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INDUSTRY REVIEW 2022 WWW.EXCHANGEWIRE.COM
INDUSTRY REVIEW 2022 2 INDUSTRY REVIEW 2022 3
SUPPORTED BY
CLIENTS & CONTRIBUTORS CONTENTS
FOREWORD 04 PILLAR THREE: DATA-DRIVEN TV 26
PILLAR ONE: THE OPEN WEB 06 The CTV Advertising Revolution 28
ShowHeroes
Let the Cookie Crumble: an 08
Opportunity for Digital Marketers. PILLAR FOUR: GROWING 30
Quantcast WALLED GARDENS
Media Buying AI Will Eliminate the 10 The Rise of the Next Generation 32
Privacy Vs Performance Tradeoff of Walled Gardens
Scibids Clearcode
Navigating the Fragmented World 12 Walled Gardens: You Can Go Under 34
FirstPartyCapital Them, You Can Go Over Them, and
You Can Go Through Them
Resolving Publisher Challenges 14 59A
Nexta
PILLAR FIVE: THE SERVICE LAYER 36
How Everyone Wins: Contextual 16
Targeting and the Key to Building Embracing Change: the Future 38
Better Relationships of the Service Layer
SmartFrame Technologies Silverbullet
Beyond the Cookie: New Signals 18 How the Service Layer is Evolving 40
in Digital Advertising and What That Means for Advertisers
Sharethrough and Agencies
MINT
The Pivot to Privacy: Aegrescit 20
Medendo?
Digiseg
PILLAR TWO: RETAIL MEDIA 22
Why Retail Media is One of the 24
Strongest Trends Right Now
CvE
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INDUSTRY REVIEW 2022 4 INDUSTRY REVIEW 2022 5
FOREWORD
Moving Away from CIARAN O’KANE
President and CSO,
Legacy Infrastructure WireCorp
Our industry is in a state to look a lot different from today. Buyers will be attracted by changing
of flux. From regulatory I believe the building blocks for a user behaviour and the tight attribution
oversight, to increased
successful open web need to be built model offered by the channel. Ad tech THE REALITIES OF THE ‘SHRINKING’ OPEN WEB WERE BROUGHT HOME
on a privacy-first approach — and will be necessary for aggregation,
platform privacy functionality, that’s why we will see a big focus execution, segmentation, format TO ME BY A PRODUCT LEAD RECENTLY, WHEN HE POINTED OUT THAT
to the proliferation of the
walled garden, the entire
on technologies evolving beyond
ID hacking.
innovation and addressability.
A SIZEABLE MINORITY (30%–40%) OF CHROME USERS ARE EITHER
ecosystem is still trying to
get to grips with a rapidly 2. 3. BROWSING IN ‘INCOGNITO’ MODE OR HAVE THE STRONGEST DNT
(DO NOT TRACK) SETTINGS IN PLACE.
MAKING DATA-DRIVEN TV
changing media and THE GROWTH OPPORTUNITY
marketing landscape.
ADDRESSABLE TO BUYERS
IN RETAIL MEDIA The third pillar is data-driven TV. There
For my review of the industry this Retail media is another big growth is so much TV inventory locked in
year I am going to focus on six pillars area. It is a ten-year-in-the-making
5.
walled gardens outside the US. How concerns around the use of IP will see audiences and emerging channels like
that will concentrate minds. I believe ad market. It has taken the rise of do you make the BVOD, AVOD, FAST a bigger adoption of 'evolved' panel retail media. Some will see this as a
these pillars represent the best e-commerce, shifting trade budgets, et al addressable to buyers? backward step, but it will be necessary
opportunities, and will be the focus and the explosive growth of Amazon's
solutions. THE EVOLUTION OF THE with so many audience blind spots.
of most innovation and investment The sheer number of siloed TV
for the coming 12 months.
ad business for online retailers,
inventory sources makes it especially
Data-driven TV buying outside the US SERVICE LAYER
marketplaces, tech vendors and buyers is very difficult; it is underpinned by The industry review provides
difficult to scale targeting and The fifth and final pillar will focus
1.
to invest resources into the area. legacy buying practices and slow tech ExchangeWire's view of the market,
measurement. It will be interesting on the evolution of the service layer. and the emerging trends. We firmly
We will see hundreds and thousands adoption. But this evolving USD$200bn
to see how data-driven focused The service layer becomes even more believe we are about to enter an
ad market will offer huge opportunity.
THE FATE OF THE OPEN WEB of online retailers and marketplaces buyers aggregate and optimise important as the media landscape extended innovation cycle, moving
building retail media businesses,
4.
in this challenged environment. splinters. Buying scale no longer away from legacy infrastructure that
The first - and probably most critical trying to tap a new margin-heavy matters in a privacy-first world, can no longer deliver for buyers
- is the fate of the open web. With revenue source. Programmatic will be critical to littered with walled gardens. and sellers.
third-party cookies and ID deprecation,
The multi-billion dollar/euro/pound
enabling data-driven buying. But so GROWING WALLED GARDENS
can we find functional replacements for too will new aggregator platforms, as Agency partners will instead be The year 2022 will represent the
existing targeting and measurement? channel emerging in retail media now marketers try to knit together disparate The fourth pillar looks at the impact benchmarked on their planning beginning of that transition, opening
Can contextual, clean rooms, and a seems to be on everyone’s radar. Retail pockets of TV ad inventory. of walled garden growth. While some expertise, data management and up exciting opportunities for those
move to ‘attention’ measurement save media accesses a whole new source might bemoan this development, there execution capabilities, and the ability vendors building truly innovative
the open web? of ad spend — namely traditional Contextual will be the go-to for will be huge upside for the service to piece together disparate technology. technology that has proper utility in
trade budget spend that sat with targeting, as buyers seek out greater and tech layer — as buyers look to
The realities of the ‘shrinking’ open New service solutions will emerge a world where walled gardens and
large retailers. granularity. Increased privacy vendors for execution, optimisation
web were brought home to me by a to plug knowledge gaps around data privacy underpin the new reality ■
product lead recently, when he pointed and measurement capabilities. management, technology selection
out that a sizeable minority (30%-40%) Media is now a series of walled and implementation, and channel
of Chrome users are either browsing in gardens. Simple tasks like frequency expertise (Amazon, TikTok etc). The
‘incognito’ mode or have the strongest capping and basic optimisation will increased complexity means more
DNT (do not track) settings in place. become more difficult. We need to specialism is required.
