Category Archives: Internet & Web X.0

Measuring Integrated Advertising

I have a lot of respect for Mark Suster, an entrepreneur who turned venture capitalist and now is investing out of GRP Partners.  He writes a terrific blog called Both Sides of the Table and his posts are picked up on TechCrunch and other major outlets.

He recently wrote a declarative post called The Future of Advertising Will be Integrated.  The post went up on April 29th but I’ve been noodling it ever since. Due to some personal obligations, I’ve not been able to respond, but finally, here it is.

As an entrepreneur turned ad agency guy, when I hear the word “integrated,” I immediately think media and creative under one roof, such as my firm, kirshenbaum bond senecal + partners.  I personally believe this is really the only way to go if you want to get to a big platform.  With media and creative all under one roof, under one P&L, and with a cohesive team, you can create big ideas that know no creative or media boundaries.

We have a saying internally at the agency, E=(MC)2, which is obviously repurposed, but it means a “[brand] experience” is exponentially greater when media and creative work together.

Enough agency speak for now but keep this last sentence in the back of your mind as you read the rest.  I hope you do.

Mark came at his post a bit differently and took the above tenants, whether he realized or not, and applied them to the digital media ecosystem today.  He highlighted a few companies such as my buddy Ari’s company, Solve Media, along with Adly and Kontera (amongst others).  The creative is the media in most of these, along with the media being the creative.  I’d argue Paid Search links play here as well.

The Elephant in the Room

One of the largest issues that the digital advertising ecosystem faces today is that we as an entire industry, are not setup to measure the “integrated” nature effectively. Because of this, at scale, this is not a near term reality.  There, I said it.  The elephant is in the room.

The digital advertising ecosystem by default rewards the intent harvesters, not the intent generators.  The primary reason why is that many agencies and marketers are using 3rd party ad serving systems that reward the last click or last action.  In the world of rewarding the last click or action, generally, the ad networks are the ones who win out.  There are 400 (or 700 depending on who you talk to) or so ad networks in the world who have nice businesses.  Just look at ValueClick or InterClick’s financial statements as they are public.  Not too bad.

THE Digital Opportunity

Because of the above, therein lies an opportunity.  If we believe what Mark wrote last week and I’ve been saying for years, then an opportunity lies in being able to create a measurement platform that allows us to understand intent harvesting and intent generation/creation. Piecing together a DART (3rd party ad server) report with a ComScore or Knowledge Networks study is inefficient and frankly, annoying.   There needs to be an evolution here.  This is a big opportunity.

Where We Are Today

Many readers of this blog don’t work in advertising agencies but are awesome entrepreneurs looking to figure out the next big idea to go and tackle.  Being that you are not in the walls of agencies on the daily basis, I thought I’d take the remainder of this post to outline where the industry is in terms of advanced analytics and then open this up for commenting in the thread below.

I highly request that you engage in the comments as group knowledge will benefit the community at large, you might find your next co-founder, and I love open conversations.

Ad Serving:  The Madison Avenue ecosystem basically uses one of three third party ad servers to “serve” and “track” different pieces of creative.  We use Microsoft’s Atlas, DoubleClick’s DART, and MediaMind.  In Q1 2011, we moved the majority of our clients off of Atlas and onto MediaMind because I personally have a strong viewpoint of independence of my ad-server and it’s relationship to media. (should be separate)

Data Warehousing:  This is a relatively new area and somewhat unchartered territory for many agencies.  Many agencies rely on their third party ad-server to be their main data warehouse for tracking. This is good, as you’d be surprised how many people don’t use a 3rd party ad server, but this is not great. Using a full on data warehouse such as VisualIQ, Neteeza, Artemis, or others allows for a larger capability to manipulate data and understand the relationships between touchpoints beyond “last click.”

At the agency, we’ve been using VisualIQ with some of our most progressive clients and the reports and results we’re seeing are fascinating.  One of the biggest questions we’re tackling is “optimal touchpoint analysis” and we’re seeing the relationships between display, video, search, social, and beyond.  We can now determine a value to each one.

