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What: We spoke to Ivan Adaime, recently appointed CEO at ImpreMedia, about what he’s learned from his time at the company and what he forecasts for these rapidly-changing times.
Why it matters: ImpreMedia’s years of experience with Hispanic audiences and Ivan’s career path are an example of how hard work, willingness to adapt and an ability to recognize your strengths are the basic requirements for success in the digital age.

Ivan Adaime first arrived at ImpreMedia, a New York-based media company that targets U.S. Hispanic audiences, as VP, Digital in 2012. Just a few weeks ago, he was promoted to CEO. We touched base with him in order to revisit his learnings throughout his time at the company and find out about what he envisions for this new transition that has placed him at the forefront of the initiative.

 

Portada: You have been working at ImpreMedia for almost 7 years. How would you summarize this experience?

Ivan Adaime: It has been a great experience full of learnings. A little bit over six years ago, we put in place a new strategy for our digital offerings. Since then, our audience has been growing year over year and is now 10 times higher than it was 6 years ago. We reach now over one million users daily and have over a quarter million of active newsletter subscribers.

It wasn’t a straight line though. The media landscape changed wildly and we had our fair share of mistakes and self-inflicted wounds, but we learned from them all. Once the content, the user experience, and the audience were in place, we started to get results on the revenue front, increased in the last years due to programmatic.

 

Portada: What are some valuable things that you have learned in the last 5 years?

I.A.: We learned that putting your user first always pays off. The rest, including monetization, will follow. Since we don’t do any paid audience acquisition, we focused on satisfying our readers’ need to grow. Therefore, we invested mainly in two main areas: content and technology that allow us to offer a great user experience.

We also learned a great deal working with data. It has helped us understand much better what our audience and advertisers value. In many cases is not what we think that they value. Working with data is not plug and play, though. You first need to know what you want to know. Only then you’ll be able to mine for the data that will help you take the best product and business decisions.

Most importantly, we learned how important focus is. There are so many opportunities in media today, but you can’t follow them all. You need to go after those that make sense to you. If not, you’ll lose many resources pursuing opportunities that are not meant to be.

 

 

 We learned that putting your user first always pays off. The rest, including monetization, will follow.

Portada: What is the future of Spanish-language digital media in the U.S?

I.A.: I think it faces a great future as it has and will have a sizable audience willing to consume media in Spanish. This segment of the U.S. population is here to stay. On top,  all reports forecast that a good portion of the population growth in this country will come from Hispanics, either already living within or new immigrants. But this audience’s media habits are changing rapidly, thus the opportunities will be greater for media that are able to adapt to these changes and build sustainable business models.

 

Portada: We understand ImpreMedia sells a substantial amount of its digital inventory programmatically, can you explain why this offering has grown and what the growth drivers are?


I.A.: 
That is correct, most of our digital revenues are programmatic and that’s what has been fueling our growth year over year. Since we saw 2 or 3 years ago that the shift to programmatic was inevitable, we put a lot of effort into updating our ad stack. One thing is having it structured for direct sales, but it’s very different having it optimized for programmatic. We invested a lot of resources on data, improving page speed loading times, viewability and combating ad fraud.

We are the only Hispanic publisher that has the Trustworthy Accountability Group (TAG)’s certification for improving transparency and fraudulent advertising. We cleaned up the user experience and removed all intrusive ad formats from our websites. In short, we greatly improved the quality of our inventory. And that translated into a much greater yield. Add to the mix our audience growth and you have pretty much the main drivers of our programmatic reality.

Working with data is not plug and play. You first need to know what you want to know.

Portada: Who are your main partners in the programmatic offering on the DSP side?

I.A.: We tend to work with the main players in the digital advertising ecosystem: Google, Amazon, AppNexus. We are connected with the main exchanges via server-to-server bidding and we have PMPs active with agencies and advertisers through several DSP platforms. We too do work with smaller companies that add genuine inventory demand, the one that cannot be found in the exchanges.

 

Portada: What do you think will be the role of video? Do you think publishers have an important opportunity getting audiovisual (TV) budgets going forward?

I.A.: Some publishers might have an opportunity, but it is not a battle that all publishers should fight. For some it would make sense; for others, definitely not. Timing is also important. The infamous “Pivot to Video” that left a good number of casualties in the media ecosystem should be an important lesson moving forward. Don’t get me wrong, our video offerings are growing year over year, and most likely will continue to do so, but we are doing it at our own pace.

Opportunities will be greater for media that are able to adapt to changes and build sustainable business models.

Portada: The roots of ImpreMedia are in newspaper publishing, how are these roots reflected in ImpreMedia’s DNA today?

I.A.: Our roots are well reflected in our commitment to stand for —and to super-serve— our community when it matters most. That hasn’t changed a bit and is our daily guide. What is very different is the audience that we reach in the digital front  95% comes from a mobile device, 60% is under 45 years old, predominantly women. Thus the content and the way to reach them is very different.

 

Portada: What role do you see for print media going forward at ImpreMedia?

I.A.: It definitely has a role as we still have a sizable audience that wants to engage with our print products on a regular basis.

 

Portada: What will the salient features of ImpreMedia be in 5 years?

I.A.: We’ve been living in a period of rapid change and most likely this will continue. We are seeing a lot of great opportunities in the near future. If we succeed in pursuing them, in five years our audience will be even bigger and more engaged than it is today. But we will follow each opportunity responsibly. We are committed to building a company for the long run, one that is able to survive platform and user-consumption changes. To do so we need to be humble and agile to read and react to those changes. Therefore, we will continue to operate in a nimble way, focusing our energies and investments on core strengths and pursuing new opportunities in our own terms.

 

A summary of the most exciting recent news in online video. If you’re trying to keep up, consider this your one-stop shop.

Twitter is rumored to be working on a new feature that makes it easier to share videos on the platform.

Facebook’s virtual reality division has come up with a new unit of time called Flicks, which they will use to measure the speed of digital audio and video.

YouTube announced that it will spend more than $5 million to fund creators who “counter hate and promote tolerance.”

Almost 95% of brand and retail executives say live video will be an important part of their marketing strategy in 2018, according to a study released today by Brandlive and IBM Cloud Video

According to a confirmed report, CNN is closing down YouTube star Casey Neistat’s video business, Beme.

WARC’s latest monthly Global Ad Trends Report said that TV is the largest media channel, despite having registered a 1.4 percentage point dip in 2017.

A report from an October 2017 study reveals that more than eight in 10 (81%) internet users worldwide said they watched broadcast TV at least monthly. That was more than any other media channel, including radio, streaming video, cable or satellite TV and online or print news periodicals.

A study by cross-platform advertising solutions specialist Extreme Reach, “The Current State of Sourcing and Preparing Creative Assets for Video Campaigns” found that 70 percent of those surveyed report the industry should start over and create an entirely new workflow for creative assets management.  Also, 88 percent of those surveyed want a service that lets the media agency, creative agency, and client share and access creative assets from a central, permissions-based cloud location.

eMarketer’s forecast of subscription over-the-top (OTT) video viewership revealed that 37% of digital video viewers in China watch online content using a subscription service. The subscription market grew by more than 80% in 2017 and by 2019, eMarketer predicts more than two-fifths of digital video viewers in China will use an OTT service.

A report titled “Decreases in Psychological Well-Being Among American Adolescents” found that adolescents’ psychological well-being decreased the more hours a week they spent on screens. Teenagers that are only behind a screen for between one and five hours a week are happier than those who never use screens. The least happy ones were those who used screens for 20 or more hours a week.

A summary of the most exciting recent research in brand marketing in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

According to a study from Shareablee, brands get more bang for their buck paying a publisher or influencer to produce a branded-content post through their Pages and paying to promote that post as an ad instead of a post published to the brand’s own Page.

A study from Persistence Market Research (PMR) is predicting that the global programmatic advertising platform market is set to enjoy a compound annual growth of 33.3% from 2017 to 2025 when it will likely be worth around $30 billion.

Dentsu Aegis Network announced Wednesday the acquisition of U.S.-based HelloWorld, a promotions and loyalty group that will roll into Merkle’s loyalty division to improve on the agency’s people-based marketing offerings.

This piece looks at trends in the luxury market for 2018.

The ANA (Association of National Advertisers) has acquired another leading trade group, the Word of Mouth Marketing Association (WOMMA), a group of companies committed to progressing the word of mouth marketing industry through advocacy, education, and ethics.

According to InMoment’s 2017 Retail Trends Report, more than 50% of consumers value in-store interactions with friendly and knowledgeable staff, and positive in-store interactions can raise customer satisfaction by 33% — with higher rates reported in fashion and sports retail sectors.

Amazon and consumer product companies like Procter & Gamble and Clorox are discussing the possibility of advertising via the e-commerce giant’s Echo devices and Alexa voice assistant, according to sources from CNBC.

Gen Z is the first generation fully comfortable online and offline with a demonstrated ability to simultaneously utilize digital, physical and hybrid tools, according to a report by business intelligence platform PSFK.

eMarketer estimates nearly 84% of U.S. digital display dollars will transact programmatically by 2019.

LATAM MARKET:

L’Oreal will expand a media ownership strategy it piloted in Mexico to other Spanish-speaking countries to generate first-party cookies from its customer base.

Adoption of self-service kiosks, which help brands get closer to consumption patterns and consumer behavior, is gaining momentum in the emerging countries such as Brazil.

 

What: SpotX, a video ad serving platform, released figures illustrating explosive growth in global over-the-top (OTT) video advertising spend across its platform.
Why It Matters: SpotX’s data revealed that the portion of overall ad budgets spent with OTT inventory owners increased from 8 percent in October 2016 to over 26 percent of total spend for October 2017. This equates to nearly 18X growth in advertiser dollars spent on OTT inventory year over year in October.

As consumers begin to view more and more video on their devices, marketers are increasingly betting on OTT when it comes time to allocate budgets. According to SpotX’s data, overall ad spend on OTT inventory increased 18X between October 2016 and October 2017. On top of this revelation was the estimate that OTT is expected to account for around 30 percent of video ad spend by the end of 2017, as the holiday season brings 2017 to a close.

According to SpotX, this is the first time any SSP has disclosed such granular figures. Fueling the growth are SpotX’s top DSP partners: Adobe Advertising Cloud, dataxu, The Trade Desk, VideoAmp, and ZypMedia.

Growth of OTT Spend Partly Due to Improvements in Programmatic

According to Kelly McMahon, VP of Global Demand Operations at SpotX, this shift in ad spend can be attributed to the fact that “we’re seeing consumers shift in how they are consuming video content this year faster than any previous year: from desktop to mobile, now it’s Smart TVs and OTT technology.”