That means that over 40% of the
addressable web has already gone.
CONTEXTUAL WILL BE THE GO-TO FOR re-imagine how we do marketing in Ad networks will return to the fore to
We currently operate in an addressable
TARGETING, AS BUYERS SEEK OUT GREATER the privacy-first era. aggregate and optimise open web
marketplace that is becoming less
addressable by the day. Thankfully,
GRANULARITY. INCREASED PRIVACY CONCERNS
we are seeing offerings and strategies AROUND THE USE OF IP WILL SEE A BIGGER
emerging that are tackling some of
these underlying problems. ADOPTION OF 'EVOLVED' PANEL SOLUTIONS.
The open web will have a good future
post third-party cookie. But it’s going
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INDUSTRY REVIEW 2022 6 INDUSTRY REVIEW 2022 7
PILLAR ONE THE OPEN WEB
THE OPEN WEB Moving Away from
Legacy Infrastructure
RICHARD REEVES
Managing Director,
AOP
⃝✓ This will continue to attract Agencies may want targeted to third-party cookies, there is a rising
number of ad tech intermediaries
Now, more than ever, publishers
need to protect their valuable assets.
advertising to continue in
most of independent ad tech its current form once third- taking data from publishers to fuel To do this, they should focus on
their own solutions — without first applying tighter scrutiny and controls
party cookies are gone, but when entering relationships with
⃝✓ Context will continue to lead
asking permission to do so. Publishers’
publishers don’t need a like- intellectual property is being used intermediaries, as well as ensuring
they have the means to effectively
the way in terms of targeting for-like replacement. With
vast amounts of first-party
by third-party vendors for purposes
enforce the terms of their licensing
outside of licensing agreements
agreements ■
data at their disposal, third- — which may be set to help verify
⃝✓ Measurement will shift to party cookie deprecation brand-safe environments — and
“attention” and panel-based presents publishers with are instead being used to create
contextual advertising segments that
an opportunity to lead the
solutions way forward and take
rival publishers’ ad offerings. In this
instance, activity is comparable to
back control.
⃝✓ Clean rooms play a bigger
agreeing a deal to buy apples but
However, as the industry continues to using them to plant an orchard right
role explore alternative targeting methods next to the farm.
⃝✓ Cookie-less will play a big
role here
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INDUSTRY REVIEW 2022 8 INDUSTRY REVIEW 2022 9
THE OPEN WEB
Let the Cookie Crumble: an
Opportunity for Digital Marketers.
The open web is a space
made up of the weird and SOPHIE LEE
wonderful content we all Sales Director, Quantcast
enjoy every day. There
are currently 1.93 billion
websites on the internet
and 4.95 billion global
internet users. Most of these
websites and users fall into AS WE PREPARE FOR A FUTURE WITHOUT THIRD-
the open internet category,
which encompasses online PARTY COOKIES, QUANTCAST HAS EMERGED AS
destinations that are A STRATEGIC PARTNER, THANKS TO ITS CUTTING-
equally free and available
to all, without requiring
EDGE APPROACH. THEIR SOLUTION HAS ALLOWED
registration or payment. In US TO FULLY SEIZE THE OPPORTUNITIES OF THE
fact, consumers spend 66% OPEN INTERNET AND EMBRACE THE FUTURE
of their time on the open
internet, with the remaining WITH GREATER CONFIDENCE. succeed. This will require marketers complete picture of who the user less competition, and lower inventory
to embrace the opportunities offered might be, and highlights potential costs, as well as time to establish
34% spent in walled gardens. FRANCESCA GRASSI MANTELLI behaviours, interest, and intent. When measurement benchmarks and
by first-party data, as well as cohorts,
DIGITAL MARKETING CLUSTER LEAD, VODAFONE optimise resources and strategy.
Yet, the walled gardens receive 60% contextual, and more. Those who it comes to probabilistic data, more
of advertising spend. There is a major seize these solutions can reap the information is always better, and so By casting a net across the open
disconnect between where consumers competitive advantage of access to the Quantcast Platform takes into web, marketers have the opportunity
are and where ad budgets are being new audiences, more inventory, and account a multitude of relevant signals to scale and reach more diverse
allocated. Traditionally, this has been more scaled advertising results. This when making decisions regarding audiences than they can within a
driven by a perceived gap between matter to them with precision, accuracy looming, this is an ideal moment for audiences, targeting, measurement, walled garden. This unparalleled
is an opportunity for the industry to
the targeting capabilities of the walled and efficiency. our industry to create a more robust and attribution. reach enables far greater effectiveness
rethink identity and make the process
gardens and the targeting capabilities solution for the open web. and efficiency ■
However, as the industry evolves, of collecting consent more transparent.
(or lack thereof) of the open web. But technology must keep up to help Today, much of the internet is already FIRST-MOVER ADVANTAGE
that gap is narrowing — quickly. advertisers and publishers navigate the operating without third-party cookies, WHAT IS THE SOLUTION TO SAVING The challenge of building a
66%
deprecation of third-party cookies and including browsers like Firefox and
Serving relevant advertising to
other digital identifiers by 2023. The Safari, which deprecated third-party
THE OPEN WEB? sustainable, free, open, and trusted
audiences on the open web and internet that better protects consumer
measuring the success of these big question is what will these changes cookies years ago. Even now, an Quantcast believes there is no one- data privacy will not be solved
campaigns has never been simpler mean for the fate of the open web and estimated 30-40% of Chrome users size-fits-all solution to the post-third- overnight or by any one organisation.
than it is today. Over the past few what needs to happen to ensure its browse using incognito mode or party cookie conundrum. Savvy It will take a wide spectrum of
years, ad tech companies have survival as a resource for consumers with strong do not track signals. This marketers will focus on more than a Consumers spend 66% of their
companies from across the online
globally? points to the need for a cookieless
streamlined and simplified advertising single approach to replace the third- publishing, advertising, and technology time on the open internet
on the open web. Advertisers can Well, with change comes opportunity, solution to help marketers and party cookie, because the truth is that industries collaborating together to
now oversee the entire life cycle of and so while third-party cookies publishers measure and optimise the best cookieless solutions will build carve a path forward. Despite this
a campaign using a unified platform have been a popular mechanism for their investments now. on first-party data, cohorts, contextual, daunting challenge, the future is
4.95B
for the open web, and advances in AI measuring return on investment from and more, using an AI-driven ensemble bright for the companies that can
and machine learning are empowering advertising for a long time, they are PRIVACY IS PIVOTAL IN to understand audiences, value successfully navigate this change.
