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What: Portada talked with Acuity Ads Chief Strategy Officer Seraj Bharwani about how machine learning is expanding brands’ reach to specific cultural audiences.
Why it matters: Machine learning is paving the way to a new, more effective approach for reaching specific cultural audiences and will be a featured topic at Portada Los Angeles on March 15. But digital platforms, like Google and YouTube need to do more to protect brands from inappropriate content, Bharwani says.

Seraj Bharwani has his eye on decision sciences, specifically: machine learning and computer algorithms which he says give brands powerful new tools for penetrating deeper into multi-cultural market segments than ever before.

It used to be that speaking the language of a specific ethnic market segment was all advertisers could do to put their messages before those audiences. But new technology has changed the rules of the game, Bharwani tells Portada.

“Computer algorithms that can process vast amounts of user data to assess user preferences and propensities by aggregating their social, search, shopping and viewing behavior in real-time are now being used to create what we call live personas of in-culture audience.”

Portada: Why are traditional in-language targeting tools insufficient to reach cultural audiences today?

Seraj Bharwani: There appears general consensus among sociologists, anthropologists, agency planners, and the like that defining the US Hispanic population by language is simply too limiting. This audience lives a rich life defined by their unique core family values, cuisine, music, festivals, celebrations and other characteristics more indicative of their preferences.

Another unique aspect of this audience is their rapid, scaled adoption and prolific use of digital and social media. These online behavior signals in aggregate provide robust cultural cues that allow us to reach the other two-thirds (40 million) of the US Hispanic population that is bi-cultural and bilingual with more relevant advertising.

Acuity Ads Chief Strategy Officer Seraj Bharwani will be a featured speaker atPortada Los Angeles on March 15 when he will provide insights in how machine learning tools are expanding brand marketers’ ability to reach multi-cultural audiences.

Portada: What role do decisioning technologies, i.e. Machine learning or Artificial Intelligence play in updated efforts to target specific cultural market segments in the US?

S.B.: Computer algorithms these days can process vast amounts of user data to assess user preferences by aggregating their social, search, shopping and viewing behavior in real-time, and are now being used to create what we call live-personas of in-culture audience.

By incorporating what keywords people type, who they follow, which videos and content they watch, which mobile apps they download and check into, etc., the “learning” algorithms can predict (in real-time) if a given PERSONA is sensitive to the cultural context and will respond to specific ads, products, or brands with a culturally relevant message.

Computer algorithms that can process vast amounts of user data to assess user preferences and propensities by aggregating their social, search, shopping and viewing behavior in real-time are now being used to create what we call live personas of in-culture audience.

Portada: Have the sources of consumer data changed as marketers have begun to use machine learning tools to reach specific cultural targets?

S.B.: Publishers like Facebook, Google and Amazon possess substantial consumer data individually within their respective lanes – social, search or shopping data respectively that could provide selected “In-culture” cues. What advertisers need are in-culture personas aggregated from a full spectrum of consumer behaviors across social, search, viewing, and shopping behaviors. 

Portada: Several major brands recently pulled their advertising from YouTube after it was revealed that viewers were exchanging child pornography links in the video comment sections. How can marketers better protect their brands?

 S.B.: This is not the first time we have heard of the brand safety scandal on YouTube. Advertisers need to be clear about why they are buying advertising on YouTube/Google. If an advertiser wants great audience REACH, then the environment within which the ads run may not always be brand appropriate or brand safe. As sophisticated as Google happens to be with its pattern recognition algorithms, it is unrealistic to expect the platform to police every video and comment posted on the platform. And Google isn’t about to shut down the commenting altogether like the PBS News Hour as it would severely curtail the engagement potential of the YouTube platform.

 If on the other hand advertisers want fully brand-safe and brand-appropriate environment for their ads, their best bet would be to buy access to the YouTube audience through premium publishers like Disney, Vevo, Buzzfeed, and others who have captive channels on YouTube to ensure control over the quality of the media environment. There is a good chance that advertisers would sacrifice media efficiency (premium environments command higher prices) and REACH.

What: Miami-based agency Nobox has tapped Marcus Kawamura as Chief Creative Officer to drive brands’ engagement with consumers by generating big ideas and delivering them on multiple platforms.
Why it matters: Rapidly shifting technology requires brands to speak with consumers on multiple platforms, but Kawamura says engaging consumers requires deep brand understanding, big ideas, and the ability to entertain and react quickly to opportunities.

Nobox has been helping brands deliver their messaging to consumers since 2001. Founder Jayson Fittipaldi has stewarded the agency into the digital age, from email marketing to online video, social media and beyond. Now Nobox is ready to expand its “digital first” expertise with a focus on mid-sized companies in the US, helping CMO’s struggling to juggle content and creative with the demands of the myriad of technology platforms available for reaching consumers.

Portada caught up with Fittipaldi and newly appointed Chief Creative Officer Marcus Kawamura to discuss their insights into the maelstrom of digital opportunities for delivering brands’ connections with consumers and how the agency is positioning itself to add US clients to its impressive portfolio of international brands in Latin America and the Caribbean.

Portada: What’s Nobox’s unique perspective on the marketing landscape today?

Jayson Fittipaldi: It’s not all about interrupting what people are doing with your brand message. It’s about becoming what they are doing. The brand becomes the reason for the consumer to be online and entertained. The engagement value of what we do is always very high. The content we put out there is not going to take you away from your Instagram experience, it’s going to be part of the reason you are on Instagram. We shape ourselves to be that nimble. What Nobox is looking to do now is to link our digital and content expertise to ensure that the big ideas we develop for brands work across all platforms. Marcus is going to provide the big ideas that will serve as each brand’s foundation for its messaging across all platforms. With this new role, Marcus will take over creative leadership of the agency, something I have been responsible for since the agency’s inception in 2001.

Portada: Marcus, tell us about your background and your strategic goals for Nobox.

Marcus Kawamura: Originally from Sao Paulo, I’ve spent 20 years working at top creative agencies in Brazil such as AlmapBBDO, working on global accounts such as Volkswagen and Visa. I moved to the US in 2015 to work for Crispin Porter Bogusky (CPB) to work on the automobile brand Infiniti as its Global Creative Director and then in 2017 as Executive Creative Director at CPB Miami office to handle Letgo – the online second-hand marketplace app company, Aspen Dental, Embraer and Bauducco. My goal for Nobox is to use profound knowledge of our brands, from the inside out, to create big ideas for stunning work no matter what channel it’s delivered on. We are all content creators. It doesn’t matter what the channel. You have to reach the consumer as efficiently as you can.

The two-way interaction that brands have to engage in today has created a fluid and agile relationship between us as the agency and the brand, transforming the entire way we do creative.

Portada: What makes marketing different today, than say it was when we only had access to traditional media?

Marcus Kawamura: Brand messaging to consumers was traditionally one way. That’s totally changed. Today you have to engage and interact with consumers, and be ready to react to how they respond. You have to be tuned into not only how consumers receive brand messaging, but how they reply. It requires a dynamic approach and you have to be fast to react. It requires flexibility, agility and efficiency. The two-way interaction that brands have to engage in today has created a fluid and agile relationship between us as the agency and the brand, transforming the entire way we do creative. It has to be faster, more reliable and we need to apply an entrepreneurial quality to all of our work.

Portada: What’s Nobox got its sights on for 2019?