Ian Monaghan, Special Operations Consultant at Adobe Advertising Cloud echoed McMahon’s sentiments, stating that since people now have more content to stream on more devices than ever before: “Even in live sports, long considered a holdout where traditional broadcast viewing dominates, OTT options have entered the mainstream.”

McMahon added that this shift in consumer behavior caused companies to “embrace their abilities to use programmatic.” Before, while many transactions were handled via traditional sales channels, companies have been motivated to “understand how to use inventory programmatically.”

At SpotX, McMahon explained that they have “made a rather large investment in OTT and CTV strategy, providing tools to media owners to sell their OTT CTV inventory programmatically” and investing in educating buyers and making transactions simpler.”

The problem isn’t just explaining how to buy and sell OTT inventory: OTT itself has presented plenty of challenges in terms of how to measure its effectiveness for targeting purposes. But thanks to OTT’s popularity among consumers, the industry has developed new types of data and measurement tools that help make it more competitive with TV and digital. “To advertisers, OTT has historically been on an island — not fully digital or fully TV in terms of targeting and measurement capabilities, but often presented as both,” Monaghan added. He pointed to the addition of Nielsen Digital Ad Ratings as “bringing OTT up to speed for TV buyers and Adobe Advertising Cloud’s innovations in planning and measurement are bringing it up to speed with digital.”

Programmatic Aids in Linking Consumer Behavior to Digital Activity

Understanding how consumers engage with brands across multiple channels and devices is step one for any brand looking to maximize the effectiveness of their OTT investments. Tim Sims, SVP, Inventory Partnerships at The Trade Desk explained that since “digital media consumption is increasingly fragmented, marketers need to be able to link audiences together and understand how each performs.”

In this sense, programmatic is a useful tool, because “programmatic advertising enables advertisers to reach and engage with customers along their entire journey and also measure how different channels are performing as part of the overall marketing mix,” said Sims. For this reason, Sims argued, The Trade Desk acquired cross-device identity graph company Adbrain to “add a data set of cross-device IDs to our own demand-side platform” and “to provide a unified view of the customer in targeting and reporting.”

Going omnichannel is also essential for platforms to be competitive, Sims said. “That’s why we’ve worked so hard over the last few years to grow our global footprint as well as our cross-device services marketplace, a platform feature with identity-linking graphs from companies like Oracle, Tapad, LiveRamp, and Drawbridge, as well as Adbrain,” he said.

Adobe’s Monaghan asserted that while “linking what a viewer is watching to consumer data is a key part of any modern advertiser’s toolkit, marketers often lack the tools to make data actionable in advertising.” With that in mind, Adobe launched its Advertising Cloud, and “tightly integrated it with Adobe Analytics Cloud, which helps brands measure customer data and act on it. Together, we’re enabling advertisers to reach discrete audiences on any screen.”

The Future of OTT: More Deterministic Data for Effective Audience Targeting

What do the targeting techniques of the future look like? The Trade Desk’s Sims argued that his team is “seeing more deterministic data sets coming into the market, which is key for creating identity graphs that allow for effective audience targeting.” As global access to the Internet and connected devices increases, marketers will access more and more data that tells them what consumers care about, why they do what they do, and what devices they use to do it.

In the meantime, Sims says, “brands are excited to leverage this new channel to extend their message and reach customers in a targeted, personalized way across their entire journey.”

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

This article explores how Amazon is pivoting towards video. 

YouTube has updated its recommendation feature to use a measure of satisfaction derived from a massive and ongoing user survey to predict and promote videos that people would rank as among the best they have watched recently. It also unveiled a new video format called ‘Reels’ that lets users create 30-second videos.

A recent study by  S&P Global Market Intelligence reveals that around 70% of Internet households in the United States watch online video via a TV set. In 2017, US Internet households were equally likely to be using a smart TV, Blu-ray player, SMP or a pay-TV STB to watch online video on the TV. The use of smart TVs, Blu-ray players and SMPs has also increased.

Online advertising spend grew by 11.5% in the first half of 2017, driven by mobile and video formats, according to a study from IAB Europe and IHS Markit.

The  “Where are Brand Marketers Taking Their Video Strategy in 2018?” study revealed that only 6% of marketers would currently characterize themselves as “innovators” when it comes to their use of online video, and that 80% of correspondents reporting that they will increase their video advertising efforts in 2018.

LATAM MARKET

Audio.ad launched a DSP in Latin America and the US-Hispanic market for digital audio ads.

New research from IMS and comScore reveals that around 60% of advertisers were willing to pay 50% extra on top of what they currently invest to secure safer media, which guarantees more visibility.

The city of Sao Paolo, Brazil recently approved a law to tax streaming services at a rate of 2.9% of its local revenues.

What: Seven in 10 of the 58 million U.S. Hispanics now use a smartphone, and more are bypassing desktop and laptop computers completely in favor of tablets and mobile.
Why It Matters: With some help from their expertise in Hispanic mobile behavior, mobile ad network Adsmovil topped the latest comScore Mobile Metrix® in both the Hispanic Mobile and Total Mobile Audience reach categories. Could Adsmovil be the long-awaited viable alternative to the Facebook/Google duopoly? And what does a Hispanic ad network’s continued success with total audiences say about the key role that Multicultural plays in any mobile campaign’s success?

Since 2000, Hispanics have accounted for more than half of the population growth in the United States: According to the Pew Research Center, the number of Hispanics in the country reached 58 million in 2016. And with seven in 10 U.S. Hispanics now using a smartphone, this means that advertisers hoping to win in the United States must prioritize reaching this dynamic and tech-savvy demographic.

More and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s walled gardens.

“Taking into account that Hispanics are heavy mobile users and even use their mobile devices as their primary access to the internet, we always include mobile in all our communication strategies. In fact, we always recommend clients having a mobile-first approach when implementing any digital campaign,” Gonzalo del Fa, President of GroupM Multicultural (photo) asserted.

With this in mind, ad network Adsmovil launched Programmatic Mobile Hispanic solutions in 2015. In recent years, the network has become a leader in Hispanic targeting, coming up with award-winning programmatic creative and location-based targeting initiatives informed by a thorough understanding of their clients’ targets. And now, October 2017 data from ComScore has Adsmovil coming in at the top of the lists of Total Internet and U.S. Hispanic reach for Mobile:

 

 

Mobile Metrix Key Measures

MediaTotal Unique Visitors(000)
Total Internet(total audience: Mobile)196,705
1Adsmovil Network-Potential Reach87,886
2Pulpo Media67,665
3Univision Digital Network25, 474
4Primia Digital – Potential Reach22,146
5Mobvious20,956
6Fullscreen Mexico – Potential Reach18,385
7H Code Media12,333
8ImpreMEDIA IMPOWER!5,613

SOURCE: U.S. Hispanics Mobile Only, Comscore, October 2017.

MediaTotal Unique Visitors(000)
Total Internet: Hispanic All: (Mobile…)32,711
1Adsmovil Network-Potential Reach17,457
2Pulpo Media15,109
3H Code Media8,620
4Univision Digital Network7,839
5Primia Digital – Potential Reach6,397
6Mobvious 6,161
7Fullscreen Mexico – Potential Reach 5,354
8ImpreMEDIA IMPOWER!4,960

SOURCE: Total Audience Mobile Only, Comscore, October, 2017.

The voices demanding alternatives to the “duopoly” of Facebook and Google are growing louder, suggesting that Adsmovil could emerge as a leader at just the right time. While Google and Facebook took over 77% of the US$12 billion-dollar increase in global online ad spend in 2017, more and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s “walled gardens.”

AdsMovil Credits Success to Unique Understanding of Hispanic Behavior

In today’s landscape, marketers are being forced to reckon with the fact that consumers cannot be reduced to simple profiles determined by gender, age, and ethnicity. AdsMovil’s targeting solutions are focused on helping advertisers reach Hispanic users, looking at mobile users through an ethnographic lens that identifies specific Hispanic audiences according to the following factors: generation, acculturation, language and country of origin.

Hispanics’ acculturation levels lead to different attitudes toward language: those that are acculturated were typically born in the United States, prefer to speak in English, and can “toggle between Latino and American culture.” They are typically tech-savvy and have at least a high school education. Non-Acculturated Hispanics may or may not have been born in the United States, may have immigrated recently and typically hold a high school degree or less.

The benefits of understanding and appreciating these drivers of Hispanic mobile behavior make all the difference, pushing Hispanic marketing shops like Adsmovil at the top of Total Audience measurement on comScore’s Mobile Metrix in October 2017.

It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic.  “Mexicans have different taste and buying habits than Dominicans or Argentinians. Adsmovil helps you deliver more effective media because we realize the differences and can target more appropriately. As a result, you will have better-performing campaigns,” said, Adriana Daantje, Global Product Director at Adsmovil.

It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic.

Acculturation, Generation, Language, Country of Origin Key Factors in Determining Hispanic Behavior

In focusing on factors like acculturation, generation, language, and country of origin, Adsmovil can create targeted solutions for profiles of users with very distinct behavioral patterns: For example, non-acculturated Latinos are less comfortable using technology and slower to adopt new devices and functions, tend to use older mobile devices, and often have their browsers set in the Spanish language. They also consume more Spanish-language content, often from their countries of origin.

Mobile use among US Hispanics also varies greatly based on generation, as first-generation Hispanics are not only more likely to speak Spanish, but also more likely to look for online content in-language, and to browse ethnically relevant news, entertainment and food content. Hispanic Millennials, on the other hand, care more actively about technology and “want to stand out and be noticed,” according to Adsmovil. While they incorporate many Hispanic music, family, and culinary traditions, they are more open-minded than older Hispanic Americans, and tend to evolve with the rest of the younger Millennial Americans in terms of political and cultural beliefs and practices.

Adsmovil’s key differentiator is how it builds and identifies audiences within the Hispanic community based on the content that Hispanics consume (language, keywords, context), instead of relying solely on targeting via location, app install or purchasing history. It has direct relationships and preferred access to Hispanic premium publishers offering qualifying traffic, and offers 100% SOV, and sponsorship and content integration opportunities with exclusively Hispanic publishers.

 

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

AdYouLike and mobile creative DSP Tabmo have announced a partnership that they hope will better bring native ads to mobile devices.

Adobe has launched a 100% programmatic ad campaign, the largest cross-media ad campaign implemented solely through a programmatic platform to-date.

Oracle announced that its enterprise software Moat has been certified by verification provider ABC for the principles of video viewability measurement, as prescribed by JICWEBS – a cross-industry organization consisting of trade bodies representing brands, media agencies, publishers and tech outfits.

