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INTERNATIONAL
 MEDIA 2017

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INTERNATIONAL MEDIA 2017 - mandmglobal.com - M&M Global
I NTR ODUC TI ON ● IM2 0 1 7

                                                                                                                    INTERNATIONAL                                              CONTENTS

                                                                                                                    MEDIA 2017                                                 Year in review                   page 4
                                                                                                                                                                               A summary of 2016’s major trends, and
                                                                                                                                                                               what to expect in the year ahead

                                                                                                                                                                               Media practices                         10

  CONTENT.
                                                                                                                                                                               The fallout from ANA’s controversial
                                                                                                                                                                               report on US media practices

                                                                                                              Things can only                                                  Creativity, data, tech
                                                                                                                                                                               Six industry figures discuss ad tech’s
                                                                                                                                                                               role in the ‘holy trinity’ of content
                                                                                                                                                                                                                        14

                                                                                                              get better…                                                      Q&A
                                                                                                                                                                               Who’d play you in a movie of your life?
                                                                                                                                                                                                                        19

  AMPLIFIED.
                                                                                                                                                                               Ad fraud/ad-blocking                    20

                                                                                                              2016
                                                                                                                                                                               Advertisers’ mistrust of agency metrics
                                                                                                                                     will almost certainly go down as a        and how faith can be restored
                                                                                                                                     watershed year in recent history. Did
                                                                                                                                                                               International travellers                24
                                                                                                                                     you know that your British customers
                                                                                                                                                                               Why brands must use new methods to
                                                                                                              really wanted to leave the European Union, or that your US       continue to reach this key audience
                                                                                                              target audience would elect Donald Trump to the highest
                                                                                                              democratic office in the world?                                  Q&A                                     29
                                                                                                                                                                               What is your favourite restaurant?

   WSJ. Custom Studios, the content marketing division of                                                     We are constantly being told how awash we are with data,
                                                                                                              and that it has never been easier to understand the thoughts
                                                                                                                                                                               Artificial intelligence
                                                                                                                                                                               How AI is going to reshape the way
                                                                                                                                                                                                                        30

   The Wall Street Journal, crafts stories for brands that engage                                             and desires of consumers. Yet, in reality, the marketing and
                                                                                                              media industry is only at the start of a long journey to work
                                                                                                                                                                               brands communicate with consumers

   consumers and drive meaningful connections.                                                                out how to make the most of that opportunity.
                                                                                                                                                                               Recruitment
                                                                                                                                                                               Media firms’ fight to attract top people
                                                                                                                                                                                                                        33

                                                                                                                                                                               and stop the leak to trendier employers
                                                                                EDITORIAL
                                                                                                              Yet opportunity remains the key word. In the wake of the
   VIDEO                                              PODCASTS                  +44 (0) 20 7367 6991
                                                                                                              explosive ANA report on media rebates, agencies have a           Q&A                                     37
                                                                                Alex Brownsell, editor,                                                                        Which buzzword would you ban?
   IMMERSIVE DIGITAL EXPERIENCES                      CUSTOM RESEARCH           alex.brownsell@csquared.cc    chance to reframe their relationships with clients (p10).
                                                                                                              Whoever cracks the media measurement challenge will win          Cinema’s future                         38
   INFOGRAPHICS                                       NEWSLETTERS & MAGAZINES   Anna Dobbie, reporter,
                                                                                anna.dobbie@csquared.cc       huge levels of business from clients weary of fraud,             The traditional medium is finding
   NATIVE PRINT                                       MOBILE APPS               Kevin Hilton, design          viewability and ad-blocking scandals (p20). And the rise         renewed popularity among advertisers
                                                                                Chris Young,                  of artificial intelligence is likely to reshape marketing in
   NATIVE ADVERTISING                                 GLOBAL EVENTS                                                                                                            Meet the Millennials                    42
                                                                                production editor
                                                                                                              unimaginable ways over the coming few years (p30).               Our new list of media’s brightest talents
                                                                                Jeremy King, COO, events
                                                                                and publishing, Festival of                                                                    Blogs                                   52
                                                                                Media and M&M Global
                                                                                                              For the second year running, we also bring you a list of the
                                                                                                                                                                               Four opinions from inside the industry
   For more information, please visit wsjcustomstudios.com or contact           Jeremy.king@csquared.cc       brightest talents in international media in the form of our
                                                                                Contributors:                 Meet the Millennials programme (p42). The prevalence of          Cuba                                    56
   Aaron Robinson: Aaron.Robinson@dowjones.com | +44 2075722107                 Ben Bold, Matthew             data, digital and content skills gives us every reason for       The country is changing, but breaking
                                                                                Chapman, Mike Fletcher                                                                         into the market definitely won’t be easy
                                                                                                              optimism that our industry can thrive, no matter what geo-
                                                                                ADVERTISING
                                                                                                              political shocks it must withstand in 2017 and beyond.           Allan Rich’s story                      60
                                                                                +44 (0) 7528 4888 38
                                                                                                                                                                               Highlights from a media legend’s tale
                                                                                Michelle Graves,
                                                                                                              Wishing you a hugely successful year, from everyone on the
                                                                                commercial director,                                                                           Videos                                  64
                                                                                michelle.graves@csquared.cc   M&M Global team.
                                                                                                                                                                               A selection of four M&M Global TV
                                                                                ADDRESS                                                                                        interviews from last year’s top events
                                                                                C Squared Networks Ltd        Alex Brownsell
                                                                                1st Floor, 115 Southwark      Editor, M&M Global                                               Award winners                           69
                                                                                Bridge Road                                                                                    M&M Global Awards 2016: the winners
                                                                                London, SE1 0AX
© 2016 DOW JONES & COM PANY, INC. ALL RIGHTS RESE RVED.
                                                                                United Kingdom                mandmglobal.com

                                                                                                                                                                   M&M GLOBAL INTERNATIONAL MEDIA 2017 03
INTERNATIONAL MEDIA 2017 - mandmglobal.com - M&M Global
I M 2 0 17 ● YE AR IN REVIEW                                                                                                                                                              YE AR IN R E VIE W ● IM2 0 1 7

                                                                                          THE NEXT 12 MONTHS IN NUMBERS…
                                                                                                                                                                                                               52% For the first time,
                                                                                                                                                                                                                   the majority of
                                                                                                                                                                                                                   digital ad sales
                                                                                                                                                                                                                   will be generated

                                                                                                                                                  31%
                                                                                                                                                                                                                   by mobile
                                                                                                                                                                                                                   impressions or
                                                                                                                                                                                                                   clicks
                                                                                                                                                                                                                   Source: Magna

                                                                                                                                                 Programmatic advertising’s
                                                                                                                                                      growth in 2017
                                                                                                                                                         Source: Zenith

                                                                                          $22.9bn
                                                                                           Net global ad growth
                                                                                                                                                                                                  Growth in ad spend by
                                                                                                                                                                                                  regional bloc in 2017
                                                                                                                                                                                                  Source: Zenith
                                                                                                  in 2017
                                                                                                Source: GroupM

                                                                                                                                                                        Western
                                                                                                                                                                       & Central         ‘Fast track’
                                                                                                                              North America 3.7%                    Europe 2.8%           Asia 8.5%

                                           F
     2016
                                                  or all the political tumult, 2016 was                                                Latin America 1.9%                   MENA 7.3%           ‘Advanced’ Asia 2.3%
                                                  by no means a bad year for the

                                                                                                             40% vs 36%                                                                                            71%
                                                  media and advertising industry. In
                                                  fact, IPG Mediabrands agency Magna
                                           claims that it produced the highest rate of
                                           global growth since 2010. All the key trends                                                                                                                    of total ad sales growth
                                                                                                                 Global digital-based ad sales ($202bn) will
                                           continued apace: digital commands a larger                                                                                                                       will be contributed by
                                                                                                                 overtake linear TV ($186bn) to become the
                                                                                                                                                                                                                      six countries:
                                           and larger slice of marketing budgets; an                                number one media category in 2017

     A YEAR IN
                                           increasing portion of that spend is going                                             Source: Magna                                                                         China $6.2bn
                                           into mobile; and programmatic is attracting                                                                                                                                     US $4.7bn
                                           ever-more investment, particularly outside

      REVIEW
                                                                                                                                                                                                                           UK $1.6bn
                                           of advanced markets such as the US and UK.                                                                                                                              Argentina $1.4bn
                                                                                          Three predictions for annual growth in the global ad market in 2017                                                          Japan $1.3bn
                                           By examining the global forecasts from
                                           Magna, WPP’s GroupM and Publicis Media’s                                                                                                                                      India $1.1bn
                                                                                                                                                                                                                           Source: GroupM
                                           Zenith, M&M Global has curated a selection

  M&M Global casts its eyes over the key
                                           of need-to-know facts about media and
                                           marketing in 2017. And overleaf, our friends
                                                                                             4.4%                              3.6%                          4.4%
                                                                                                Source: Zenith                   Source: Magna                  Source: GroupM
                                           at eMarketer have given in-depth reports
   trends in 2016, and predicts what we    on the comparative development of digital
  might expect over the coming 12 months   media in Western Europe and Asia.