scale and reach like never before. far from perfect. In fact, they have advertising, and measure results. Embracing cookieless advertising
This has transformed the way media been less and less prominent in the
THE SOLUTION The benefit to this approach is that now will give companies a first-mover
is bought and sold and marketers are process of delivering online advertising A privacy-first solution is crucial every signal is additive in that it advantage and will help them benefit
now able to reach the audiences that for some time. So with their demise for any post-cookie strategy to allows advertisers to build a more from access to additional inventory, Global internet users
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INDUSTRY REVIEW 2022 10 INDUSTRY REVIEW 2022 11
THE OPEN WEB
Media Buying AI Will Eliminate the Scibids helps Charlotte Tilbury Beauty reduce cost per
Privacy Vs Performance Tradeoff acquisition (CPA) by 29% with custom bidding
THE GOALS
Increase purchases of luxury cosmetic
For the moment, we’re being products on the Charlotte Tilbury website.
spared apocalyptic headlines JULIEN HIRTH Maximize ad campaign’s return on investment.
Co-founder and General
about the embattled cookie Manager, Scibids THE APPROACH
and the outsized reliance Used Display & Video 360 to optimize bids.
on personally identifiable Worked with Scibids, a company developing
information (PII) in digital custom algorithms to tailor the bidding
strategy.
marketing, but don’t get too Assessed performance impact using
comfortable. Regulators experiments & lift tool.
around the world remain SCIBIDS’ UNIQUE APPLICATION OF DISPLAY & THE RESULTS
emphatic, while big ad tech
VIDEO 360’S CUSTOM BIDDING SOLUTION ACROSS
Reduced customer acquisition costs by 29%.
still plans big deprecation of Increased conversion rate by 60%.
cross-site, tracking-based ad OUR CAMPAIGNS GENERATED A STEP CHANGE IN Doubled viewable reach by optimizing
frequency.
technologies. A cookieless
future for ad tech will be here
PERFORMANCE. WE ARE EXCITED TO LEVERAGE
before you know it, and that THIS PARTNERSHIP TO FURTHER SCALE OUR
should be an exciting time PROGRAMMATIC EFFORT. Restoring confidence in the enjoy rich customisation options to put simplifies campaign setup and ongoing
for digital marketing.
ANDREW LEUNG, GLOBAL HEAD OF performance, quality, and scale their proprietary insights to work. adjustments to campaigns, which
The good news is that artificial PERFORMANCE MARKETING opportunities of the open web is alleviates extra work that traders
intelligence (AI) is growing productivity Further, agencies and ad tech partners
CHARLOTTE TILBURY BEAUTY critical for the entire digital advertising may seek to do.
and profitability opportunities across are seeking to differentiate themselves by
ecosystem. Only independent,
industries. It enables sophisticated, deploying intelligent, proprietary, cross- Scaled & Automatic Usage of AI
agnostic, and transparent AI providers
scaled media buying decisions for channel programmatic media activation Scibids created the Autoplug feature
will be able to handle the full scale
advertisers in digital marketing. The strategies to distinguish themselves in to instruct the AI to be automatically
of what is required for advertisers to
better news is that AI also brings both a DSP landscape that is increasingly activated on campaigns meeting
succeed in the privacy-first era. With
new optimisation methods that eschew commoditised. In short, advertisers can specific criteria. This helps traders
while driving advertiser growth. While produce superior performance across the walled gardens growing larger in a
PII and cross-site tracking while no longer consider AI optional in their scale the usage of Scibids AI on
we’re all mindful of the legal, regulatory, a range of business KPIs. fraught media landscape, advertisers
delivering superior marketing results. programmatic bidding strategy. specific categories of campaigns.
and consumer backlash, advertisers need assurance that their investments
And the best news is that AI works from And like any good technology, the right Other than time saving benefits, it
need to be ready to use big tech’s in the open web are paying off. Dynamic Budget Allocation
within your existing ad tech stack. AI doesn’t ask its users to upend the helps traders optimise campaigns
evolving data regimes. These data sets The following features highlight what AI- Humans can’t compete with a sooner and get quicker results on KPIs.
way they work, nor to stop using the
Few use cases present such an ideal pool users in groups rather than in powered ad decisioning should provide machine’s ability to analyse large data
tech stacks they’re used to. Instead, it Scibids prides itself on being an
environment for the deployment of individual cookies, data structures that media buyers: sets in seconds. Every trader knows
makes those systems work harder and agnostic partner that helps agencies,
novel machine learning as digital simply weren’t top-of-mind for those that some campaigns have the potential
produce more. Increased Data Science Capabilities brands, and ecosystem partners do
marketing; the scale of data points who engineered the algorithms of a to scale in volume of KPIs produced,
decade ago. With the right AI at their sides, As advertisers take greater control of while others do not. This doesn’t mean more with their media budgets using
and media opportunities is global
advertisers like Dell, Nestle, Spotify, their holistic digital media operations, algorithms replace humans but rather AI. The interoperability between
and growing, while data feedback The right AI flexibly ingests these
Square, and Charlotte Tilbury Beauty effective optimisation through frees them up to add the human touch proprietary first-party, CRM, and
for hungry algorithms is real-time. In new data and enables ad campaigns
are embracing a privacy-aligned, highly proprietary, first-party data sets and when applicable and resolve them with marketing cloud data, all the way
addition, ad tech’s primary source of to thrive. Instead of over-targeting a
performant future today. signals is becoming a must-have. more significant AI-enabled insights. to measurement and reporting
fuel (online behavioural analysis) is specific and small group of cookies, Scibids provides customers ramping data (such as attention metrics), to
about to run out, and with it the utility of modern AI is smart enough to ingest There is yet much to do and use up their use of first-party data with Scibids’ dynamic budget allocation become actionable in the bidding
a generation of optimisation methods plentiful, non-user-specific metadata cases to solve. Upending reliance for better results, even if they do not have function allows traders to open up process requires sophisticated AI.
