Category Archives: Internet & Web X.0

My journey in becoming a Mozillian

I decided to try out Medium this morning while traveling back from #mozlandia.  You can view the original post here.

I have also pasted the post below (minus the cute picture of part of the team).

My 365 day journey of becoming a Mozillian

My name is Darren Herman and I’m the Vice President of Content Services at Mozilla. I can be found at @dherman76 on Twitter. This is the first time I’m telling this story publicly and the first time my team is seeing it. I am blessed to work with such an amazing group of individuals and hope you can all relate to the below.

Today is just after my one year anniversary at Mozilla, but only now do I feel like I could consider myself a Mozillian. Maybe other Mozillians won’t consider me one yet, but at least I’m on my way. As I fly back from #mozlandia, our official all-Mozilla meeting in Portland, I have begun to reflect on this.

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I remember back to my first day on the job in Mountain View that it felt amazing to be a Mozillian. At that time, I did not realize that I was not a Mozillian but I was just a new employee at Mozilla who was just starting the journey to become a Mozillian.

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My past year has been turbulent, exciting, devastating, inspiring, unbalanced, curious, stressful, and amazing. I never thought you could group those words in the same sentence but those were all emotions I felt over the past year.

The majority of the senior executive team that I interviewed with and which hired me are now gone. The inspiring technologist and inventor of Javascript who many of us came to work for unfortunately left… Scary in my eyes.

One of my most intense moments of emotions was when I felt a sense of inspiration and excitement when I took the stage at the IAB Leadership Summit back in February to talk about Mozilla’s intentions within the advertising ecosystem. The talk at the conference was well received and I was in my glory moment.

Maybe an hour after I walked off stage, the reality of my new role set in to Mozilla. Mozillians, the community, and many users erupted at me, almost like the human immune system reacting with a toxin. My flight back to New York from the IAB Summit was filled with dozens of emails with our communications team to figure out how to calm a storm I created. Mozilla getting into advertising? No fucking way.

In my head I was thinking to myself… I came to Mozilla to evolve the advertising industry and content space but what I’m trying to do is constantly rejected? WTF. Why am I here? And more so, I left one of the best roles on Madison Avenue thanks to the generosity of my former employer for this?

I received threats from our community. I received flaming emails. I received a lot of resistance.

It was time to re-evaluate my time at Mozilla so I did. I went to my coach, my wife, my brother, my father, and my mentors and we chatted. Per their feedback and my decision process, I quietly resigned and I continued an old conversation with a pre-IPO hot company to take a c-level role doing things I had former comfort in and with a leader who I respect more than 99% of people I’ve ever met.

By the end of this December, my plan was to exit Mozilla and start in 2015 at the new opportunity.

But something funny happened to me on the way to Mountain View for the 10th Anniversary of Firefox.

In the weeks leading up to the 10th Anniversary, my work life at Mozilla started to change a bit. My team had grown from back in February and we’d shipped code. We’d launched Tiles with some commercial partners and landed the Interest Dashboard in the AMO. In an engineering culture this is the holy grail, much more than talking about something or even showing mockups. We shipped code. We fucking shipped code.

I’m not going to say that we got all the respect in the world inside of Mozilla, but I started getting less hate mail, the tweets became positive, and the community became super curious.

I also began talking different. It’s weird to say that and it was something I never realized earlier this year. I used words that were second nature to me but not second nature to Mozilla. I used words that scared people. Hint: don’t ever say synergy. I tweaked my vocabulary. Had I done this for my talk at the IAB Leadership Summit, I would have probably had 90% less issues, but hindsight is 20/20.

My team, which is probably the smallest (but growing) inside of Mozilla, started to snowball. We were knocking off bugs. We got momentum in the press. Our talks with commercial partners for selling advertising tiles was beyond well received. There was real hope in all of our eyes that we could begin to change this ecosystem.

At around 6am PST on November 10, I walked into the Mountain View office for the big 10th Anniversary celebration with anticipation that this would be my last time in Mozilla Mountain View but all of the emotions from above started to hit me.

I texted my absolutely amazing wife and said that it was bittersweet that I was leaving Mozilla now as the hard part was probably mostly behind us. I’d resigned a month or so earlier but I actually now might want to stay.

I was given 5–10 minutes during our celebration to talk about what Content Services was doing in front of all Mozillians. Hundreds of Mozilla employees were physically present and others were connected over our Vidyo conference system. I asked my team to join me on “stage” (no real stage) as I went thru a slide deck of some of the products we’d launched and landed and for the first time, we got an applause; what I interpreted to be a real-one. After the talk was over, Mozillians that I had never met before came up to me and said things like: I can’t believe you’re still here but we’re lucky to have you, I now get what you’re trying to do and holy shit it’s cool, and we know this was a hard year for your team and you but hang in there.

It felt good. So good that I went into my transition meeting later in the day and the meeting lasted less than 5 minutes. I decided to stay at Mozilla and Chris Beard, our CEO gave me a second chance and vouched his support.