04 M&M GLOBAL INTERNATIONAL MEDIA 2017                                                                                                                                           M&M GLOBAL INTERNATIONAL MEDIA 2017 05
INTERNATIONAL MEDIA 2017 - mandmglobal.com - M&M Global
I M 2017 ● Y E A R IN REVIEW

 2016                      A landmark year for digital
 A YEAR IN                 advertising in Western Europe
 REVIEW                    By Karin Von Abrams, senior analyst at eMarketer

                        eMarketer sees a handful of
                        powerful forces pressuring the
                        global media and marketing
                        ecosystem in 2016. The first and
                        most powerful of those forces is
                        mobile. Looking back, 2016 may
                        well emerge as the pivotal year
                        in the evolution of our mobile-
first, mobile-centric society. Investment in mobile
internet ads in Western Europe is expected to jump
almost 45% this year. Several key markets – including
France and Germany – have reflected a similar pace
of change in the past 12 months.
   The second force is data-driven advertising
automation, otherwise known as programmatic
advertising. In France, an estimated 64% of all digital
display ad spend this year went to programmatic
trades. On the other hand, legacy systems for media
buying and selling have delayed programmatic
implementation in some countries. Automated
trading is already delivering on some of its
promises, but is unlikely to fulfil them all.
                                                 64%
                                                      of digital ad                              Western Europe is becoming ‘mobile-first’
   The third force is consumers’                        spend in
increasing desire to avoid advertising               France went to
to some extent, abetted by technology:               programmatic
ad-blocking, in other words. In 2016, 10.9                trades
million internet users in the UK used an ad           Source: eMarketer          effect on brands’ digital budgets. That said, we expect
blocker, and that number is climbing.                                            Spain to finish 2016 on a more positive note than Italy,
   All of those forces are playing out across                                    where digital ad spend growth is concerned. A vibrant
Western Europe, regardless of political and economic                             mobile culture is contributing to Spain’s upswing.
trends, and against the background of rising digital
ad spend. But the impact differs country by country.                             SPOTLIGHT ON GERMANY
   The UK continues to be the leading regional                                   As a relatively mature digital market, Germany will
market, in many respects. This is an advanced digital                            continue to post steady gains in digital ad spend
culture; internet penetration is high, as is usage of                            during the next few years. Despite the political and
smartphones and other mobile devices, and the                                    financial turbulence felt across Europe as a whole,
country has a well-deserved reputation as a hotbed of                            the German economy is essentially solid and resilient
both technological and marketing innovation.                                     – one of the healthiest in the region, in fact.
   So it’s not surprising that the UK currently                 It’s not            As Germany’s population skews slightly older than
accounts for more than 40% of digital ad spend                                   some other major markets in the region, traditional
in Western Europe. A large proportion of                        surprising       media – print formats in particular – have maintained
digital advertising in the UK is already handled                that the UK      a firm hold on national audiences. Expenditure on
programmatically; similarly, a lot of programmatic                               digital ads is gradually closing this gap, though.
activity is already focused on mobile devices.
                                                                currently           While digital doesn’t yet account for as much of
   Germany lags some way behind on these measures,              accounts for     the total ad spending pie in Germany as it does in the
yet it will register digital ad spend more than double          more than        UK, for example, that slice is expanding, and will hit
that in France this year. By contrast, Italy and Spain                           29% this year, eMarketer estimates. Here, too, mobile
have seen much lower levels of digital ad expenditure           40% of digital   is the crucial driver; in 2016, mobile ad spend grew
– below $2bn in each case. In these two markets,                ad spend         nearly 10 times as fast as digital ad spend overall.
long-standing economic difficulties have hindered                                   Meanwhile, back in Germany’s desktop economy,
the expansion of digital infrastructure and business            in Western       an interesting trend may be emerging, according to
investment in digital operations, with a predictable            Europe           industry body the Online-Vermarkterkreis (OVK). It

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I M 2017 ● Y E A R IN REVIEW                                                                                                                                                                                                                                        YE AR IN R E VIE W ● IM2 0 1 7

                                                                                                                                                              middle class in all three countries has created a
                                                            Share of desktop page impressions in Germany on which                                                                                                         Programmatic digital display ad spend in China 2014-2018
                                                                                                                                                              new consumer cohort with the disposable income
                                                            display ads were blocked Q2 2015 – Q3 2016 (% of total)                                           to spend on smartphones and service plans. These            (billions, % change and % of total display ad spend*)
                                                                                                                                                              items were once out of the reach of all but the highest
In 2016, mobile advertising                                 %                                                                                                 income-earners. However, the ascent of low-cost                 122.8%
                                                                                                                                                                                                                                                                                                           $22.94
                                                            25                                                                                                smartphones – many of which are made in China –
spend grew nearly 10 times as                                                                                                                                 and data plan price wars resulting from competition
                                                                      21.5%                        21.5%
fast as digital ad spend overall                                                     21.2%
                                                                                                                  20.1%                                       among wireless carriers, has made mobile internet
                                                                                                                                 19.4%           19.1%        more widely accessible in the Asia-Pacific region.
in Germany                                                  20
                                                                                                                                                                 There are, nonetheless, several areas of the digital
                                                                                                                                                                                                                                                                                        $16.74
                                                                                                                                                              ad ecosystem in which developing Asia-Pacific
recently reported a decline in the share of web page        15                                                                                                markets still lag behind more advanced countries,
impressions on which display ads were blocked.                                                                                                                one key area being programmatic advertising.
Over the first three quarters of 2016, that share fell by                                                                                                        China represents a unique middle ground between                                                     $11.05
modest increments, from 21.5% to 19.1%.                     10                                                                                                emerging and mature programmatic markets.
  This may signal that some internet users were                                                                                                               eMarketer estimates that more than half of digital ad
                                                                                                                                                                                                                                                                      71.7%              58.0%
taking a more measured view of ad-blocking, and                                                                                                               outlays in China will be transacted via programmatic                      53.5%      $6.46
agreeing to see ads on sites they value, for example                                                                                                          methods for the first time in 2016, with the vast                                                                                              61.5%
                                                             5
– or that a growing focus on mobile devices has                                                                                                               majority handled by Baidu, Alibaba or Tencent.                   $4.21
                                                                                                                                                                                                                                                                      51.0%              51.5%
marginalised desktop PCs, making ads served to                                                                                                                   However, China’s programmatic market remains
them less significant, so hardly worth blocking. It’s        0                                                                                                beset by significant problems, including a dearth of                                44.0%
too soon to pinpoint the cause or causes of this trend;             Q2 2015        Q3 2015        Q4 2015        Q1 2016        Q2 2016        Q3 2016        robust third-party data providers, conflicts of interest         38.0%                                                                         37.0%
similarly, we don’t know whether it will continue, or                                                                                                         among those selling inventory and rampant ad fraud.               2014               2015               2016                2017               2018
                                                            Note: based on figures reported by OVK members; read as ‘delivery of ads was blocked on
be replicated in other Western European markets.                                                                                                                 Programmatic faces even higher hurdles in most
                                                            19.1% of page impressions in Q3 2016’.                                                                                                                             Programmatic digital display ad spending
But it’s one of many things to keep a sharp eye on, as      Source: Bundesverband Digitale Wirtschaft (BVDW) and Online-Vermarkterkreis (OVK). “Zentrale      Southeast Asia markets, where digital has yet to                 % change        % of total digital display ad spending*
2016 comes to an end.                                       Adblocker-Rate des OVK” as cited in company blog, 16 November 2016.                               achieve a comparable reach to traditional media
                                                                                                                                                              outlets such as television. Automated trading, with          Note: converted at the exchange rate of US$1=RMB6.23; digital display ads transacted via an
                                                                                                                                                              its attending lexicon of jargon acronyms and often           API, including everything from publisher-erected APIs to more standardised RTB technology;
                                                                                                                                                                                                                           includes ads on ecommerce websites such as Alibaba properties; includes advertising that
                                                                                                                                                              opaque methods of measuring return on investment,