Brand Lift Studies:  While I’ve argued time and time again, that “brand” advertising for the sake of brand advertising online is dead, many marketers continue just spending on “brand.”  Agencies use 3rd party brand study vendors such as ComScore, Knowledge Networks, Vizu, and others that help measure the “lift” (or change) associated in any one of many categories including but not limited to awareness, intent, and consideration.

Opportunities

·     The basic ideas behind today’s ad serving systems were conceptualized in the mid to late 1990s.  Online video, social, search, etc were not around then.

·     Product placement and integration into online video and social are hard to quantitatively measure with a 3rd party ad serving system as the only metrics you can pull back to your ad server are by using a click-tag.

·     The Display ecosystem is being fractured into traditional display (i.e. banners on ESPN) and social display (i.e. creative/textual units on Facebook, LinkedIn, etc).

·     I see Paid Search and Display converging on each other within the next 12 months. In some cases, they already are: Google Content Network.

·     I challenge you to ask your 3rd party ad-serving vendor to recommend an attribution model – report back what they tell you.  Not much – there is no standard yet.  It’s unchartered territory.

Next Steps

I would obviously love to hear your feedback.  Please post it in the comments section below or shoot me a note.  I believe that we won’t see large integrated opportunities that get their portion of the measurement/attribution credit until there is a way to measure these.  While we might try one or two of these integrated opportunities on each media plan, if you ask the agency how they really performed, the agency won’t have much to tell you because the tools for measurement are ancient.  With the data warehouses mentioned above, we get much better, but not perfect.

While we don’t need perfect to make the industry move forward, we do need better tools.  If you are building them, I’d like to speak to you.

Of Acceleration, Inspiration Spaces, and Funds: 2011 TMK Digital Media VC Conference

One of the areas that I focus on is bridging Madison Avenue with Silicon Alley/Valley.  I think it’s unbelievably important for the future growth of both ecosystems.

At The Media Kitchen, in 2008, we launched our first Digital Media Venture Capital Conference.  We haven’t looked back since and we’re going on our 4th year of doing this.  We’ve had venture firms such as Union Square Ventures, First Round Capital, DFJ Gotham, Spark Capital, Betaworks (not a full VC firm), and IA Ventures present in the past with a wealth of CEOs and founders from amazing startups including but not limited to Meetup, 33 Across, AppNexus, Pinch Media, Izea, ContextWeb, DoubleVerify, Boxee, 5Min, TargetSpot, ChartBeat, Bit.ly, Zenetics, Metamarkets, FourSquare, GetGlue, Tumblr, and Twitter.  Here’s a link to my post from our 2008 conference.

This year, we’re changing it up a bit and not focusing 100% on Venture Capital funds, but around the ecosystem that surrounds entrepreneurship.  I think this is very important to present because the more people that we inspire about the surrounding ecosystem of entrepreneurship, the more people will feel comfortable with the possibilities of innovation.

We’re holding our TMK Digital Media Venture Capital Conference entitled, Accelerators, Inspiration Spaces, and Startups on May 17, 2011 here in New York City.  I have the ability to give 5 lucky readers of this post admission to the event which will be from 8;15am-12:30pm.  It’ll be an intimate group  of <150 awesome people.

If you are interested in attending and want to come, please reach out using this form with 1-2 sentences of why.  I’d love to give the right people the opportunity to be here to mingle with our entire agency, our clients, and our friends from the entrepreneurial world.

Don't Let QR Codes Go the Way of RSS

I’ve been wrestling with QR codes lately as both a consumer and advertising agency executive.  I’m a bit scared they will go the way of RSS feeds.  Let me explain a bit.

I don’t know what to do with a QR code, and I don’t think mainstream America does either.  I’m being a little dramatic here, but you get the idea.  Do you need a specific QR reader?  Do you need to text the code somewhere?  Do you cut it out and mail it somewhere?

A QR code is a good idea – append a unique image to a print, billboard, or other campaign and entice the user to scan it in for some form of value exchange (ideally).  The brand that is using the QR code can now measure response of that particular media vehicle.