 Jayson Fittipaldi: We have a well-established portfolio of major brands, including Marriott, Gatorade, PlayStation, Sheraton, PepsiCo, Netflix and Memorial Health. We’re looking to focus on mid-sized brands in the US. CMOs at mid-sized brands are struggling to keep up, juggling the media buy with social content and how to work under one cohesive strategy. We work to understand the brand from the inside out so we can provide a strategic road map on what we think the big idea can be, and deliver the content on different platforms. We manage the complexity and make it easier for the client to navigate.

What: Laura Willis, who was formerly Senior Sales Director at Pulpo Media, has returned to the company as VP of Digital Sales.
Why it matters: With her experience in advertising and media planning, and specifically in the multicultural space, Willis is a great addition to Pulpo Media’s Digital Sales team.

Pulpo Media, an online ad network with access to proprietary data and technology that allows for the placement of ads specifically targeted at Hispanics across different channels, recently announced the appointment of Laura Willis as VP of Digital Sales. This marks Willis’ return to Pulpo; after fulfilling the role of Senior Sales Director in 2017, she filled the position of Director of Integrated Sales at Meredith/People en Español for almost a year before Pulpo tapped her as Digital Sales VP. At Portada, we sat down with Willis in order to find out more about her perspective for the next year and what she brings to the table at the company.

Portada: It’s an exciting time for Pulpo in that it’s launching new products and adding new staff, how was it that the decision was made for you to come back to the company? 

Laura Willis: The decision was easy, and I’m thrilled to be joining the team. I’ve been on both sides of the “fence” with Pulpo in that I’ve been a client working with their media team and I’ve also worked for the company. I’ve been following their progress and seeing how the company has continued to evolve and adapt to the marketplace; with new products, stepping up to meet ever more restrictive industry needs, and expanding its team with great people. You couple all this with the fact that Pulpo is recognized by Ad Age for the 4th year in a row now as the largest Hispanic network, and I see the potential for great things for Pulpo and our clients.

If you don’t have the scale, you can’t have an impactful campaign—that’s media 101.

Portada: What do you think you’ll be bringing to the table to help Pulpo advance its growth? What makes you uniquely qualified in the space?

LW: Foremost, I consider myself as a Hispanic marketing advocate, and I bring a true passion to my career. I feel that this is a really crucial time for our industry, and brands need to take an active role to show that the Latinx consumer is valued and appreciated.

Most of my career was spent on the agency side, and I’ve helped brands develop their Hispanic communication strategy. I get to continue that here but working at a larger level to make sure that our advertisers are able to get their message out at scale – something that has been a challenge in the past.

Portada: What sets Pulpo apart from its competitors?

LW: Pulpo delivers Hispanic audiences at a scale that is unparalleled. Our next largest competitor reaches half the size we do. That’s really important because it allows us to get granular with our targeting, whether that’s targeting a Type 2 Diabetic Hispanic for a pharmaceutical advertiser or a new mom for a retailer. If you don’t have the scale you can’t have an impactful campaign – that’s media 101. And soon we’ll be making it even easier for our advertisers to reach vertical audiences with the rollout of specific content verticals and some other offerings we’ll be bringing to market in the upcoming months.

The most important thing is to be culturally relevant because cultural passion points will transcend language.

Portada: Recent studies indicate mobile will account for over 72% of all digital ad spend by 2020, how do you see Pulpo preparing for this?

LV: Because our focus is the Hispanic market, we reached 70%+ mobile delivery a few years ago. What happened is that we started recommending to our partners that if they have desktop and mobile, to put it on as a blended line so we can optimize to the best performing units—and of course mobile was outperforming. That said, we are investing heavily so we can make sure that our offering is keeping up with the latest advertiser needs and channels.

Portada: Given today’s environment where Hispanics are becoming more acculturated, how do you target them effectively across different levels of acculturation?

LV: We feel that the most important thing is to be culturally relevant – because cultural passion points will transcend language, and I’ve seen throughout my career when marketers talk about acculturation what they are really asking is: what’s the right language? And there is not an easy answer because the Latinx consumer lives on a spectrum: there is not a prototypical Hispanic, there are generational differences, nuances from country of origin, and regional differences in where one lives in the U.S. At the core of what we do, we’ve developed a data-driven targeting platform that allows us to reach Hispanics in a precise and relevant matter. The more relevant we become, the less waste we have for clients which in turn allows us to deliver the best ROI. So focus on the commonalities and be relevant.

Portada: What do you like to do when you’re not thinking about marketing?

LV: I’m in two book clubs and I recently started taking cello lessons- which I love despite how cumbersome it is to get around the New York City subways with it! I guess I would describe myself a life-long learner. I love being curious and developing new skills and learning new things.

What: Hispanic Exchange offers marketing to U.S. Hispanic and Latin American through a varied list of media like newspapers, magazines, and also Fox Deportes.
Why it matters: HEX covers more than 30% of Hispanics audiences and pretends to reach them more effectively through high journalistic standards.

Hispanic Exchange is responsible for marketing to U.S. Hispanic and Latin American audiences through media such as El Mundo, Marca U.S., ABC, El Periódico, Sport, La Vanguardia, Mundo Deportivo, Expansión, Super Deporte and others.

Added to this list is Fox Deportes, instrumental in strengthening Hispanic Exchange’s connection to sports fans and providing the best support possible for the sale of “Advertising in top-quality editorial environments” both directly and programmatically.

“Our offering is unique for these markets. We cover more than 30% of the Hispanic audience in the United States and Latin America. We make available a wide array of digital advertisement options, through an assortment of 100%-premium media, which is highly prestigious, especially within the Latin community”, remarked HEX CEO Jaime de Toro.

HEX is the sole distributor of digital advertisements in such media, featuring over 100 sites, which, combined, cover more than 70 million unique users per month in desktop and mobile traffic, with a range of display, rich media, and video formats, reaching category-specialized audiences.

“We acknowledge the tremendous potential of programmatic digital advertising, but little good will do if it takes place in low-quality environments, or if it fails to reach the right audiences. Our aim is to get to the type of users in the United States and Latin America who are interested in being informed or entertained by serious media with the highest journalistic standards”, added de Toro.

What: H Code Media and Grupo Imagen have announced a partnership by which H Code will represent Grupo Imagen’s ad inventory in the U.S.
Why it matters: Grupo Imagen has major digital properties in Mexico which have a substantial following in the U.S.

H Code Media, a digital media placing firm targeting U.S. Hispanic audiences, and Grupo Imagen, a Mexican media conglomerate, have announced an exclusive partnership that will allow H Code to represent all of Grupo Imagen’s ad inventory in the U.S. Sites include Adrenalina, a web page for soccer fans, nutrition website Salud 180, and Excelsior, the second-oldest Mexican newspaper.

“We’re excited to partner with one of the largest and most well-respected Mexican media conglomerates,” said Parker Morse, CEO, H Code Media. “Grupo Imagen’s audiences are authentic and relevant to advertisers that want to engage with U.S. Hispanics in a meaningful way. As H Code continues to expand on multiple content areas, our partnership with Grupo Imagen reinforces our strength in the soccer, women, and news verticals.”

U.S. Hispanics are known for their high enthusiasm for soccer. Nine out of ten Hispanic soccer fans in the U.S. plan to watch the FIFA World Cup from beginning to end. This partnership enhances H Code Media’s ability to connect brands with U.S. Hispanic soccer fans when and where they will be most engaged.