Fast forward. #mozlandia

I believe it was Chris who had the genius idea to bring 1200–1300 Mozilla employees to Portland this past week. We had a rough year, collectively due to management changes, etc, and thought that bringing us all together would strengthen our bonds and get us aligned for 2015.

A few things clicked for me at #mozlandia that make me feel like a Mozillian.

  1. I gave a presentation to all of Mozilla on the big stage one morning and there was applause and laughs. I had the most dangerous subject (advertising) and showed a disruptive path forward that was received.
  2. I met many different teams over the course of the week and proved I was human. So I think. I shared a beer with people who had called me out on Twitter earlier in the year and while we probably aren’t best drinking buddies yet, we didn’t kill each other either. We listened to each other and had constructive conversations.
  3. I saw the passion in my teams eyes about what we’re aiming to tackle which is monumental and not easy. But the passion is there and we are all aligned.

I feel stronger than ever that Mozilla is an amazing place. We have a real mission that’s not encumbered by another person, investor, shareholder, or partners priority. Our mission is probably as true and noble as one could be.

It took me a year to truly understand this and I’m still learning each day. If you are reading this and witnessed this all happening over the last 365 days, I thank you for your support. Thank you for showing me the Mozilla way. Thank you for continuing to nurture me into the culture.

Showing is worth more than talking. Watch our code. It’s open. And fucking amazing. Get ready. I’m excited for 2015.

The Independent Web

Since I joined Mozilla almost a year ago, I have been more conscious of the independent web meme.   Today, Mozilla celebrates it’s 10th Anniversary of Firefox which is all about choice, control, and transparency on the web [1].

While I was personally aware of independence on the Internet (I’ve been a Firefox user for a long time), I truly did not comprehend the importance of this subject.  Last night on my flight out to Mountain View (thru SFO), I watched The Rise and Rise of Bitcoin and this reinforced independent thinking as it pertains to global currency.

If you live, work, or gain value from the web, which I believe every single person reading this post, I highly suggest you start reading up on the independence of the web as it’s truly one of the worlds most important innovations and too many of us take it for granted or take advantage of it.

At Mozilla, we put together this video that talks about independence.  Enjoy it.

Happy 10th Anniversary Firefox.

[1] For those blog readers who are in the advertising and/or publishing sectors, read the post I wrote about trust, transparency, and control for users on the web and with advertising.

VRM, The Intention Economy, and The Thank You Economy

It’s not uncommon for me to get the questions, what looks interesting to you these days? … or where are you focused?  Since joining Mozilla, I’ve filtered pretty much all of my knowledge and history with “user empowerment” and the area I keep coming back to is the quiet but growing VRM space.  For those unfamiliar with the term, it’s Vendor Relationship Management, the opposite and complimentary tool of CRM:  Customer Relationship Management.

PowertothePeople

The VRM conversation is being championed by Doc Searls of Harvard Berkman Center but at this point, the ecosystem is growing larger than the one individual.  You might recognize Doc’s name as he was one of the authors of the book, Cluetrain Manifesto and followed it up with The Intention Economy.

In the beginning of The Intention Economy, Doc posits that soon, customers will be able to:

  • Control the flow and use of personal data
  • Build their own loyalty programs
  • Dictate their own terms of service
  • Tell whole markets what they want, how they want it, where and when they should be able to get it, and how much it should cost

When you think about these four points, they empower the customer/user and play nicely into the idea of VRM.   Joe Mandese, a VRM list subscriber and all around amazing MediaPost Editor-in-Chief wrote a piece recently titled:  Acronymity:  The Three Most Important Letters You’ve Never Heard Of.  In this piece, Mandese writes about the shift from brands at center to users at center of the value equation.

Per the above points and Mandese’s piece, you’ll start to see some consistency around empowering the user.

On Madison Avenue, there is a lot of talk about empowering the user but the funny thing is, it’s done completely opaque, without user permission (or with permission under a ton of legalese), and the user has been given no access to their data…. among many other things.

Social media has pushed us a little closer to a world of VRM….incrementally- but at least in the right direction.  In social channels, users have a voice – one that can be exponentially radiated.   If I have a bad experience on Delta, a simple 140 character tweet can help solve the problem where not-so-long-ago, it took a penned letter and weeks of waiting to hear back from them.

In The Thank You Economy, Gary Vaynerchuck writes, now customers’ demands for authenticity, originality, creativity, honesty, and good intent have made it necessary for companies and brands to revert to a level of customer service rarely seen since our great-grandparents’ day, when business owners often knew their customers personally, and gave them individual attention.

Books

The power of social media (individual voices) and VRM (individuals being empowered, commercially or otherwise) will put us ahead in the next decade.  It’s a bigger opportunity than search (SEM*).  So, this is where I’m focused for now and hiring people and meeting people who want to experiment here.   If you do, please contact me.