that rely on it.
from web content across much larger cross-site tracking and behavioural deep engineering, data science, or budget allocation at the IO level (not As a decisioning company, Scibids AI
For the most effective results, it’s pools of individuals. It then goes on to targeting is an important step forward. media optimisation resources. More just the campaign level), ensuring that helps partners bring their differentiated
necessary to use ad decisioning pair that data with specific advertiser Fortunately, we have the technology sophisticated advertisers looking to optimally allocating budgets to line assets to the ad decisioning process,
technology capable of flexibly ingesting goals and business rules, and finally to leave burdensome, intrusive, legacy deploy their insights as proprietary items and strategies follow the value creating differentiated results for long-
more voluminous, non-user related data generates buying algorithms that technology from another age behind. custom algorithms in their DSPs can created in real time. This automation term competitive advantages ■
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INDUSTRY REVIEW 2022 12 INDUSTRY REVIEW 2022 13
THE OPEN WEB
Navigating the Fragmented World
The open web is facing its
biggest existential crisis. RICH ASHTON
Managing Partner,
The deprecation of IDs and FirstPartyCapital
third-party cookies are
breaking the targeting and
measurement framework
that has underpinned digital
advertising on the open Google by the French DPA “for You can be guaranteed that the cases
web for the best part of two deploying confusing language in will keep coming.
decades. The industry is cookie banners” is a prime example.
This is not to say that FirstPartyCapital
desperate to preserve the Google has since introduced a
is not optimistic about the future of
status quo. “reject all” button across all its the “open web”. We believe that this
consent banners. transition to a privacy-first environment
Initiatives like the TCF were introduced
Thirdly, we have the changing user will unleash a wave of innovation in
to enable data sharing among
behaviour around privacy. The public ad tech.
the thousands of vendors in the
programmatic ecosystem. This was is becoming more aware of data We also see industry bodies playing a
deemed illegal in February by the usage in ad tech. Privacy settings are key role in helping architect this new
Belgian DPA — in a ruling that the IAB getting tighter and clearer language future. The IAB Tech Lab, for instance,
Europe is currently appealing. on cookie banners will ultimately has done some fine work around
see an increase in “reject all” click the release of SDA (seller defined Clean rooms: Clean room technology be the new metric for measurement Creative: For the past two decades
These efforts are a little like “fiddling rates. Anecdotal evidence from some audience). We believe this will act is arguably the hottest segment in ad on the open web. Attention does there has been an obsession with
while Rome burns”. What actual data European publishers is already as a framework for standardising tech right now. The ability to aggregate, have a few problems: there is no one-to-one marketing — much to the
will be passed in the new-look TCF verifying the latter. publisher contextual data. manage, and activate marketer and standardisation; vendors are pushing detriment of the creative. Now that
when third-party cookies are expunged
And finally, we have the privacy zealots. So, where does FirstPartyCapital see publisher data will become a critical a media and measurement hybrid, there will be less of a reliance on
from all browsers (including Chrome)?
They are an unknown quantity. Johnny this open web innovation coming from? capability. The “clean room” is effectively marking their own media ID-based marketing, the creative is
There are four important factors Ryan and Max Schrems see GDPR as We see four key areas for the open positioning itself as the privacy- homework; and right now there are making a comeback. But there has
working against these misguided a bill of rights for humanity. And they web: clean rooms; attention-based first solution. very few scaled independent solutions. been very little innovation — and you
attempts by LAT (legacy ad tech) to continue to pick holes in ad tech’s measurement; privacy and first party Again, it’s early days for “attention”. cannot count DCO. We see exciting
There has been some early grumblings
preserve the current model. flimsy “sticky plaster” data strategies. data; and creative technology. Independent attention measurement opportunities in AI-based creative
about poor match-rates but this is very
tech offering buyers the necessary and chatbot solutions.
The first of these is the platforms. much the early stage of the “clean room”
framework for measurement is
The privacy functionality being built innovation cycle. We believe there will be With the demise of third-party cookies
definitely coming. Top-of-the-funnel
by gatekeeper platforms like Google multiple players in this space. For that and IDs, the open web now feels —
won’t be sufficient: there will need to
and Apple is making it more difficult reason, interoperability will have to be for some — like a “busted flush”. The
be investment in linking engagement
to hack privacy. a requisite for the segment. “Chicken Littlers” will tell you that
with outcomes.
Secondly is that those practices PRACTICES SKATING AROUND THE FRINGES You are also going to see the
Privacy and supply-side data
the majority of open web budgets
skating around the fringes of emergence of the MCR (Meta Clean is going to Meta, Amazon, Google,
acceptability, such as fingerprinting, OF ACCEPTABILITY, SUCH AS FINGERPRINTING, Room). Given the blockers against
activation: Data management (first- and Amazon. The truth is always a
party and contextual) and activation
will come under increased scrutiny.
Go-to work-arounds like hashed emails
WILL COME UNDER INCREASED SCRUTINY. GO-TO IDs (read above), activation will have
to be on the supply-side. That will be
will be critical for publisher audience
little different. Premium supply will
ultimately consolidate around the best
and IP targeting will be next on the hit WORK-AROUNDS LIKE HASHED EMAILS AND IP a mess of connections that will need
monetisation on the open web.