I’ve seen far too many pieces of creative that have a QR code on them, but do not have a call to action or instructions for the user to figure out what to do with it.  It’s almost like an orange RSS icon that sits next to content on the web without any instructions.   While I imagine that the “Techcrunch-crowd” knows what RSS is, I’d gather that most Americans don’t know how to setup feeds and readers and the utility and value of RSS is not being recognized fully by the masses because of this.

I’m worried that QR codes might go the way of RSS feeds. Without education to consumers about what to do with them, they are worthless – they take up space on our marketing collateral and are generally pretty ugly.

So who will educate?  Will we see the creation of a trade association to take out a broad-reaching QR awareness and education campaign?   Or, will we see brands who utilize these codes educate their audiences on their marketing collateral.

I do not know where this will net out, but it needs to be figured out.

Marketing measurement is here to stay and this is one way that we can further prove ROI.

Long Adobe (Nasdaq: ADBE)

I’m going to buy my 2 kids, David and Ava, some Adobe stock.

I figured I’d start this post with a bold statement.  Hopefully I got your attention.

Adobe is upping their game.  They historically have been a software company focused on the creative & production industry.  They could have stayed this way and built a nice business for the future.  But, someone there is leading a charge and they IMHO are spot on with where they need to go.

Adobe was rumored to have tried to acquire Invite Media in 2010.
Adobe acquired Demdex, a data management platform.
Adobe just partnered with MediaLets for mobile rich media serving.
Adobe is rumored to be now flirting with Triggit.

Adobe, while historically never spoke to agency media teams, are now building a media foundation for the future.  While being able to tie creative into metrics, analytics & media delivery, they are able to get to the future state of marketing we all talk about.

Some other companies I’m liking due to their recent acquisitions and intentions:  IBM, GSI Commerce, Marketshare Partners

Note:  All of this is predicated on whether or not Adobe or any of the above companies can deliver on the potential that each acquisition or partnership brings to the table.  We’ve all seen how acquisitions don’t work, but in theory, I like all the above.

Transparent Data Streams

I’ve been wrestling with transparency lately – mostly around the consumer side of things.  Transparency is great, but if it comes at the cost of too data overload, then is it really worth it?

One of my blog readers reached out and said he’d started a service called VoyURL of which I’ve been participating with for the past 24-36 hours or so.  It’s interesting – right now as a novelty, but once I can use all of the data to extract meaning, it could have implications.  I’m not quite sure what they are yet.

I’ve pulled some initial reports of the entire VoyURL universe and my own.  It’s fun for me to see how my web consumption differs from the VoyURL universe.

It’s like Blippy for browsing data.

VoyURL Data

Enhanced by Zemanta

Trunk Club Review

Trunk Club LogoOn March 1, my father sent me an email titled, “Cool Idea.”   The email literally consisted of one link to an MSN video which highlighted a company called Trunk Club.

I’d not heard of Trunk Club before, but I had a similar idea years back.  Essentially, Trunk Club is a curated clothing service that ships specific items to your door and whatever you don’t want, you send back.  A personal style consultant works with you to define your style thru a survey and phone consultation and it goes from there.  It’s not a discount service and most price points are similar to Bloomingdales or Neiman Marcus.

I signed up for the service because of two main reasons:  1.  I live in the suburbs and my clothing selections have gone down hill since I moved out of the city full time and 2.  I don’t have as much time now to spend time shopping for clothes, even though I love doing so.

My first shipment arrived today and it included items from Bed-Stu, AG, John Varvatos, Genetic Denim, Donald J Pliner, Earnest Sewn, and Jeremy Argyle.  Some brands I’m very familiar with and others I’d not tried before.  There were 10 items and I ended up keeping 2.  I would have considered keeping 3-5 other items but they didn’t fit great.

I like the idea of Trunk Club.  It’s upscale mens clothing, digital curation, and home delivery.  Any other similar businesses out there?

Enhanced by Zemanta

Day 4: Advertising Revenue for Startups

This post is part of a 5 day series where we lay the groundwork for a startup to generate advertising dollars from agencies or brands.  Note:  while this is focused on startups, it could apply to any company of any size.  The first post that sets up the series is located here, second post is located here, third post is here, and it’s based on this presentation.