* SEM:  probably one of the purest forms of intentcasting which plays into the VRM space but is not entirely the VRM space.

 

Are You a Mozillian?

I’m sitting in my hotel room in San Francisco having bought a one-way ticket here late this past Wednesday night.   Why did I come out with no-end in sight?  I bought a ticket because we were in the midst of a crisis and wanted to be closer to our senior leadership team and board.

For those who don’t know, I joined Mozilla in December of 2013 and am now a Mozillian.  I lead our Content Services group.

I tweeted last night the following:

But this post is not going to be about what everyone is talking about online regarding Mozilla.  Or my Tweet last night.  This post is what Nick Bilton tried to do with his NY Times article but did not point to something that’s very important to me and ultimately, us as Mozillians.

The majority of the media and world lacks an understanding of what Mozilla does and why we do it.  We’re a non-profit.  We have certain ideals and values.   And much more.

What I’d like to do is point you to a video that is super important to us.  It’s on YouTube and it’s called “Are you a Mozillian.”  In the video, it has many clips from the Mozilla Summit that was held in 2013.  You’ll hear from many different Mozillians about what’s important to us and where we are headed.

What’s important about Mozillia is that it’s not about any one of us.  Darren Herman at Mozilla is just one person.  But the overall Mozilla Project is much, much larger than me or any of my peers.  What we are doing is a big challenge but one that is ultimately needed in this world.   We have come to lean on the Internet and take it for granted.  That’s OK – as long as you know that there are certain values that are being upheld to make that Internet experience innovative, open, and creating opportunity for all.

If this is interesting to you, read more about our mission.

Note, I wasn’t asked to write this.  I just got sick of reading all of the negative articles online.  Life is too short for negativity.  I like to surround myself with people and content that move things forward.  I hope you do too.

Why I Still Pay for Content and An Opportunity for Publishers

Image from Juliette Millien

Fred’s post this morning inspired a response from me.  I haven’t done a response post in a while but then again, I haven’t been updating this blog as much as I used to (hopefully that changes in 2014 but you heard that in 2012).

I pay for content, at least the majority of time.  I subscribe to the NY Times and WSJ – annual digital subscriptions.  I also pay for Wired Magazine, Netflix, Cable, and the Stocktwits50.  I also subscribe to Satellite Radio in my cars and purchase the enhanced traffic package.  I used to subscribe to a couple of Letter.ly’s while they existed and Business 2.0 Magazine.  While I could get access to much of this content other ways, having a login/password allows me to access it quickly when I’m on the train commuting to and from work or while laying on the couch enjoying a few minutes before my kids wake up in the AM.

Years ago, my brother and I would sit on Hotline SW, Kazaa, Napster, eDonkey, and other p2p services and download an album or two but most of the time, we had a greater chance of getting a computer virus than finding the album we specifically wanted.  I quickly realized that driving to the Borders or Barnes and Noble was faster to get an album then waiting for it to download on on a 14.4, 33.6 or 56k modem…. and so, I kept buying albums but mostly in the retail store.  *

“Time” is the reason why I pay for content. Saving more than a few minutes to access content is what I pay for.  We have very limited time on this earth, so I’m willing to pay a premium for things to happen quickly and efficiently so I can do more of what I love.  I’d rather die playing on the tennis court than sitting in front of Google Maps trying to find the court.

I cannot believe I’m alone in my thoughts about “time.”  So, if “time” is the reason why we pay, then we can create a mutually beneficial business model around it.

Publisher case:
Strategy:  Create revenue streams thru the sale of access to first party content.
Insight:  Based on my own habits, I hypothesize people might pay for content because it removes any friction of access to content in turn making it much quicker to access.  Speed.Opportunity:  I wrote about this opportunity here in 2010, but I still think it remains true.  IF publishers are going to wall-their-garden, then only wall-it for the first 12-24 hours of an article’s life.

So yes, I pay for content and believe there is a way to get publishers paid for the great content they create.  Advertising is not the only way to support great content.

* Now that we have much faster Internet access, I pretty much buy all my music from iTunes and Spotify subscriptions

Why I’m Bullish on Programmatic Media

I’ve been immersed in programmatic media for pretty much my professional career.  Whether in advertising, in-game ads, search, or other areas, I’ve spent a lot of time automating and implementing [technological] pipes into the advertising industry.

I am becoming more bullish than ever on the overall idea of programmatic media.  Let me test out a few proof statements with you and comment below with your thoughts.

1.  When technological progress is not about the technology, it gets adopted by the masses.  From 2008-2012, so much of the conversation was about the features of every DSP, DMP, Exchange, Workflow and other solutions within the programmatic media industry.  One day we’d hear that one DSP was better than another because of a feature but 30 days later, it would change.  I feel like today, we’re not focused on those respective features any longer… we’re focused on the overall business and vision of the companies because we know that the features already exist within them.  I feel like the “Cold War” of DSP’s is over and now we’re into the “business building” phase.

