side of how creative informs not only the performance but also the emotional appeal of programmatic advertising.”  Source: AdWeek

Economic Index is More Positive Than Expected

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The story here is not August’s number, but the revised number for July.  When first reported the July Index showed a 0.1% increase, which was a significant return to the positive after four months of decline. Now the July number has been revised to a relatively large 0.5% growth and it is followed by an addition 0.3% in August.   This direction in the Index is supported by other data such as consumer and business sentiment, though the size of jump seems outsized by comparison.  Still – better positive than negative.  Source: National Bureau of Statistics, China

CEO of IDG: Issues for Digital’s Future

 

ad-blocking

In his thinking about the publishing future, Michael Friedenberg, CEO of IDG Communications, sees a changing universe – the conversion from print to digital – a change IDG made several years ago. As the digital publisher of technology titles such as Computerworld, MacWorld and NetworkWorld, he recognizes three issues that represent the challenge for digital’s future:

  1.  Ad fraud
  2. Ad blocking
  3. Transparency

Friedenberg says, “If your business model is not transparent to the advertiser or the reader, that’s where mistrust occurs. We need to return to the fundamental basics. Maybe it’s old-school, but it’s something we should revisit as an industry. For example, at IDG we do not buy traffic.”

Ad fraud can be substantial reduced by complete transparency while ad blocking is basically a technology war – the blockers tech verses the advertiser’s tech.  Source: MediaPost