Tag Archives: traffic sourcing

Lapses of Judgement Are Afflicting the Ad Industry

25 Feb

Hand icon with thumbs downPerusing the advertising industry trade publications over the last few weeks, I couldn’t help but notice a recurring theme… poor judgement. Whether temporary lapses or recurring behavior all parties including marketers, agencies, adtech suppliers and publishers seem to be afflicted by this malady of late.

Examples include, but are not limited to:

  • Client-side procurement personnel waylaying agency reviews by disregarding strategic selection criteria to focus on “cost improvement” as the driver in selecting agency partners.
  • Media agencies recommending unproven media products such as outstream auto-play video. Why? Aside from ads running through completion while out-of-view thus artificially inflating completion rates and skewing ad effectiveness measures, the notion of forcing a video on a user that has not opted-in could negatively impact that user’s experience and their feelings toward the brand.
  • Digital media sellers continuing to use sourced traffic from third parties to increase the number of visitors to their websites to meet audience delivery requirements.
  • YouTube failing, once again, to police its own platform policies and safeguard brand advertisers by allowing users to find and make unsavory comments on videos featuring young children.
  • The feedback from media buyers attending the Digiday Media Buying Summit regarding the aforementioned video publisher, believing that “yes” it is a brand-unsafe environment but it works, giving advertisers the views and conversions.
  • Social media influencers purchasing followers to increase their alleged reach, thus boosting their appeal to brand marketers.

The good news is that there are certainly good actors in the industry that are conducting themselves in an honorable manner, making sound decisions and taking proactive measures to address the aforementioned lapses in judgement. Examples include Unilever’s recent decision to ban the use of influencers who purchase followers and advertisers such as Nestle, McDonalds and Disney pulling their schedules from YouTube. 

That said, the apparent level of apathy toward brand-unsafe media environments, unproven media channels, inorganic followers and site visitors and an unhealthy focus on low price at the expense of quality is quite alarming.

One can only hope that these lapses in good judgement are temporary and that the industry takes heed and puts the appropriate safeguards in place to protect advertisers and their brands moving forward. In the words of Simon Bolivar, the 18th century Venezuelan military and political leader:

Judgement comes from experience, and experience comes from bad judgement.

 

 

 

 

CPD vs. CPM. Why Not? That’s What Digital is Yielding

24 Sep

cpmAbsent any improvement in the digital media industry’s ability to deliver the viewable impression levels being purchased by advertisers, perhaps changing the currency used to value those impressions would make the most sense.

Perhaps it’s time for the industry’s standard cost-per-thousand metric to give way to a cost-per-five-hundred rate, which more aptly reflects actual audience delivery levels. Let’s face it, to date, digital advertisers have largely been charged on the basis of their ads being served, with any resulting audience delivery impact, particularly by humans, a secondary consideration.

Ironically, in spite of the measurement challenges surrounding digital media, it has surpassed all but one other media channel in terms of annual spend and according to Vincent Letang, Magna Global’s Director of global forecasting “will potentially eclipse television in terms of overall spending” by 2018.

Do client-side CFO’s read the advertising trade press? They must not. How else can one explain the meteoric growth of a media channel fraught with audience deliverability concerns, allegations of fraud at multiple levels of the distribution chain and a greater likelihood of driving bot rather than human traffic? According to the ANA study; “The Bot Baseline: Fraud In Digital Advertising” fake traffic will cost advertisers in excess of $6.3 billion in 2015.

Surely, the C-Suite within advertiser organizations would not sanction the use of an advertising channel that is delivering $.50 of value for every $1.00 invested. Would they?

What if they were aware that there is actually a market for fake traffic? That’s right, there are firms that sell malware generated bot traffic to a variety of companies, some who knowingly purchase the fake traffic and others who turn a blind eye toward traffic sources.

Then there is the less nefarious, but equally as questionable, practice used by some publishers of traffic sourcing. This involves purchasing traffic from third-parties, referred to as “traffic brokers” or “audience networks” to boost measured audience levels on their websites to enhance their appeal to advertisers and their media buying representatives who are looking for sites with critical mass. The traffic procurement marketplace is not regulated and the practice is typically not divulged to advertisers by the publishers engaged in this activity.

Why should advertisers care? White Ops, who partnered with the ANA on the aforementioned study, found that “sourced traffic” averaged 52% bots and that “publishers and premium publishers were not immune from high bot levels in sourced traffic.” In the study, White Ops referenced uncovered one direct buy from a lifestyle industry vertical premium publisher, which yielded 98% bots in a video ad campaign.

To help combat bot fraud, White Ops suggests that advertisers “maintain a public-facing anti-fraud stance and a highly confidential, continuous monitoring program. According to White Ops “to both deter bot traffickers and defend against disguised bots, advertisers must deploy a dual-monitoring strategy: Monitor conspicuously to deter bot traffickers, and also monitor covertly to detect disguised bot traffic.” Sound advice to be sure.

Unfortunately, the more that the ad industry shines a spot light on the global digital media marketplace, the uglier it gets. Yet in spite of the steady stream of unseemly revelations this sector continues to outpace all others in average annual growth. Go figure.

Common Sense is that which judges the things given to it by other senses.

~ Leonardo da Vinci

 

 

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