                              Digital advertising in
                                                                                                                                                                                                                           appears on desktop/laptop computers, mobile phones, tablets and other internet-connected
                                                                                                                                                              presents a significant barrier to ad-buyers more used

 2016
                                                                                                                                                                                                                           devices. *Includes banners, rich media, sponsorship, video and other.
                                                                                                                                                              to direct deals and clearly established metrics.             Source: eMarketer, March 2016
                                                                                                                                                                 One area of digital advertising that is likely to see

 A YEAR IN                    Asia-Pacific is driven by                                                                                                       faster growth in Asia-Pacific is video advertising.
                                                                                                                                                              India, for example, is on the cusp of a sharp increase

  REVIEW                      the smartphone revolution
                                                                                                                                                              in digital video consumption that will be driven by
                                                                                                                                                              falling service plan prices due to competition among
                                                                                                                                                              mobile carriers. Upstart mobile telecom company
                                                                                                                                                              Reliance Jio has already had a dramatic effect on the
                                                                                                                                                              market by providing consumers with 4G data rates of
By Rahul Chadha, Asia-Pacific analyst at eMarketer                                                                                                            less than $1 per gigabyte.
                                                                                                                                                                 eMarketer estimates that the number of digital
                                                                                                                                                              video viewers in India will climb from 149.7 million
                     While Asia-Pacific currently                                                                                                             this year to 244.1 million in 2020, when 18.4% of the
                     trails North America on digital ad
                                                            Digital ad spend as a percentage of total media ad spend                                          population will watch a video online at least once
                     spend, expenditures in the region      worldwide by region, 2016 and 2017                                                                per month. Cheaper and faster data will have a
                     are a close second this year.                                                                                                            strong appeal to these entertainment-content-crazed
                     eMarketer projects that digital ad                      Asia-Pacific                                                  38.8%              consumers in India, which churns out an astounding
                                                                                                                                               43.1%
                     outlays will total $68.7bn in 2016,                                                                                                      amount of cinema and music.
                                                                                                                                        35.9%
                     and more money will be spent on                     North America                                                     38.4%                 Advertisers will be forced to follow those
                     digital advertising in Asia-Pacific                                                                               34.5%
                                                                                                                                                              consumers as the traditional media format of TV
by 2018 than in any other area of the world.                           Western Europe                                                                         fractures, much as it already has in both the US and
                                                                                                                                        36.1%
   The growth of digital ad spend is inextricably                                                                                    32.6%                    Western Europe.
                                                            Central & Eastern Europe
tied to the emergence of the mobile-first markets of                                                                                   35.0%
China, India and Indonesia, which boast a combined                        Latin America                            19.1%
                                                                                                                    20.6%                         2016
population of almost three billion, according to                                                                                                  2017
figures from the US Census Bureau. These three                    Middle East & Africa                        13.3%
                                                                                                                15.7%
markets will see the strongest growth in digital ad
                                                                                                                                       34.4%
spend over the next four years, largely due to one                           Worldwide
factor: the smartphone.
                                                                                                                                          37.4%
                                                                                                                                                              There will be 841 million
                                                                                         %0            10          20           30          40           50
   There will be 841 million smartphone users in these
                                                            Note: includes advertising that appears on desktop and laptop computers as well as mobile
                                                                                                                                                              smartphone users in China,                                 The focus is on smartphones in Asia-Pacific
three countries in 2016, by eMarketer estimates, more
than four times the number found in the US. The
                                                            phones, tablets and other internet-connected devices, and includes all the various formats of     India and Indonesia in 2016,
                                                            advertising on those platforms; excludes SMS, MMS, and P2P messaging-based advertising.
continued emergence of a nascent, but burgeoning,           Source: eMarketer, March 2016                                                                     four times more than in the US

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I M 2 0 17 ● M E D IA PRACTICES                                                                                                                                                                             ME DI A PR AC TI C E S ● IM2 0 1 7

                                                                                                                   [business-development] effort. The ANA
                                                                                                                   allowed themselves to be part of a third party’s
                                                                                                                   business development.”
                                                                                                                      Gotlieb’s attempt to dismiss the findings of
                                                                                                                   the ANA’s report as merely a cynical bid by Firm                  The more
                                                                                                                   Decisions (a subsidiary of Ebiquity) and the forensic           it’s denied
                                                                                                                   investigation team at K2 to win more business has, if
                                                                                                                   anything, only served to put the ANA’s investigation          by agencies,
                                                                                                                   and the issue of agency transparency squarely back             the greater
                                                                                                                   on the agenda.
                                                                                                                      Tom Denford, chief strategy officer at ID Comms,              the loss of
                                                                                                                   was disappointed by the comments: “Irwin                    trust between
                                                                                                                   Gotlieb doesn’t say anything that’s not scripted or
                                                                                                                   intentional so I was really sad to hear his remarks. It’s
                                                                                                                                                                                   clients and
                                                                                                                   disappointing to know that agencies haven’t moved              their media
                                                                                                                   on and accepted there’s a problem and that it’s time to            agencies
                                                                                                                   find a solution.
                                                                                                                      “Agencies are still intent on deflecting the spotlight
                                                                                                                   and kicking up enough silt to get them from one
                                                                                                                                                                                                                            Nick Manning, chief strategy officer,
                                                                                                                   financial reporting quarter to the next.”
                                                                                                                                                                                                                                                       Ebiquity
                                                                                                                      More recent remarks from WPP’s chief executive
                                                                                                                   Sir Martin Sorrell would appear to substantiate
                                                                                                                   Denford’s point. During a third-quarter earnings call
                                                                                                                   on 31 October, Sorrell tried to deflect the attention
                                                                                                                   away from the $180bn media market in the US, by                                 with clients and media owners to ensure that media
                                                                                                                   saying that the ANA should have pushed for greater                              one day joins the ranks of other, highly accountable
                                                                                                                   transparency in Japan and the Middle East instead.                              professions, agencies continue along a road of
                                                                                                                                                                                                   outward denial.
                                                                                                                   HEAD IN THE SAND                                                                  Ebiquity’s chief strategy officer, Nick Manning,
                                                                                                                   No-one can deny that a lack of transparency in these                            sums it up best by saying: “The industry has to stop
                                                                                                                   regions is a problem. In September, Tokyo-based                                 denying the disease in public and start talking
                                                                                                                   Dentsu promised to pay back $2.3m (230 million yen)                             about the cure instead. It’s a global problem that for

                    A STATE
                                                                                                                   to clients it had overcharged for digital advertising                           every dollar of media spend, only 40 cents reaches
                                                                                                                   work in Japan. Dentsu admitted that following a                                 the publisher.
                                                                                                                   month-long investigation, it had uncovered 633                                    “K2’s investigation found 150 clients, agencies and
                                                                                                                   suspicious transactions affecting 111 clients, some of                          media owners across America who painted a picture
                                                                                                                   which date back to November 2012.                                               of the industry that every media owner and ad tech

