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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
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
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 06 M&M GLOBAL INTERNATIONAL MEDIA 2017
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 08 M&M GLOBAL INTERNATIONAL MEDIA 2017 M&M GLOBAL INTERNATIONAL MEDIA 2017 09
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 10 M&M GLOBAL INTERNATIONAL MEDIA 2017 M&M GLOBAL INTERNATIONAL MEDIA 2017 11
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 REGISTER ONLINE AT FESTIVALOFMEDIA.COM/GLOBAL
I M 2 0 17 ● CR E ATIVITY, DATA , TECH C R E ATIVITY, DATA, TE C H ● IM2 0 1 7 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
I M 2017 ● CR EATIVITY, DATA , TECH C R E ATIVITY, DATA, TE C H ● IM2 0 1 7 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
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’ 20 M&M GLOBAL INTERNATIONAL MEDIA 2017 M&M GLOBAL INTERNATIONAL MEDIA 2017 21
I M 2017 ● A D FRAUD/AD-BLOCKING AD F R AUD/ AD-BLOC KING ● IM2 0 1 7 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.” 22 M&M GLOBAL INTERNATIONAL MEDIA 2017 M&M GLOBAL INTERNATIONAL MEDIA 2017 23
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 24 M&M GLOBAL INTERNATIONAL MEDIA 2017 M&M GLOBAL INTERNATIONAL MEDIA 2017 25
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