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While demand side platforms (DSPs) continue to propagate across Latin America, major supply side platforms entering the region experience some resistance from publishers or at least are not fully understood by them. So, are Latin American publishers really adopting SSPs or not? Lorena Hure, a digital marketing expert in our editorial staff, asked several major players to answer the above question.

14271338940_ddbbaf7a55_oAccording to experts interviewed by Portada, publishers are undergoing a paradigm shift, which calls for a period of training and adaptation to this relatively new technology.

On the one hand, supply side platforms seem to aid publishers in their selling process; however, on the other hand, as these platforms introduce the concept of cost-efficiency and automation, publishers are faced with the challenge of redefining their operations and business models.

According to Lucio Grimaldi, Managing Director for Latin America at Publicitas, “the main obstacle still remains a cultural and business shift in the way that publishers have been monetizing their digital inventories. Working with a SSP platform implies a completely different business model and this has been the major challenge for publishers, who have been working differently and relying on traditional digital sales for a long time. I also believe there is still a fear from publishers that the SSP model will ‘cannibalize’ traditional digital sales and reduce CPMs significantly. Thus, it’s key for publishers to have the right SSP partner/approach and a clear inventory and monetization strategy in order to be successful in this transition.”

The enormous opportunities and the evolution of Advertising technologies in Latin America will be examined in-depth by major experts of the brand marketing, agency, media and measurement world at the Portada’s Latam Summit on June 3 -4 in Miami (part of #Portadalat.)

The fact that some LatAm publishers consider the entrance of supply side platforms as potential threats to the level of their  eCPMs, is reflective of another important factor when it comes to challenges in the region: Lack of education. As Fernando Narcio, Regional Manager Latin America at PubMatic puts it “I think that the biggest obstacle for programmatic adoption in Latin America is education. Given the rapid change in the industry, many publishers need to be brought up to speed in terms of what programmatic is, what are the roles of the different players in the eco-system (DSPs, SSPs, Exchanges, DMPs, etc.) , and how  programmatic can  help them maximize the value of their digital assets.”

Even if Brazil often has its own logic, the situation is similar to the one experienced in the rest of Latin America. According to Rafael Pallarés, Manager Director at Aunica, “the Brazilian market faces several challenges regarding programmatic advertising, and the low levels of acumen among the digital community and loose guidelines are the greatest among them. As secondary challenges, publishers need to better organize and package data in order to take more value out of their assets, and players in the ecosystem should define their roles with more clarity – many players claim to be DMPs, DSPs or SSPs, for instance, without carrying the core expertise and technologies to claim so.”

 Publishers need to better organize and package data in order to take more value out of their assets.

SSPs platforms challenged

6969804173_e4651ecd8b_oAs we have seen, in order for publishers to incorporate supply side platforms across the board, not only training and education will be needed. Additionally, the lack of confidence in this technology needs to be overcome. This is quite a challenge for SSPs willing to gain new markets in the region.

 In order for publishers to incorporate supply side platforms across the board training and education is needed, this should help to overcome the lack of confidence that still exists in the technology.

Patrizio Zannatta, Managing Director Latin America at Rubicon Project, suggests that “ it’s certainly not for a lack of willingness to experiment or innovate. I think Latin America is in a similar position to Italy when I began working there for Rubicon Project: the only thing lacking was perhaps a little understanding and confidence in what is still a relatively new technology. In Italy, we saw the majority of the top 50 sellers embrace automated advertising within a matter of months. Every market is of course different and the way we have seen sellers using the technology in different, and often creative ways to suit their individual businesses could be especially interesting. Global media agency Magna Global predicted that programmatic will make up between 60 and 70% of digital ad revenues in the three major Latin American markets by 2018”.

When asked about the challenges being faced by publishers, Guido Conterno, executive director at GDA, stated that as for “supply side platforms, there is the fear of use of the cookie re-targeting the SSP can do, whereas as for programmatic buying, contextual audiences via programmatic are sold at low prices; user audiences and private deals have higher prices. Once these Private Marketplaces are set and there is no spillage of the Publisher’s Users cookies outside the market place, programmatic will grow in the region”.

The real challenge is not only on the part of the publishers who should implement this technology, but also on SSP service providers.

The adoption of Supply side platforms in LatinAmerica, even if not yet widespread, seems to be imminent. It is all a matter of seeing how 2015 develops, considering that there is a promising outlook for programmatic buying in the years to come. The real challenge is not only on the part of the publishers who should implement this technology, but also on SSP service providers who should work hand in hand with publishers in order to help them incorporate it.

Source Technoratti

Big Data is one of the buzzwords of the year, if not the buzzword. It describes collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools. The challenges include capture, curation, storage, search, sharing, analysis, and visualization. Information Technology is now increasingly able to sort through these massive amounts of data. The implications for the advertising and marketing industries are very important.

Oscar Padilla, VP of Strategy at Luminar, urged the audience to take analytics more seriously, and to learn how to “translate data into business intelligence,” during his presentation at Portada’s recent Annual Conference.

“Data is not only more important than many people think, but also much more overwhelming than imagined. For starters, data shows that 2.9 million emails are sent out every second worldwide,” said Padilla. Padilla noted that Big Data can help marketers reach their goals and make an effective sell of everything, from credit cards and hair-care products to automobiles and political messages. Luminar licenses data from about 2,000 different sources to create a master file and come up with the right analytics.

 

Big Data not only applies to the so-called general market, it will also strongly impact marketing and advertising in the U.S. Hispanic market. Major media players in the U.S. Hispanic market have already been taking their first steps. In fact, Padilla’s company Luminar is owned by Hispanic media company Entravision.

“Big Data is how we get the right message, to the right people, at the right time, on the right platform, on the right place.”

The double Whammy of Big Data and the U.S. Hispanic market

“We see a tsunami of Big Data forming and another tidal wave of Hispanics population in the U.S.. I would not be surprised to see a lot of activity in that intersection soon as the advertisement industry goes from Mad men to Math men, “Esteban Lopez Blanco, Chief Strategy Officer, Corporate Development and Innovation at Entravision Communications, tells Portada. To Lopez Blanco, “Big Data is how we get to the right message, to the right people, at the right time, on the right platform, on the right place.”

Implications for the Advertising Model

The current display ad model is typically based on advertisers demographically targeting areas of consumer interest on website properties or off-line. The new model, driven by Big Data, helps brands target consumers digitally based on their actual behaviors. Ads are targeted based on much more than just cookie data. Data Management Platforms (DMPs) are helping marketers better understand and segment in complex ways based on user attributes and user consumption habits. Players in the digital media market including DSPs (Demand side platforms) and SSP’s (Supply Side Platforms) are gravitating to also have the role of DMP’s or Data Management Platforms.

According to Blanco, “Google and Facebook have been doing big data for a while and technologies like hadoop and others will bring this to all forward looking companies.”