2.    Innovation is happening further from the center.
Again, from 2008-2012, almost every company in the programmatic space was centered around building bidders and pipes… for good reason.  Now that we’ve saturated that specific part of the programmatic stack, we’re now seeing innovation occur further away from the bidder.  Companies like Bionic, Centro, and others are helping marketers purchase programmatically but not necessarily highlighting the programmatic execution.  The execution of programmatic does not matter to most, even though it’s occurring in the background.

Also of note here are the programmatic-DNA companies popping up.  Pre-programmatic-DNA companies were technology organizations that had to pivot and add programmatic technologies to their offering or risk being disrupted (i.e. ValueClick).  Now we’re seeing pure programmatic-DNA companies who are operating from the ground up, completely programmatically and recognizing efficiency and effectiveness gains.

3.  Open Innovation in Programmatic
More often than not, the first industry constituents to solve a problem are private companies with closed ecosystems.  We’ve seen at least one example of the evolution of this into an open ecosystem now with the emergence of RTBKit, a github based project that allows anyone to download the infrastructure of a bidder, the central tool to purchasing impressions in a world of real-time media.

4.  5-20% of Paid [Digital] Media
Agencies and their respective holding companies are talking about how they expect to see their programmatic spend grow to 5-20% of their overall paid digital media.  I believe that this number is low, especially on the lower-side of this number.  I believe that vendors are using programmatic ways of procuring media and most agencies are not aware of this… so realistically, the number will be higher.   It will be telling if/when AppNexus goes public, to see the amount of gross dollars moving thru their exchange as it’ll help us understand the total dollar volume of this industry.

5.  Programmatic Media is Designed for Accountability
Gone are the days of Wannamaker’s famous quote.  If you are still using the above quote to defend your media plan, then you might as well start packing up your agency or CMO-job. Programmatic media is designed to be accountable from the ground up, fully measured and every opportunity to be attributed.  With Chief Marketing Officer’s having to justify every $1 they invest in media in the market, they need to purchase accountable media.  Note, I am not saying in any way that creativity is going away, I’m purely saying that the container for programmatic media is completely accountable so this is a win-win for the ecosystem.

Lastly, I’m bullish on programmatic media because we’re going outside of media for the programmatic conversation. Uber, airbnb, eBay, Zurvu, and many other platforms are programmatic.  In some of the investment circles that I’m in, we’re discussing the businesses outside of advertising that are being transformed programmatically.  This, at least to me, is very exciting.

 

Cross Country Flight Q&A: Digital Media & Advertising Conversations

I posted a tweet asking the Interwebs/Twitter Stream to ask any questions they’d like.  Sorta like a reddit AMA.  This page will be continually updated with the tweets and the answers.  I am using my blog because some answers will require more than 140 characters.  Follow along, the hashtag is #dhqa.

First Q: @bridgetwi:  How does a new site break through for one of our clients?
My Answer:  
One of two ways, though not mutually exclusive.  One is idea led.  The other is relationship led.  Lets start with idea led.  At The Media Kitchen, we love innovative ideas that push the boundaries between creativity and media.  If you have an opportunity that matches that with the relevance for our clients (which is a must!), then we want to hear about it.  Relevance is key.  Do not pitch an entertainment site for a financial services client without some really, really, really good justification.  The second way is relationship based.  Just like in any other case, having a relationship with us is key.  You should work hard to establish yourself with rapport with our media team and they should know who you are.  I tend to want to answer emails faster to people I know and trust over people I don’t yet know.  But I do get back to everyone.

Second Q:  @bridgetwi:  What’s the best media idea I’ve seen?
My Answer:  I’ve seen a ton.  We’ve executed a ton.  The “best” is purely subjective and is relevant to a moment in time.  Rather than giving a very specific example, I’ll talk about why it was the best I’ve seen.  The best ideas presented to the agency generally are the ones that actually come-to-life in the presentation.  Since much of what we’re working on is new, we like to see how things “feel” – so mockups and wireframes certainly help.  In addition to mockups, we want to make sure that the audience and context is right for the marketer.  Any research that shows this is extremely helpful.   Companies who do this well are Buzzfeed, The Atlantic, Quartz, and The BBC amongst many others.

Third Q:  @rjjacobson:  Where do I see the strongest defensibility for ad tech companies?
My Answer:  Really good question… I’ll add my two cents.  I’d like ad tech companies to play offense, rather than defense.  I believe the majority of the Lumascape is allowing companies to compete against Google.  Why?  Google controls 50%+ of digital advertising dollars.  That means .40 on the dollar is for everyone else.  So rather than playing defense against Google, lets play offense and look for areas to out innovate.  Hot areas that I’d focus on:  solving cross device recognition & attribution, another search engine, location services, and redefining another gold-mine of an ad unit (what’s the new AdSense?).