YuMe has launched its People-Based Marketing Suite to enable cross-screen audience targeting, sequential messaging, and attribution for U.S. audiences.

Publisher SSP PubMatic has announced a fraud-free program for demand-side partners that includes a money-back guarantee where, if fraud is detected on PubMatic’s platform, demand partners won’t have to pay for it.

Amazon continues to deny that it is working on a free, ad-supported streaming service.

Converged TV and video ad software provider Videology released its Q3 2017 U.S. TV & Video Market At-A-Glance report, which found that spending on linear TV campaigns in the Videology platform using advanced data grew 60% for the first three quarters of 2017, compared to the same time period last year.

OTT video service Sling TV and video ad serving platform SpotX have launched private marketplaces that let advertisers target two audiences: a) Black Friday/Cyber Monday shoppers and b) luxury shoppers — for the holiday buying season.

The Association for Online Publishing launched their ad quality charter ad their recent digital publishing convention to ” involve more industry players in making the advertising ecosystem more transparent, brand-safe, and less fraud-prone.”

MMW has just announced a new partnership with Adobe Advertising Cloud that gives advertisers and agencies access to premium ad inventory across all formats and devices for multichannel campaigns.

AppNexus has launched a programmable DSP called ‘AppNexus Programmable Platform’ (APP) with the goal of helping traders set up, manage and deliver campaigns more efficiently.

According to the latest Cisco Visual Networking Index (VNI) Complete Forecast, there will be nearly 1.9 billion Internet video users by 2021, up from 1.4 billion in 2016.

LATAM MARKET

Rodrigo Bonilla, Americas director for the World Association of Newspapers and News Publishers (WAN-IFRA), spoke at the Knight Center, asserting that this year, many of the newspapers in Latin America are coming to terms with the fact that money from online digital advertising is not enough.

A recent study from Google revealed that Netflix now has more demand than its competition — pirated streaming services and apps — in Brazil.

A study by analytics firm GlobalWebIndex revealed that globally, the highest number of social media accounts per user can be found in Latin America (8.8), followed by Asia (8.1).

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

Spotify presented a new video strategy that involves canceling original video series on the service, as well as shows it hasn’t released.

According to research from eMarketer, programmatic advertising will make up 83% of US display dollars by 2019.

Periscope announced that it will give almost all earnings from “super hearts” left by fans on videos back to the content creators.

According to a study from PQ Media, global advertising & marketing revenues are expected to increase 3.9% to $1.225 trillion in 2017.

Facebook reported a 79 percent profit increase, in part thanks to its push into video advertising.

The Q3 2017 Video Benchmark report from cross-platform advertising solutions specialist Extreme Reach found that click-through rates are down in every single category.

YuMe has launched its People-Based Marketing Suite to enable cross-screen audience targeting, sequential messaging, and attribution for U.S. audiences.

According to a new report by ad sales insights platform MediaRadar, P&G ran ads on 20% fewer sites –1,251 —  between January and August 2017, compared to 1,565 during the same period in 2016. The company also ran ads on just 59 percent of the same sites as they had the previous year.

LATAM MARKET

FD Comunicação, Brazil’s first and oldest PR agency that works only with video games, has launched a news portal where it will cover the Brazilian video games market.

NBCUniversal Telemundo Enterprises is expanding Fluency Studios with the launch of “Fluency Plus,” a new, bilingual digital production studio. 

Clarín and El Cronista found a study about YouTube consumption in Argentina, signaling that 70% of users go on YouTube every day, and that one in three Argentines that are online at any given moment are watching a YouTube video.

After launching a marketplace in Brazil, Amazon is not giving any indications about how and when it will expand into the Brazilian electronics segment.

Presented By NGL Media

A comprehensive roadmap to discovering U.S. Hispanic programmatic video provided by leading Latino video marketing solutions company, NGL Media. Catch NGL Media‘s CEO & Founder, David Chitel, who spoke last week at Portada’s 11th Annual Multicultural Marketing & Media Conference.

The digital video landscape provides amazing opportunities for advertisers to connect with U.S. Hispanics across paid, owned and earned media. Be it branded entertainment, social influencer campaigns, managed media buys or programmatic, the choices are many.

According to the latest IAB Ad Spend Study, 69% of digital video ad spending — or nearly US$6 billion dollars — will be allocated programmatically this year alone. U.S. Hispanic programmatic video spending has been growing in tandem.

Yet navigating the Hispanic online space can be challenging, given that the publisher landscape is extremely fragmented by different cultural identities and countries of origin. Programmatic is a particularly useful strategy to reach the U.S. Latino market at scale by facilitating access to this fragmented audience across many outlets simultaneously.

As a premiere supplier of U.S. Hispanic programmatic video, NGL Media has been blazing a trail in the space with an offering of 300+ premium publisher partners. For those who are ready to jump into the U.S. Hispanic programmatic world, we’re happy to share some best practices.

1. Understand Open Marketplace vs. Private Marketplace vs. Programmatic Direct

All programmatic is bought via DSPs and the majority through trading desks — essentially buying arms of agencies. Three basic types of programmatic deals currently dominate the field: open marketplace, private marketplace and programmatic direct.

The open marketplace is a virtual auction. Using software, buyers place bids on billions of ad impressions made available on the ad exchange. For buyers and sellers, the process can feel chaotic. For brands seeking a more premium and transparent environment, however, private marketplaces have proven to be even more attractive.

A private market place (PMP) offers a more controlled environment. The difference between open marketplace and PMPs? With the latter, the buyer sets up a direct connection to a seller’s inventory. The buyer knows exactly what inventory they’re getting, which provides a greater level of quality assurance. The seller and buyer agree on key performance indices (KPIs) and targeting specs, working together to optimize for performance and scale. A PMP brings full transparency to buyers, greater publisher control, and more premium inventory at scale.

Programmatic direct agreements are automated buys that leverage programmatic platforms, but more closely resemble a managed buy albeit with certain guarantees arranged in advance. Negotiations may include premium inventory at a set price for a guaranteed set of impressions. It’s like calling a car rental company and reserving a specific make and model rather than asking for a “mid-sized auto.”

As more and more clients jump into the programmatic space, the prevailing trend is for brands to lock up inventory in the private, rather than open marketplace. This helps assure inventory demands will be met. Demand for programmatic direct deals is also growing for this same reason.

Programmatic is a particularly useful strategy to reach the U.S. Latino market at scale by facilitating access to this fragmented audience across many outlets simultaneously.

2. Choose Your SSP or DSP Partners Wisely

Supply-side platforms (SSPs) automate the SALE of advertising by using software. Demand-side platforms (DSPs) automate the BUYING of advertising by using software.

What’s the difference? Publishers and their reps use SSPs to try to maximize pricing and provide access to buyers that might otherwise not buy their properties as a standalone but will as part of a larger programmatic buy.

Brands, agencies and their representatives use DSPs to purchase the best quality inventory at the best possible price. However, perhaps even more crucial is the search for critical mass and optimization across a broad list of sites. The other important piece — perhaps the biggest in the eyes of many marketers — is that DSPs and programmatic allow you to overlay targeting data through the DSP.

Whether you’re looking for a DSP or SSP, the process can be overwhelming. The market is inundated with options. Make sure you look for a supply side platform that’s well-connected. The wider the range of associations to inventory outlets, the wider the potential ad inventory.

Other important considerations include technical support offered and the ability to optimize campaigns for frequency caps, budgets and creative. Transparency about how the DSP or SSP makes its money is another item to be mindful of.

Finally, data is the name of the game here. Look for vendors who have access to reputable data management platforms (DMPs) and allow buyers to leverage first- or third-party data sources.

3. Avoid Data-Overlay Over-Targeting

The holy grail of marketing is to find the perfect message to deliver during points along the consumer decision journey. The use of data now allows marketers to pinpoint by specific demographics, activities and interests.

Scale can be hard to find in the U.S. Hispanic marketplace, especially if you’re looking for high-quality inventory. During the planning stage, coordinate with your SSP or publisher partner to determine the viability of an upcoming campaign and to see how much data targeting will prove useful. When setting up a PMP, be sure to include in your request for proposal (RFP) a question about how much data overlay the SSP or publisher can offer while still providing the necessary scale you seek.

Remember: Each layer of data targeting filters out more consumers. Too many layers will hinder your ability to reach desired impression goals. When targeting the Hispanic market, many clients want to add multiple layers of Hispanic user data. Some even want to target by browsers set to Spanish language. Doing so can be problematic, given already limited U.S Latino online video inventory. By finding a supply partner that has already aggregated premium Hispanic specific inventory (such as NGL Media), you have the flexibility to remove overly restrictive data targeting.

4. Hold Your Supply Chain Accountable

Huge brands like P&G and Unilever are leading the charge against digital pain points. Issues like brand safety, bot fraud/invalid traffic and performance errors have filled the trade headlines as of late. Every part of the supply chain must be held accountable: from exchanges to media companies to ad tech partners.

As you’re exploring new business relationships, be sure to address the following with your supply partners:

Invalid Traffic (IVT) and other forms of fraud: Some estimates say 20-25% of all digital expenditures goes towards fraudulent inventory, or more than $15 billion. The Media Rating Council defines two types of non-human traffic. “General IVT” is relatively simple to detect, while “Sophisticated IVT” is much harder, given that it “originates from hijacked devices, malware or misappropriated content.”

Keep in mind that some bot traffic is legit. Google runs legitimate bots across the Internet to obtain information. Most agree that some level of IVT is to be expected given all of the converging technologies that often don’t perfectly line up. Moreover, advertisers seeking 0% is less practical in today’s evolving digital environment.

Use third-party vendors to measure IVT, such as MOAT, Integral Ad Science (IAS), DoubleVerify (DV) and White Ops.

Viewability: Standards vary by company, agency and even campaign. The Internet Advertising Bureau (IAB) defines viewability as 50% of the video must be in view for two seconds or longer.

Others have set the bar higher, requiring 100 percent of pixels be in view with the sound on for half the duration of the video. Native and outstream video in some cases are allowed to play with or without the sound, and be auto-played or user-initiated.

Talk about this metric and make sure every partner in the supply-chain is clear about the client’s expectations. Define how viewability will be measured. Will it be with a third-party vendor like DV or MOAT? How will the metric be reported back to the programmatic platform?

Measurement technologies are not perfect, so if you’re requesting guarantees against viewability performance, expect to pay a higher cost per thousand (CPM).

Brand Safety: It’s always been important for clients to know their advertising is supporting content free of hate, pornography, strong language, gratuitous violence, etc.

Use a brand safety technology like IAS or DV to avoid non-safe brand sites, but also strive for transparency with your supply partner. Strike a balance.