“H Code Media has the best U.S. Hispanic digital team and partnering with them underscores the level of quality that Grupo Imagen stands behind. We look forward to having H Code Media handle the monetization of our sites while we continue to grow all of our media properties by providing the best possible content to engage our audiences,” said Alfredo Martell, Business Development Director, Grupo Imagen.

Similar to its recently announced partnership with Webconsultas, a leading health and wellness online portal for Spanish-speaking readers, this new relationship enables advertisers to effectively reach U.S. Hispanics who are engaged in soccer, health and news content. H Code Media’s use of Big Data connects advertisers with this highly coveted demographic.

H Code Media’s solutions include a display, rich media, video, mobile, native, social/digital channels, as well as creative services. To effectively reach U.S. Hispanics, H Code Media continues to partner directly with leading Spanish language media companies from around the world like Grupo Imagen to strengthen its leadership position in this niche industry.

 

 

What: New York based and LatAm targeted ad-optimization startup Data Gran claims that it can help customers reduce their expenditures in digital advertising by at least 20 percent and increase revenues. Data Gran raised an undisclosed amount of capital from Wayra Colombia (a fund owned by Spain’s Telefonica) and Quake Capital earlier this year.
Why it matters: Many marketers still refer to digital marketing as a “black box” with major inefficiencies. A new set of ad-tech companies have launched recently in order to reduce waste.

 

Colombian tech startup Data Gran,  founded by Carlos Mendez,  has been receiving a lot of attention recently by global corporations as it helps its customers reduce their expenditures in digital advertising by at least 20 percent and increase revenues.

The Company recognizes the creation of new marketing strategies and marketing budgets optimization as the two main challenges managers and CEOs face today. Taking this into consideration, Data Gran offers an artificial intelligence toolkit aimed at developing marketing strategies and optimizing digital advertising spend across Facebook, Instagram and Alphabet Inc ’s Google Display Network and Google AdWords.

How does it work? Data Gran’s Big Data Analysis engine asks businesses to upload their databases and select a specific industry, according to trade publication Latam Tech. Then the platform’s predictive analysis software returns data on business trends such as association rules and clustering, among others. This streamlines companies’ process by providing them with information on trends within their industry, allowing them to analyze what other companies are doing, and find novel ways to stay ahead.

Clients can also use the AdOptimizer to select their digital marketing objective and choose their preferred channel. Customers are only required to select their budget and campaign length. After that, Data Gran will do the rest.

Data Gran has achieved monthly sales of around US$120,000, and Mendez expects this to increase to up to US$300,000 after the launch. Should this occur, it will bring the company’s total first-year revenue to US$2 million. For 2018, assuming a few big clients like Telefonica S.A., one of its VC-backers, will sign up, Data Gran expects revenues of at least US$1 million per month.

Funding

Data Gran has been valued at US$5 million. “We first received capital from Wayra, then from Quake Capital in NY, and we just received another investment round from a Family Office in the United States,” founder Carlos Mendez told the Latin American Private Equity and Venture Capital Association.

Data management platform DataXpand recently announced its Brand Discovery solution, which introduces 120 new audiences to expand its reach into online US-Hispanic audiences and allow more detailed targeting of Hispanic consumers with affinities for certain local and global brands.

New technologies have made it possible to gather more data on audiences and consumer behavior than ever before. But even marketing and advertising industry veterans have a difficult time understanding how, exactly, to use that data, and what it means. To respond to this need, data management platforms have taken on the responsibility of not only gathering and analyzing the data, but also explaining its implications and how it can be used for more targeted advertising campaigns.

The Data Evangelization Process

DataXpand has become one of the go-to agencies for the increasing amount of publishers and ad agencies that prioritize targeting US-Hispanic and Latin American audiences. In 2012, while data management and programmatic picked up momentum in larger markets like the United States and United Kingdom, Sebastian Yoffe, DataXpand’s co-founder and managing director, explains that almost nobody was taking on the task of tackling the enormous US-Hispanic and Latin American consumer base, and DataXpand jumped on the opportunity.

“The first step was to go out and evangelize,” says Yoffe, “because the market was there, but there was no offering, and advertisers weren’t even looking for it because they didn’t know it existed.” DataXpand began to develop its technology and implement the best practices of the giants in countries like the United States.

And what is, exactly, the role of a DMP? Yoffe sees it as a two-pronged task: the first task is to use technology to gather data on different the audiences that agencies, advertisers and publishers target in order to “understand them and gain insight on consumer behavior.” The other side is to work with mostly agencies on implementing that data through segmentation or clustering to “activate those audiences with targeted campaigns.”

US-Hispanics ‘Not Even A Niche Anymore’

While the evangelization process took a few years, fast forward 3.5 years since 2012 and the DMP data in Latin America has reached about “80% the capacity of the US offering in terms of data,” says Yoffe. US Hispanic audiences are the second-largest in terms of buying power, with around 1.5 trillion to spend, estimates Yoffe. At this point, all advertisers are looking for ways to deliver hyper-targeted campaigns, and have built either US-Hispanic or multicultural departments within their operations. “It’s not even a niche anymore,” Yoffe says, “it’s huge.”

Keeping up with the high demand in the sector means constant innovation, and DataXpand recently introduced even more targeting options for a total of 600 audiences that advertisers can use “with the push of a button” in Latin America. The company now reaches 45% of US-Hispanic online users  on 40 different platforms, triple the reach it had just last year.

Working with Big Data: Like ‘Driving a Ferrari’

To set itself apart, DataXpand has always maintained a global outlook, making use of its presence in not only Latin America, but also Europe (mostly Spain) and the United States. Being “fully connected” on many platforms is just the first step, though, as the human element cannot be replaced by technology and data.

“In terms of programmatic and data, people tend to believe that everything is automatic, but it’s not,” says Yoffe. To be successful in this industry, companies must form expertise in not only what data implies about consumer preferences and behavior but also how it can be implemented in an effective strategy for their clients. Coffee compares it to buying a sports car:

“I can give you a Ferrari, but you won’t be able to drive it at 300 mph. You need training, and that is what we do. We provide great technology with the great people that can take you where you want to go and help you figure out a DMP strategy that doesn’t come from technology – it comes from the team that helps you drive it.”

While the demand is finally there, and clients are starting to understand the true value of data, there are still challenges. The switch to programmatic planning has caused major changes in the industry, and now that digital is becoming a priority over TV, but investments are still starting to shift the former rather than the traditional latter.

Another growing challenge is consumers’ tendency to operate on multiple screens, as they use computers at work, laptops and television at home, and cell phones everywhere. Understanding the behavior of one person who behaves differently on different devices is of utmost importance, Yoffe emphasizes.

In a rapidly changing industry of this nature, it’s hard to predict the future. Nonetheless, companies like DataXpand have managed to make sure that there is no shortage of alternatives for targeting the highly coveted Latin American and US-Hispanic audiences.

Join us at PORTADA Mexico!

What: T Publicis Groupe will acquire 20% of digital performance-based advertising company Matomy .
Why it matters: Although both companies will continue to operate independently, Publicis will profit from Matomy’s performance marketing know-how.

matomy-publicis-groupe-Matomy Media Group Ltd, a global digital performance-based advertising company, has agreed to a strategic partnership with Publicis Groupe through which Publicis Groupe will acquire 20% of Matomy’s shares at a price of 227 pence per share. In addition, Publicis Groupe has been granted an irrevocable option to acquire a further 4.9% of Matomy’s shares.