If you are a publisher and you are looking to generate revenue from advertising, then read this series.

Today’s topic is on the evolution of the paid online advertising ecosystem.   Essentially, where do you (as publisher) plug in to generate revenue from myriad of sources.  Lets tackle them one by one.

On slide 11 of the presentation, it highlights 5 different areas:  Sell Side Optimizers/Platforms, Ad Networks, Google, Ad Exchanges, and DSP Integrations.

  1. Ad Networks:  As a publisher, you could contact any ad network and try and have them represent your website.  Depending on how large you are or how much publicity you have around your brand, you could potentially negotiate for better revenue spits, monthly guarantees, and potentially advance payments.   Ad Networks sometimes want exclusivity but as a publisher, make sure you get better deal terms if you agree to it.  Ad Networks are a quick way to make a few bucks with your inventory, though as an agency person, I don’t love ad networks.
  2. Google:  Technically, Google is a network and exchange, but I pull them out to their own line item because they are such a beast.  Many publishers love Google because of the simplicity around Ad Sense/Ad Words.   You could be up and running accepting Google ads within 24 hours.  Google if not already, is going to mix their search and exchange inventory to yield the highest amount to a publisher (and thus, net a high yield themselves).
  3. Ad Exchanges:  As a publisher, you can allocate all or a portion of your inventory to ad exchanges such as Ad Meld (MeldX), Right Media, Google AdX, AppNexus, ContextWeb, and a host of other platforms.  By doing so, you are opening up your inventory to be bid on by the demand side.  It’s similar to an eBay auction – where in real-time (or near real time), impressions are transacted and ads are run.  It’s rather simple to participate in this, but it’s not as simple to master it without any knowledge of the space.  Luckily, there are people like PubGears who can help you navigate it (disclosure:  I’m an advisor).
  4. Demand Side Platforms:  If you want to try and be as close as possible to the big agency dollars, then integrating with a DSP directly might be the best way to go.  While hard to get on their radar screen if you are extremely early stage and without much inventory, DSP’s are aligning themselves as close to the client dollar as possible and 2011/12 is going to be the year of direct integrations for publishers with DSP’s, bypassing intermediaries such as Exchanges.
  5. Supply Side Optimizer:  Not all above is mutually exclusive.  As a publisher, you can implement a SSO/P and plug into all of the above and have it maximize your yield.   There are a few players in this space such as Rubicon, Pubmatic, Admeld, YieldX, that all plug in and allow for yield optimization across your creative units.

All of the above opportunities are for standardized units.  These include the IAB and OPA standardizated creative.  Slide 12 & 13 talk about how you need to add data to your impressions to make them of real value to advertisers.  There are billions of impressions so how do you make them stand out… that’s by adding as much data around them as possible for advertisers to understand and buy.  This is key… otherwise, you’ll be selling your impressions for <$1.00

Stay tuned for the next Advertising Revenue for Startups post on my overall thoughts on the business and where I would start.  It’ll be the last writeup in this series.  I hope it’s been helpful.

Enhanced by Zemanta

Advertising For Startups: Does Size Matter for an Online Publisher?

This post is part of a 5 day series where we lay the groundwork for a startup to generate advertising dollars from agencies or brands.  Note:  while this is focused on startups, it could apply to any company of any size.  The first post that sets up the series is located here, second post is located here, and it’s based on this presentation.

Today’s topic is Does Size Matter?

If you are a startup or a publisher, you generally often wonder at what point can you go out selling advertising against your userbase.  Does the size of your userbase matter?

Historically, size mattered.  You needed significant size because you generally couldn’t target specific audiences so you had to sell the entire media vehicle and account for wastage.   With digital targeting, specifically audience driven media, you can now target with serious granularity.  While significant targeting delivers your audience segment, the numbers are typically much smaller than a large site-direct or ad network buy, because you are just reaching a specific user base.  For publishers who are still early in development but have a vertical or niche site, then you can begin selling ASAP because even 50,000 people who are into Ferrari’s and have $5,000,000 disposable net worth are seriously worth something to someone.  If you have a way to package your audience segments, then start selling.  You don’t need to wait until you reach 100,000,000 users to generate advertising dollars.  Implement an Audience Management Platform and you’ll be on your way.