Fourth Q:  @chrisohara:  Bloody Mary or Not?
My Answer:  I’m not really a big drinker to begin with and I don’t think I’ve ever had a drink on an airplane.  That will change soon on an upcoming trip to South Africa where I’ll be in the air for some crazy amount of time like 16 hours.  Might have a scotch or glass of wine on that trip.  Or two.

Fifth Q:  @aexm:  How do you approach defining & evaluating success metrics for newer types of advertising formats like native?
My Answer:  Ana, it’s a really good question.  To be honest, I don’t think native is really anything different.  All the native stuff that’s landed on our plates recently are just new creative interpretations.  We can measure their effectiveness for marketers one of two ways:  if the campaign is about moving the needle of some “brand” isolated metric, then we use tracking studies and surveys.  We can also look at correlated or uncorrelated increases in other things like sales or searches based on those results.   The second way is if it’s more “direct response” focused – we can measure directly the affect it has on sales or whatever the conversion metric is.  At the end of the day, we need to define KPI’s (key performance indicators) for an entire campaign.  If “native” units don’t match up to the KPI’s, we’ll probably not deploy them.  Simple as that.

Sixth Q:  @dandotlewis:  Favorite place to watch a DMB show?
My Answer:  I was waiting for a Dave Matthews Band related question.  For those that don’t know, I’ve been to many, many, many of their shows.  100+.  Some of my more magical shows have been at SPAC Night 2.  That’s code for Saratoga Performing Arts Center, 2nd night of show.  For whatever reason, they play a much more laid back and “older” set for night #2 of their SPAC performances.  It’s also set back in the “woods” and it’s amphitheater style seating (although I like to stand in the pit).  And truth be told… I’ve never seen them at the Gorge, which is on my bucket list.  That will change in 2014, hopefully.

Seventh Q:  @mhill1066:  Which side is winning, data-tech or operational efficiency tech?
My Answer:  Good question and it could be interpreted in many different ways.  I’ll define data-tech as folks who help capture, segment, and operationalize data for the use in analytics or media targeting.  Operational efficiency tech are folks who are more enterprise players trying to streamline the whole process.  I’ll attack this question from the filter of an agency.  So that’s my public bias.   Up to today, I believe that data-tech has captured much of the mindshare.  Folks like BlueKai, Exelate, VisualIQ, Adometry, Lotame, Cross Pixel, and others have nailed the data-side of all of this.  I don’t know how they play out, but at least have captured the initial intent of the industry.  For operational efficiency tech, I have seen a ton of solutions over the years but only now is the time becoming more ripe, though I still think there is a ways to go.  WIthout a doubt, agencies need to shift their process from siloed excel sheets to a full suite of workflow tools.  It’ll make them more efficient which will drop dollars down to their bottom line.  But the issue has always been around payment for these technologies as agencies already run on razor thin margins.  With the shift to programmatic, it’s putting pressure on agencies to adopt technologies and I think the rate of adoption will be higher in the next 1-3 years than it has in previous years.  Folks like Bionic are trying to capture this and just might be part of this new ecosystem.

Eighth Q:  @ericfranchi:  Twitter IPO, are you buying or waiting it out?
My Answer:  Let me begin by prefacing that I’ve only recently gotten into speculating in the stock market.  Thanks in part to @howardlindzon and @stocktwits.  Some background:  my wife and I have allocated a certain portion of capital for pure speculation (though isn’t everything speculation?) and I actively manage that in partnership with a financial institution.    Since I do not have unlimited access to funds unlike some super wealthy individuals, I have to really prioritize where I am placing bets.  Over the past few weeks, I have sold off some holdings in order to make room for $twtr.  I expect that this will be a long holding for me and know that in the first month or so, it’ll be fairly volatile in terms of going up/down.  I believe in Twitter as a long term utility and will speculate as such.  I’m in.

Ninth Q:  @keithepetri:  With the shift to mobile, what do I think is the major reason for resisting a shift in budget?
My Answer:  Great question Keith.  One that I’ve talked a bunch about on this blog in the past.  The biggest factor in the mobile-time-spent-advertising-lack chart that Mary Meeker and others have popularized is, IMHO, time.  Time to shift budgets.  Time for mobile ad tech to catch up with desktop based ad-tech.  Budgets shift when there is no way to measure them and validate that they are performing.  Budgets generally stay when we can validate that they are driving the KPI’s we need.  There are some key things needed in the mobile ad tech stack that will help us validate KPI’s for a campaign and they are currently being built out by many companies both large and small.  Media buyers are tasked with hitting goals for clients, CMO’s are setting those goals, so dollars will shift when the advertising industry can measure towards those goals.  And man… will those dollars shift.