Through this investment, Publicis Groupe and Matomy will together build a global leader in performance advertising, one of the most complex aspects of online marketing, which requires an intricate understanding of the behavior and acquisition of customers in the digital age.

Ulises Vazquez, partner and CEO of Matomy Mexico, commented on this transaction that involves the firm that he represents and is headquartered in Tel Aviv: “Large advertising agencies understand the need to be more active in expanding their technological capabilities, it is clear that there is a special interest in new models and digital advertising technologies. Matomy has always sought to be an ally of advertising agencies and extend their abilities, giving them access to technology in online marketing, “said Vazquez.

Large advertising agencies understand the need to be more active in expanding their technological capabilities, it is clear that there is a special interest in new models and digital advertising technologies

Maurice Lévy, Chairman and CEO, Publicis Groupe, hailed Tel Aviv’s position as a leader in technological innovations and patents worldwide, only after Silicon Valley.

“Matomy is fuelled by the innovators and technology experts of Israel and has quickly risen to the top of this important market by creating a world-leading, state-of-the-art platform,” said Levy. “At Publicis Groupe, we make it a priority to invest in the brightest and most promising talent and technology that will give our clients around the world unrivalled access to these services.”

We have pioneered and invested in new technology, open platforms and partnerships. With Matomy, we will continue to build and promote an open environment for the exchange of ideas and innovation, essential to staying on top in today’s transformational digital age.

Ilan Shiloah, Chairman of Matomy, added that today an impressive transformation in the digital advertising industry is happening, and the performance-based advertising space is an area of high growth potential fuelled by innovation and technology across all channels.

“Our vision is to build the best performance-based media company in the world, and with Publicis Groupe becoming our largest shareholder, we will be able to create a more mature and sustainable ecosystem, providing marketers with an unprecedented ability to accurately engage, acquire and retain customers,”said Shiloah.

What is there to know about Matomy?

  • Founded in 2007, It’s a firm that has a market capitalization of US $327 million.
  • It has grown rapidly in recent years, maintaining a sustainable and highly profitable financial model that has enabled the company to achieve positive adjusted EBITDA every year since 2008.
  • The company is today present around the world and counts with  nearly 400 experts worldwide who provide service to their more than 1,600 active clients, including American Express, HSBC and Experian.
  • In addition, it has 16,000-plus registered digital media sources and operations in more than 100 countries.

Matomy’s performance-based approach to digital advertising includes an integrated multi-channel performance platform, proprietary core technology and tools for third-party media sources.

Through this approach, advertisers have a single point of contact across all major digital media channels, fueled by big data that reaches targeted consumers and provides measurable results.

Matomy charges its customers only if it achieves certain pre-defined measurable results — such as sales, consumer acquisitions, leads and mobile app installations — or “pure” performance. The “pure” performance model is currently a $12 billion market, forecast to reach US$45 billion–US$60 billion by 2020, according to the IAB’s Online Performance Marketing Study.

Pierre Chappaz is CEO & Co-Founder of Ebuzzing and Teads Group.

Half of all internet advertising bought by brands is not seen by web users. It is a shocking statistic and the situation is worsening year on year, thanks to the rise of programmatic buying. In 2012 ComScore estimated that 31% of advertising was not seen, this number rose to 54% in 2013.

The recent announcement that GroupM will soon withdraw from open AdExchanges and operate solely on private exchanges clearly demonstrates that the lack of transparency and fraud in online advertising has reached an unsustainable level. It is time for an industry-wide rethink.

For video advertising the situation is potentially even more precarious, due to the domination of pre-roll advertising formats. Instream formats like pre-roll force web users to watch an advert before they are able to view their chosen video content. Leaving fraud, which accounts for 12% of all impressions , aside for now, the biggest threat to viewability is user behaviour.

The biggest threat to viewability is user behaviour

Today’s internet users have developed lightening quick reflexes to avoid advertising they do not wish to watch. They open a new tab or window, mute the sound the very instant an unwanted advertisement appears in front of their video content.

A recent study by Tubemogul revealed that 70% of all non-viewable impressions are non-viewable because the window in which the video is playing is no longer on the screen.

Once bot traffic is discounted, the viewability of pre-roll advertising drops to 22% on average and 48% in premium environments. Ultimately advertisers who buy on CPM are paying between two and five times more than they should.

To combat the issues surrounding viewability, new technology able to precisely measure the viewability of videos from beginning to end has been developed.

Pre-roll

Although monitoring viewability is key, it is more important to develop formats which encourage the user to watch an advert, not avoid it at all costs. Returning to the topic of pre-roll advertising, it is clear to me that the days of non-skippable pre-roll advertising are numbered.

The days of non-skippable pre-roll advertising are numbered.

It is impossible to force a web user, who is active, mobile and engaged, to watch an advert if they do not want to. Web users are not in the same frame of mind as those watching TV at the end of a long day, half asleep and too lazy to change the channel during the ad breaks, they will skip if they are not interested. While the majority of users may not be interested in watching your advertising, why not focus on those who actually want to hear from your brand?

We believe that adverts have more value when they are intentionally viewed by web users. Video adverts are often highly entertaining and great quality, and can be offered as relevant content, not a painful toll that must be paid before video content can be viewed.

The view-to-play concept is an efficient and elegant solution to the challenge of viewability in video advertising. But it also has another benefit: it opens huge new premium video inventory in the world’s largest media sites. The availability of such premium inventory, on a global scale, can only be good news for advertisers, agencies and media owners alike.

Pierre Chappaz has held marketing and communications positions at Toshiba, Computer Associates and IBM. He founded the site Kelkoo in 1999, he has been president of Yahoo Europe and also created Wikio in 2005, wich merged with Ebuzzing in 2009.

What: Facebook, Inc. has agreed  to acquire video ad tech startup LiveRail for an undisclosed sum, to boost its revenues from video advertisements.Liverail is the third-largest video ad seller in the U.S.. Its´ acquisition will help Facebook  expand its influence in digital advertising and move ahead of Google and AOL  on the video ad business.
Why it matters: While Facebook has stated that it wants to keep both companies separate. Experts interviewed by Portada claim that in the medium term LiveRail could be used to integrate Facebook’s video offerings with those of its partner publishers.

imagesSocial networking giant Facebook has agreed to acquire the video ad seller LiveRail , to boost its’ video ad business. Financial terms of the deal were not disclosed,but TechCrunch reported that Facebook paid from US $400 million to US $500 million for LiveRail. 

In a similar way to the recently launched Facebook Audience Network which allows publishers to push adds to app installs and engagement ads to mobile, Facebook might offer the LiveRail technology to enable publishers to get video ads through FB.

California-based LiveRail was founded seven years ago by Andrei Dunca and Mark Trefgarne. The platform helps publishers monetize their video content, control who accesses their inventory, and drive higher revenue and fill rates with access to hundreds of demand partners. It basically offers a complete advertising solution for video publishers by helping them find and serve the best ads possible through premium video inventory for them to decide where to show their ads. it currently automates the sale of video ads for publishers like Major League Baseball, ABC Family and Dailymotion.At present, Liverail is the country’s third-largest video ad seller, behind BrightRoll and Specific Media and in front of AOL and Google.In May, it served video ads to 37.2% of people in the U.S., according to ComScore.