                  OF DENIAL
                                                                                                                     But what frustrates people like Denford is that,                              player recognises. The more it’s denied by agencies,
                                                                                                                   rather than daring to admit that transparency is a                              the greater the loss of trust between clients and their
                                                                                                                   global problem, and that they should work together                              media agencies.”
                                                                                                                                                                                                     Ebiquity’s role in the ANA report was to produce
                                                                                                                                                                                                   the recommendations document, which was intended
                                                                                                                                                                                                   to build on the investigation carried out by the K2
                                                                                                                                                                                                   Intelligence Study, and move the conversation on
                             Mike Fletcher investigates what has happened                                                                                                                          from the revelations to prescribing solutions.
                                                                                                                                                                                                     Its report recommends three overarching actions:
                              since the ANA published its explosive report                                                                                                                         a uniform code of conduct between advertisers and
                                   into US media practices in June last year                                                                                                                       agencies; establishing media agency management
                                                                                                                                                                                                   principles such as complete transparency and
                                                                                                                                                                                                   better communication; and that marketers establish

                                  D
                                                                                                                                                                                                   primacy over the client-agency relationship, and
                                                eflect, lash out, refuse to take responsibility and blame anyone
                                                                                                                                                                               It’s                regularly re-evaluate and upgrade internal processes
                                                but yourself. America must be praying that its new President-                                                                  disappointing       and practices.
                                                elect does not revert to his campaign rhetoric once he takes                                                                   to know that
                                                office in January. However, according to some media                                                                                                FINDING SOLUTIONS
                                                commentators, Donald Trump is not the only one who should                                                                      agencies            In addition to these three pillars, there were a further
                                  think before he speaks. GroupM’s global chairman Irwin Gotlieb has come                                                                      haven’t             seven strategic recommendations for advertisers to
                                  in for a lot of flak after giving a very Trumpesque response when asked                                                                                          consider, in order to reduce or eliminate the potential
                                  recently about the ANA-backed seven-month investigation into US media                                                                        moved on            conflicts identified in the K2 Intelligence study.
                                  practices, which in June reported that rebates and other “non-transparent”
                                                                                                                   Tom Denford, chief strategy
                                                                                                                                                                               and accepted          One drawback, however, which Ebiquity’s Manning
                                  methods are pervasive in the American media-buying ecosystem.                                                                                                    concedes, is that the three documents that make
                                    On-stage at the Video Everywhere Summit in New York on 27 October,
                                                                                                                   officer, ID Comms                                           there’s a           up the ANA report are so dense that not many
                                  Gotlieb said: “I’m going to be really harsh. The entire effort was a biz-dev                                                                 problem             people actually got as far as the seven strategic

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I M 2017 ● M E DIA PRACTICES

recommendations. There seems to be a widely held
assumption that Ebiquity was only recommending
auditing when, in fact, it was much broader.
   “My hope is that, in 2017, we can spend more time
talking about the solutions to greater client agency
trust, which in turn will lead to more conversations                The ANA report didn’t
about all the great advertising and media work taking               come as a surprise to
place around the world,” Manning says.                                                                                           7-9 May 2017, Rome Cavalieri, Italy
   “What can agencies do? Acknowledge the issues                    us because we’re a
and then address them. However, it’s the advertisers                global business

                                                                                                                             3 DAYS 5 STAGES
themselves who have to step forward and take control
of their media governance, in order to force real
behavioural change.”
   According to several industry sources, advertisers
have responded to the ANA’s report in three ways.
   Some remain paralysed by the complexities
involved in investigating or changing contractual
terms with an agency, so have done nothing. Some,
                                                                                                                       300+BRANDS 800+ATTENDEES
such as JP Morgan Chase, have carried out a full
agency audit and found no wrong-doing, so are
                                                                                      Gerry D’Angelo, European
                                                                                                                                                     BRAND ATTENDEES ALREADY INCLUDE
sticking by their agency.
                                                                                    director of media and global
                                                                                      digital media partnerships,
BRAND-LED CHANGE
                                                                                          Mondelez International
The third way could be a potential game-changer,
however. With many advertisers planning global
agency reviews, and some, like Procter & Gamble,
recruiting chief media officers, there is a sense
that the brands will hold their media agencies to         Over a four-month period in 2015, it consolidated its
better account.                                           agency roster and moved media buying in the US, UK
   A media professional who did not want to be            and India to Dentsu Aegis’s Carat, while also giving
named told M&M Global: “The ‘Mediapalooza’ of             the agency network global communications across all
2015 saw almost $30bn of business up for grabs, but       product categories. Carat also handles Mondelez in
it was very US-centric. In 2017, we’ll see even more      the Asia-Pacific region and most of Europe.
global reviews as advertisers realise they need to sure      “The ANA report findings in 2016 didn’t come
up out-of-date contractual terms with their agencies      as a surprise to us because we’re a global business.
and keep a closer eye on how media is bought, in the      Understandably, most US-only businesses regarded
wake of the ANA revelations.”                             it as a non-rebate market, but the prior evidence
   One advertiser that has already been through a         from all other regions was compelling,” says Gerry
global review process is Mondelez International.          D’Angelo, European director of media and global
                                                          digital media partnerships at Mondelez.
                                                             “Well in advance of the report we were able to                                                   THEMES FOR 2017 INCLUDE
                                                          implement best practice from other regions, in
                                                          particular Europe, and insisted that transparency by
                                                          audit was a major part of our recent global media
                                                          agency RFP. We were pleasantly surprised though to            PROGRAMMATIC: ADDING                           CONTENT CURATION                            MEASURING DATA
                                                          find that those agencies who pitched really bought         VALUE, DELIVERING EFFICIENCY,                           AND                                   AND DELIVERING
                                                          into this,” adds D’Angelo, who is soon to join P&G.           EMBRACING CREATIVITY                             DISTRIBUTION                               IMPACTFUL ROI
                                                             Despite the continued attempts to discredit the
                                                          ANA report by the likes of Gotlieb and Sorrell,
                                                                                                                            How to set up a robust              Brands, media and influencers: finding         Integrity and transparency:
                                                          other advertiser brands also say that, away from
                                                                                                                            programmatic operation                new ways for content curation and       measurements, industry standards and
                                                          shareholder scrutiny, many agencies are co-
                                                          operating professionally over client concerns                           in-house                              audience engagement                          tangible results
                                                          around transparency.
                                                             It is possible that, if progress is happening, it is   Enhancing and leveraging data: metrics,         Context, scale and relevancy:         Be on top of the consumers’ journey: the
                                                          going on behind the scenes. Some agencies are even                  social and beyond                     content marketing at its best            cross-platform distribution model
                                                          believed to be planning announcements for 2017 that
                                                          will give clients more accountability and control.                  Strategies to tackle              Uncovering the benefits of geo-location     Dark social: how to do it and how to
                                                             If a second, more globalised pitch storm is brewing                  ad blocking                               tools and IoT                          measure it effectively
                                                          for 2017, agencies will need to focus on this internal
                                                          evolution in order to avoid a potentially costly client   Exploring programmatic across mobile          Nailing video storytelling: creation,   What is the right talent you need for the
                                                          revolution. It will mean placing transparency and                       and video                         distribution and monetisation                        right results
                                                          trust at the heart of the media relationship.