Tenth Q (woo hoo!):  @terryalj: Whats your take on smart watches? Does a potential google adoption mean anything? Is this, or glass, a real next step?
My Answer: Ubiquitous connectivity will exist, in some form or another.  When thinking about where to place connectivity/value, companies are looking at items in which consumers use every day.  Cars, watches, etc.  $GOOG has a driverless car.  $GOOG is in the car navigation (they were in my Audi).  $GOOG and others are now going into watches.  Why?  People drive their cars and use watches everyday.  I know there is research as to millennial not using watches as much as other generations but there are still plenty of people with watches.   Now the larger question is why?  Why do tech companies want to play here?  Data.  It’s all about the data.  Having access to where people are, what they are doing, and how they are feeling (sensors in watches?) is very valuable to enrich data sets.  Not all data will be used for advertising but it will be used to make our experiences [expected] better with the platforms we engage with.  I think Glass right now is a bit premature.  I can see watches getting adopted more, IMHO.  I’d like to see a smartwatch co & Panerai partnership.  I’m a buyer.

Eleventh Q:  @ericfriedman:  Can you post a pic of your phone home screen so we can see what apps you have on it?
My Answer:  Yes, but wasn’t so easy as I’m typing this all on my Macbook Air.  I took a pic of the phone home screen which is below.  It doesn’t help much as it’s small but let me tell you what’s specifically on my home screen.  It’s setup for speed/utility.  Across bottom is Phone, Mail, Gmail, and Social (folder).  In social is Fb, Tumblr, Twitter, Foursquare, LinkedIn, Hootsuite, Pinterest, and BBM (yes, really).  In the homescreen there are four folders:  News, Weather, Travel and Utilities.  I commute everyday into the city (use Metronorth) and travel a bunch, so I need access to my train schedules, Delta App, FlightAware, GateGuru, Passbook, etc.  For News, it includes a range of apps such as Stocktwits, Pulse, Circa, Prismatic, Quora, Pocket, Mashable, CNBC, and Gawk.it.  Weather, well, is weather with WeatherBug, DarkSky, and Forecast(.io).  My second screen (when you flip to the next screen) is filled with Folders including Sports, Shopping, Music, Finance, Utilities, Entertainment, Storage, Photography, Wine, Hotels, and Lifestyle.  I specifically like the Wine folder for when I’m at a restaurant or a wine store and need a recommendation or two.

phone
Twelfth Question: @benkartzman:  Will creative and media agencies ever truly get along? Would ad tech be better for it?

My Answer:   My real answer here is that anytime there is a P&L between two companies, the one company or the other is looking for the advantage.  If we live in a capitalistic society (which I believe is good), then companies are going to maneuver for capital.  This comes at the detriment to client service, support, and innovation sometimes.  Agencies fighting for budget doesn’t help anyone and actually hurts people who are trying to help innovate, such as your example around ad tech.  Unfortunately, there is no holy grail but I’d have to think that integrated agencies (such as kbs+) are better off for having 1 P&L which allows for ultimate collaboration on accounts.

I will update this post as more questions come in.  Thank you for participating and help spread the word!

 

Cookies Will Become Brownies

Cookies seem to be dominating the conversation lately.   While I’d prefer talking about black + whites, chocolate chip, Mallomars, or Milano’s, our attention for the past year has been around the ecosystem surrounding first, second and third party cookies.   This post will not go into the technicalities around cookies but rather the idea of cookies in existence.

Cookies (of the computer context) were created for website session management.  They [cookies] were not originally constructed nor conceived as an advertising tool.  Once the initial 3rd party ad servers were built in the mid 1990s, they relied on these cookies to help track and measure a digital media campaign via leveraging data written to and contained in a cookie.

The majority of the $117.60 billion dollar* worldwide digital media ecosystem is beholden to the cookie.  It’s why the IAB has fought so hard to protect the third-party cookie, as every company who pays the IAB its annual dues are impacted by the potential threat to remove third-party cookies.  You cannot fault Randall for protecting his fiefdom and the organization that he has successfully grown.

In the above paragraph, you will notice I reference the specific type of cookie:  third-party.  All too often in our conversations, we do not reference the specific types of cookies we are talking about.  Much of the spotlight in today’s conversations is around third-party cookies.  These are cookies that are set by neither the consumer nor the website they are visiting but rather a third party in the equation.  Sometimes this third party cookie is set by a third party ad server such as DoubleClick DART, a data company such as CrossPixel, a re-targeting company such as Criteo, ad exchange such as AppNexus, supply side platform/private ad slot such as Rubicon, ad networks/DSPs like RocketFuel + MediaMath, social plug-ins like Facebook Beacon/Connect, and many other examples.  Reference the Lumascape for Display for many other companies who utilize 3rd party cookies.  As you can see, I drew this out on purpose because the impact of the threat to remove third party cookies has far reaching consequences.

I was sitting with an investor yesterday and she asked me straight out, “what happens if third party cookies go away?” I get this question often and I half jokingly say, “we’ll have cupcakes and brownies.”  I’m actually serious here.  She looked confused and laughed with me… but I provided some backup.

