Marketing Dec/Jan 2017

Every issue of Marketing looks at the story behind brands and the people that devote their blood, sweat and tears to them. From one-on-one interviews with Australia's top marketing executives, to valuable case studies and strategy-level opinion, every page is authoritative and insightful.

Niche Media Pty Ltd
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en este número

2 min.
editor's note

The first time I wrote about adtech in depth was in 2012. My editor had tasked me with looking at every aspect of this emerging ‘thing’ from several angles: advertisers, agencies and publishers. This is not a sequel. That’s not what this issue is about. This issue is for advertisers and advertisers alone. To benefit from this issue requires little previous familiarity with advertising technology and terms like ‘programmatic’, ‘real-time bidding’ or ‘automated trading’. It’s premised on the fact that clients can no longer leave the purchasing of digital advertising entirely up to agencies. That’s not to say agencies don’t still add value. They surely do offer benefits, but of different kinds to the former. Programmatic removes the efficiencies of scale in media buying, but because adtech is so complex it has created…

3 min.
setting the scene

Programmatic is becoming the default approach for buying media. Programmatic spend, globally, is projected to grow from US$19 billion in 2016 to US$42 billion in 2020. Non-programmatic spend, on the other hand, is only expected to grow from US$27 billion to US$31 billion over the same period (Magna Programmatic Growth Report, October 2016). Bear in mind that those figures only count digital display and online video in the definition of ‘programmatic’. As you’ll learn reading this magazine, programmatic trading through advertising technology has vastly greater potential. Our region, APAC, is an interesting one. It’s the third largest programmatic region in the world, representing 16% of global programmatic spend. But its diversity means it includes some of the largest global programmatic markets (China, Japan), some of the most developed (Australia), and some of…

21 min.
six issues causing headaches in the adtech industry

“A group of large publishers, large brands and big media agencies fought about this definition for about 12 months.” 1. VIEWABILITY A METRIC FOR MEASURING WHETHER A SERVED AD HAS THE OPPORTUNITY TO BE SEEN BY THE VIEWER. As advertisers, we want our ads delivered in nice environments. We want the ad units to be highly visible: large formats in prominent positions. The content, hopefully, is contextually relevant. Unfortunately, over the years some parts of the internet have reached a state where too many ads are being delivered out of view and, with video advertising, using autoplay with the sound off. If you're really unfortunate as a video advertiser, the unviewed ad would loop for multiple impressions, so you repeatedly pay for, essentially, worthless advertising. Too much unethical behaviour by publishers is what brought viewability…

6 min.
head to head

MEDIA TRANSPARENCY HAS ALWAYS BEEN A PROBLEM, NOW IT’S WORSE The irony of media agencies being quick to deny there is a media transparency problem is that there has always been a transparency problem in regards to media buying. The growth of digital media and the technology platforms required to deliver the associated transactions has simply made it easier for all involved to make additional revenue from the process at the expense of the advertiser. Yet it is not as if the old media commission system was any better. The fact is that media buying has been rife with rebates and kick-backs, beyond the agreed and declared media commission rate. In fact, in the heyday of the media accreditation system there was significant money to be made for the media agency to make significant…

7 min.
three models of brand-agency-vendor relationships

MODEL 1 IN-HOUSE/SELF-MANAGED Brand owns contract with vendor and hires internal resources to manage operations. This is the fully in-house model where the advertiser owns the tech and controls the operations. For large organisations and big advertising spenders, this is often the end goal, although in reality they may need to go with a service managed by the vendor or an agency until they have enough experience to be able to hire internal resources. Foxtel is one Australian example of a brand that has taken both the contract and operations fully in-house. Should you take adtech in-house? It’s certainly not for everyone. The answer to that question will ultimately rely on your unique circumstances, but here are some things to think about. Organisations vary widely in their digital maturity, and many do not understand the scale…

5 min.
the future of brand-agency relationships

Almost everyone I know would say I’m an optimist and see the best in all situations. I believe that if you seek, you will find – but I know that the journey in this case doesn’t look easy. With a lot of heart, a bit of brain and some courage I can tell you that there is a wizard at the end of that long, windy, yellow brick road. For many, the current brand-agency relationship isn’t where it should be. Brands have tried to embark on this ‘yellow brick road’ journey, only to find more and more confusion. At TubeMogul, we don’t believe that this needs to be the case. We strive to instead give our partners the knowledge and tools to make their relationships work – whether that means having a…