Technology might flag an article about parenting on a premium site that mentions “breast feeding” because of the word “breast,” causing that site to be listed as inappropriate and thus blocked. Watch the blocked list, and then use common sense to determine if publishers were blocked for good reason — or because of the limitations of the technology.

Financial transparency: Clients should be able to see where their dollars are going and how well the campaign is going. Programmatic trade can help increase transparency for every impression.

5. People Still Matter

Find a partner with the resources, experience and drive to continuously update its technology. Like every area in the modern world, the pace of change is brutal. Just to keep pace with the competition, companies must innovate. Make sure you choose a partner that understands and anticipates market changes. At NGL Media, we’ve heavily invested in our proprietary video technology stack, which allows us to be nimble and agile in an ever-changing digital market.

A programmatic deal should be a true partnership between buyer and seller, especially when running PMPs. It’s easy to set up the software and let the machines run on autopilot, only interacting with the technology platforms, rather than other humans. But communication between buyer and seller is key to making sure the systems work smoothly and the campaign achieves the desired scale. People often make all the difference between a successful and an unsuccessful programmatic video advertising campaign.

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A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

According to YouTube CEO Susan Wojcicki,  1.5 billion logged in viewers visit online video social network YouTube every single month. That’s the equivalent of one in every five people around the world. Average viewers spend over an hour a daywatching YouTube on mobile devices alone. Wojcicki also added that YouTube is working to make Virtual Reality (VR) more accessible and more affordable for viewers and creators.

Olympusat, Inc., a media company specializing in the ownership, distribution, production and technical services of Spanish and English-language networks, announced that Consolidated Communications will roll out the VEMOX™ platform to deliver its new Spanish-language OTT TV Everywhere service.

According to the Ooyala Q1 2017 Global Video Index, for the first time long-form content represents the majority of time spent watching video on every screen.

Accenture Interactive is entering programmatic video, launching a new ad unit that will incorporate programmatic overlay product placements on streaming video content.

Adobe is introducing Adobe Advertising Cloud TV to add new capabilities to its TubeMogul platform. The goal is to accelerate the adoption of data-based automated TV buying, including linear TV, addressable TV, connected TV, VOD and over-the-top TV.

Facebook is releasing a new app for creators, the company announced at the annual online video conference VidCon Friday.

21st Century Fox Inc.‘s sports department is eliminating the writing staff to invest in more-lucrative video production.

Video ad serving platform SpotX and Immersion Corp. (NASDAQ:IMMR), the leading developer and licensor of haptic technology, have joined forces to bring haptic-responsive video advertising opportunities to market at scale on mobile devices. By teaming up, the pair will bring Immersion’s haptic technology across all media owners on SpotX’s platform, empowering advertisers with high-impact, tactile experiences.

More than $4 billion was spent on US mobile video ads in 2016, according to the latest Global Entertainment and Media Global Outlook report from PriceWaterhouseCoopers. That number is expected to nearly quadruple to $16.2 billion spent on digital video by 2021.

LATAM MARKET

OTT measurement firm Conviva closed a $40 million funding round, with investment from Future Fund, New Enterprise Associates, Foundation Capital and Time Warner, for the development of new products in Latin America and Asia.

Last month, AwesomenessTV launched a new season on its Spanish YouTube channel with 2btube. The leading Spanish language digital talent representation agency and content producer will produce and manage all the content for this channel.

Spanish media group AtresMedia announced a deal to buy Smartclip, a video ad platform that works on connecting online and TV ads, to increase operations in Latin America, with a focus on Brazil. In Latin America, the company has 164 million unique viewers, according to comScore.

Ecuadorian channel enchufe.tv, one of the most-watched comedy online video channels in LatAm, is making plans to grow across Latin America and Spain though a commercial agreement with the 2btube multi-channel network (MCN).
VidaPrimo, the premier Latin Music video network, will distribute its vast library of music-related video content onto branded channels on digital streaming platforms Roku and Amazon Fire.

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

Accedo announced that it is partnering with Nokia to deliver best-in-class quality throughout the VR experience by the integrating Nokia’s OZO Player SDK into Accedo’s VR solutions and joint customer projects. This partnership will see both companies offering a bundle of joint offerings and solutions to add value to customers.

Twitter is introducing in-stream video advertisements as the company found that video impressions grew significantly from Q3 to Q4 2016.
To celebrate its ten-year anniversary, SpotX has launched a new web address built around their expanded focus on the total video ecosystem – SpotX.tv., which stands for total video — serving ads on all screens — desktop, mobile and OTT devices.

An insightful, stat-packed quarterly update from Streamlabs compares Twitch and YouTube Live on measures of monthly active streamers and revenue. While Twitch is still where the money is, YouTube Live is growing much, much faster. From October 2016 to March 2017, monthly active streamers have grown 330% for YouTube Live compared to 19% on Twitch. Twitch accounted for nearly 96% of tipping volume for Streamlabs streamers in the past five months, with YouTube making up the rest.

Verizon Digital Media Services said that OTT video providers will need better insight into the engagement their content generates as OTT enters its next stage.

Sprint has released an online video series in collaboration with Onion Labs, the creative services division of Onion Inc., which takes a satirical look at the popularity of Paul Marcarelli – the guy who used to ask if you could “hear me now” with Verizon and who switched to Sprint and appears in Sprint advertising.

Online video ads grew by 24 percent year-over-year (YOY), according to online video monetization company FreeWheel’s Video Monetization Report for Q4 2016.  Among other interesting insight, the report found that both ad views and content views have increased over the previous 24 consecutive quarters.

LATAM MARKET

Buenos Aires, Argentina-based MediaMath has announced the launch of Curated Market, a product that allows advertisers to access the best clients and prospects at scale through high-quality, premium media.

Online video systems provider Brightcove has announced plans to open an office in Mexico City after securing a number of new contracts in Latin America, including Mexican Grupo Televisa, Mexican multimedia group Expansion and Paraguayan news organization Grupo Nacion.

At Teads’s latest event in Campos do Jordan, Brazil, marketers from brands like Heineken, Fiat, and Itaú; agencies like DPZ&T, Africa, DM9, Publicis, and Leo Burnett; and trading desks Affiperf, Tradelab, and Exiber discussed digital advertising. Highlights include that more than half of attendees expected growth between 20% to 30% of programmatic technologies, compared to last year, and that segmentation will be the biggest focus in programmatic video, followed by viewability and completion rates.

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US HISPANIC MARKET

Research by eMarketer claims that total numbers of U.S. digital video viewers will increase from 221.8 million in 2017 to 239.2 million in 2021 and that the penetration rate among internet users will increase from 81.2% to 83.5%.

Vimeo has added a 360° feature with tutorials for creators, support for 8K files, offline viewing, and bespoke apps for specific mobile headsets.

Google has expanded its image recognition AI tools into the realm of video, announcing that users will be able to search through video content that is automatically assigned tags by an AI system.

According to new research from Ooyala, mobile represented 54% of all online video viewing in Q4 2016 and is tipped to hit nearly 60% in Q1 2017.

According to the NFL, their investment in online video platforms paid off: video-on-demand (VOD) starts grew by 76% over the previous year; mobile was up 235%. The average viewing session was 65.6 minutes, up 43%; and streaming across all devices was up 43%.

Google’s YouTube and Daydream groups are introducing the equi-angular cubemap (EAC), a new projection technique that increases the practical level of detail for 360-degree footage.

Ericsson’s annual ConsumerLab TV and Media Report reveals that a mobile subscription plan that allows affordable streaming of TV and video content on a mobile device – with reasonable video quality and without having to ration data – is of great interest to 40% of consumers globally. Millennials are the most interested group at 46%. 40% of consumers globally are “very interested” in a mobile data plan that includes unrestricted video streaming.

Facebook has signed a broadcasting agreement with Major League Soccer (MLS) and Univision Deportes that will see the social giant live stream at least 22 matches of the upcoming 2017 MLS season, beginning March 18, Mashable reports.

Ooyala has released its Q4 2016 Global Video Index, finding that pre-roll mobile impressions for broadcasters grew to 47 percent, up from 44 percent in Q3. Both smartphone and tablet percentages increased, taking share from computers, which dropped to 39 percent from 44 percent in Q3. For publishers, mobile pre-rolls showed a slight decline, falling from 39.7 percent in Q3 to 38.4 percent in Q4.

Outbrain released its ‘State of Global Content Marketing’ Report, revealing that 52% of all Outbrain pageviews were mobile in 2016.

LATAM MARKET

Discovery platform Taboola announced an exclusive strategic alliance with Televisa, who will integrate Taboola’s high-impact content recommendation platform with the goal of increasing revenue through sponsored content and video as well as driving engagement through on-site personalization.

Facebook has arranged distribution deals for both Mexico’s and Spain’s top soccer divisions, Liga MX and La Liga.

According to Ericsson’s annual ConsumerLab TV and Media Report claims that in Colombia 60% of consumers would be very interested in a mobile subscription plan that allows affordable streaming of TV and video content on a mobile device.

According to the new Irdeto Global Consumer Piracy Survey, almost three-fifths of consumers who watch pirated content in Latin America stated they would watch less or stop watching pirated video content after learning that piracy results in revenue loss from studios, affecting investments in future content creation.

Outbrain’s ‘State of Global Content Marketing’ Report revealed that in Brazil, social and video are particularly popular, and that mobile advertising generates 12.5% of awareness for brands in the country, 8.9% more than the average generated by desktop.

What: Kickads, a strategic mobile agency led by Pedro Forwe and Exequiel Arriola, has launched Sidekick, the first 100% mobile supply-side Platform (SSP) for Latin America.
Why it matters: The platform was created to sell premium mobile advertising for Spanish media as well as applications through programmatic buying.

SidekickIMG_3365 (4), launched this month by Argentine mobile agency Kickads, is aimed at publishers, media, and app developers who want to monetize their inventory. The platform will allow them to connect with the world’s largest Demand Side Platforms (DSPs), where advertisers and brands seek and buy audiences for their advertising campaigns in an automated way.

With this bet, Kickads seeks to grow programmatic buying in the Latin American as well as the U.S. Hispanic market, where it currently stands at 10%, compared with 50% in more developed markets.

As the market leader for the past three years, Kickads works as a creative agency for mobile advertising campaigns, and also as a media or ad network agency, offering mobile premium advertising inventory, as well as mobile web and mobile app campaign execution.

According to Business Insider, programmatic advertising is growing at an average rate of 20% annually, with Real Time Bidding Mobile platforms showing the fastest growth—up to twice that of general programmatic buying.

Programmatic advertising is growing at an average rate of 20% annually.