Digital advertising dollars are invested, traded, measured, and optimized on the idea of “quantification” of spend.  Validation of spend.  Measurement of spend.  Whatever other word you’d like to use.  This quantification, while not 100% accurate, is better than any other media channel we have… and is pretty much all based around a third party cookie.

My view: If the third party cookie goes away, the industry will create something to take its place so it can continue to measure.  A brownie or cupcake if you will.  Or Milano or Mallomar (if it were up to me).   

This is validated through many of the conversations that I’m having with young startups and larger technology/media companies.  Hearing terms like UDID, ADID, safehouse, clearinghouse, serverside, and others are being thrown out as ways to help identify, target, segment, scrub, or track display/mobile/tablet devices.  I’m sure there are dozens of ways in addition to the ones listed that are being built by different firms.

The impact of the removal of the third party cookie will have consequences to IPO candidates and currently public companies such as ValueClick, RocketFuel, Criteo, YuMe, Tremor, Marin, Facebook, Google, Yahoo!, AOL, Microsoft, Acxiom, and others.  Criteo and RocketFuel are probably most vulnerable as they are going thru their investor roadshow and this should be one of the first questions that investors ask.

Some cookie based thoughts:

I never really understood the Facebook acquisition of Atlas Solutions.  It dawned on me a month or two ago why it was special and unique:  If Atlas has the ability to deliver an ad server solution in the client domain space, then it can feed the Facebook audience segmentation data through and deliver voluminous audiences through their ad server without having to sync third party cookies.  This gives a leg-up to folks using the Atlas Solutions ad server.

There are companies such as TrueEffect that have popped up that are delivering first party ad serving and media measurement.   This is important similarly to Facebook/Atlas example above.  Other third party ad servers have the ability to serve in the first party but a special agreement has to be formed.

Google and Mozilla are going to be players in this ecosystem beyond what we can imagine today.  Chrome and [Mozilla] Firefox see the majority of the Internet’s traffic and have quite a bit of data that is very valuable to many different stakeholders, inclusive of the consumer themselves.  Recognizing value in that data is something that has not been fully done yet for the consumer and it’s an opportunity for the marketplace.

Companies in the content marketing space have side skirted the conversation around third party cookies but they too are directly affected.  If agencies and/or brands are measuring their content marketing campaigns thru folks like Buzzfeed, Outbrain, Nativo, etc by placing a 1×1 pixel or click tracker, they are essentially measuring the same as a display campaign.  Understanding the impact of third party cookies to the content marketing space is important because measurement directly affects the growth of the space.

First party cookies are not going away, at least in the short term.

That is all, thank you for reading.  You should react in the comments (below) or via twitter.  You can tweet me at @dherman76 and I look forward to responding/chatting.  The cookie conversation is serious and important to this whole industry and I probably missed 50% of all the conversations happening.  The above is not meant to be all encompassing but an addition to the already started conversation that is taking place on sites like AdExchanger or MediaPost or list-serv’s like Harvard’s Project VRM list.

* eMarketer August 2013

** Note, I used many examples of companies in this post.  The only company to my knowledge that I have privately invested in is CrossPixel though might be a shareholder of other publicly traded companies in this post.   There are many companies in the entire industry and I cannot fit each company into each post I write.  If I left your company out, I apologize.  If I miscategorized your company, I apologize as well and get in touch so we can chat about it.

Rethinking the 30 Second Spot

When I joined the agency world, Joseph Jaffe had just come out with Life After The 30-Second Spot but I doubt Jaffe realized that the new spot, if digital media has its way, is 6 or 15 seconds.

I came across an article recently on NPR about how Vine conceived the 6 second spot and it’s pretty much what you would expect:

“One day we did wake up and say, six seconds,” Hofmann joked. Well, one day after many days of experimentation.

He and the other co-founders tried various lengths — 10 seconds, nine, five. And five seconds wasn’t long enough.

“It was actually too short,” he says. Six seconds allowed for the aesthetic feel the creators wanted but preserved the quickness they wanted to promise users. The limit allowed the average person to easily share and make a video on his smartphone.

With 15 seconds of video on Instagram and 6 seconds of video on Vine, it’s at least 50% less length than a traditional 30 second spot.  These shorter videos are a near-perfect snack for consumer generated content.  Anyone with a smartphone can create and upload a fun clip and syndicate it out to Twitter/Vine and Facebook/Instagram with ease… and instant audience attention.

After spending time with entrepreneurs who are building everything from video servers for social media to creative directors executing multi-screen video briefs from Fortune 500 clients, one question that I have been thinking about is whether brands at scale will really start creating professionally produced shorter form content?  If an Instagram video is [at max] 15 seconds, then a pre-roll* for the platform must be no longer than 10 seconds to make sense.  Imagine a 3 second pre-roll.  Can you storytell in 3 seconds?

You might not have a choice.

In advertising, dollars flow to where eyeballs go.  There’s a bit more to that but if eyeballs are heading to Twitter and Facebook at scale, which they are, then brands and their respective agencies need to understand how to leverage these platforms for communicating and interacting with their audiences.