Understanding how all that data is
publishers, and ad tech will evolve to
list of the privacy engineers. management. An appnexus-for-the- help buyers and sellers navigate this
You also need to contend with
TARGETING WILL BE NEXT ON THE HIT LIST OF clean-room is probably getting
used within organisations will also be
front-of-mind on both the supply and
new fragmented world.
global privacy legislation like GDPR, THE PRIVACY ENGINEERS funding right now.
demand side. With the focus of ad tech FirstPartyCapital is excited to see
CCPA, et al, which are now being Attention: Measurement is the biggest moving to enablement, expect to see a what comes next and continues to
used to full effect. The recent fine issue for brands as we enter this post- wave of interesting ad tech startups in invest in startups shaping the new
(USD$170m/£136m) imposed on cookie/ID world. Attention is vying to this area. open web ■
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INDUSTRY REVIEW 2022 14 INDUSTRY REVIEW 2022 15
THE OPEN WEB
Resolving Publisher Challenges
Independent news publishers
and marketplaces are no MARTIN JENSEN
longer top-of-mind for CCO and Founder, Nexta
agencies and advertisers
— this is a massive threat
to the local media buying
process we know and to the
advertising revenue of local
media outlets. FOR US, USING THE NEXTA PLATFORM IS THE KEY
The optimal performance of an online
marketing campaign is vital, but what COMPONENT IN OUR STRATEGY OF CONVERTING
is equally important — and often
overlooked — is delivering on the
PRINT ADVERTISING SMBS INTO DIGITAL
scheduled client investment: budget, ADVERTISING. THANKS TO THEIR DATA-ORIENTED
clicks, leads, or conversions of some
form. Simultaneously, obtaining optimal APPROACH AND AUTOMATION, PURCHASING
performance while delivering the
booked volume is highly non-trivial
WITHIN PUBLISHING HAS NEVER BEEN SO EASY.
in omnichannel settings. CHRISTIAN THU, VP OF AD SALES
Modern platforms such as Nexta's AMEDIA
NeOO enable campaign spend
to be formulated as a constraint,
allowing a campaign to be tasked with
delivering on a specific budget, either
entirely, or not more, or not less. This through increased local sell-through our platform, always prioritising the Continuing to expand on the value
feature gives the user full flexibility to and by achieving a higher CPM as publishers’ owned inventory as much proposition and monetisation of owned
guarantee presence on all channels, programmatic traffic remains at a as possible while not compromising CONTINUING TO EXPAND ON THE VALUE PROPOSITION content will prove key for publishers,
much lower rate. Nexta is helping to on the advertising clients’ campaign as they are inclined to maintain
regardless of performance, and within
a specific spend range. According automate and facilitate this through performance. AND MONETISATION OF OWNED CONTENT WILL PROVE partnerships with less profitable (albeit
to their respective performances, if a KEY FOR PUBLISHERS, AS THEY ARE INCLINED TO popular among advertising clients)
digital advertising channels, such as
particular campaign cannot deliver its
booked budget, the omnichannel layer MAINTAIN PARTNERSHIPS WITH LESS PROFITABLE Facebook, Google, and Amazon.
dynamically re-allocates the budget to
the client’s other delivery campaigns. (ALBEIT POPULAR AMONG ADVERTISING CLIENTS) Local SMBs are rapidly adapting to the
remote and increasingly online post-
That ensures that the whole campaign
set receives the necessary resources
DIGITAL ADVERTISING CHANNELS, SUCH AS FACEBOOK, COVID consumer environment, and
will demand the same from their local
to deliver on the client’s omnichannel EUROPEAN PUBLISHERS ARE FACING SIMILAR GOOGLE, AND AMAZON advertising partners. Publishers will
target while maintaining optimal
performance.
CHALLENGES AS LOCAL PUBLISHERS IN THE need to accelerate their digital revenue
models and find more ways to continue
European publishers are facing similar US — TRADITIONAL REVENUE (MAINLY PRINT) IS to be SMBs’ preferred local media and
marketing partners, while still remaining
challenges as local publishers in
the US — traditional revenue (mainly
DECREASING, AND PUBLISHERS ARE LOOKING Other trends that have emerged data. This has been fast-forwarded
focused on profitability through offering
digital services which will continue
print) is decreasing, and publishers FOR NEW SOLUTIONS TO BRIDGE THE GAP amongst local publishers include the as we’re entering a new era of
to increase in demand among their
are looking for new solutions to search for automation advantages audience targeting capabilities, privacy
clients ■
bridge the gap. One area is achieving through technological advancements regulation, and advertiser demand
better revenue performance among and the proactive pursuit of ways for transparency and campaign
owned-and-operated inventory to collect and monetise first-party performance and quality.
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INDUSTRY REVIEW 2022 16 INDUSTRY REVIEW 2022 17
THE OPEN WEB
How Everyone Wins: Contextual
Targeting and the Key to Building
Better Relationships
Human relationships are
GREGOR SMITH
vital to us all. Being able to Head of Global Advertising
communicate effectively with Sales, SmartFrame
Technologies
others — whether as friends
or partners, to seek or offer
advice, or for something else
— is critical if we are to get
what we need from life and
make sure that those around THE DEMISE OF THE COOKIE PLACES CONTEXTUAL
us do too. Being understood
is central to this, and those ADVERTISING FRONT AND CENTER OF THE ADTECH
who are receptive to our ECOSYSTEM. SMARTFRAME’S IMAGE-STREAMING
desires and ideas are in a
better position to provide TECHNOLOGY REPRESENTS A GREAT STEP
the things we need than FORWARD FOR CONTEXTUAL TARGETING. is, advertising not based on previous
activity, that is relevant to the here and
According to a survey carried out by
the Interactive Advertising Bureau (IAB),
The principle on which this works
predates the internet, of course.
those who pay no attention.
THE IAB now, and to the content being displayed 81% of UK consumers prefer online ads The idea of placing an ad where an
And often they, in turn, can around it, with respect for user privacy. to match the content they are viewing. already engaged audience is more
benefit from this too. likely to see and respond to it is
Contextual advertising is just that. Consumer preference is not, of
As we move away from third-party Taking cues from the content on course, synonymous for efficacy. something we encounter every day in
cookies and into new digital territory, the page, the sentiment of copy, the But a separate survey carried out by the physical world. But it’s precisely
we should remember this. While most of subjects within images featured, and the IAB, which indicated that 70% of these kinds of findings, and this kind
invasiveness when going about daily issue, but it doesn’t present a solution
our online experiences may not seem the topics under which such content is UK consumers claimed that ads are of understanding of what people in
business online. for the problem that remains — namely,
human in the same way that talking more likely to be remembered if they today’s online environments want
what to serve in its place. filed (among other things), contextual
to a friend or colleague in person Various privacy-focused regulations appear next to content that is relevant and expect, that should inspire the
advertising finely tuned to these things
might, those whose goal is to capture designed to address these issues, A logical approach to solving this asks — together with an additional finding
is not only likely to resonate with the systems we build for the future.