“There are several reasons why programmatic buying in Latin America still represents only 10% of advertising inventory purchases,”

Pedro Forwe, co-director of Kickads and Sidekick.
Pedro Forwe, co-director of Kickads and Sidekick.

says Pedro Forwe, co-director of Kickads and Sidekick, together with Exequiel Arriola. “On the one hand, the development of [programmatic in] the Latin American market is still at an early stage, about five years behind the United States. We started later, so we are lagging behind.”

“There are also other technological, knowledge, and cultural barriers. Technological barriers are linked to the fact that there are not as many SSPs or DSPs exclusive to Latin American audiences. In addition, many publishers and advertisers still do not have a good understanding of how this technology works or how to connect to it,” he says.

Technological barriers are linked to the fact that there are not as many SSPs or DSPs exclusive to Latin American audiences.
Exequiel Arriola, Kickads co-founder.
Exequiel Arriola, Kickads co-founder.

Sidekick will cover a gap in the industry—which is the ability to sell and buy premium mobile traffic in Spanish, in Latin American media and apps.

“We don’t believe that programmatic will replace traditional media buying in its entirety, but over the years, the proportion will be reversed. If the ratio today is 90-10 in favor of manual media buying, in 10 years this proportion will be inverted and programmatic buying will account for 90% of all advertising inventory sales,” adds Forwe.

How does Sidekick work?

Sidekick is a platform that offers advertisers millions of premium mobile impressions from Latin America, thanks to an agreement with more than 500 Latin American mobile app publishers and developers.

In turn, Sidekick is connected to the world’s largest DSPs, which guarantees publishers will have access to the largest media buyers or audience buyers, thus allowing them to monetize their advertising inventory more efficiently.

Sidekick works with multiple formats, allowing the running of traditional banner campaigns, such as rich media, on both desktop and mobile websites and applications.

In addition, it offers personalized and free customer service at the hand of a local team, a service that is harder to find among Logo-Kickads-mginternational SSPs or sometimes involves having to pay for a premium account to be able to access it.

Although programmatic buying posted its greatest growth worldwide in 2014, in markets such as Latin America this technology is still at a much earlier stage.

Programmatic represents a huge opportunity for publishers to market and monetize their advertising inventory at a much larger scale.

Programmatic represents a huge opportunity for publishers to market and monetize their advertising inventory at a much larger scale. In traditional ad sales, each media outlet has a sales team that sells fixed advertising space to direct advertisers or advertising exchanges, based on a media kit and an arbitrarily established rate. The possibility of marketing a sales plan is reduced to the scope of the media’s commercial strength, which can be local or regional, and the links it may have created with direct advertisers or media agencies.

With programmatic, each media outlet can connect to an SSP, such as Sidekick, and offer its advertising inventory for sale automatically, to be purchased by any advertiser anywhere in the world that has a DSP connection. The scope is thus global and does not depend exclusively on the sales capacity of its sales team. In a matter of milliseconds, thousands of bids and deals can be made that would otherwise take a sales team much more time and expense to carry out.

A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

TiVo just released the 16th edition of its quarterly Video Trends Report, covering key topics across Pay-TV, VOD, PPV, OTT and TV, and found that Q4 of 2016 had the highest percentage of cord-cutters in a single quarter since their Q4 2015 survey. In Q4 2016, 83.0% of respondents had a pay-TV provider. Of the 17.0% without a pay-TV provider, 19.8% of this segment of respondents cut service in the last 12 months.

Entravision Communications Corporation announced that it has acquired Headway, a provider of mobile, programmatic, data and performance digital marketing solutions primarily in the U.S., Mexico and Latin America.

In the US, Nielsen has partnered with video ad platform YuMe to launch what the pair say is the first programmatic platform-based/campaign-based audience measurement solution for connected TV (CTV) campaigns

Vimeo has launched Vimeo 360, a new hub that will spotlight 360-degree filmmaking while offering numerous creative resources to its users.

VuduWalmart’s online video rental and purchase service — will be available as an app for the fourth-generation Apple TV.

Facebook Messenger is starting to roll out Messenger Day globally on Android and iOS. Messenger Day allows users to snap a quick selfie or take a photo or video of what’s around you, add art and effects and share the clip with friends.

Targeting Indian film and Bollywood fans in the US, Amazon has launched Heera, a curated on-demand video channel subscription through which users will able to watch over 100 on-demand channels without a cable connection.

Optimizely has launched Optimizely X OTT as a part of its “Experimentation Platform” to support experiments in over-the-top (OTT) video.

According to new research from the Consumer Technology Association, for the first time ever, the percentage of free or paid streaming video subscribers in the U.S. (68 percent) has caught up to the number of paid TV subscribers (67 percent).

AdRoll‘s recent research found that more than 70 percent of marketers are running programmatic ads on social media, more than one-half employ it on mobile and almost 40 percent use it for video marketing.

Video advertising platform Latin On has partnered with Cinesa Soluciones Audiovisuales to offer digital and audiovisual services to global brands the US-Hispanic market.

AOL Inc. revealed that it had sought a deal with Google and Facebook  before agreeing to a buyout by Verizon Communications Inc.

The New York Times opened  its video inventory to programmatic ad buyers for desktop and mobile web with mobile in-app on the way, per Adexchanger.

LATAM MARKET

Verizon Digital Media Services and Pontis Technologies announced a multi-year partnership that will make over-the-top (OTT) and content delivery network (CDN) services on the leading end-to-end digital media platform from Verizon Digital Media Services available to broadcasters and content publishers throughout Latin America.

Mobile ad company Adsmovil has announced an alliance with Sizmek that will allow advertisers, agencies, and trading desks to combat fraud in programmatic buying on mobile. 

The Global OTT TV & Video Forecasts report estimates that Latin American OTT, TV and Video revenues will nearly triple in the next year.

Amazon has launched its Prime membership program in Mexico, according to a new report.

During the Mobile World Congress in Barcelona, GSMA revealed data showing an increase by 121% in 4G connections in Latin America. The Latin American growing rates are twice as fast as the global average, summing up 113 million connections — 60 million of them in Brazil.

comScore revealed its latest data in Brazil: 81 million people browse the internet via desktop and 75.5 million do it through smartphones, which account for 71% of users’ time online. 105.7 million people have access to the internet.  Google had 88 million unique visitors, and Facebook 79 million. Facebook and YouTube represent half of the videos streamed in Brazil.

The streaming ad management company AdStream claims that revenue grew by 123% last year in Brazil, and  also closed a deal with Globo for ad streaming in the country.

Batanga Media announced a full rebrand, changing its corporate name and identity to Vix. Effectively immediately, Batanga Media will be known as Vix, a digital media company dedicated to generating curiosity and leaving a positive influence for audiences across the Americas.

What: Technology-based marketing company Headway has introduced NativeWay, the first marketplace for native ads on Spanish-language sites.
Why It Matters: As programmatic in LatAm heads into what Headway’s VP of Product & Strategy Dario Diament calls its “second phase of evolution,” NativeWay will help advertisers connect their messages with targeted Spanish-speaking audiences.

Technology-based marketing company Headway, which has a significant presence in Latin American and US-Hispanic markets alike, recently introduced NativeWay, the first marketplace for native ads on Spanish-language websites. The platform makes it possible for advertisers to incorporate the concept of content marketing into Spanish-language advertising for the first time.

NativeWay allows advertisers to place highly customized ads into editorial space on Spanish-language websites, adapting each ad to the structure of the publishers’ sites. Advertisers can access Headway’s long list of publishing partners, i.e. sites and content creators, to make sure that their ads are placed on sites whose content is relevant and engaging to their target audiences. In this sense, the advertisement is both organic and interesting to the reader, and more likely to generate clicks and drive revenue.

Latin American Programmatic Entering ‘Second Phase’ of Evolution Driven by Native Ads

The concept of native advertising has been shaking up the US advertising market for some time now, as advertisers have embraced it as a way to transmit marketing messages through storytelling as opposed to traditional advertising distributed through standard banners and videos.

Dario Diament, Headway’s VP of Product & Strategy, explained that “Latin American programmatic is entering the second phase of evolution, past the basic understanding of

Dario Diament, VP of Product and Strategy at Headway Digital
Dario Diament, VP of Product and Strategy at Headway

networks and audiences.” Nonetheless, he says, there is a “gap” in native advertising that has left clients searching for better ways to communicate with particular audiences. Headway decided it was the right time to “invest in developing a marketplace and find the right partners through contacting and educating the owners of websites and content creators,” Diament said.

To use the platform, advertisers can create one or various standard images with editorial intro texts. Then, Headway’s technology distributes the ads to hundreds of sites, where they are placed within the structure of the website. “Instead of banners, you are seeing a sponsored article or link to an interactive experience or video: something relevant in a relevant context,” Diament said.

Latin American programmatic is entering the second phase of evolution, past the basic understanding of networks and audiences.

Another plus is that the advertisers do not have to design a new set of ads for each site: NativeWay adapts the template ads to each advertising space as needed, cutting out the extra work associated with creating different ads for different formats and sites.

Educating Publishers on Native Advertising a ‘Process’

One of the most important factors behind NativeWay’s success will be educating the publishers of the Spanish-language sites so that they understand the benefits of partnering with Headway and venturing into the universe of native advertising.

“Publishers are used to creating sites with spaces for banners that they monetize, but when you offer them the opportunity to show content automatically, the biggest challenge is to change the paradigm of leaving spaces open on the site for advertisers,” Diament explained.

To use NativeWay, publishers do not have to modify their existing pages, but they do have to make the few technical changes necessary for any ad campaign and select where on the page they want the ad to appear. Another benefit is that publishers are not forced to pick traditional or native: they can use NativeWay while maintaining traditional ads like banners.

Publishers are used to creating sites with spaces for banners that they monetize, but when you offer them the opportunity to show content automatically, the biggest challenge is to change the paradigm of leaving spaces open on the site for advertisers.

And since the publishers sometimes feel a lack of quality control when it comes to whose ads end up on their sites, Headway goes out of its way to make sure that all of their advertisers are “first-class,” and assured us “there won’t be anyone selling some magic hair cream.”

NativeWay Compatible with DSPs 

Headway works with trading desk and advertisers to help each client to find the most adaptable sites for its ads. In this sense, the platform is as versatile as it is exact. Diament highlighted that clients can target as specifically as they want: “When clients plan for programmatic, they can use various signals through segmentation, lifting or selecting sites where you want to appear or filtering by audience.”

It is also notable that advertisers can place their native ads using any programmatic platform. This is innovative because “the trend is to use traditional formats for programmatic: typically, programmatic does facilitate native ads,” Diament said. NativeWay ads can we bought programmatically through most DSPs.