12 M&M GLOBAL INTERNATIONAL MEDIA 2017
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                                                   AD TECH
             Marketers have                                                                                                                                                                         DAMIEN HODGE
                                                                                                                                                                                                    Commercial director, Xaxis
           long been at war
          about the relative                                                                                                                                                                        How do you see the relationship between
                                                                                                                                                                                                    data, tech and creative developing?
               importance of

                                                   LEADING THE
                                                                                                                                                                                                    The creative element is incredibly important; the
                                                                                                                                                                                                    industry has come a long way in putting a single
        creativity, data and                                                                                                                                                                        relevant message in front of the right user group.
             technology. We                                                                                                                                                                         What hasn’t been addressed fully yet is using data to

                                                   HOLY TRINITY
                                                                                                                                                                                                    further inform the look and message of the creative
            spoke to six key                                                                                                                                                                        on a more individual basis and with greater elegance,
            industry figures                                                                                                                                                                        especially around branding messages. The potential

                                                   OF CONTENT
                                                                                                                                                                                                    benefits of successfully doing this require clear will
       about how the ever-                                                                                                                                                                          and drive by all parties. The key to how quickly this
                                                                                                                                                                                                    develops is ensuring that any solution is scalable.
           progressing field
        has changed in the
             past 12 months                        IN 2016?                                                                                                                                         What effect has ad-blocking had on
                                                                                                                                                                                                    the space?
                                                                                                                                                                                                    Most users don’t use ad-blocking software, and the
                                                                                                                                                                                                    sheer scale of inventory available has negated any
                                                                                                                                                                                                    reach issues, plus there are clearly issues around how
                                                                                                                                                                                                    it is monetised and who is deciding what the ‘quality’
                                                                                                                                   DAVID McMURTRIE                                                  rules are. It is, however, a potential big issue which
                                                                                                                                   Head of UK publishers, Google                                    needs to be taken seriously – the more irrelevant ads,
                                                                                                                                                                                                    or horribly disruptive ads there are, the more people
                                                                                                                                   How are brands approaching ad tech differently                   will turn to these solutions.
                                                                                                                                   in 2016?
                                                                                                                                   There has been a marked shift towards having a fully             What does 2017 bring for ad tech?
                                                                                                                                   optimised technology stack, consolidating to just a few          We’ll see further blurring of the lines between ad
                                                                                                                                   technology partners with the goal of improving end to end        tech and mar-tech, and of course further M&A
                                                                                                                                   efficiency. This is true across both demand and supply sides     activity in this space as companies enhance their
                                                                                                                                   of the business and addresses the major challenges the           platform, and develop fuller stacks. More clients will
                                                                                                                                   digital advertising industry faces – delivering a better user    base media activation on their own DMP and make
                                                                                                                                   and advertising experience and driving greater transparency      more use of the deep data they already hold. I also
                                                                                                                                   and efficiency in the ecosystem. 2016 was the year when we       believe that measurement will change to include
                                                                                                                                   saw brands really start to understand and interrogate the        more qualitative analysis – including a re-look at
                                                                                                                                   value of each component part of their ad tech infrastructure.    attribution, which could have a profound effect on
                                                                                                                                   At a simplified level, is each element of my programmatic        ad-tech players behind the curve. This is one you
                                                                                                                                   stack delivering enough value to justify its inclusion?               may have heard before, but I genuinely think that
                                                                                                                                                                                                            2017 will see the end of mobile and desktop
                                                                                                                                   What challenges must be tackled for ad tech                                 being treated individually.
                                                                                                                                   to grow?
                                                                                                                                   Ad tech will continue to grow at a rapid rate, the
                                                                                                                                   question is more what hurdles are we going to place in
       NICK REID                                                     become challenged by a fragmented consumer landscape.         front of ourselves? Not abusing the tools we’ve been
       UK managing director, TubeMogul                                                                                             given will be important – particularly how to create and
                                                                     What challenges must be tackled for ad tech                   deliver personalised messaging without crossing the
       What have been the key trends and insights                    to grow?                                                      boundaries. Understanding the value of intermediaries                          We’ll see further
       driving ad tech in 2016?                                      Walled gardens. The reality that there are businesses         is also key, and whether the value delivered is justifying                     blurring of the lines
       Consolidation and cross-screen. We see advertisers            that prevent the free flow of audience data to the            the cost. Finally, as ad tech becomes more mainstream, it’s
       automating broad-reach RTB, with programmatic direct          hindrance of the advertisers. The irony that we are still     important to reflect that in the positioning and language
                                                                                                                                                                                                                  between ad tech and
       on broadcast and, now, social, as Facebook, Twitter and       talking about transparency, when this should be what          that we use – it’s not about making marketing speak in a                          mar-tech, and of
       Snap look to scale their video offering. This is all in the   software provides. Measurement, as the proxy of a cookie      programmatic language, it’s the other way around.                                      course further
       ambition to take an audience-first approach and break         disappears as the consumer continues to move from
       down the traditional silos, moving in the direction of        desktop to mobile. Silos – we are still a long way from       What does 2017 bring for ad tech?                                                          M&A
       cross-screen. The challenges of planning, buying and          being in a place where we break down the approach and         Technology consolidation and platform diversification.                                       activity
       measuring cross-device are starting to be overcome,           budgets that sit in social, digital, mobile, TV – something   I’d expect buyers to continue to refine their
       and cross-screen is the topic on everyone’s lips, as          which contradicts audience behaviour.                         stack, while also looking to bring the efficiency,                                            in this
       programmatic TV solidifies in the US, was launched in                                                                       performance and insight benefits that they have                                               space
       Australia earlier this year and picks up steam in Europe.     What does 2017 bring for ad tech?                             derived from digital to other media channels. Audio
       Through software, advertisers have a more holistic            Continued ambition for automation and measurement             and digital OOH are already well under way, while
       audience and inventory approach and are able to start         from a cross-screen and device point of view. We also         addressable TV will continue to be the big prize.
       thinking about reach and frequency, something which had       predict measurement and attribution will be critical.

14 M&M GLOBAL INTERNATIONAL MEDIA 2017                                                                                                                                                             M&M GLOBAL INTERNATIONAL MEDIA 2017 15
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                                                                                                                                                                              see that connection or driving store traffic. As more and
    GRAHAM MOYSEY                                                                                                                                                             more dollars are being spent on digital, the demand of
    Head of AOL International                                                                                                                                                 brands rightly has been more on that business result.
                                                                                                                                                                              Second, we’ve seen big demand in video, social
    How are brands approaching ad tech                                                                                                                                        advertising and the influencer market. Snapchat has
    differently in 2016?                                        Since the introduction of the                                                                                 been a big part of the industry, both in terms of interest
    The way brands are spending and how they are                multi-device lifestyle, there’s                                                                               in a different type of consumer experience using video
    buying continues to change. We’re seeing more                                                                                                                             and also in terms of experimenting with different ways to
    ad dollars shifting to programmatic, although it’s
                                                                billions more touchpoints for                                                                                 get engagement in an activity.
    important to note that the value of the traditional         brands and marketers to sift
    managed media business remains, and indeed for              through and understand                                                                                        How are brands approaching ad tech
    many advertisers a hybrid approach is delivering the                                                                                                                      differently in 2016?
    right results for them. Mobile video is also exploding,                                                                                                                   There’s more of a desire to experiment with different
    with 20% of ad buyers telling us they have increased                                                                                                                      form factors. Also, the focus really has been on ‘what
    what they spent on mobile video advertising in 2016                                                                                                                       are we getting for our advertising dollars?’ In 2015, you
    versus the previous year.                                                                                                                                                 saw a lot of talk about programmatic and automated
                                                                                                                                                                              buying and selling and how you use data as a transaction
    What challenges must be tackled for ad                                                                                                                                    mechanism; in 2016, the questions become ‘what are we
    tech to grow?                                                                                                                                                             getting for that?’
    Since the introduction of the multi-device lifestyle,
    there’s billions more touchpoints for brands and                                                                                                                          How do you see the relationship between
    marketers to sift through and understand in order                                                                                                                         data, tech and creative developing?
    to make their message better resonate. But when                                               ROB SCHWARTZ                                                                I think that’s going to be one of the biggest trends you’re
    we consider the fact that each device lives in its own                                        President, Undertone                                                        going to see in 2017. I think it’s critical and we’re just
    silo, and that digital footprints differ greatly for each                                                                                                                 at the beginning. As a company that is really focused
    medium, it’s much harder for marketers to know                                                What have been the key trends and insights                                  on creative, our biggest opportunity now is to take all
    exactly how their marketing investments are paying                                            driving ad tech in 2016?                                                    the unique data that we have around the ways that
    off. That ‘lack of understanding’ remains one of the                                          In 2016, from our perspective I think the biggest driver                    consumers engage and interact with ads, disciplined
    biggest challenges to the industry as a whole, but                                            has been brands requiring more from their ad-tech                           consumer research, and then make creative audience
    one that I believe can be solved by investment in                                             partners than they have in prior years, and a big focus                     profiles that match up with first- and third-party data to
    measurement and attribution technologies.                                                     has been on driving business results, so whether it’s                       get the most relevant creative and the right message to
                                                                                                  thinking about how digital advertising fits with your                       consumers. For the industry in general, I think we also
    What effect has ad-blocking had on                                                            media mix model or return on investment, or trying to                       need a better sense of what is valuable data.
    the space?
    Let’s start by acknowledging that we are all
    responsible for the need to create better ads so
    that there is less negative user impact. What this                                              SAMMY AUSTIN
    means will differ by publisher; sometimes it means                                              Head of programmatic, OneFineStay
    less obtrusive, lower density, more relevant, less
    bandwidth intensive. Sometimes it will just                                                     How are brands approaching ad tech differently
    mean having fewer ads that are more beautiful                                                   in 2016?
    and impactful, or bigger native and custom                                                      More brands are talking directly to tech partners. Brands are
    integrations within publisher sites. For                                                        either implementing direct contracts with technology partners
    advertisers, the challenge is creating great ad                                                 and deploying the technology themselves, or their agencies
    experiences that consumers actually want.                                                       are deploying the technology on their behalf.
    That comes down to three key factors:
    quality content native to brands and                                                            How do you see the relationship between data, tech
    publishers; premium ad experiences                                                              and creative developing?
    that are engaging by bringing together                                                          We’ll start seeing data segments/audiences being used
    design and data; and, finally,                                                                  more widely and not sitting in silos within marketing           reason that consumers are blocking ads. There’s a need for
    premium inventory from trusted                                                                  channels; for example, retargeting for display. Brands will     brands, publishers and agencies to deliver better creative –
    environments.                                                                                   start building data segments and targeting consumers            creative that is more relevant, optimised to mobile devices
                                                                                                    within those segments across CRM, SEM, display and video.       and creative that is engaging and tells a story. There’s a
                                                                                                    Different marketing channels will be used in sequence, and      need for us to implement general best practice around
                                                                                                    creative will reflect that. We’ll start understanding more      delivering ads to consumers. We don’t want to deliver
                                                                                                    about how different data segments and audiences respond         intrusive ads, ads that slow down page load times, and we
                                                                                                    to different marketing channels.                                need to stop serving the same ads to customers multiple
                                                                                                                                                                    times – there needs to be frequency caps in place across all
                                                                                                    What effect has ad-blocking had on the space?                   marketing channels, and we need to stop targeting people
                                                                                                    I think it’s been a wake-up call for the industry, there’s a    when they have already purchased certain products.