and retain people’s attention online together with changes to browser us to examine what specifically people that 65% of UK consumers have a
functionality from the likes of Apple and object to with cookie-based tracking viewing audience, but it’s also more If brands, publishers and website
should try to consider their audience more favourable opinion of brands
Mozilla in response to these, has meant and behavioural targeting. Advertising likely to ensure the web page operators can make it clear that
as people with needs and preferences that serve contextually relevant ads —
that the average online user is arguably served as a result of this is deemed remains congruent.
first, rather than as numbers and certainly paints contextual ad display their audience’s needs are being
statistics. better informed and better protected to be intrusive because it’s based on Perhaps unsurprisingly, recent as a system in which consumers and considered, and can create more
than ever. Third-party cookies are previous user activity, activity that may research suggests that this is exactly advertisers can be simultaneously meaningful experiences for their
Advertising served by behavioural now blocked as standard by certain no longer be relevant to the user. As what most people would prefer. benefitted. audience, it follows that they stand to
tracking, aided by third-party cookies, browsers, while fingerprinting is most online users browse a variety reap the rewards. Conversions are
was never designed on this principle. receiving the same treatment. What was of sites that can span all manner of
It was intended to exploit the footsteps key, of course, but brand development
once objectionable is now starting to subjects, there’s no guarantee that it
left by our online activities, and to force and loyalty, social shares, and
become a thing of the past. will bear any relation to content being
us to reconsider things we may have recommendations — online or through
displayed at the time it’s viewed. It also
expressed an interest in at some point. But as much as we ought to celebrate word of mouth — are the building
It’s perfectly logical to show people this victory for consumer privacy, it’s
reminds users that their activity is being
monitored by an unknown third party,
REMOVING INTRUSIVE ADVERTISING ADDRESSES blocks of successful brands.
advertisements that are known to be easy to forget that this advertising
related to their interests, hobbies, and existed for a reason. If we’re to
and that it’s being used against them. ONE ISSUE, BUT IT DOESN’T PRESENT A By fostering trust, it becomes easier
to gain more useful first-party data,
purchases, of course, but as data
breaches started to become more
retain the internet that we’re used to,
we should remember that website
What website operator wishes their
audience to have such an experience
SOLUTION FOR THE PROBLEM THAT REMAINS — which users are likely to volunteer if
common, and privacy concerns more operators must still be able to balance
these issues with the commercial
when visiting their site? No doubt very
few. But it does lead us to an interesting
NAMELY, WHAT TO SERVE IN ITS PLACE. they can appreciate it being part of
a fair value exchange. It shouldn’t be
frequently discussed, it was clear that
people were becoming increasingly reality of running their sites. Removing proposition: what would the complete the case that one party must sacrifice
tired of having to accept this level of intrusive advertising addresses one inverse of this situation look like? That something for the other ■
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INDUSTRY REVIEW 2022 18 INDUSTRY REVIEW 2022 19
THE OPEN WEB
Beyond the Cookie: New Signals
in Digital Advertising
The eventual end of cookies
and an addressable web will RICHARD OTTOY
General Manager EMEA
not mean an end to open Sharethrough
web advertising but, instead,
an opportunity to focus
on other signals to deliver
effective privacy-friendly ad
campaigns. The two most performance. The resulting datasets been focusing on even before the
scalable and promising and optimisations can lead to similar cookiepocolypse started. Our goal is
solutions for maintaining and or even better performance as not to reinvent ad formats, simply to
improving ad performance on advertisers experienced with third- meet human needs, behaviours, and
the open web are in improved party cookies, which AI can then use expectations by improving existing ad
to create endless iterations of ads, types like CTV, video, and display.
AI-driven contextual targeting tailored to each unique impression.
and improvements in ad
experiences to better fit Using Natural Language Processing SOLVING FOR BANNER BLINDNESS
(NLP), AI can understand the main Advertisers will spend an estimated
modern consumption message of a site page rather than 23% of all digital ad spend on banner
behaviours. looking for simple keywords. More ads in 2022 (eMarketer). Needless to IMPROVING VIDEO AD EXPERIENCES SOLVING THE TV COMMERCIAL experiences. If we can focus on
than that too, AI can instantly view solutions that build on those two areas,
say, banners are vital to the success Taking a similar human-centric ATTENTION PROBLEM
CONTEXTUAL TARGETING all the images and videos on a page,
of advertising on the open web. approach to video ads, our research
advertisers will have no choice but to
continue to increase investment on
thanks to advanced image recognition Even with the growth of CTV, the actual
Contextual targeting is already a However, most eye-tracking studies uncovered that 75% of people keep open web advertising. This is needed
technology. With all its capabilities, ad experience on TV hasn’t changed
tried-and-true privacy-complaint confirm that consumers are blind to to maintain access to an independent
AI will help create a more robust their devices on mute while watching much. As a result most people don’t
way to exponentially scale ad banners, which is why advertisers are and free open web, which is a basic
contextual targeting platform and, video and prefer video to have pay attention during commercials and
campaigns, while often delivering not surprised to see CTR’s continuing human right ■
ironically, a more human ad captions. However, less than 10% are instead on their mobile devices.
better performance for brands and to fall below 0.10%.
experience for users. of video ads on the open web have
advertisers through more relevant ads One potential solution to pull attention
Since those same eye-tracking studies captions.
for users. Contextual targeting is and AI can deliver the optimal custom away from mobile and back to the TV is
showed people do look at headlines,
will continue to become even more ad experiences tailored to audiences That led us to launch Dynamic through QR codes on TV ads. We saw
7X
we decided to test adding headlines
sophisticated as artificial intelligence by gathering contextual signals and Video Captions, which is a way to a 12% increase in people’s attention to
under banners that fit the look and
and machine learning technology using component parts to automatically automatically add human-verified CTV ads when we added a QR code.
feel of each site. The results were
improve and learn about the correct generate endless variations. captions to advertiser videos that Advertisers can now automatically
incredible. People were 2.5x more likely
contextual signals to consider to further add QR codes to CTV ads targeting
to pay attention and comprehend the run on the Sharethrough exchange.
improve ad performance. BETTER AD EXPERIENCES message of the banner ad when it was We’ve since done six brand studies
Sharethrough but this is just one more
CTR jumped by as much as
example of how the industry as a
Consumers find most ad experiences paired with a headline that used the and all six have shown a significant 7x for banners with headlines
ARTIFICIAL INTELLIGENCE AND to be annoying, obtrusive, and a same text as the banner. increase in awareness and message
whole can better adapt to consumer
MACHINE LEARNING IN CONTEXTUAL behaviours, thus improving ad compared to industry average
large part of why third-party cookies comprehension compared to the same
So we launched a product called performance enough to counteract the
ADVERTISING are going away in the first-place. Enhanced Banners that automatically video without captions. decrease in addressable audiences.