The acquisition positions Facebook on the same level as Google and AOL, on top of the digital video ad food chain. The social network plans to keep LiveRail’s existing business of selling ads for non-Facebook publishers in operation, a Facebook spokesman said. He declined to comment on any plans to sell Facebook’s own video ad inventory through LiveRail.

With television increasingly being replaced by the Internet, social media companies are directing their efforts to boost their online advertisement platform to appeal to both broadcasters and advertisers.

Strategic Acquisition

“It’s too early to tell but this is definitely a strategic acquisition. It is not a merger. Programmatic solutions and platforms for monetizing Video have been around for a while but the fact is that they are not that common,” says Santiago Duran Mejia, Strategy & Digital Group Director at Havas Media in Mexico City. Duran adds that “LiveRail is primarily a technology based company with technological solutions. Facebook is trying to conquer two of the most wanted realms in the digital world: Mobile (Whatsapp) and Video. As many of you know Facebook launched the Facebook Audience Network (mobile ad network) in May and this allows publishers to push adds to app installs and engagement ads. Guessing FB wants to grow it’s advertising revenue they might offer the LiveRail technology to do a similar thing to those publishers pushing video through FB. But this also allows FB to better harness their own video platform that so far lives primarily as a service for users to upload and share their own content. The battle for digital advertising management technologies is on as Twitter has had it’s fair share of acquisitions this year also; mostly in the field of mobile advertising (remarketing, and  a mobile ad exchange). For FB this is another stepping stone into a more robust closed ecosystem. For LiveRail, my guess is Christmas.”

According to Duran the LiveRail acquisition by Facebook has particularly interesting implications in markets where TV advertising clearly leads in the ad pie: “Latin America is well-known for its superior rate of online video consumption. (Mostly Mexico) At the same time Social media (Facebook) has an enormous penetration within the internet users also.  The synergy of the two companies could be basically aiming to retain a bigger part of the TV advertising investment that still has the largest share of investment in Latin America.”

Twitter, Inc acquired a New York-based advertising technology start-up Tap Commerce for reportedly US $100 million last Monday. Last summer AOL acquired video ad exchange Adap.tv, which pushed the portal to become one of the top video ad sellers and in June Google introduced a new video-only ad exchange exclusively for premium advertisers to sell their video inventory. The market for digital-video advertising in the U.S. will grow 42 per cent this year to US $5.96 billion, according to researcher EMarketer.

“We believe that LiveRail, Facebook and the premium publishers it serves have an opportunity to make video ads better and more relevant for the hundreds of millions of people who watch digital video every month,” said Brian Boland, VP-ads product marketing at Facebook, in a company blog post announcing the deal. We realized that by joining forces we’d be able to draw upon our respective strengths to move even faster towards our shared vision of creating the advertising platform of the future,” LiveRail CEO Trefgarne wrote in a blog post.

What: Facebook, Inc. has agreed  to acquire video ad tech startup LiveRail for an undisclosed sum, to boost its revenues from video advertisements.Liverail is the third-largest video ad seller in the U.S.. Its´ acquisition will help Facebook  expand its influence in digital advertising and move ahead of Google and AOL  on the video ad business.
Why it matters: While Facebook has stated that it wants to keep both companies separate. Experts interviewed by Portada claim that in the medium term LiveRail could be used to integrate Facebook’s video offerings with those of its partner publishers.

imagesSocial networking giant Facebook has agreed to acquire the video ad seller LiveRail , to boost its’ video ad business. Financial terms of the deal were not disclosed,but TechCrunch reported that Facebook paid from US $400 million to US $500 million for LiveRail. 

In a similar way to the recently launched Facebook Audience Network which allows publishers to push adds to app installs and engagement ads to mobile, Facebook might offer the LiveRail technology to enable publishers to get video ads through FB.

California-based LiveRail was founded seven years ago by Andrei Dunca and Mark Trefgarne. The platform helps publishers monetize their video content, control who accesses their inventory, and drive higher revenue and fill rates with access to hundreds of demand partners. It basically offers a complete advertising solution for video publishers by helping them find and serve the best ads possible through premium video inventory for them to decide where to show their ads. it currently automates the sale of video ads for publishers like Major League Baseball, ABC Family and Dailymotion.At present, Liverail is the country’s third-largest video ad seller, behind BrightRoll and Specific Media and in front of AOL and Google.In May, it served video ads to 37.2% of people in the U.S., according to ComScore.

The acquisition positions Facebook on the same level as Google and AOL, on top of the digital video ad food chain. The social network plans to keep LiveRail’s existing business of selling ads for non-Facebook publishers in operation, a Facebook spokesman said. He declined to comment on any plans to sell Facebook’s own video ad inventory through LiveRail.

With television increasingly being replaced by the Internet, social media companies are directing their efforts to boost their online advertisement platform to appeal to both broadcasters and advertisers.

Strategic Acquisition

“It’s too early to tell but this is definitely a strategic acquisition. It is not a merger. Programmatic solutions and platforms for monetizing Video have been around for a while but the fact is that they are not that common,” says Santiago Duran Mejia, Strategy & Digital Group Director at Havas Media in Mexico City. Duran adds that “LiveRail is primarily a technology based company with technological solutions. Facebook is trying to conquer two of the most wanted realms in the digital world: Mobile (Whatsapp) and Video. As many of you know Facebook launched the Facebook Audience Network (mobile ad network) in May and this allows publishers to push adds to app installs and engagement ads. Guessing FB wants to grow it’s advertising revenue they might offer the LiveRail technology to do a similar thing to those publishers pushing video through FB. But this also allows FB to better harness their own video platform that so far lives primarily as a service for users to upload and share their own content. The battle for digital advertising management technologies is on as Twitter has had it’s fair share of acquisitions this year also; mostly in the field of mobile advertising (remarketing, and  a mobile ad exchange). For FB this is another stepping stone into a more robust closed ecosystem. For LiveRail, my guess is Christmas.”

According to Duran the LiveRail acquisition by Facebook has particularly interesting implications in markets where TV advertising clearly leads in the ad pie: “Latin America is well-known for its superior rate of online video consumption. (Mostly Mexico) At the same time Social media (Facebook) has an enormous penetration within the internet users also.  The synergy of the two companies could be basically aiming to retain a bigger part of the TV advertising investment that still has the largest share of investment in Latin America.”

Twitter, Inc acquired a New York-based advertising technology start-up Tap Commerce for reportedly US $100 million last Monday. Last summer AOL acquired video ad exchange Adap.tv, which pushed the portal to become one of the top video ad sellers and in June Google introduced a new video-only ad exchange exclusively for premium advertisers to sell their video inventory. The market for digital-video advertising in the U.S. will grow 42 per cent this year to US $5.96 billion, according to researcher EMarketer.

“We believe that LiveRail, Facebook and the premium publishers it serves have an opportunity to make video ads better and more relevant for the hundreds of millions of people who watch digital video every month,” said Brian Boland, VP-ads product marketing at Facebook, in a company blog post announcing the deal. We realized that by joining forces we’d be able to draw upon our respective strengths to move even faster towards our shared vision of creating the advertising platform of the future,” LiveRail CEO Trefgarne wrote in a blog post.