16 M&M GLOBAL INTERNATIONAL MEDIA 2017                                                                                                                                         M&M GLOBAL INTERNATIONAL MEDIA 2017 17
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Q& A ● IM2 0 1 7

                                                        LUCKY
                                                                                                                                Highlights from our
                                                                                                                                online Q&A series,
                                                                                                                              where industry figures
                                                         Who would play you in                                                answer 13 questions on
                                                           a movie of your life?                                                 a variety of topics

 8 May 2017,
 Rome Cavalieri, Italy

  ARE YOU THE BEST
                                                                                                                            ROSS WEBSTER
                                                                                                                            Managing director,
                                                                                                                            international sales,
                                                                                                                            The Weather Company

 IN MEDIA THINKING?
                                                                                                                            “Bob Parr (aka Mr Incredible)”

                                                                  LAURA BOWEN
                                                                  Chief operating officer and

 SHOW OFF YOUR BRILLIANT
                                                                  co-founder, Admedo                                    CHARLIE JOHNSON
                                                                  “Julianne Moore or Rachel McAdams. Both               Vice president UK and Ireland, Digital
                                                                  are unassumingly fierce and gloriously ginger!”       Element

WORK AND ENTER YOUR BEST
                                                                                                                        “Zooey Deschanel.”

                                                              GUY CHISWICK
                                                               Managing director, Webloyalty                            ALAIN PORTMANN

    CAMPAIGNS TODAY
  15 April 2015, Dubai
                                                               “Jason Statham purely for the hair and beard
                                                               likeness, but he’d have to explore a new direction
                                                 in his acting career and steer away from beating people up all
                                                 the time – I don’t do that. I’m a huge fan of Michael Caine,
                                                                                                                        Partner and head of media and insights,
                                                                                                                        House of Kaizen
                                                                                                                        “Benicio del Toro.”

                                                 so I’d like him to play me.”

       Final Entry Deadline: 3 February 2017                                                                            DAVID INDO
                                                                                                                        Chief executive, ID Comms
                                                              BEN COOPER                                                “Ryan Gosling, if only to delight my other half.”
                                                              Managing director,
                                                              Europe, HookLogic
                                                              “As disappointing as it is to write, Rick
                                                 Moranis – to whom my now wife claimed I bore a
                                                 striking resemblance when we first met.”

                                                             PAULO CUNHA
                                                             CEO, Shiftforward                                        VIKTORIA
                                                                                                                      DEGTAR
                                                             “Humphrey Bogart, although I appreciate time
                                                                                                                       Head of
                                                             machines might be useful to make this happen.”
                                                                                                                       EMEA sales,
                                                                                                                        Bloomberg
                                                                                                                         Media
                                                              ALESSANDRA DI                                              “Ideally me, but definitely someone who
                                                              LORENZO                                                     is determined and who cares about
                                                               Chief advertising officer,                                 others. Angelina Jolie springs to mind!”
                                                               Lastminute.com Group
                                                 “Claudia Cardinale. Described
                                                 as ‘Italy’s best invention along
                                                 with spaghetti’, and a UNESCO                                                        READ all our weekly
                                                 Goodwill Ambassador for women’s                                                      Lucky 13 interviews at
                                                 rights to boot.”                                                                     mandmglobal.com

Enter Now at awards.festivalofmedia.com/global                                                                      M&M GLOBAL INTERNATIONAL MEDIA 2017 19
I M 2 0 17 ● A D FRAUD/AD-BLOCKING                                                                                                                                                       AD F RAUD/ AD-BLOC KING ● IM2 0 1 7

                                                                                                     report, is quick to point out that the acceleration of
                                                                                                     digital advertising is anything but symptomatic of
                                                                                                     an industry facing crisis, while remaining under no

  Is digital advertising facing a
                                                                                                     illusions about the threats overhead and looming on
                                                                                                     the horizon.                                                What makes
                                                                                                        Yet storm clouds are undoubtedly amassing. The              it possible
                                                                                                     prevalence of digital ad fraud is backed by some
                                                                                                                                                                    is greed…

 CRISIS OF INTEGRITY?
                                                                                                     alarming estimates, with one figure estimating it at
                                                                                                     $7.2bn in 2016, putting it on course to become the           It’s down to
                                                                                                     world’s second-biggest criminal enterprise after the
                                                                                                     drugs trade.                                                a fixation on
                                                                                                        “That should be enormously concerning from a               price and a
                                                                                                     moral perspective as well as its potential impact on
                                                                                                     brands,” says Tim Gentry, who spent nearly 20 years
                                                                                                                                                                     refusal to
                                                                                                     at Guardian News & Media, latterly as global revenue             question
                                                                                                     director, and who is now a consultant working with a        anything too
                                                                                                     range of media businesses.
                                                                                                        He points out that the figure, as astronomical                  good to
                                                                                                                                                                                                                        Adam Smith, futures director,
                                                                                                     it is, is merely “the tip of the iceberg”. “We’re not              be true                                         GroupM
                                                                                                     scratching the surface of all the long-tail sites that
                                                                                                     exist,” he says.
                                                                                                        “Fraud manifests itself in a number of ways – some
                                                                                                     legitimate businesses buying fake eyeballs, with some
                                                                                                     illegitimate sites pretending to be one publisher,                                   meaning an adjusted figure of around 16%. “I think
                                                                                                     when they’re nothing like it.”                                                       if you’re a publisher or media owner, it should be of
                                                                                                                                                                                          concern,” Chester adds. “I certainly think there is a
                                                                                                     WILFUL OBSTRUCTION                                                                   lot that people can do to take control of their destiny.
                                                                                                     While ad fraud means that ads are not reaching                                       If you’re a brand or agency, it amounts to a loss of
                                                                                                     the eyeballs of their target audiences, despite                                      audience, which is not good.”
                                                                                                     advertisers paying for the privilege, other ads                                         How is it then that in a discipline that employs the
                                                                                                     are escaping the fraudsters only to be obstructed                                    sharpest minds on the planet, the rise of fraud and
                                                                                                     wilfully by consumers who have downloaded ad-                                        ad-blocking have been allowed to happen?
                                                                                                     blocking software.                                                                      “What makes it possible is greed,” says Smith.
                                                                                                        “The technology and gaming communities are the                                    “One of the odd things about the internet [and digital
                                                                                                     ones that adopted native ad blockers first. It’s as high                             advertising] is that if you’re an advertiser and you’re
                                                                                                     as 40% for gaming and tech sites,” says Steve Chester,                               only prepared to bid 10 cents for a click, you will
                                                                                                     director of data and industry programmes at the                                      always find someone to sell to you. It’s down to a
                                                                                                     Internet Advertising Bureau (IAB). “Broadly, lifestyle                               fixation on price and a refusal to question anything
                                                                                                     sites see much lower incidences, sometimes as low as                                 too good to be true.”
                                                                                                     single digits, of ad-blocking.”                                                         Gentry concurs. “Businesses are focused too much
                                                                                                        The IAB’s own research into ad-blocking, based                                    on short-term results,” he says. “It’s not their fault, it’s
                                                                                                     on a YouGov sample of 2,000 adults, found in July                                    what the industry sold as the benefit of the medium.
                                                                                                     that 21.2% of adults are currently using ad-blocking                                 But we’re going through that shake-up now where
                                                                                                     software, compared with 21.7% in February, a                                         everyone is realising that it’s no longer sustainable.