Native Advertising Surpasses CTR Standards, Delivers Relevant Content 

So far, Headway is more than confident in the effectiveness of NativeWay, confirming that the ads consistently surpass CTR standards while ensuring that they are seen by people that care about them in a relevant context.

When done right, native ads have proven to generate high click levels and traffic because the reader is drawn into the experience offered through highly relevant content. “This is a very rich experience for publishers and advertisers to incorporate,” Diament concluded.

Diament says that Headway has “coordinated campaigns in the automobile, mass consumption and women’s categories,” and that the roll-out of NativeWay has been very encouraging.

With vast experience in both international and Spanish-speaking regions of Latin America, Headway is more than qualified to blaze trails when it comes to offering continuing innovation to the region and connecting Spanish-speaking audiences with relevant and engaging ads.

As the US-Hispanic demographic evolves and grows, multicultural strategists and media planners are faced with the challenge of connecting with an audience that cannot be defined by a single language or set of behaviors. How educated are agencies when it comes to awareness of the appropriate media mix for reaching today’s Hispanics? Are agencies hoping to reach them through the general market, or are they happy to continue making full use of the traditional options, Telemundo and Univision, especially now that programmatic makes it possible to conduct highly targeted campaigns across a variety of media? We talk to industry insiders to find out.

Spanish Language Not A Strategy Anymore

There is one definite conclusion among multicultural strategists: Spanish is not enough to reach U.S.-Hispanics, as the acculturated Latino, who often speaks more English than Spanish in their everyday life, is the fastest-growing group within the Hispanic segment. The question on the tip of many tongues is how to connect with young, well-educated Hispanic millennials.

Asten Morgan
Asten Morgan

While the general market may reach some of this segment, those campaigns “might reach them but they are not likely to connect or touch an emotion, so it’s a missed opportunity,” says Asten Morgan, Latina Media Ventures’ Executive Director of Integrated Media.

In the face of this challenge, some agencies and buyers simply resort to the big players like Telemundo and Univision. Morgan added: “I think the agencies need to be better educated about both the choices they now have to diversify their media mix as well as overall targeting capabilities. When there is doubt or too many unfamiliar options they revert to the path of least resistance from the client so they go with what they’ve been doing for years as nobody will question change.”

I think the agencies need to be better educated about both the choices they now have to diversify their media mix as well as overall targeting capabilities. When there is doubt or too many unfamiliar options they revert to the path of least resistance from the client so they go with what they’ve been doing for years as nobody will question change.

Others are sensing a need for greater education on who Hispanics are and where they can be reached. Lucia Ballas-Traynor, the EVP of Sales at Hemisphere Media Group, explained: “We need to come together as an industry and provide clients and agencies with best practices and guidelines on Hispanic TV buying.”

Part of her concern stems from worries that if this education does not take place, agencies will simply hope for the best in reaching Hispanics through the general market, since their go-to’s for this type of targeting, Univision and Telemundo, “are not meeting their total market objectives and can satisfy them using general market networks.”

ana-crandell-omd
Ana Crandell, Group Account Director at OMD Multicultural

Ana Crandell, Group Account Director at global media agency OMD Multicultural, also attributed a “hesitance to expand beyond the Univision and Telemundo’s of the world” to education, saying that it “really comes down to a lack of knowledge of the offerings available in this space,” and that “many marketers continue to think of the U.S. Hispanic media landscape as being limited to just a handful of players, which we know has not been the case for many, many years now.”

The acculturated Hispanic has certainly turned many marketing strategies on their heads. Zach Rosenberg, President of MBMG Media Group, offered an example of the firm’s experience with client El Pollo Loco: “It was clear that they were over-messaging to their Hispanic consumer set while not having enough of a presence in the general market,” he explained. “Our strategic approach was to recalibrate their media mix to include less Spanish Language programming as a larger percentage of Hispanic consumers are acculturated now than even 10 years ago.”

There is a hesitancy to expand beyond the Univision’s and Telemundo’s of the world.

But this was not an uninformed decision. “It should be noted that our multicultural expertise is what led us to this rationale and success,” Rosenberg reminded us.

Another industry insider, who preferred not to be named, defended practices that put a heavy emphasis on the big players: “I think that buying these two partners delivers significant reach of Spanish Preferred Hispanics (and at times can reach goals established by some clients),” but that “to be more holistic and well rounded in the approach it is good to include the other Spanish-language stations that may not deliver as high ratings but definitely provide areas that do not duplicate with Univision and Telemundo.”

Spanish-Language TV’s Transformation

So why aren’t Telemundo and Univision meeting their market objectives? Latina’s Morgan pointed out that they aren’t focusing on digital: “They are focused on their core businesses of television, and their digital properties don’t deliver Hispanics at scale.”

Lucia Ballas-Traynor, EVP of Sales at Hemisphere Media Group
Lucia Ballas-Traynor, EVP of Sales at Hemisphere Media Group

Ballas-Traynor asserted that when it comes to Spanish-language TV, “buying has undergone a dramatic transformation over the past couple of years, and the results are concerning for our market since the message marketers are getting is that you don’t need multicultural expertise to buy Hispanic TV, and that you only really need a few networks included in your media mix, which is doing a disservice to the Hispanic segments they are trying to reach.”

Ballas-Traynor highlighted a few factors that she attributes to this transformation: a general shift to a ‘total market’ approach with a focus on “great buying efficiencies,” and a consequential “shift in buying responsibilities to general market investment/activation teams that have little to no understanding of Hispanic media, or of the audience profiles and content that differentiate these outlets.”

She also noted that agency fees for buying have been reduced across the board, resulting in a “greater emphasis on buying agencies that leverage their clout with fewer, bigger media partners.” She asserted that “budgets for accounts that are active in Hispanic are flat at best.”

While some may see it as an issue related to a lack of education in media buying, our anonymous industry contact believed budgets are a significant issue here: “I think sometimes the media buying community can be misinterpreted, because they do understand that there are others S-L stations that bring value to campaigns.  However, the reality is that advertising budgets can be challenging these days and it’s important to secure a strong base media buy to drive sales.”

Spanish-language TV buying has undergone a dramatic transformation over the past couple of years, and the results are concerning for our market since the message marketers are getting is that you don’t need multicultural expertise to buy Hispanic TV, and that you only really need a few networks included in your media mix, which is doing a disservice to the Hispanic segments they are trying to reach.

Nonetheless, education appears to have a significant role in fixing this conundrum. Multicultural strategists like Ballas have encountered “a lack of resources and multicultural expertise” that is made worse by the fact that there is such a wide variety of media options that buyers end up doing “fewer and bigger deals with less players.”

And once clients and buyers have decided who that small group of players will be, they often resist change, funding “the same programs year over year with the same players, rather than adapting their plans to incorporate other important networks, regardless of performance.”

For this reason, many believe it is important that entities like Morgan’s Latina Media Ventures, which has “always focused on the acculturated Latina,” exist. Their DSP platform claims to do a better job targeting Hispanics in English or Spanish using first party data from their two owned and operated sites to build better Hispanic audience profiles. Then, third party data is brought in “to ensure we aren’t solely relying on sources that aren’t dedicated solely to the Hispanic demo.”

Disconnect Between Multicultural Strategy, Planning

Ballas-Traynor was clear about her firm belief that the industry must update its approach to Hispanic targeting, asserting that top 50 Hispanic advertisers probably only do Upfronts with a few different media a year.

“They buy ‘bundles’ which include online, cable and other assets.  Perhaps a dozen go deeper than Univision and Telemundo as part of their media mix (mostly partners that they have worked with over the years). And a handful, at most, are adding any ‘new’ networks,” Ballas- Traynor explained. “As you can imagine, this is very frustrating because we know that the buys for those same accounts go ‘deeper’ and broader in terms of media selection in the general market.”

Another large problem is a growing disconnect between multicultural strategists that do understand the Hispanic market, and the general market activation teams who handle Hispanic network investment, that do not. Ballas-Traynor expressed disappointment that many of the activation teams have “little understanding of the differences among the various Hispanic origin groups, the content that resonates most, who the broadcast versus the cable outlets and sometimes who the measured players are.”

Programmatic buying is an important component to most client’s plans, however, we also continue to offer them (in addition to programmatic) scalable ways to engage Hispanic audiences online and off-line.

It is not uncommon for clients to have a very clear understanding of the consumption patterns and demographics of a key segment, how it differs from others within the Hispanic category, and what markets drive their purchases. But activation teams may not be as informed as the client or the multicultural strategist, and that can be a great detriment to the effectiveness of the campaign.

iHeartMedia is one of the alternatives whose assets might not all be digital, but it claims to reach 91% of the U.S. Hispanic population on a monthly basis through more than 100 stations that have significant Hispanic composition such as LA’s KIIS and KTU in New York City, who have a 50 percent and 40 percent Hispanic composition, respectfully.

Plus, the buyers can’t be the only problem. According to Morgan, they are just “the tip of the iceberg,” because “agency personnel are sitting on the sidelines using their own services,” claiming that they can only use internal platforms, “which are easier, safer and often less effective.” It may just take these agencies losing a client for change to occur: “until a change agent comes along or they lose the account, they move at glacial speeds.”

Programmatic, Scalable Options Help Engage Hispanic Audiences Off and Online

iHeartMedia’s President of Programmatic and Data Operations, Brian Kaminsky, highlighted how iHeart Media

Brian Kaminsky, President of Programmatic and Data Operations at iHeartMedia
Brian Kaminsky, President of Programmatic and Data Operations at iHeartMedia

takes advantage of its wide array of on and offline assets to help brands engage Hispanics: “We have seen almost universal interest in our platform from the agency community who are interested in efficiency and new ways to evaluate a traditional media, and from clients who’ve made an investment in their customer data platforms,” Kaminsky asserted. “Being able to incorporate broadcast radio, given its massive Hispanic reach, into audience focused plans is appealing because of the high ROI it offers relative to digital.”

Regarding programmatic’s influence, Kaminsky said: “Programmatic buying is an important component to most client’s plans, however, we also continue to offer them (in addition to programmatic) scalable ways to engage Hispanic audiences online and off-line.” He elaborated, explaining that they created a programmatic solution for broadcast radio “to meet the shift to audience based buying and planning spurred by digital media.”

His team collects audience insights through merging data from their digital platform, social networks and third-party data sources, which allows them to “offer marketers the same type of audience targets that they are buying from connected mediums like digital, including an audience that is made up of people with an affinity for Hispanic culture.”