However, by applying the principles adds client-approved headlines to
Current contextual data encompasses This seemingly small adaptation
12%
of human-centric design (HCD) to
various signals like the article
advertising: studying human behaviour
banners that target the Sharethrough towards consumer behaviours went a BETTER PERFORMANCE WILL
exchange and, low and behold, CTR
content, publications, time of day,
trends and local weather and events.
and preferences then adapting
jumped by as much as 7x for banners
long way in improving ad performance SAVE THE OPEN WEB
ad experiences to better fit those and could further improve the future of
Machine learning can add to these with headlines compared to industry video ads on the open web. Focusing on AI-driven contextual
behaviours, ad performance improves
existing signals to create a constant average. Such drastic performance targeting and improving ad experiences
learning loop, whereby advertisers
which can further counteract the loss
increases are exactly what can People are 56% more likely to will help the open web flourish past the increase in people’s attention
of addressable audiences. to CTV ads when we added a
can determine which combinations counteract the decrease in comprehend a video ad’s message end of cookies for two reasons: better
of contextual data are driving HCD is what we at Sharethrough have addressable audiences. with Dynamic Captions. ad performance and better consumer QR code
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THE OPEN WEB
The Pivot to Privacy: Aegrescit Medendo?
It is easy to feel the future
of the open web is fraught. SØREN H., DINESEN
Government regulation; CEO, Digiseg
growing consumer demand
to not be tracked, logged
or resolved; and the
weaponisation of privacy
and consent as a marketing
strategy seem to indicate DIGISEG DATA HELPED MAKE OUR LENOVO
the open web may not be
long for this world. CAMPAIGN A REAL SUCCESS, DELIVERING
What’s at stake? At the risk of VIEWABILITY AS MUCH AS 30% BETTER THAN
appearing hyperbolic, what is at
stake is democracy itself. The COMPETING STRATEGIES AND AN IMPRESSIVE
cure for decades of marketing
surveillance risks being worse than
CLICK RATE.
the disease — Aegrescit Medendo. SABINA SMOŁKA, HEAD OF PROGRAMMATIC
THE COOKIE NEVER LIVED UP digital and cookies. The first TV ad activated using zip codes — a less-
appeared in 1941. TV reigned for 53 than-ideal approach which has limited
There is an accelerating shift of INIS TO ITS PROMISE years before the first banner ad hit its appeal. But with modern modelling
spend into the big platforms. Identity and methodology, entire countries can
The dream promised by cookies desktops in 1994. TV remains the gold
resolution technology is attempting to be segmented into neighbourhoods of
became a Wanamaker-ian nightmare standard for targeted delivery because
recreate the one-to-one tracking the as few as 100 households. It’s how TV
— or at least a Wanamaker-ian it combines context with reach,
deprecation of third-party cookies was would have done it if they’d had digital
mirage. Calculating ROAS required conceding a bit of precision by using
supposed to end. This means explicit instead of broadcast. It is inherently
painstakingly counting and de-duping content as a proxy for identity, but
consent in the form of PII is becoming anonymous, with the ideal blend of
Given just how large the walled what you want; skip the waste. Album last clicks. The promise of laser- compensating with unmatched reach.
the currency of access to information. reach and precision.
gardens’ share of advertising revenue sales have disintegrated. The Swedish guided, one-to-one targeting never This combination is the power of
Having to log in to get news is not
is, even a small shift away can mean a streaming company transformed the quite lived up to the hype. The cookie mass media, and this is where digital
optimal for democracy. We risk a world
with a private web for the wealthy considerable gain for the open web. music business. Another simple piece was supposed to reveal which 50% of needs to shift as cookies disappear. WHAT’S OLD IS NEW AGAIN
advertising spend was being wasted. We need to let go of our cookie-
and a preponderance of platform The cure is not worse than the of technology — the humble browser In music, the album format had a good
But its biggest contribution might be driven, deterministic dream and start
panopticons for everyone else. disease. But the patient is not out of cookie — transformed an entire run until Spotify arrived and everyone
complicated dashboards. imagining targeting without identity.
However, the competition between the the woods yet. The paradigm needs industry almost as quickly as Spotify started listening to singles. But what
It is possible. Here are two methods
to complete the shift in favour of the changed music. The cookie provided was the dominant format before the
titans is going to be fierce. Amazon's
advertising revenue is growing consumers and publishers. advertisers a level of insight they never
DIGITAL AS MASS MEDIA: HOW pointing us toward the mass media
album came along? The single.
