Programmatic Advertising Insights

#AI, #retailmedia, and #CTV are shaping the future of digital advertising in 2023. GroupM's 2023 Global Mid-Year Forecast sheds more light on this trend. As we cross the midpoint of 2023, we continue grappling with high inflation and shifts in consumer behaviors. However, looking forward we anticipate a resurgence of normalcy in the trajectory of advertising revenue growth. ++ Key Highlights ++ 🔎The forecast suggests mid-single-digit advertising growth over the next 5 years. 🔎Global advertising in 2023 is expected to total $874.5 billion, and there's an ongoing trend of normalization expected in the global economy in the latter half of 2023 and 2024. 🔎The top 25 global ad sellers account for 75.3% of the total ad revenue in 2023, an increase from 74.0% in 2021. ++ Key Themes in the Industry ++ 📍Data Privacy and Regulation: Regulations tied to data privacy, national security, competition, and freedom of speech are increasingly impacting tech giants and advertising platforms, changing the way we collect and use consumer data, and affecting our advertising strategies. 📍Connected TV (CTV) Emergence: Between 2023 and 2028, we're looking at an impressive 10.4% compound annual growth rate in CTV ad revenue. 📍The Rise of AI: You might recall when we began dabbling with AI in our advertising efforts. Today, AI is projected to inform or touch at least half of all advertising revenue by the end of 2023. 📍Retail Media Momentum: If we revisit the numbers I shared on the retail media landscape, it's clear this channel has been on a roll! Set to grow 9.9% to reach $125.7 billion in 2023, retail media is expected to outpace TV ad revenues by 2028. ++ 🔭 Looking Ahead; Tips on 2024 Digital Ad Budgets ++ 💡Focus on Data-Driven Decision Making Allocate your limited resources effectively by using data analytics to understand where your audience is spending time online, which platforms have the highest ROI, and which strategies are driving the most customer engagement. 💡Prioritize Privacy Compliance With the growing regulatory changes tied to data privacy, ensure that your strategies are compliant. Invest in consent management platforms, and work with data providers who prioritize privacy. 💡Invest in Connected TV (CTV) With the rise of CTV adoption and its projected 10.4% compound annual growth rate in ad revenue between 2023 and 2028, it's important to allocate a portion of your budget to this rapidly growing channel. 💡Leverage AI for Improved Efficiency As AI is expected to inform or touch at least half of all advertising revenue by the end of 2023, consider how AI can help streamline processes, optimize your campaigns, and provide better insights for decision-making. 💡Capitalize on the Growth of Retail Media Include last-mile delivery services in your advertising strategy and find ways to engage your audience in these channels. Follow #ecommert to track insights on  #ecommerce,  #strategy and #sales #growth.

B2B Meta Ads Checklist: Elevate Your Campaign Hygiene and Best Practices In a world dominated by the likes of Google and LinkedIn ads, Meta ads for B2B often lurk in the shadows, waiting to be discovered. Well, guess what? If you master the art of Meta advertising, it can be a game-changer for your B2B campaigns. 🌟 Let's dive into the secrets of this underrated gem 1. Simplified Campaign Structure 🎯 Keep it sleek and straightforward. Limit your campaigns to 5-6, with up to 4 Ad Sets in each and no more than 6-7 creatives per Ad Set for manual ads. A linear structure makes it easier to manage and optimize. 2. Learning Phase Mastery 🧠 Don't burn your budget in the learning phase. Aim to spend less than 20% of your budget during this stage. It's all about gathering data without going broke. 3. Audience Overlap Control 🧩 Prevent audience confusion! Ensure that the cumulative overlap for each Ad Set stays below 30%. This keeps your targeting precise and avoids competition within your campaigns. 4. Budget to CAC or SQL Ratio Boost 💰 Don't be shy about your daily budget. Increase it to 8-10 times your Cost per Purchase (CAC) or SQL. A higher budget allows Meta's algorithms to work their magic effectively. 5. Automatic Placement Dominance 🖥️ Let's talk placements! Opt for automatic placements whenever possible, aiming for over 75% of your ads to be on auto. Embrace the variety of placements (at least 6) to reach your audience where they are. 6. CAPI Implementation 🔗 Don't miss out on the power of CAPI (Conversions API). Implement it for stronger signal strength and more accurate tracking. It's the backbone of successful Meta campaigns. 7. Creative Diversity 🎨 Variety is the spice of life – and Meta ads! Mix it up with static and video creatives. But remember, mobile-first creatives are key in today's mobile-centric world. Make sure your ads look stunning on smaller screens. Now, here's the kicker – while Meta ads for B2B might be underutilized, they hold immense potential. 📈 But remember, it's not just about checking boxes on a list; it's about understanding your audience and the platform to create a seamless experience. Let's chat about it! Share your thoughts and experiences with B2B Meta ads in the comments below. 🗨️💡