And the insights become actionable through their proprietary platform, which uses a planning algorithm and cloud-based networking of their radio inventory to optimize plans. “This allows us to identify very specific and highly desirable audiences at the scale that only radio can provide,” he concluded.

Crandell, of OMD Multicultural, agreed that programmatic has had a significant affect on Hispanic targeting: “I find that most successful strategists that work within the US Hispanic space very much see the value of this vehicle and, most importantly, have been able to identify its role within the broader marketing mix.”

Crandell also noted that in her experience, it has been important to remember that programmatic should be incorporated into the strategic level, not just buying and execution: “If the use of programmatic is only executed (and decided upon) at the buying stage, marketers stand to miss out on perhaps the most valuable aspect of this vehicle – that being its ability to deliver extremely beneficial learnings on the target, as they are based on actual user behavior,” Crandell explained.

Data Changes Everything, But Is It Accurate? 

Some industry insiders are actually worried that programmatic, with all of its data, may be misleading agencies. “It’s tough now, because programmatic has made it easy for general market media properties or agency trading desks to stake a piece of the Hispanic pie courtesy of an algorithm,” Morgan lamented. “Now they can scientifically state how their algorithm reaches Latinos.” But is just reaching Latinos enough?

“We don’t doubt the capabilities, but there is reason to doubt the accuracy of hitting the target, as their targeting foundation is built on third party data sources that aren’t the most accurate,” Morgan noted.

One thing is certain: marketers are at a crossroads, and the first step in the path to truly reaching Latinos is accepting the complexity of their behavior and preferences, something that the industry has yet to accomplish.

A summary of the most exciting recent news in online video and ad tech in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

AT&T is contemplating giving people who sign up for its new Internet TV service a free Apple TV set-top box or Amazon Fire USB stick.

Thousands of former Time Warner, now Charter, cable clients are cancelling their service due to changing prices.

Adobe is acquiring ad tech company TubeMogul for $540 million net of debt and cash.

Portada‘s 2017 Online Marketing Guide is out! Download it for free and get the latest in opportunities and challenges in the industry, video ad market forecasts and video audience development.

The FCC has said that it has serious concerns about whether rivals fccwill be able to compete with AT&T‘s $35/monthly online video service, DirecTV Now.

After Donald Trump‘s surprising win, many are wondering if he will reverse Barack Obama‘s net neutrality rules, which GOP congressmen have been hoping to take down for some time now.

YouTube has launched a virtual reality video app for the Daydream View VR headset that parent company Google developed.

SmarkLabs has announced the launch of Vidy, a tech-centric video production company aimed at accelerating growth for B2B brands. Vidy will function as its own brand and will focus on B2B-specific video production needs.

LATAM MARKET

French programmatic media platform Tradelab announced the start of their Brazilian operations with an office in Sao Paulo, their sixth global office with local teams.

IAB Brazil has elected Cristiano Nóbrega to head the organization in 2017 for the programmatic media market.

The Brazilian Association of Ecommerce (ABComm) claims that the local market is expecting R$2.14bn ($630m) in revenues on Black Friday, November 25. This is 18% higher than revenues from last year.

PORTADA RESEARCH: Hispanic Online Video Ad Market to Soar to US $450 million. In a new report, Portada estimates that the Hispanic Online Video Ad market volume will climb to US $450 million by 2020. Particularly high growth is to be expected by branded content videos. Among video ad-tipes, in-stream will continue to have the largest share, although out-stream will grow at a higher rate.

comScore, Inc. and MediaMath have released a study: “The State of Programmatic Buying in Latin America,” which looks at opportunities for advertisers, agencies, media and ad tech companies in Mexico, ColombiaArgentina and Brazil.

 

When it comes to media buying for video, there is no shortage of targeting options in terms of platforms and portals. While Facebook and YouTube are the big players, Connected TV, Programmatic TV, and Native are emerging as effective alternatives, offering agencies a wide range of options. But much must change in order for agencies to truly embrace these alternatives instead of resorting to “juggernauts” Facebook and YouTube.

Facebook, YouTube Are Simple, Cost Efficient and Visible

For those who have been in the industry for a while, the easiest way

Albert Thompson, Director, Digital Strategy at Walton Isaacson
Albert Thompson, Director, Digital Strategy at Walton Isaacson

to describe Facebook and Google in the age of online video is through the past. Albert Thompson, the director of digital strategy at ad agency Walton Isaacson, says: “Remember the era of ‘portals’ deals?  FB and Google are the new portals,” he says, because “they have the most marketplace visibility and their audience scale and understanding is almost unparalleled.”

In terms of audience reach, Thompson describes the two players as the industry “juggernauts”: but they have earned that spot because “they are the most easily understood,” and “their DIY and managed service approach integrates rather seamlessly into client planning.”

And Thompson adds that the efficiency in the cost per engagement structure allows agencies (and brands) to “keep the overall cost down, which has always been a ‘favorable’ currency for buying agencies.”  And CTV, PTV, and Native are still relatively new, which means more risk in testing, and “many agencies are surprisingly risk averse.”

Range of Formats Afford Solid Media Mix

It’s not that all agencies are so risk-averse: for example, Walton Isaacson uses Connected TV, PTV, YouTube TruView (video ads that can be created in AdWords using YouTube videos) and Native Video alongside FB Video to create a “solid media mix.”

They see FB Video as an important player, but it is still just one among many targeting alternatives.  The CTV, PTV, and Native Video partners like YUME, VDOPIA, TUBEMOGUL, and TEAD.tv offer additional unduplicated reach against key target audiences they are targeting for the brands they represent in environments where there is less competitive presence.

Walton Isaacson hasn’t stopped at just measuring clicks and visits. The agency also started to tag CTV buys with store visit tracking “to see who makes it to a Lexus dealership after being exposed to TV ads on their mobile device.”  In the future store visit behavior will be the new currency for the measuring ad effectiveness digitally.

Just think about the possibility of leveraging the TV experience with the measurability of digital advertising accompanied by store visit data.

Thompson noted that the agency is in similar conversations with Google and FB about store visit tracking capabilities.

Whether we acknowledge it or not we are all adopting and enforcing a mobile-first world. The ability to have instantaneous access to media content within seconds that is curated for you is, not only powerful, but a tremendous opportunity for advertisers and content creators.

Walton Isaacson hasn’t stopped at just measuring clicks and visits. The agency also started to tag CTV buys with store visit tracking “to see who makes it to a Lexus dealership after being exposed to TV ads on their mobile device.”  In the future store visit behavior will be the new currency for the measuring ad effectively digitally.

Just think about the possibility of leveraging the TV experience with the measurability of digital advertising accompanied by store visit data.

Thompson notes that the agency is in similar conversations with Google and FB about store visit tracking capabilities.

Stats Suggest Connected TV, Mobile Are Catching Up

Studies have shown that certain demographics are using smartphones as much as they watch TV. For example, Nielsen has reported that in the second quarter of 2016, 18-34 consumers in the United States averaged 18 hours and 27 minutes of TV usage per week, while they used smartphones for an average of 14 hours and 36 minutes.

So it’s no surprise that the biggest threat to TV may be the small screen on people’s cell phones. “Whether we acknowledge it or not we are all adopting and enforcing a mobile-first world,” says  Mike Villalobos,VP of Sales at FuelX, a direct response video distribution platform. “The ability to have instantaneous access to media content within seconds that is curated for you is not only powerful but a tremendous opportunity for advertisers and content creators.”

Mike Villalobos, Vice President of Sales, FuelX
Mike Villalobos, Vice President of Sales, FuelX

And mobile isn’t the only force changing the way we watch video. Consumer marketing firm GkF claims that four in 10 consumers have a smart TV, and that more than a third (36%) own a digital media player like Roku, Google Chromecast, Amazon Fre TV and Apple TV. According to eMarketer, programmatic TV has seen solid growth increasing by 127% YoY.

Villalobos says that “key to all of this is its ability to leverage data that goes beyond a general demographic and enables marketers to get an affinity understanding of the consumer.”

But the emerging alternatives already offer qualities that Facebook and YouTube do not. When it comes to Connected TV, Thompson says, it “sits under the Addressable TV umbrella, meaning the ability to ‘address’ an ad down to the household level. In that sense, “CTV melds the best of both worlds – TV viewing experience on familiar devices with digital metrics (impressions, clicks, down stream click actions).” And AdAge reports that natively posted videos are getting better organic reach than posts featuring videos that are hosted elsewhere.

Innovation Comes with Challenges

But as consumer behavior and technology evolves, the industry will need to catch up, agree on standards for buying processes, metrics, and privacy. Villalobos explains: “With every innovation comes challenges and with PTV it’s the need for an effective and efficient buying process and access to limited inventory, which inherently brings scaling issues.” And while PTV will grow and budgets will start to shift as a result, “this may take a decade’s time due to its large contingency on consumer adoption of smart TVs.”

You have to carry a mantra of being willing to ‘disrupt’ yourself constantly.

And while online video is exploding, it “is constantly under the microscope for fraudulent traffic, incentivized actions, misreporting, “Black Box” solutions, antiquated attribution models (digital marketing as a whole), and questionable data platforms.” In this sense, “it shouldn’t come as a surprise when Facebook and YouTube are the de facto video solutions for most advertisers and agencies.”

PTV’s growth has also been slowed by legislative restrictions to real-time bidding: in the US, ads must be approved by the network, scripts are vetted, and revision for legal notification texts and evidence to support claims must occur before airing. While the powerful combination of third-party, offline consumer data and real-time TV viewing data is changing targeting approaches, there are also privacy concerns, as personally identifiable information (PII) is heavily regulated in many countries.

Looking at programmatic TV, targeted inventory is delivered through multichannel video programming distributors (MVPDs), but only two minutes out of 15 total hours of advertising content are left as programmatic inventory. This is mostly because broadcasters do not want to lose revenue as CPMs go down under programmatic. And the industry has yet to discover a way to implement anything like traceable cookie IDs in linear TV.

But Facebook and Google are Convenient and Scalable 

In the end, Facebook and Google are still the most convenient options. “Facebook not only has terabytes of self-reported profile data that is continuously updated, but also creates a customized experience for the user by providing accurately curated content,” Villalobos says. “This user-centric experience has yielded a ton of success as Facebook averages over 8 billion views per day.”

“Facebook’s daily video consumption rate inherently makes them a powerhouse. Their data, campaign customizations, and ability to deliver a ROAS makes them a safe bet for video advertisers no matter what the company size,” he adds.

If ad tech companies can deliver a transparent solution that yields value beyond standard soft metrics such as viewability/view rate, advertisers will feel much more comfortable testing outside the two media juggernauts that are Facebook and YouTube.