                                         L
                                                                                                     marginal rise. However, around 20% of those who                                         “If you talk to agency CEOs involved heavily in
                    An appetite for               ike any advertising medium, digital attracts       said ‘yes’ were confusing ad blockers with anti-                                     the pitch process with marketers, quite often the
                                                  its fair share of both optimists and pessimists.   virus software and other non-ad-blocking software,                                   conversation is around the issue of quality and
                   cheap inventory                The former group tends to enthuse about
                                                  the seemingly inexorable growth of digital
                     and tolerance                advertising, as it meets and even exceeds the
                     of low-quality
                    ads has sowed
                                         levels of spend enjoyed by traditional media, while
                                         offering advertisers value for money.
                                           The latter bemoans the crude, slow-loading or just
                                                                                                        5           WORRYING STATISTICS ABOUT DIGITAL ADS
                       the seeds of      plain annoying ads that intrude consumers’ desktop
                                         or mobile screens, or points to the growing frequency
                   mistrust among        of ad fraud that means brands are paying for ads that
                                         never reach their audiences.                                     $7.2bn                           14%                        32%                       $27bn                              33%
                   advertisers. Ben        Then there are, of course, the realists, who sit               Annual cost                   Percentage of           Percentage of global           Potential cost                    Facebook’s
                       Bold reports      somewhere between the two, passionate about                       of ad fraud
                                                                                                        globally, up from
                                                                                                                                      extra bots found in
                                                                                                                                     programmatic media
                                                                                                                                                                page views impacted
                                                                                                                                                                   by ad-blocking
                                                                                                                                                                                             of ad blockers to
                                                                                                                                                                                             digital publishers
                                                                                                                                                                                                                              overestimation of
                                                                                                                                                                                                                             average seven-day
                                         the medium, but equally sceptical about its
                                         shortcomings.                                                   $6.3bn in 2015              buys above average               software                    by 2020                    organic page reach
                                                                                                             Source: ANA/                  Source: ANA/             Source: Blockmetry            Source: Juniper                Source: Facebook
                                           Adam Smith, futures director at GroupM, who                        White Ops                     White Ops                                                Research
                                         recently authored the WPP agency’s ‘Interaction 2016’

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                          transparency. There is a trade-off for these things, in       better detection – if you have a more direct line
                          that, as with all aspects of quality, it comes at a price.”   of sight to where you’re buying and from whom.
                             Smith cites another reason why ad inventory is             We’re encouraging all members to use fraud-
                          failing to deliver. “The risks haven’t been properly          detection software.”
                          costed,” he says. “If a newspaper or TV channel                  Meanwhile, industry-wide movements are                                                                                                                                        Perhaps
                          shows ads in the wrong place then the advertiser gets         being formed to battle ad fraud. The IAB is part                                                                                                                                 Google and
                          their money back. There’s no recourse in digital.”            of JICWEBS (the Joint Industry Committee for
                             Ad-blocking take-up, on the other hand, is being           Web Standards in the UK and Ireland), which                                                                                                                                      Facebook
                          fuelled by something more prosaic, and less criminal.         represents media owners, buyers and advertisers                                                                                                                                  are not the
                             “The biggest reason for [people using ad-blocking]         from industry bodies the IPA, ISBA and the
                          is advertising that interrupts their experience,” says        Association of Online Publishers.                                                                                                                                                answers
                          Chester. “It might be an ad that gets in the way, that           “We all got together under the umbrella body                                                                                                                                  that brands
                          flashes, or audio that suddenly blares out.”                  looking at trading standards,” Chester says. “We’re
                             He adds: “What we’ve seen as we gravitate                  building an accreditation system under which
                                                                                                                                                                                                                                                                         need. Google
                          towards mobile-first is that as publishers try to             anyone that trades has to be certified in terms of how                                                                                                                           represents the
                          monetise mobile because CPA rates on mobile                   they are reducing the risk of fraud.                                                                                                                                             whole web,
                          cost less than desktop, the yield has gone down,                 JICWEBS is also working with TAG (Trustworthy
                          which is encouraging some to go for more intrusive            Accountability Group) in the US to conduct a                                                                                                                                     and that’s
                          advertising, like overlays.”                                  number of initiatives to try to eradicate fraud by                                                                                                                               good and bad
An ad can’t                                                                             introducing a blacklist and ID system.
be so discreet            FIGHTING BACK                                                    Likewise, the insidious rise of ad-blocking too
                          But both fraud and ad-blocking can be combated.               can be stemmed with a focus on better-quality ads,
that it                   Google’s DoubleClick is one such defence, while a             observers claim. “From all the conversations we’ve
                                                                                                                                                                                                                                               Tim Gentry, consultant