Retooling the creative brief, process and craft to deliver more punch in less time is going to be completely necessary.  It’s going to be interesting to watch how Twitter interacts with brands and how much of the creative process they bring in-house versus relying on their ecosystem partners.

Anytime you are on the cutting edge of innovation, you need to offer services and support to your clients to onramp them to execute on the edge.  Twitter did this in the very beginning with celebrities, basically offering a VIP management team to help increase the Tweets coming from celebrity influencers.  Think of this as a form of managed services.

This next evolution of video in digital media is going to be really fascinating to participate in.  Will Costolo and Zuckerberg force the redefinition of the 30-second spot?

 

* Preroll:  I used preroll video as an example of how advertisers are surrounding video content online.  Very similar to a commercial on television.  I am not arguing that preroll is the most effective way of doing video advertising, but rather, using it because it’s the most scaled way of doing video advertising.

10 Things You Should Do If You Are In Digital Media

Top 10 lists are all the rage.  Buzzfeed, Business Insider, and other sites use lists to attract audiences and provide some good snacking material.

I wrote this top 10 list for our agency.  Ten things you should be considering as a chef (what we call our strategists) of The Media Kitchen, when working in digital media.

These are in no particular order:

1.  Understand the impact of programmatic buying on the digital media industry.  A good way to start to understand where this is all going is to research Overture and GoTo and understand how Paid Search evolved.  A great resource is AdExchanger.  Programmatic buying isn’t just for remnant inventory.  I see a world where an entire media plan of all tiers of inventory are potentially bought programmatically across most major media channels.

2.   Analytics.  If you want to succeed in planning for digital media, don’t just think about it as purely a “paid media” channel.  You should immediately become familiar with Web Analytics which also covers much of Mobile Analytics.  A great primer is here.  Clients hire us to drive results and much of the results occur off of our creative assets: in our clients stores and their sites.  We must understand how to track all of this.

3.  Serving & Tracking.  In digital, we serve media and we track it using a 3rd party ad server.   Because of this, we can justify our spending and it’s how we’ve grown to a multi-tens of billions of dollars industry.  For us at The Media Kitchen, we use DART or MediaMind.  You should become fluent on how these systems work as they are fairly robust in their offerings.

4.  Content is Marketing and Marketing is Content.  We’ve grown up in digital with 300X250 ad units and 160X600 but increasingly so, digital marketing is not a banner and is more of a content unit.  We must understand how to deploy content units and measure the effectiveness of these new units.  This is sometimes called Native Advertising depending on the context of how it’s being used.  A good person to follow here is Jon Steinberg who provides lots of stats and examples of content marketing as he runs Buzzfeed.

5.  Mobile.  It goes without saying but the mobile device is increasingly prevalent.  Tablets and phones are everywhere and we must understand the opportunities and limitations of what we can and cannot do.  The secret ingredient to these devices are the “location” factor -> understanding location can have a profound impact for targeting.

6.  Cookies.  The FTC and government has come down hard on 3rd party cookies.  Keep your eyes out for articles about this subject as we’ll have to respond and react quickly to any legislation that occurs.  As an agency, we watch this closely and participate in many of the industry workgroups, but you should be aware of this in case your clients as you any questions.

7.  Early stage innovation.  If you are looking for cutting edge, you should check out early stage companies, also known as startups.  You can start here.  Working with startups is not easy as they aren’t at the same scale as most major technology companies but a successful campaign with a startup marketing technology could reap huge benefits for the client and the agency.  Our go-to-market at TMK is to harness innovation so you should not be a stranger at all to this world.  I do not want to be part of an agency that Steve Cheney talks about here.

8.  Read.  If there’s one thing that the digital media world is not, it’s shy.  Everyone likes to write.  MediaPost, AdAge, AdWeek, TechCrunch, Mashable, Digiday, Fred Wilson, Bijan Sabet, Charlie O’Donnell, Paul Graham, Albert Wenger, Chris Fralic etc.  All of these sites are chock full of information about campaigns, technologies, vendors, solutions, strategies, early stage innovation, etc.  You should read at least 1-2 of these sites each morning you arrive and maybe one of the sites before you leave.  Subscribe to their RSS feeds or newsletters.  Get up to speed as much as you can with the whole industry, even if it’s another agency or another client.  The smarter we become, the better we all become.

9.  Be Open.  Sounds weird to include in this list, but it’s important.  Don’t be scared of early stage innovation.  Don’t shy away from quantitative measurement because you’re not a quant.  Lean in and be open to anything in digital.  The rate of change in digital media is so fast that you need to lean into things to fully understand what comes next.

10.  Ask Questions.  We’ve got a great support group here at the agency around digital media.  Email me directly.  Stop by my desk.  Talk to Andre.  We’re here to help, inspire, troubleshoot, etc.   Don’t be a stranger.