And YouTube, on the other hand, has Google, whose parent company, Alphabet Inc., “enables savvy advertisers to not only host their video on the world’s largest online video repository, but also leverage the Google environment full circle and get the transparency of data they want,” Villalobos explains.

In the end, “If ad tech companies can deliver a transparent solution that yields value beyond standard soft metrics such as viewability/view rate, advertisers will feel much more comfortable testing outside the two media juggernauts that are Facebook and YouTube,” Villalobos predicts.

Essentially, anyone in this industry “has to carry a mantra of being willing to ‘disrupt’ yourself constantly,” says Thompson.

What: Sites that specialize in sports related content found a way to increase ad revenue grow through programmatic advertising sales.
Why It Matters: $15 billion pesos (aprox, US $900 million) were spent on digital advertising in Mexico in 2015. This was distributed between traditional, native and programmatic, with programmatic showing the greatest growth.

Display ad sales are struggling as programmatic surges. While general digital advertising revenue increased by 36% between 2014 and 2015, traditional advertising revenue went down by 14%, according to IAB Mexico.

Image result for mediotiempo“The biggest challenge is selling display ads, because more money is being pumped into programmatic, taking value out of display,” says Javier Salinas, director of Mediotiempo.com, a portal that specializes in sports that went from billing 5% through programmatic in 2014 to 35% in 2015.

While that seems to reflect the trend in the industry, there are still companies that cling to display. This is the case of ClaroSports.com, a branch of the Carso Group, which runs Carlos Slim and obtained the rights to transmit the Olympic Games in Rio this year.

“The bet is still on direct sales. In the case of both the Rio and Sochi Olympics, alliances with brands were made. Programmatic still isn’t our niche,” explains a source at ClaroSports.com, who preferred to remain anonymous due to company policies.

On the other hand, Carla Villafuerte, the Commercial Director of the Media Response Group, an agency that specializes in digital advertising, explained how “if they offer you advertising with a highly segmented audience, and then another that is massive, unless the product is toilet paper, you’re going to opt for the segmented audience. That is what programmatic offers: higher effectiveness at a lower cost.”

Salinas agrees: “even this year, agencies closed TV and then digital media contracts, but TV is able to sign less and less.”

Image result for claro sports brasil 2016To ClaroSports.com, the key is offering attractive packages to clients that allow them to reduce their  costs. For example, in the case of the Olympic Games in Brazil, the medal winners were sponsored by brands, as “we understand that there aren’t Olympic Games every year, but on this occasion we were able to position ourselves and offer packages that no other media was able to put on the table,” explained the source.

“Internet penetration will continue to grow in the next years, and while we still don’t know enough about the latest trends in digital advertising, in the long term, low costs and audience effectiveness will prevail,” adds Villafuerte.

Portales deportivos optan por marketing programático Read this article in Spanish!

Gabriela Gutiérrez contributed to this article. 

Habib Khoury is the CEO of MASS Exchange, a revolutionary platform that could be described as a futures market for buyers and sellers of media. We sat down with him to discuss MASS Exchange’s partnership with Mundial Sports Network, a leading Latino sports network with magazines like Futbol and Beisbol as well as digital properties like VidaLatina.com, FutbolMundial.com, BeisbolMundial.com and BoxeoMundial.com, and how his company applies a financial model to a complex industry plagued by a lack of transparency (Partner Message).

Providing A Transparent Solution to Publisher’s Challenges

Digital publishers face significant challenges when trying to sell

Habib Khoury, CEO, MASS Exchange
Habib Khoury, CEO, MASS Exchange

their inventory in programmatic marketplaces. They defend against fraudulent traffic which creates significant oversupply; they defend against other publishers that are willing to sell anything at pennies; they defend against buyers who know much more than they do about their audiences and dictate terms; they defend against technology intermediaries that extract too much value for handling a transaction; and they defend against having to bear the costs of the ever increasing complexity of the technology associated with participating in programmatic markets. “All of these pressures keep driving down publisher revenues while increasing their costs,” Khoury adds. “Unlike in other markets like Europe, digital publishers have not been effective at organizing themselves into large selling groups to aggregate audiences and increase their pricing power vis a vis buyers and share the costs of technology.”

MASS Exchange provides publishers like Mundial with tools to help them act as a virtual selling group and seamlessly manage inventory they sell from their owned and operated sites and inventory they sell (or could sell) on behalf of their syndicated partners. In addition, MASS Exchange’s marketplace seeks to transform how buyers and sellers interact by enabling them to transact in a transparent, price-discovered, and balanced programmatic futures marketplace.

MASS Exchange is the first to implement in programmatic media a market model inspired by finance, which is based on what is called a “price discovered market.

Khoury explains: “MASS Exchange is the first to implement in programmatic media a market model inspired by finance, which is based on what is called a ‘price discovered market.'” In this market model, buyers and sellers retain full control over every aspect of the trade, including transparency. Product packages, prices and transaction rules are set by the buyer in the form of buy-orders, and the seller in the form of sell-orders. “MASS Exchange’s matching engine matches buy-orders to sell-orders based on the rules set by each party, which means that supply and demand can be optimized for both sides. If either the buyer or seller is unhappy with the value of a trade, a match does not take place. The platform is flexible and supports one-to-one, one-to-many and many-to-many deals.” Again, a win-win for buyers and sellers.

The Current “Open Market” in Programmatic is Broken 

MASS Exchange is essentially providing a transparent alternative to what Khoury believes is a broken programmatic market. Due to a lack of transparency and price discovered market today, sellers do not know how much the buyer, which is ultimately the brand, values or pays for their inventory in current open programmatic markets.

Khoury gives us an example: “Imagine that in order to reach a specific set of audiences through their agency, Nike spends $10 and the agency buys $10 on behalf of Nike programmatically, only $3.50 goes to buy the actual media. The rest ($6.50, which includes the agency fee of $1) is consumed by the multitude of intermediaries that handle the transaction and sit between the buyer and the seller,” he explains. “In addition, Nike has no idea who they are buying from or which intermediary is shaving what amount from their media spend. This is a broken business model. By comparison, in financial services each transaction costs a fraction of a penny to transact over an exchange, and buyers and sellers have full transparency.”

Khoury elaborates: “On the other hand, if one takes that same Nike example and applies it to MASS Exchange’s market, that $10 in media spend would buy $8 in media (versus $3.50), and the $2 balance would be split in a transparent manner between the agency and MASS. We created MASS Exchange as a transparent marketplace (a real exchange) that can expose inventory packages and prices to buyers and sellers so that all parties can have a better understand of the values traded.”

In MASS Exchange, buyers and the sellers control the level of opacity they each require to maximize their trading strategies. Transparency, or the lack thereof (i.e. opacity), is not imposed upon them arbitrarily by market intermediaries. We help both sides win.

Khoury adds: “In MASS Exchange, buyers and the sellers control the level of opacity they each require to maximize their trading strategies. Transparency, or the lack thereof (i.e. opacity), is not imposed upon them arbitrarily by market intermediaries. We help both sides win.”

“What We Trade Is Complex” 

“Buying and selling media is more complicated than buying and selling coffee,” Khoury says. “With coffee, you trade based on the quality of the grain, the price and the time of delivery. With media, you have to trade for the right message, to the right person, at the right place, at the right time, using the right metric. And in order to increase the probability that an advertising message will be effectively consumed, it must be done within the right context,” he continues.

“If you’re in the market for a car and receive a brand message sitting in the grocery line, chances are good that you will ignore it. But if you are browsing a car site you like, you are much more likely to be receptive to such an ad message.” Context is integral to the publishers’ brand identities and current “open market” programmatic environments do not support the notion of context. MASS Exchange is the only programmatic marketplace that values a publisher’s brand, like Mundial’s, by assigning a tradable value to that brand/context.

“MASS Exchange is the only marketplace that breaks out the inventory bought and sold into two prices: one price for the audience, and one price for the placement/context,” says Khoury. Like in real estate, in which there is a price for the building as well as the land, when added together, you have the total price or value of the inventory. In this analogy, each audience is “akin to the value of the building absent the land it sits on,” and “should have the same value to a brand regardless of where you consume their add.” The placement or context of that ad is where the premium exists, as someone who is on the market for a car will be much more likely to convert on a Toyota site.

Since publishers need to make sure that their brand and content attracts its target audiences, those that do a better job of this should be able to “charge a premium for that value in programmatic markets, especially when they can sell their inventory to buyers directly over the phones” through MASS. So the placement/context value is similar to the value of the land. “The ability to charge separately for context in any programmatic market only exists in MASS Exchange,” Khoury says.

Bringing Buyers and Sellers Together Transparently

“The absence of more transparent marketplaces and clear performance metrics on both sides of the trade insures that many of these problems will not go away any time soon. And while brands have started to demand more transparency in how their ad dollars are spent, the agencies and programmatic intermediaries’ responses have been halfhearted at best,” Khoury laments. “This means that open programmatic marketplaces are likely to remain structurally opaque, buyers will continue to be suspect of the values they receive from publishers and sellers will continue to see downward pressure on their inventory/audience values.”

“Humans have a hard time managing complexity at scale,” Khoury says. “Our belief was that the financial services had already solved for the financial engineering challenges that come with trading complex assets like media and advertising.” MASS Exchange is, indeed an exchange, but it is “retrofitted to support the unique challenges we have in our industry.”

MASS Exchange Perfect for Publisher like Mundial Sports Network

Khoury sees MASS as a perfect fit for a publisher like Mundial for several reasons: MASS Exchange’s sell-side tool (Liquid™) curates and optimizes inventory for sale at scale before anything is exposed to the market, helping customers like Mundial manage the ever increasing complexities of programmatic trading. Liquid™ enables Mundial to organize, package, price and optimize everything they have to sell, so that “no value is left on the table,” says Kyle Harris, EVP at The Mundial Group.

“Liquid™ makes it possible for Mundial to buy inventory from syndicated partners and resell that inventory to brands and agencies, virtually extending their audience reach (i.e. more to sell) and simplifying tracking and management on one platform. And when Mundial is ready to trade, MASS Exchange’s marketplace makes it easy for Mundial to sell programmatically its most valuable assets, which today it has to trade manually over the phone in order to get the best prices/values,” Harris continues.

Bottom line: “MASS Exchange provides Mundial with a unified platform to maximize its revenues from any channel, programmatic or otherwise, while maintaining full control and transparency over how, when, to whom and at what values their inventory is traded,” says Khoury.

What is clear is that if the programmatic model must change, Khoury is one of the first to apply this type of financial approach to the media industry in an attempt to increase transparency and control in highly complex trading. Luckily, Mundial Network was happy to put his theory to the test.