exponentially. Apple’s ad network — had. By promising they could pay for
THE OPEN WEB DOES NOT JUST future right now:
Likewise, the third-party cookie has
where it is giving preference to their THE FUTURE OF THE OPEN WEB exactly what they wanted (their target SURVIVE, IT THRIVES. 1. Contextual targeting: This is the had a good run. But despite feeling
own inventory and do not track for same basic model as TV. While the
everyone else — is quietly growing
WILL LOOK A LOT LIKE THE MASS audience) and skip the waste, the The focus on “cookie-free” tracking, cookie reigned, it felt archaic and had
like a tectonic shift in the ad world, the
reality is that the “cookieless future”
quickly. The threat to Meta is clear MEDIA PAST cookie enabled billions of marketing targeting and attribution frames the limited adoption. But savvy thinkers may look a lot like the mass media
dollars, euros, and pounds to move issue in the wrong way. This transition are seeing context in a new light — a
by their investment in creating their If you are Gen X or (gasp!) a boomer, model that dominated for more than
online. Whereas big brands once should not be, as Joanna O’Connell solid segmentation method that’s
metaverse. Whether it is FAANG, or you remember a time when listening half a century before digital. Don’t
relied on PhDs to apply econometric of Forrester puts it, “a find-replace inherently anonymous, with reach
it is MAAAM, or whatever… like the to the new hit song at home meant remember? Ask a boomer. They’ll
moment.” We should not simply
Godzilla meme says: Let Them Fight. wizardry, while mom-and-pop shops challenges that can be solved. tell you ■
buying the whole album. Getting substitute one solution and paradigm
what you wanted required paying relied on instinct, the third-party 2. Offline demographic data: Our TV
Apple’s ATT and the deprecation of the for a new solution in service of the
cookie have also impacted the walled for a bunch of stuff you didn’t: the cookie levelled the playing field, same paradigm. There is a demand for ancestors used panels to approximate
gardens’ greatest strength — the ability other ten songs on the record. Enter bringing the dream of truly measuring real privacy and meaningful anonymity this method, but they could never
to attribute ROAS. This is a significant Spotify. Queue up almost any track advertising effectiveness within — not just cookie redux. Targeting achieve the precision of digital. More
opportunity for the open web. you want for free or a small fee. Get reach for all. and measurement existed long before recently, this data has been clumsily
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INDUSTRY REVIEW 2022 24 INDUSTRY REVIEW 2022 25
RETAIL MEDIA
Why Retail Media is One of the
Strongest Trends Right Now
In 2022, the Retail Media
Network (RMN) has become PAUL FRAMPTON
the latest boom and is one of Global President, CvE
the strongest trends in media
right now. E-marketer goes
as far as calling it the third
wave of digital advertising,
following two consecutive because it has the potential to provide accelerated yet further, with one-third
years of 50% growth in the the key to finely target people who of all sales coming from online
United States; couple this have a genuine proclivity to buy your
There is an evident opportunity for
with the growth of Amazon’s brand. What is less discussed is the
mass retailers who can reach a large
complexity of going from millions of
ad business — USD$31bn customer IDs, to a matched audience
proportion of UK households. Boots,
(£25bn) in 2021. Asda, Tesco, and Ocado are all
that can be physically targeted through
jumping into the space with an offering.
The appeal is understandable — scalable ad tech. Not only does this
incremental revenue for retailers at require a lot of smarts around clean In the US, we’ve seen entrants from
higher margins and an opportunity to rooms, privacy, data fusion, different every category and, if anything, the
grab a piece of the pie from Amazon, browsers (etc.), but it is also a question challenge is now keeping up with the like Facebook or other publishers), media — already we are seeing digital variety of different expertise. Running
Facebook, or Google through offering of how to genuinely use a variety number of options and determining the early investment into measurement, screens programmatically connected, a retail business and running a
compelling "custom audience" of different data sets (retailer and real points of difference between each. insight, and attribution will be but expect to also see more integrated media business are very different
segments, based on transactional manufacturer data, but also second- Whilst it is still a nascent landscape buying platforms where targeted retail- propositions and to be successful in
critical. Brands do not have the
insights, and increasingly layering in and third-party) to both enrich and even in the US, the challenge has not first TV, DOOH, social, and display can the latter, new skills will be essential,
capacity to work with too many of
real-time stock availability. ultimately create scalable reach that been for retailers to win test budgets all be managed and traded together. A ranging from ad tech to digital trading
these retail media networks, and
means fine targeting is purposeful. but more to demonstrate genuine growing ask will also be an integrated to incrementality measurement through
Retail media "networks" are not just more will emerge leveraging their
incremental value and get repeat view of how techniques like instore to technical strategy, data architects,
about blending first-party datasets Consider these two facts (from proprietary transactional data insight
business. activation and shopper marketing and science. As with many decisions
through a DSP and activating against Benedict Evans): to build media networks — two early
These signals are helpful to predict contenders are Shopify and Uber, but versus first-party data programmatic related to digital transformation, you
those audiences. Propositions range 1) E-commerce sales in the UK have
how things will play out in the UK. the likes of Mastercard and Klarna are targeting work in harmony with each can choose to work with a partner or
from Criteo, which has diversified always surpassed that of the US as a
Retailers can generate significant other alternatives. Manufacturers will other and insight that informs how to explore how to best build a long-term,
on sponsored products and off- percentage of all retail sales
incremental revenue here, but to want proof of incremental value versus best optimise the mix between each. sustainable proposition by investing
site proposition through acquiring upfront in the design and ownership
Mabaya; CitrusAds (which enables 2) During lockdown, the UK has build sustainable ad businesses (just their other shopper marketing lines and Retail, or perhaps more aptly of a differentiated proposition with in-
both sponsored products but also other digital marketing lines. named commerce media, offers a house control ■
co-branded landing pages); first-party Some commentators believe compelling advertising opportunity
data being plugged in to Facebook; unbundling or aggregating the data with proximity to transaction (both
and the list goes on. As with the is the longer-term play (this has digital and physical sales) offering the
evolution of digital advertising itself, been said many times before but promise of not only better targeting,
in the early days, search-like formats
dominated in the beginning, but as time BRANDS DO NOT HAVE THE CAPACITY TO WORK has not played out in broader digital
publishing), or that a meta buying
but better performance and closed-
loop measurement. It’s also worth an
passed, more mid- and upper-funnel
formats (such as display and video)
WITH TOO MANY OF THESE RETAIL MEDIA layer is needed that helps ensure opportunity that is not just for FMCGs
but also other categories.
that the same customer seen across
NETWORKS, AND MORE WILL EMERGE LEVERAGING
£25B
arose on Amazon and other RMN
multiple retail media networks can be If you are a retailer or an FMCG,
platforms. In the US, Walmart now
offers CTV through The Trade Desk, THEIR PROPRIETARY TRANSACTIONAL DATA INSIGHT identified and efficiencies found. These
sound like safe bets, but will take time
however, thoughtful experimentation
is required. Whether retailer or
and Kroger has joined with Roku to
do the same.
TO BUILD MEDIA NETWORKS given we are still very much in the FMCG, be sure you know how you
early days. In addition, expect to see will be measuring success before
First-party data clearly plays a technology enable better connectivity jumping in and planning for the fact Amazon's ad business
significant role in this equation between in-store and digital retail that you will likely need to onboard a in 2021
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