The more I have conversations with people on the technology side of programmatic the more I'm struck by how people under-appreciate the impact of cookie depreciation and what it will mean for the attribution side of the business. Simply put, when cookies go away a majority of brands are going to see a major "increase" in their Cost Per.... Acquisition.... Action..... etc... etc. Agencies will be sitting in meetings trying to explain "why" campaigns are "less effective." Of course, campaigns won't be less effective. It's just that less will be quantifiable, which will lead to knee jerk movements to quantifiable channels (search & social). This will have a meaningful impact on spend patterns and provide short-term benefits to those platforms. (Meta, Google, TikTok, Pinterest, SNAP). It will not have a meaningful business impact. Smart brands and forward thinking agencies are adjusting for this now by reworking attribution models and actively filling the gaps in the ecosystem. However, I suspect less than 20% of the industry will be prepared. #datadriven

Generative AI has the potential to completely remake the advertising and media ecosystem. The question is: To what end? What happens in a "post traffic" world? This was the topic discussed last week Human Ventures HQ (aka Casa Komos). Algorithms (AI) in the hands of the major platforms have shaped our information ecosystem and the attention economy for decades. And, in turn, have shaped society for better and, too often, for worse. This moment is either a chance to reset the role algorithms play in people's relationship to media brands or completely break media as we know it. Here are just a few of many insights shared (there are a lot more, but I hit the LinkedIn character limit. Will put more in the comments): “The keyword industrial complex is dead. Now it’s about intent with context—AI doesn’t think in keywords, it thinks in intent. How can you figure out the different need states of consumers as an agency or as someone working with a brand? How do you build content for that? Optimizing these channels and building brand agents are the next thing. The future will be about optimizing content and answers for the LLMS and brand agents to interface. It’s no longer about winning Share of Voice. We are entering a world where a brand needs to win Share of Model.” Joel Lunenfeld, Publicis “A lot of people are blaming AI for weaknesses that have existed in business for a long time—the audience has come last because you had to write for algorithms and then because of the way of the system you had to have a terrible user experience. So it’s going to be publishers treating themselves as brands and getting back to brand marketing. And that part I think will do quite well.” —Brian Morrissey, The Rebooting ”We’re all at the same starting line. If anyone feels like they are ahead or that they have it all figured out, I think you’re BS-ing us. Some people are going to be sprinters, some people are going to be long distance, some people are going to come from the outside, some people are going to fall—some people are going to get to the finish line and some people won't. We’re at a time and an inflection point where we need to share and learn from one another.“ —Sherry Phillips, Forbes “The whole customer discovery process has changed. As a marketer and an advertiser, we need to figure out how to get in the middle of the discovery process. That’s our job. to become part of that process. And if we’re not talented enough to figure that out, then we shouldn’t be in the business we’re in. So how do you actually create content? How do you actually create interactions? How do you create discovery engines? How do you create agents that actually bring value and trust between you and your consumer? That's ultimately where you need to go.” —Bob Lord, Horizon Media “If keywords are dead, does that mean block lists are dead too? Because that would be great for us. And those words are crazy because there's how many of them now right?" —Jessica Sibley, Time