disappears,               study by the Association of National Advertisers in           had, I can’t think of one in which anyone said that we
                          the US that unearthed an agency culture involving             want advertising to be intrusive and annoying,” says
but it can’t be           non-transparent practices such as rebates has                 Chester, half joking. “What we’re seeing the debate
intrusive. The            brought the issue to light.                                   about is where the line is.
                            “We will never be complacent,” says Smith. “I do               “An ad can’t be so discreet that it disappears, but   with inventory from the web you can run it through             If clients and agencies lead, then others will follow.
challenge is              think that fraud can be defeated by careful planning.         it can’t be intrusive. The challenge is to achieve an    our filters.”                                               “Ultimately the pressure needs to come from the
to achieve an             In other words, be careful of the company you keep,           equilibrium.”                                              Automation is also part of that answer, he                clients and agencies. The latter are very active in this
equilibrium               and screen suppliers.”                                           It is this objective that has led to industry-wide    argues. “Programmatic started as a market-clearing          space,” adds Gentry.
                            Chester agrees. “The caveat is that it varies               initiatives such as ‘The Coalition for Better Ads’, a    remnant tool for cheap media. Now it has become                “While they have been such beneficiaries, because
Steve Chester, director   considerably, but we’re seeing more instances and             global project backed by the IAB and advertisers         the opposite, a means to pull data into the buying          they are big organisations, perhaps Google and
of data and industry      greater sophistication of fraud,” he says. “More              including Procter & Gamble and Unilever and              mechanism. I think that’s an important safeguard,           Facebook are not the answers that brands need.
programmes, IAB           people are taking measures to prevent fraud, such as          the likes of Google and Facebook. In essence, its        avoiding criminals by ingesting more data.”                 Google represents the whole web, and that’s good
                                                                                        proposed solution is straightforward – make less-          Half of digital buying is now automated, up               and bad.”
                                                                                        intrusive ads that don’t piss off consumers.             from around 40% last year. Smith proposes that it
                                                                                           The advertising industry is also talking to           ideally should rise to 90% of bought media, with the        CONFLICT OF INTEREST
                                                                                        lawmakers and police across the globe about              remaining 10% managed manually to make “sure that           The latter point is especially resonant given
                                                                                        measures to help detect and prosecute ad fraudsters.     the robots are working”.                                    Facebook’s recent admission that a raft of errors had
                                                                                        But does this notion of official intervention apply to     The IAB’s Chester welcomes the growth of                  led to it overestimating its metrics (and effectively
                                                                                        the regulatory frameworks that govern advertising;       programmatic. “With programmatic on the rise,               overcharging clients).
                                                                                        or should it?                                            we’re likely to start seeing a shortening of the supply        “Facebook put out its confession about the
                                                                                           Gentry questions how practical and implementable      chain,” he says. “If the industry really wants to           mistakes it’s making around measurement,” says
                                                                                        such rules would be. “I think that regulation in the     minimalise ad fraud then it needs direct deals, buying      Smith. “It was making schoolboy errors, and the idea
                                                                                        digital industry is so difficult in terms of its pace    from named sources like The Guardian, knowing               of them marking their own homework is a worry.”
                                                                                        of change,” he says. “You need to be fast enough to      where the inventory is going.                                  To be fair, Facebook has made moves to prevent
                                                                                        regulate the industry.”                                    “It’s not to say that programmatic on open                a repeat, recruiting Unilever and Nestlé to its new
                                                                                                                                                 exchanges is bad, just that the risk is higher. There’s a   ‘Measurement Council’. But the debacle highlights
                                                                                        MEASUREMENT AND AUTOMATION                               shift towards private marketplaces.”                        a particular concern among advertisers. “Clients
                                                                                        In a discipline so enriched by, and simultaneously         At the heart of the issue is the need for the             worry about the sellers making the rules,” says Smith.
                                                                                        complicated by, the huge volume and granularity          advertisers to push for greater transparency across         “Making them convenient to the seller or that the
                                                                                        of data available, it is little wonder that there are    the supply chain.                                           seller might suddenly change the rules.”
                                                                                        calls for better measurement technology to help            “I remember hearing Mondelez talk about                      There is clearly a long way left to go before ad
                                                                                         advertisers quantify and qualify exactly where          combating fraud and they seemed to have a very              fraud is anywhere near to being stamped out, or at
                                                                                            their money is going.                                sensible solution,” reveals Gentry, “saying to suppliers    least brought to heel; while ad-blocking will remain
                                                                                                “When you’re advertising, try to build in        and partners that ‘unless you can tell us exactly           an issue so long as there are artless, slow-loading
                                                                                                mechanics or devices that are hard for           where our money is going, we’re not investing in you’.      or intrusive ads. So what can we expect to see? Will
                                                                                                   fraudsters to fake,” explains Smith. “We        “It’s incredibly simple, while the reality of             things get worse before they get better?
                                                                                                    have a walled garden of our own, a data      executing on that is incredibly complicated.                   “If the appetite for cheap inventory grows and a
                                                                                                    spine, in the US, UK, Netherlands and        Advertisers are voting with their wallets and moving        tolerance of low quality rises, then the problems rise
                                                                                                    Germany, where we have anonymised            spend away from non-transparent sources of media to         with that,” says Smith. “But they’re not going to rise
                                                                                                    profiles of users, so when you’re dealing    sourced media.”                                             from the agency-bought business.”

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I M 2 0 17 ● I N TE RNATIONAL TRAVELLE RS                                                                                                                                                                     I N T E R N ATIONAL TR AVE LLE R S ● IM2 0 1 7

                                                                                                                               the fore but, tellingly, you are as likely to see ads for
                                                                                                                               Bank of China as for many Western institutions.

                                         MEET THE NEW
     Travellers remain                                                                                                           “If you were a big B2B brand, top of your list
                                                                                                                               would be to find an illuminated, back-lit box in a
        a key audience                                                                                                         key location, and to sit there for a year,” says Steve      We can serve

                                        BUSINESS
                                                                                                                               Cox, marketing director of JCDecaux Airports.                 a traveller a
      for international                                                                                                        “Increasingly, those brands are looking to embrace
       advertisers, but                                                                                                        the digital opportunity. Not all are using data to drive     mobile ad on
                                                                                                                               their content yet, but they are certainly creating more      arrival at the
      brands must use                                                                                                          engaging content.”
                                                                                                                                                                                           airport, when
          new methods

                                         TRAVELLER
                                                                                                                               TRANSIT TOUCHPOINTS                                            they are in
         to reach them.                                                                                                        Travel providers and media firms alike are finding
                                                                                                                                                                                           their five-star
                                                                                                                               more innovative ways to reach consumers in key
        Alex Brownsell                                                                                                         transit moments. Eurostar, the rail service linking           hotel, when
                reports                                                                                                        London with Paris and Brussels, has introduced               they are in a
                                                                                                                               advertising on printed tickets, while brands are
                                                                                                                               linking up with luxury car companies transporting           key shopping
                                                                                                                                                                                                                                          Tammy Smulders, global managing
                                                                                                                               travellers to hotels.                                               district                               director, Havas LuxHub
                                                                                                                                  All brand activity must be conducted in the
                                                                                                                               knowledge that consumers are now glued to mobile
                                                                                                                               devices, and less likely to be looking around in search
                                                                                                                               of distractions. This gives an opportunity to reach
                                                                                                                               travellers with more relevant content, says Tammy                                     “We would not recommend an exclusively mobile
                                                                                                                               Smulders, global managing director at Havas Media                                     campaign – only in rare cases. We would still
                                                                                                                               Group’s luxury consultancy, Havas LuxHub.                                             recommend an integrated campaign. People like to see
                                                                                                                                  “We know that people are constantly on their                                       [ads] in places they deem to be premium environment,
                                                                                                                               phones and devices, so that is an important way                                       [such as] premium ad spaces in airports.”
                                                                                                                               to reach people. Not only is it a place people are
                                                                                                                               spending their time, but it also gives the advertiser                                 HIGHER EXPECTATIONS
                                                                                                                               the opportunity to really specify if they are talking to                              LinkedIn estimates that some 26 million of its global
                                                                                                                               a man or woman, target by age, by spending patterns                                   users fall into the category of ‘business travellers’,
                                                                                                                               and travel patterns,” she says.                                                       and travel on average eight times per year. The
                                                                                                                                  However, while Smulders agrees mobile should             JCDecaux has digitised    social network is encouraging brands to build
                                                                                                                               form an “important part” of any campaign to reach           the poster sites at       communities on its platform, to ensure engagement
                                                                                                                               travellers, she favours a balanced media plan:              London’s Heathrow         continues between those trips. And it claims that

        I
             nternational travellers have long formed the            media, long a vital method by which to alleviate
             bedrock of international media as we know it.           consumer despair in the departure lounge, and to
             It is a familiar audience segment: well-heeled          encourage duty-free spending.
             businessmen clasping a copy of The Economist               The digitisation of OOH inventory in airports such
             or Wall Street Journal in the airport terminal,         as London’s Heathrow – managed by JCDecaux – has
         and tuning into CNN in their hotel rooms. But this          allowed advertisers to use data to inform messaging.
         affluent and influential group is evolving, and so too      A plane-load of Chinese tourists can be served a
         must the advertisers hoping to affect purchase intent.      Mandarin-language digital ad in the baggage reclaim
            Two major trends have caused this transformation.        area. Advertisers can update their creative at the push
         First, the cost of flying has significantly reduced         of a button depending on all manner of factors, from
         over the past 20 years, meaning business travellers         local traffic issues to weather conditions.
         are less likely to be CEO or MD-level, middle-aged             The banking and insurance companies most
         white men. The other major shift, of course, is the         prevalent on airport poster sites before the financial
         proliferation of mobile devices. In short, travellers are   crisis in 2008 have been replaced by mixture of luxury
         younger, more diverse and infinitely more connected.        brands – Estée Lauder is Heathrow Airport’s biggest
            This has meant a rapid evolution in the methods          consumer advertiser – as well as technology firms such
         used by advertisers to reach travellers. Take outdoor       as Microsoft. Some financial services are returning to

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