 

What: Rubicon Project is expanding its operations to Latin America by opening a new office in São Paulo, Brazil.
Why it matters: This is Rubicon´s first office in Latin America. Salomão B. Rodrigues Junior has been appointed Account Director and Thiago Farias Lima Silva Ad Operations Specialist for the new office. The move reflects an increasing interest for Advertising Automation in Latin America.

descargaRubicon Project, which operates an independent real-time trading platforms for digital advertising, is expanding its international operations into Brazil with the opening of an office in São Paulo.

This is the first office in Latin America for Rubicon Project and follows recent expansion into Asia and Japan, spearheaded by Jay Stevens, General Manager, International.  Rubicon is planning to celebrate the opening of its São Paulo office on 6th of May at ProXXIma, the Brazilian conference for digital marketing and advertising.

The Company has also announced the appointment of Salomão B. Rodrigues Junior as an Account Director and Thiago Farias Lima Silva as an Ad Operations Specialist.

Joining from Grupo Abril, where he worked as advertising technology manager, Salomão brings over ten years of experience in digital marketing and automated advertising. He will be working with sellers across the region helping them to improve efficiency and deliver greater yields from their digital advertising inventory.

Thiago will manage and report on advertising operations for customers in the region including on-boarding new sellers, ad quality and brand safety initiatives.

Stevens commented, “We’ve seen rapid growth and interest in advertising automation in Latin America.  We’re opening our first office in São Paulo to help publishers and application developers throughout Brazil benefit from advertising automation.  Salomão’s understanding of technology and data-driven advertising and his analytical skills will provide invaluable strategic consultation to our clients in the region .“

Martin Scott Greenblat, Director of Digital Business at Grupo Abril, adds “Latin American markets have shown a potential for  rapid growth with both publishers and advertisers, complementing existing offerings with the efficiency gains from automation that have been witnessed in larger markets. Salomão brings a good mix of technical skills and market knowledge to help leading publishers in Brazil like us take advantage of this burgeoning market.”

Rubicon is currently used by more than 700 of publishers worldwide and counts with applications to transact with buyers representing over 100,000 brands since the Company’s inception. The company is headquartered in Los Angeles and has twelve offices worldwide, including New York, San Francisco, Paris, Hamburg, Sydney, London, Tokyo and now São Paulo.

What: Rubicon Project is expanding its operations to Latin America by opening a new office in São Paulo, Brazil.
Why it matters: This is Rubicon´s first office in Latin America. Salomão B. Rodrigues Junior has been appointed Account Director and Thiago Farias Lima Silva Ad Operations Specialist for the new office. The move reflects an increasing interest for Advertising Automation in Latin America.

descargaRubicon Project, which operates an independent real-time trading platforms for digital advertising, is expanding its international operations into Brazil with the opening of an office in São Paulo.

This is the first office in Latin America for Rubicon Project and follows recent expansion into Asia and Japan, spearheaded by Jay Stevens, General Manager, International.  Rubicon is planning to celebrate the opening of its São Paulo office on 6th of May at ProXXIma, the Brazilian conference for digital marketing and advertising.

The Company has also announced the appointment of Salomão B. Rodrigues Junior as an Account Director and Thiago Farias Lima Silva as an Ad Operations Specialist.

Joining from Grupo Abril, where he worked as advertising technology manager, Salomão brings over ten years of experience in digital marketing and automated advertising. He will be working with sellers across the region helping them to improve efficiency and deliver greater yields from their digital advertising inventory.

Thiago will manage and report on advertising operations for customers in the region including on-boarding new sellers, ad quality and brand safety initiatives.

Stevens commented, “We’ve seen rapid growth and interest in advertising automation in Latin America.  We’re opening our first office in São Paulo to help publishers and application developers throughout Brazil benefit from advertising automation.  Salomão’s understanding of technology and data-driven advertising and his analytical skills will provide invaluable strategic consultation to our clients in the region .“

Martin Scott Greenblat, Director of Digital Business at Grupo Abril, adds “Latin American markets have shown a potential for  rapid growth with both publishers and advertisers, complementing existing offerings with the efficiency gains from automation that have been witnessed in larger markets. Salomão brings a good mix of technical skills and market knowledge to help leading publishers in Brazil like us take advantage of this burgeoning market.”

Rubicon is currently used by more than 700 of publishers worldwide and counts with applications to transact with buyers representing over 100,000 brands since the Company’s inception. The company is headquartered in Los Angeles and has twelve offices worldwide, including New York, San Francisco, Paris, Hamburg, Sydney, London, Tokyo and now São Paulo.

 

What: Turner Digital Ad Sales announced it partnered with Rubicon Project to launch a new programmatic advertising platform, Turner Premium Xchange.
Why is it important: By asigning a substancial portion of its display inventory for programmatic advertising, Turner expects to add speed, scale and efficiency to its business.

As reported by Adweek’s Mike Shields, Turner Digital Ad Sales has announced the launch of the Turner Premium Xchange, a private ad exchange via which it will sell digital ad inventory to preferred partners looking to take advantage of the efficiencies and power of programmatic audience-based ad buying.

Turner partnered with Los Angeles’ firm The Rubicon Project, which operates the industry’s leading automation platform for digital advertising, so that it provides the technology to power the newly-created platform. Rubicon Project’s customers include eBay, TIME, ABC News, the Wall Street Journal, Tribune Company, Virgin Media and Universal.

The new Turner Premium Xchange will sell inventory from the Turner brand, including CNN.com and TBS.com. Seemingly, advertisers will be able to bring their own data to buy ads targeted to specific users via the exchange.

“The Turner Digital Ad Sales’ partnership with Rubicon Project is a major milestone for the advertising industry and further validation of the trend towards the automation of the buying and selling of advertising,” said Greg Raifman, President of Rubicon Project. “Turner Digital is able to respond to marketplace demand and capitalize on this rapidly growing opportunity by offering almost all of their premier properties to be available for automated buys.”

Sources: Rubicon Project’s press release, M&M Global, Adweek.

What: Turner Digital Ad Sales announced it partnered with Rubicon Project to launch a new programmatic advertising platform, Turner Premium Xchange.
Why is it important: By asigning a substancial portion of its display inventory for programmatic advertising, Turner expects to add speed, scale and efficiency to its business.

As reported by Adweek’s Mike Shields, Turner Digital Ad Sales has announced the launch of the Turner Premium Xchange, a private ad exchange via which it will sell digital ad inventory to preferred partners looking to take advantage of the efficiencies and power of programmatic audience-based ad buying.

Turner partnered with Los Angeles’ firm The Rubicon Project, which operates the industry’s leading automation platform for digital advertising, so that it provides the technology to power the newly-created platform. Rubicon Project’s customers include eBay, TIME, ABC News, the Wall Street Journal, Tribune Company, Virgin Media and Universal.

The new Turner Premium Xchange will sell inventory from the Turner brand, including CNN.com and TBS.com. Seemingly, advertisers will be able to bring their own data to buy ads targeted to specific users via the exchange.

“The Turner Digital Ad Sales’ partnership with Rubicon Project is a major milestone for the advertising industry and further validation of the trend towards the automation of the buying and selling of advertising,” said Greg Raifman, President of Rubicon Project. “Turner Digital is able to respond to marketplace demand and capitalize on this rapidly growing opportunity by offering almost all of their premier properties to be available for automated buys.”