The Top 5 Lessons from Managing a $10M Budget in Amazon's Demand-Side Platform (DSP) Over the last 18 months, I've had the opportunity to manage a $10M advertising budget on Amazon's DSP. Here's a rundown of my top five lessons for those looking to optimize their digital advertising strategies: 🔢 1. Conduct Brand Lift Studies for Measuring Awareness Sales metrics and Return on Ad Spend (ROAS) are great for understanding conversion performance, but fall short when evaluating brand awareness tactics. To get a true reading on this, utilize Amazon's shopper survey panel. It polls thousands of users within your target audiences, gauging any shift in awareness post-ad exposure. 🎯 2. Prioritize Ad Viewability If your ad's viewability rate is below 50%, you're essentially throwing half your ad spend in the dumpster and setting it on fire. You can tweak your viewability settings under 'Targeting' in 'Line Item Settings.' Yes, you might get fewer impressions and higher Cost Per Mille (CPM), but it's better to pay for higher quality impressions rather than to pay for impressions that are never seen. 📊 3. Refine Negative Audience Targeting with "Untargeted Audience" Reports Think of Audience reports as DSP's version of Search Term Reports. These reports break down audience performance by age, demographic, and lifestyle, among other metrics. For instance, we found Android users less likely to buy our premium products compared to iPhone users. Refining our strategy through audience negation led to improved Click-Through Rates and ROAS. 🛒 4. Leverage Amazon's Native Ecosystem I don't allocate funds to less effective tactics unless top-performing strategies are maxed out. Amazon display ads engage audiences already in a shopping mindset, leading to higher CTR, Conversion Rates (CVR), and ROAS. For directing traffic to Direct-To-Consumer (DTC) sites, platforms like Facebook, Instagram, and Google Ads tend to be more effective. 🔄 5. Adopt a Full-Funnel Strategy One of DSP's unique features is its access to Amazon's first-party data, enabling us to craft strategies that guide customers through the awareness, consideration, and conversion stages. This has proven to be an unmatched method for acquiring new customers, particularly for larger brands with wide recognition. I'm now realizing I should have made this my "Top 10 Lessons Learned," but I'll save additional insights for future posts to keep this one concise. Don't forget to follow so you don't miss it! 🙂 #amazonads #amazonadvertising #amazondsp #dsp #digitalmarketing #advertisingstrategies #CTR #ROAS #ppc #CVR #displayadvertising

A mid-sized brand reached out to us on LinkedIn. 📧 Their message was direct and urgent: "We've seen your work and need your expertise." We set up a call. 📞 After having a conversation, we found that, despite having a decent online presence, they were battling stagnating sales and an underperforming PPC strategy. 📉 They had tried various approaches, but none worked out. After agreeing to work together, the first thing we did was to review their existing campaigns and their PPC structure. The first thing we noticed was the lack of a data-driven approach; they had the tools and the budget but lacked the strategic direction to make the most of their PPC efforts. Over the next few days, we conducted a basic audit to understand all the bottlenecks. This wasn't just about numbers; it was about understanding the brand's story through data. These were the findings and strategies we provided/implemented: 🔶 Campaign Utilization • Observation: Not using SB Video Ads and SD Audience Targeting. • Strategy: Explore opportunities in SB Video Ads and SD Audience Targeting to expand reach. 🔶 Ads-Type Performance • Observation: Overspending on SP, with 95% of budget allocation. • Strategy: Reallocate the budget to 80% on SP and distribute the rest to SB and HSA, enhancing brand presence. 🔶 Match Type Performance • Observation: Broad targeting is leading sales (53%), but Product targeting is underused. • Strategy: Improve ASIN targeting, refine phrase match, and balance the distribution between broad and auto-match types. 🔶 Performance Insights • Observation: High ACoS in SB Video ads with exact match; underperformance in ASIN targeting in SD. • Strategy: Test broader match types in video ads and HSA, focus on competitive ASIN targeting. 🔶 Branded vs. Non-Branded Terms Performance • Observation: Only 1% of budget for high-CVR (41%) branded keywords. • Strategy: Increase allocation for branded keywords and develop a funnel strategy to enhance CVR across the board. 🔶 Bidding Strategy Performance • Observation: Fixed & down bidding showing promising results yet receiving minimal budget. • Strategy: Redirect more funds to fixed & down bidding strategies for improved efficiency. 🔶 Placement Performance & Budget Utilization • Observation: TOS placements have superior CVR and CPA but lack budget allocation. • Strategy: Integrate TOS modifiers and reassess budget distribution for optimal performance. This analysis, based on 60 days of data, provided them with a roadmap to increase sales, improve ROI, and smarter budgeting. Cheers! Amir -------------------- If you're interested in auditing your brand, reach out! 💌 Work We're Most Proud Of: 🔥 $10K to $103K in 30 days with a 4.9% ACoS! 🔥 $126K in sales in 30 days with 5.39% ACoS and 18.55 ROAS! 🔥 $93K in sales within 5 months with 63.24 ROAS and 5.39% ACoS! Let's talk business if you're an Amazon brand owner or an agency owner?🤝 #amazon #amazonfba #amazonppc #amazonadvertising

