Thoughts on Programmatic TV Buying

Programmatic TV

Adam Parker, Gumtree’s head of programmatic, sees the future for programmatic TV buying, but not in the immediate moment.  He thinks the phrase “year of Programmatic TV” is out ahead of the reality.  2017 will see growth, but the implication that it will become the big new thing goes too far.  According to Parker growth will move more like that of mobile, “a slow and arduous voyage” to an eventual time when it it is just another element in a standard media plan.  Source: The Drum

Alibaba Recruits Foreign Business

Online Mall

In his recent meeting with the new US President Jack Ma offered his Alibaba platforms – Tmall and Taobao – as a lure to US businesses interested in reaching China’s still growing consumer class. (eMarketer projects China’s consumers will purchase more than $150 billion worth of foreign products by 2020.)

It is reported that “Ma envisions 40 per cent of [Alibaba] business to come from outside mainland China in the next decade.” To accomplish his goal Ma needs thousands of outside businesses to see opportunity in China via his platforms.  To accomplish their goal – making a profit in China – outside business will need to first set up shop, online or elsewhere, and then tell their story directly to Chinese consumers via advertising – either without the other is a fruitless endeavor.  Source: South China Morning Post

Ad Spend Re-Allocation Increases Yield

Allocation

According to a study by Rubicon Project and The Female Quotient reaching the youth market is a matter of correct allocation of advertising resources.  It is not necessary to add more spending, rather the re-allocation of already existing funds to about 30% for digital and programmatic buying, and half of that in mobile, will increase yield.  And video is the key for beauty brands to reach young women.  At least 50% of a beauty-related budget should be delivering the message via mobile and desktop video.  Source: AdTech Daily

The Chinese Consumer Class Continues to Consume

Monthly Retail Sales Growth-Dec 2016

The straight line growth for retail sales in China remains consistent regardless of season or holidays.  This level of sustained growth results from China’s growing middle-class and its ever-more solid confidence, which in turn, drives continued spending.  Source: Trading Economics; National Bureau of Statistics, China

More Arguments for Bringing Programmatic Buying In-House

Filtering Media Sludge

The ultimate reason for bringing programmatic buying in-house is control.  We have talked about controlling company data as a core issue, but in an article by VP Marketing at Geoedge, Tobias Silber offers other serious reasons for control.

He posits that programmatic buying that’s managed by a third party is less likely to be carefully screened for malware and less likely to be particular about second rate ad quality that is either offensive, latency heavy or annoying, like autoplay, all of which affect user experience to the negative.

Bringing programmatic buying inside may add modestly to overhead, but if it brings more control to both data and ad quality, it is likely pay off for the long term goals of your company.  Source: AdTech Daily

More Media Buying Comes In-House

In-House Media Buying

A clear trend among digital media is companies bringing their media buying in-house.  Martin Cass, CEO of MDC Media Partners sees the trend as being driven by the desire to keep the vast quantities of data close to the chest for competitive reasons.  Having agencies or mega-players such as Google and Facebook holding data specific to your business is no longer acceptable particularly in the coming age of programmatic buying.

Cass predicts that in spite of the added overhead required by this new capability, “In the long term, clients will want to build and maintain the skill sets required to be competitive, while data ownership is manageable via contract.”

The analogy is to the sales process where many companies begin by out-sourcing their sales department to distributors only to bring the process in-house for more control as they become more successful.   Source: AdWeek

Industrial Profits Reach $1 Trillion

Cummulative Indus. Profits Dec 2016

Cumulative Industrial Profits for 2016 crossed the $1 trillion mark for the first time.  The record profits were contributed to by state-owned enterprises growing 6.7%, private sector companies growing 4.8%, joint-stock companies growing 8.3% and foreign companies, including those in Hong Kong, Macao and Taiwan, growing 12.1%.  The combination of strong industrial and strong consumer performance speaks well for the overall Chinese economy.  Source: Trading Economics; National Bureau of Statistics, China

New Era of Vigilance for Brands

Sheriff

If you are concerned about your brand inadvertently becoming associated with politically or socially repugnant sites or content, here are some strategies that will help:

  • Set Google Alerts to track online mentions of your brand or your products or even key phrases associated with your company to see where they land.
  • Check referral traffic analytic reports for secondary sites that may be carrying your ads. Some of those sites may be objectionable.
  • Examine affinity reports that reveal topics drawing users to your site with regularity to see if the audience is getting the message you intended.
  • Communicate with media buyers telling them the types of sites and networks with which you do not want your brand associated.

Source: DMN News

China’s Non-Manufacturing Sector Continues to Thrive

Service SEctor Index - Dec-2016

Through the entirety of 2016 the non-manufacturing or service sector has indexed in the growth area above 50.0 matching the performance of 2015 when it ran the year in the same way.  This reaffirms the success the government is having in its effort to move the economy more toward consumption.  Sources: Trading Economics; National Bureau of Statistics, China

Taking Advantage of Mobile’s Advantage

Device form Online Purchases

A recent survey of 2,773 US adults by Fluent demonstrates the force of mobile in the marketplace.  The data show the smartphone to the most used device by far and that mobile purchasing benefit from that intimacy.  Data from other sources say that mobile advertising is a growth industry, yet it still has some catching up to do to get even more out of mobile’s purchasing power.  Our guess is that it will only close the gap when ad creatives are better aligned with the mobile medium.  Advertising needs to be visually arresting to communicate in a split second or instantly engaging to prevent the quick click.  That’s the challenge.  Source: Marketing Land