Lack Of Data Challenges Advertiser-Agency Relationship, ANA Survey Shows 11/01/
The extreme microcategorization of consumers means advertisers can bid for the The company's software enables its customers to sort consumers into news articles and campaign ads on our mobile devices — based on a hidden . you show up on a Web page that has a relationship with DoubleClick. Publishers moved to the Internet, where the exploding number of can) target ads to customers in faraway places like Brazil or Alaska; by time, The role of ad agencies in the advertiser-publisher relationship has, Street Journal or Yahoo) make their premium inventory available for high-end advertisers. CRM Targeting: Bringing the Customer-Advertiser Relationship into the invaluable customer-vendor relationship to the online marketplace?.
A Total Marketing Environment Dollar totals for ad purchases, however, tell only part of the story. Sorrell, whose business leadership earned him knighthood last December, believes that "the real opportunity for the marketing industry lies in developing transactional-based models that enable consumer and client to work together more closely.
Deighton agrees, describing the Internet as a multidimensional "total environment for doing marketing. He explains that traditional marketing tactics might include running a series of television or magazine ads and then posting an in-store display ad to remind potential customers about the product. The entire process—from ad to purchase—might take less than five minutes.
In addition to streamlining the flow of information and transactions, Web technology can also help advertisers meet two of the industry's biggest challenges: Improved technology promises to solve the age-old problem once stated by retailer John Wanamaker: Half of the money spent on advertising is wasted, but no one knows which half.
In just five years, DoubleClick has become the industry leader in a new business spawned by the Internet—ad serving. The firm sells ad space on the Web sites it represents and has invested heavily in developing technology to deliver targeted ads to these sites, with the simple goal of "making advertising work on the Web. DoubleClick's area of expertise involves its ability to package media on the Web to meet the goals of marketers and its employment of technology to facilitate using the Web as an advertising vehicle.
In addition to acting as a sales representative for select Web site publishers and advertisers, the company licenses the targeting technology it has developed to Web publishers and advertisers.
The power of this technology, which is called DART for dynamic advertising reporting and targetinglies in its dynamic capacity to target, deliver, and measure the performance of ads. When surfers are visiting DART-enabled sites, DART tracks 26 criteria—from keywords in searches, to purchases, to time-of-day surfing, to domain name—in order to develop a user profile. DoubleClick then uses this data to match Web users with advertisers. DoubleClick's Salzman explains it like this: He previously served as founder and CEO of an interactive brand marketing consultancy, where he developed patented applications to help corporations build relationships between their brands and their customers in the online marketspace.
The Price Of Privacy The power of these new technologies and their ability to shadow an individual's online choices and habits are troubling to many observers. The use of technologies such as cookies—programs that unobtrusively keep track of a visitor's previous activities on a site—could make people leery about the entire Internet advertising industry.
Complex Relationships in Digital Advertising
Many questions were raised recently, for instance, when DoubleClick purchased Abacus, a mailing list data company, and consumers began to feel an Orwellian disease. Self-regulation within the industry seems to be the answer to the privacy question at this juncture, but Al Silk points out that given that "a series of people have fallen off the wagon," more formal measures will probably be called for soon.
It's a time bomb. People can make that choice. The internet allows you to move seamlessly from temptation to transaction. Deighton goes a step further: It has a market price, and once we realize what it will fetch, some of us will decide to sell it. Still, everyone agrees that there must be some regulation.
WPP's Sorrell notes that "in the last twelve months, branding has become more important than ever, because it provides a way to differentiate all the new businesses that are being created. IPOs have raised a lot of money that has been spent on marketing brands through traditional offline media rather than online. The building of brands has played out in an interesting manner on the Internet. While one of the draws of advertising on the Net is that it provides measurability, the science of building a brand has always been difficult to quantify.
Publishers are interested in making money by selling space on their website, blog, or mobile app to almost anyone who is interested. This relationship has existed for almost as long as people have been doing business. As with most relationships, however, this one has matured with time. Publishers moved to the Internet, where the exploding number of webpages created a massive number of new places to put ads.
Opportunities for doing business and selling products and services online meant a lot more people trying to get out their message, leading to a growth in the number of advertisers as well. So, much like in human relationships, this became complicated as both sides grew more separated by time and space — by space because a company in India may want to and now can target ads to customers in faraway places like Brazil or Alaska; by time, because the speed of the Internet with rapidly changing content and the need for marketing and advertising agility has made it harder for previous, direct advertiser-publisher relationships to remain relevant.
Some, like ad agencies, have been around for a long time, even before the onset of widespread digital advertising. They all share one thing in common, however; they exist to facilitate the relationship between advertisers and publishers, bringing them together for the mutual benefit of both sides. Before the rise of programmatic media-buying, this involved direct, face-to-face contact with brands and publisher sales teams.
Nobody likes to feel left out, of course, so agencies have had to embrace automated-buying solutions, including DSPs. Bysome agencies started creating so-called trading desks, which allowed them to buy digital inventory in bulk and package it up for their clients based on audience data.
Ad Networks If an ad agency with its trading desk is like a close friend for advertisers, an ad network functions more like a neutral intermediary or go-between for both publishers and advertisers.
Ad networks take inventory from the publishers, package it up, and then sell it to advertisers. How does it help the relationship between advertisers and publishers?
Needless to say, with hundreds of thousands of digital publishers worldwide, that process would be nearly impossible.
As with most relationships, conflicts do arise occasionally. Publishers, however, work with both, depending on whether they are looking to push premium or non-premium inventory.
Complex Relationships in Digital Advertising - Clearcode Blog
More often in the digital-advertising ecosystem, this place is an ad exchange. An ad exchange is a dynamic technology platform that allows publishers to sell ad impressions to the highest bidder in real-time, serving as a meeting point for both sides.
Because the inventory is aggregated and segmented and then sold according to audience, the exchange brings together advertisers and publishers across a wide range of channels — relationships that would probably never happen otherwise — to complete transactions beneficial for both sides. An open ad exchange conducts auctions on an impression-by-impression basis. The vast majority of such meetings on ad exchanges happen through the process of real-time bidding, where ad space is sold on an impression-by-impression basis, allowing ads to be served in a highly targeted way.
CRM Targeting: Bringing the Customer-Advertiser Relationship into the 21st Century
But beyond open ad exchanges, where any number of advertisers can bid on inventory, there are also private deals on these exchanges as well as private marketplaces. Here, publishers often those in high-demand such as Forbes, Wall Street Journal or Yahoo make their premium inventory available for high-end advertisers. Other non-elite publishers may also make their prime ad space at the top of their homepage, for instance available this way on a guaranteed basis.