Majority of digital marketers might not know this. But every time you run an ad campaign in a platform like Facebook, Google, or LinkedIn something amazing is happening. In a fraction of a second every active campaign calculates: - expected click-through rate (CTR), - expected conversion rate, and - expected conversion value. The product of these 3 parameters gives you an optimal bid your campaigns place on a real-time advertising auction. The reality is a little more complex, of course. But this gives you the idea. Why is this important and what you can do about it? (1) Make sure your campaigns produce A LOT of conversion data. Ad robots need to predict 3 separate variables (2 if you’re using CPA-based bidding like tCPA or max conversions). And multiplying multiple random variables multipliers the margin of error. So the more data you feed to ad platforms >> less error there is in their predictions >> your campaigns place more optimal bids >> your revenue and ROI is maximized. (2) Value-based bidding (tROAS or max conversion value) is always a winning strategy for the long term. One more degree of freedom to optimize bids for (conversion value) means a difference between being swamped by low quality leads and consistently getting a greater number of ever more qualified leads. If you know how to assign conversion value to a lead, of course (comment or DM if you don’t). And in the long term your chances of having enough data are very high. (3) Try to give your campaigns as much time to learn as you can. Relaunching a campaign resets the learning to basically ground zero. And we just discussed why feeding more data means more revenue and higher ROI. What aspects of biddable paid media did you find most insightful? Please share in the comments. #ppc #paidsearch #paidsocial #programmaticadvertising

The state of creativity in B2B advertising is poor. Why? B2B marketers often neglect the time and effort needed to produce great creative. Performance marketers overlook its importance, opting instead to focus on gaining an edge through micro targeting changes. With creative accounting for 49% of ROI (the single biggest factor) it’s what makes or breaks the success of a campaign. As targeting options diminish, the impact of creative will only grow, becoming the primary way marketers can differentiate their campaigns. As a company, we've never spent more time on creative strategy than we do now, and I see this trend continuing. Focusing on creative strategy is the highest leverage activity we can undertake to improve campaign performance Data Source: Nielsen Catalina Solutions

As a general rule, the more time you spend figuring out your target audience and narrowing your messaging toward them your advertising costs drop. That's one of the biggest reasons to have a target audience, so you can craft a message that GRABS them to your product. It's so much easier to write marketing copy when you can narrow your target; every marketer's results improve. Specifically across advertising platforms, you will see CTR rise from a better audience selection which is core to programmatic advertising success. Practical examples: If you are advertising for a service-based business go as local as possible in target/copy. Work out from there, small business' competitive advantage is proximity and customer service which you can communicate with well-tailored ads. Random e-commerce brand You sell humidifiers on Amazon and DTC. You have learned for your business and brand: 1. Women are 2X more likely to purchase a humidifier 2. Families with children are 4X more likely to purchase a humidifier 3. Families in dry regions are 3X more likely to purchase a humidifier Now if you did not create audiences using these pieces of data you are missing the entire point of programmatic advertising! You also could be paying a lot more per sale than you would have to if you excluded non-families, men, and Florida from your adset. As marketers you should always be improving your targeting or your competition will start to edge you out.

Transformative Insights for Our Community - TIFOC Thursday This TIFOC Thursday, let's dive into a pivotal piece that is reshaping our understanding of B2B sales and marketing: "Empowering the Marketing Function in B2B Sales," authored by Lluch Garcia, Dr. Basir Mustaghni, and Wolfgang Walther, published on December 15, 2023. 📈 Key Insights: The B2B purchasing process is evolving, with a notable shift towards the "consumerization" of the buyer journey, challenging economic landscapes, and rapid advancements in marketing technology, including artificial intelligence. To stay ahead, B2B companies must integrate marketing and sales functions, breaking down siloes to treat lead generation and qualification as a cohesive process. Implementing demand centers and leveraging generative AI for data analysis can significantly improve targeting, lead quality, and customer journey optimization, yielding higher marketing efficiency, conversion rates, and ROI. Yet, many B2B organizations hesitate to adapt, clinging to traditional sales methods and underutilizing the power of marketing technology—a stance that could hinder their competitiveness and growth. A Call to Action: As the landscape shifts, the integration of marketing and sales emerges not just as an option but a necessity. The article emphasizes three transformative shifts: the consumerization of B2B purchasing, the fluid nature of sales relationships, and the efficiency gains from generative AI, urging B2B companies to embrace a new role for marketing as a cornerstone of revenue generation. Why It Matters: This isn't just about adopting new tools or technologies; it's a strategic imperative to enhance customer relationships, optimize lead conversion, and secure a competitive edge in a rapidly evolving market. 💡 Your Thoughts?: How does your organization navigate the integration of marketing and sales? Are demand centers part of your strategy? Let's discuss how we can apply these insights to drive transformation in our industries. https://lnkd.in/gmvfuB8J #TIFOCTHURSDAY #B2BSales #MarketingIntegration #DemandCenters #InnovationInSales