Sources: Rubicon Project’s press release, M&M Global, Adweek.

Programmatic buying of digital media is a system for placing digital advertising that is gaining ground in the U.S. and is Man finger pushing interface use of innovative technologiesjust becoming known in Latin America.
What do the experts have to say about it? What are the pros and cons of fully computerized media buying? Will it be used in Latin America?
These are some of the questions we posed to Alejandro Campos Carlés, co-director and founder of StartMeApp; Marcelo Montefiore, CEO of Global Mind; Lucio Grimaldi, VP for Latin America at Publicitas; and Juan Pablo Suárez, Business Development Senior Manager, U.S. Media Consulting.

 

What is programmatic media buying?

Programmatic buying of digital media is a computerized system for buying advertising impressions automatically using data supplied by the advertiser. Programmatic buying is based on algorithms that seek out available global inventories that match what the advertiser is looking for.

The purchase is made via Real Time Bidding (RTB), a concept rarely used in Latin America. RTB is a “digital auction” whereby the computerized platform cranks out bids for desired impressions (based on data provided by the advertiser) in available inventory that matches the advertiser’s requirements. The process is performed constantly in a matter of milliseconds, and the platform then determines which advertiser gets what impressions.

Is this form of digital media buying gaining ground in Latin America?

The automated purchasing of advertising in the region is still in its infancy and agencies, advertisers, and the media are all in the process of understanding this new system.

In fact, programmatic buying has yet to be established in all U.S. markets, although it is quickly moving forward. A study conducted by GLOBAL MAGNA predicts that by 2017 almost half of all digital media buys in the U.S. will be done via programmatic buying.

“Programmatic buying is still slow, as advertisers and agencies are not sharing much information,” said Diego Fernández, Director of Media and Digital, North America, for Burger King Corporation, during Portada’s LatAm Summit this year in Miami. “But I think in the next few years it will be very important and good to see more of the same,” he added.

“Very few agencies have come forward to ask us about programmatic buying. We have not yet seen any significant inclination towards programmatic buying when it comes to reaching audiences in Latin America and the U.S. Hispanic market,” Christopher Stanley, CEO and Founder of Alcance Media, told Portada.

For Lucio Grimaldi, VP Latin America at Publicitas, the development of programmatic buying in Latin America is currently at an early stage but with a clear eye on the future. “I think we are at an early stage, but there will be a very important development in the near future. Programmatic buying in Latin America will no doubt grow significantly in the next few years. Many clients and agencies in Europe and the U.S. began work in this area years ago and it is inevitable that the same phenomenon will occur in Latin America.”

Juan Pablo Suárez, Business Development Senior Manager at U.S. Media Consulting, pointed out that “Latin America is going through one of its best periods as an emerging region, where companies of all levels and industries are making investments and the digital world is no exception. We increasingly see new players entering the region and that is helping the concept of programmatic buying to rapidly grow and be adopted, especially in markets where the benefit is immediately apparent, such as in e-commerce. While spending levels [in LatAm] are similar to those seen in the U.S. or Europe about four years ago, the trend is pointing toward double-digit growth for a few years. However, there is still a long ways to go for Latin America to keep up with other regions of the world.”

The pros and cons of programmatic buying

While the majority of the executives interviewed by Portada agreed that programmatic buying is a good thing and needs to be implemented to achieve better ROI results, others also expressed some doubts about these new technologies, mainly about the way they measure results.

At this year’s Portada LatAm Summit, Axel Steinman of Microsoft said that new technologies do not solve the larger, more structural problem in the industry—a lack of consensus on how to use data and metrics smartly. “It would be wonderful if we could sit down as an industry and agree on something,” said Steinman during the LatAm Summit. “Many of us acquire bad impressions by doing the wrong thing and that’s a big problem,” he added. “Microsoft, which invests 50 percent of its advertising resources in digital media, is still going through a learning process.”

Marcelo Montefiore, CEO of Global Mind, also said in an interview with Portada that “measuring everything is essential,” and thinks that programmatic buying provides just that. “Metrics is what allows us to make adjustments and makes change possible.”

Experts critical of programmatic buying claim it is a complex operation that can hinder growth if the human hand is completely taken out of the process.

But for Juan Pablo Suárez of U.S. Media Consulting, human intervention will never disappear, because “defining parameters is essential for programmatic buying to work and today that is only possible with human intervention.” But at the same time, “it is possible today to have an electronic market for digital advertising where a significant percentage of available inventories are interconnected with all relevant suppliers globally. Optimization cycles go beyond what is humanly possible, both in recurrence as well as the number of variables that are taken into account when assessing what value to offer in a bid,” he added.

Grimaldi of Publicitas agrees that programmatic buying is a good thing for the industry and suggests that programmatic buying will not replace traditional media buying. “I don’t think that programmatic buying will replace traditional media buying, as each has different functions and goals, in my opinion. Traditional [media] buying always requires a human factor, while programmatic buying is primarily based on remaining inventories,” said Grimaldi.

Alejandro Campos Carlés, co-director and founder of StartMeApp, also believes that programmatic buying is a positive for the industry: “If you look at it from the perspective of the advertiser, it allows you to know the value and quality of the impression before buying it, which lets you achieve much greater [target] relevance. The impression is important because you are reaching the audience in real time. Both advertiser and audience are connecting in real time and that makes all the difference. And it does away with [the need for] targeting, behavior studies, etc.”

“Publishers can also achieve greater efficiencies, as the medium is always effectively monetized. For mobile advertising, it was understood this was something that had to be implemented from the get-go,” added Campos Carlés.

Marcelo Montefiore, CEO of Global Mind, believes that “in a few years, executing online campaigns will be much more about pushing buttons than about negotiating with a person and doing [media] planning by hand.”

“Agencies will soon be doing their buying with just a push of a button” – Marcelo Montefiore, CEO, Global Mind.

Lucio Grimaldi, Publicitas, expects that about 20% of all digital media buying will be done through programmatic buying in the near future.

“There are many players who are not going to join this type of buying now, but will be forced to do so,” claimed Campos Carlés, of StartMeApp. “Google, Millennial Media (USA), and Exchanges-Interactive (which bought Nokia), already use RTB. We joined the RTB bandwagon not because we wanted to be innovative, but because media can be bought more efficiently this way and we can achieve better results.”

Juan Pablo Suárez, U.S. Media Consulting, added: “Programmatic buying enhances and accelerates the traditional process—it is a natural evolution. For the past 15 years, digital advertising went through cycles in which inventory and demand aggregators emerged in different layers (sites, AdNetworks, AdExchanges, and DSPs), each integrating the previous layer’s supply, limited only by the technology and processing power available.”

Media buys vs. audience buys

Traditional media buying involves analyzing the digital media where we want to place our advertising. Among other things, the analysis includes thinking about media identity, its audience, number of unique visitors, etc. With the advent of programmatic buying, the very concept of buying will change for some experts. It will no longer mean buying “media,” but rather buying “audiences.”

But the conception of audience will also change in this sense. The audience will no longer be segmented by traditional categories such as sex, age, and socio-economic group, but will instead have as many categories as the advertiser desires. In other words, we can create audiences in highly defined categories, for example: those who have searched for price quotes on microwave ovens, those who have visited this site or that one, etc.

A recent MAGNA GLOBAL study forecasts that 43% of total online display advertising will be traded through programmatic mechanisms (or exchanges) in the US by 2017. MAGNA GLOBAL forecasts that programmatic will grow by more than 40% this year, rising to 23.2% of all online display advertising sold in 2013. By 2017, Magna predicts programmatic trading will rise to $7.533 billion, representing 43% of all online display advertising. Will Wall Street like trading desks be as frequent in Hispanic ad agencies as in general market agencies? Portada interviewed major players in the digital media market to find out.

Programmatic, similar to computerized securities trading on Wall Street, can make digital media purchases more efficient as an algorithm looks for available inventory against a set of specific parameters set by the advertiser.

According to the founder of the Festival of Media Global, Charlie Crowe: “Automated media trading platforms have surely been a significant development in this industry. But while they have their place in elevating the effectiveness and reach of campaigns, they have yet to show maturity and gain the complete unquestioned acceptance of all industry peers”.

Are we ready?

In a survey of 100 media agencies, media owners and brands, conducted by the Festival of Media Global 2013, many believe media agencies are adapting well and that the media planner’s role will change to take on more of a strategic/advisory capacity; however there is some concern over a lack of industry standards and transparency, and the disadvantage of a lack of human input.

Most respondents (66%) say they expect automated media buying to increase next year, with 26% of the group indicating they feel this increase will be substantial. Similarly, 63% say they expect an overall increase in automated media planning, with 20% believing this will be substantial. 55% agree automated media on the whole has increased in the past year – 22% saying substantially.

percent.media.buyingpercent.media.planning

The main benefit of automated media transacting is that it can save time and resources when planning and buying media – 63% say that this is the case. Ensuring clients get the best media value comes next, as selected by 35%, while 33% say automated media platforms reduce waste and human error. 29% say they enable brands to run more campaigns across more media outlets.

The lack of human input, which can affect results, is seen to be the biggest drawback, according to 68% of respondents. A lack of industry standards is also a concern, as agreed by 35%; followed by a lack of transparency, with 25% believing so. One cynical respondent remarks: “Media agencies automate by default in an effort to wring more profit out of clients.”

How will change the media planner´s role?

media.planner.role

There are clear views on how the media planner’s role will change. 55% of respondents say they think it will change to become that of a consultant or advisor. 31% think it will merge with that of others such as strategists or account managers. Ironically, 18% say it will become more important yet another 18% feel it will become less important. One respondent says: “I don’t think the role would change much, just that the planner would have more time to devote to strategic and analytical thinking.”

Yet while 38% feel media agencies are embracing automation and looking at ways of working progressively with it, 25% say they are acting defensively and being slow to embrace it. 14% say media agencies are in a situation where they now have to work harder to prove their worth. “Innovation is needed in an increasingly digital media world,” comments one respondent.

percent.actual.buying

Despite the attention generated by automated media platforms, the bulk of respondents (43%) say it makes up just 5% or less of their media strategy.

Just 4% say that up to 50% of the media business they handle is currently going through automated media channels. At the high use end of the spectrum, 5% say it comprises up to 90%, while just 1% say up to 100%.

Main Survey Results

  • The biggest drawback of automated media transacting is the lack of human input, according to 68% of respondents
  • 63% are sold on the main benefit being that it can save time and resources when planning and buying media
  • 55% believe the media planner’s role will change to become more of an advisor
  • 38% feel media agencies are embracing technology, yet 25% argue they are being slow to keep up

The impact of programmatic trading and other digital advertising technologies on the Latin American and U.S. Hispanic market will be explored in-depth at Portada’s Latin American Advertising and Media Summit on June 4-5 in Miami.

 

 

 

 

 

A recent MAGNA GLOBAL study forecasts that 43% of total online display advertising will be traded through programmatic mechanisms (or exchanges) in the US by 2017. MAGNA GLOBAL forecasts that programmatic will grow by more than 40% this year, rising to 23.2% of all online display advertising sold in 2013. By 2017, Magna predicts programmatic trading will rise to $7.533 billion, representing 43% of all online display advertising. Will Wall Street like trading desks be as frequent in Hispanic ad agencies as in general market agencies? Portada interviewed major players in the digital media market to find out.

Programmatic, similar to computerized securities trading on Wall Street, can make digital media purchases more efficient as an algorithm looks for available inventory against a set of specific parameters set by the advertiser.

According to the founder of the Festival of Media Global, Charlie Crowe: “Automated media trading platforms have surely been a significant development in this industry. But while they have their place in elevating the effectiveness and reach of campaigns, they have yet to show maturity and gain the complete unquestioned acceptance of all industry peers”.

Are we ready?

In a survey of 100 media agencies, media owners and brands, conducted by the Festival of Media Global 2013, many believe media agencies are adapting well and that the media planner’s role will change to take on more of a strategic/advisory capacity; however there is some concern over a lack of industry standards and transparency, and the disadvantage of a lack of human input.

Most respondents (66%) say they expect automated media buying to increase next year, with 26% of the group indicating they feel this increase will be substantial. Similarly, 63% say they expect an overall increase in automated media planning, with 20% believing this will be substantial. 55% agree automated media on the whole has increased in the past year – 22% saying substantially.

percent.media.buyingpercent.media.planning

The main benefit of automated media transacting is that it can save time and resources when planning and buying media – 63% say that this is the case. Ensuring clients get the best media value comes next, as selected by 35%, while 33% say automated media platforms reduce waste and human error. 29% say they enable brands to run more campaigns across more media outlets.

The lack of human input, which can affect results, is seen to be the biggest drawback, according to 68% of respondents. A lack of industry standards is also a concern, as agreed by 35%; followed by a lack of transparency, with 25% believing so. One cynical respondent remarks: “Media agencies automate by default in an effort to wring more profit out of clients.”

How will change the media planner´s role?

media.planner.role

There are clear views on how the media planner’s role will change. 55% of respondents say they think it will change to become that of a consultant or advisor. 31% think it will merge with that of others such as strategists or account managers. Ironically, 18% say it will become more important yet another 18% feel it will become less important. One respondent says: “I don’t think the role would change much, just that the planner would have more time to devote to strategic and analytical thinking.”

Yet while 38% feel media agencies are embracing automation and looking at ways of working progressively with it, 25% say they are acting defensively and being slow to embrace it. 14% say media agencies are in a situation where they now have to work harder to prove their worth. “Innovation is needed in an increasingly digital media world,” comments one respondent.

percent.actual.buying

Despite the attention generated by automated media platforms, the bulk of respondents (43%) say it makes up just 5% or less of their media strategy.

Just 4% say that up to 50% of the media business they handle is currently going through automated media channels. At the high use end of the spectrum, 5% say it comprises up to 90%, while just 1% say up to 100%.

Main Survey Results

  •  The biggest drawback of automated media transacting is the lack of human input, according to 68% of respondents
  • 63% are sold on the main benefit being that it can save time and resources when planning and buying media
  • 55% believe the media planner’s role will change to become more of an advisor
  • 38% feel media agencies are embracing technology, yet 25% argue they are being slow to keep up

The impact of programmatic trading and other digital advertising technologies on the Latin American and U.S. Hispanic market will be explored in-depth at Portada’s Latin American Advertising and Media Summit on June 4-5 in Miami.

 

 

 

 

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