If you have a general site (i.e. portal, aggregator, etc) and can’t really segment your users, then it might be hard to sell against until you have substantial visits.

The question comes up often about what types of creative units you should accept…   Start with the IAB Standard units because they are the most common.  Any major agency is going to create using the IAB standard package and then add custom units on top of it.  If you start here with implementing the 300X250, 160X600, etc – then you can fill those units.  Just last week, the IAB released some Rising Star units which are pretty interesting as well.

If you have unique/custom units, then these are harder to sell because agencies have to create custom creative for it (production fee implications).  Unless you have substantial size and buzz, it’s hard to sell custom units (not impossible).

On Monday, we’ll discuss the evolution of the pad online ecosystem consisting of Ad Networks, Exchanges, Site Direct, Private Exchanges, etc.  It’s a topic I love and am excited to write about it.

Clams, Benjamins, Beans, Dollars. Your Startup Sells Ad Space, Read On…

I created a presentation about 6 months ago for a talk at the Founders Institute.  The talk was about 5 things to do/know when looking at generating advertising revenue from your startup.  I’ve personally been in a unique position to talk about this as I’ve run startups that take ad dollars from brands and I’m now on the agency side divvying up ad dollars to all different partners, including startups.  I can talk credibly from both sides of the table.

I was asked to give a presentation to the New York class of Techstars entrepreneurs and revisited the presentation I gave to Founders Institute and made some tweaks.  The presentation is divided up into 5 sections, each of which I will spend the next 5 days discussing each section in depth.  Hopefully you all find this interesting and if there are additional questions, do not hesitate to follow up with me or leave comments.

The presentation is linked to here and this will be what I’ll be going off of as I go deep into each section.  Please view it before continuing as my posts will make a lot more sense.  Note:  the presentation is a “speaking” presentation in the sense that I do much of it justice with voice overs… but you’ll get the idea as you go thru it.

Ad Revenue for Startups

Tomorrow morning’s topic:  advertising ecosystem overview & the two ways to talk to agencies (slides 1-4 including title slide)

If there is anything you specifically want to hear about, please do not hesitate to ask.

Experience Platforms Powered by Technology

Read my previous post for a good preface to this one as it’ll help with the understanding.

The 80/20 rule for products are that 20% of the product users will be vocal and you won’t here from the other 80%.  Sometimes, this is more like 95/5.

I’m going to liberally stretch this to be 80% of the owners of products don’t really care how they are built but want the product benefits.  20% of the product owners are the passionistas and want to know everything about them.

Example:  Porsche just launched the Panamera 4S Hybrid.  The Porsche forums (on line) are having serious chatter around this car – both the good and bad, but the majority of people will never see this chatter nor really care about it.  80% of Porsche buyers (maybe more) don’t care how the engine works or which hybrid system it employs, they want to drive the car from point A to B and have a great experience doing it.

This is very important for the world of digital media and technology, especially if you are building consumer applications.  Let me explain.

As more and more people come access the Internet across the world, the digital passionistas who care about every technological nuance become less and less (diluted by the growth of the Internet).  As this happens, the experience of the application of the technology needs to be more powerful than the actual technology itself.  Again, please reference yesterday’s post for more on this.

Clay Shirky says it very well:  Once the technology have sunk deep enough in the culture, the social effects built upon the technology require the technology but aren’t about the technology

One of the questions I ponder which is relevant to this is that IF the web is less and less about the technology and more about experiences, then how sustainable is any one experience when humans are naturally curious and are always on the lookout for additional experiences.  Should companies on the web craft multiple experiences for consumers under different brands and connect them together?  Think of the assets AOL has, this could be interesting.  It’s not just about any one brand any more.

Another example:  I like to vacation with my family.  While we were in Aruba a year or two ago, we had an amazing time.  Have we been back?  Nope.  We’ve picked other countries and states to visit because the world is so vast and we want to experience so much of it.

Back in December 2010, I wrote a post entitled, I Don’t Want to be Monogomous.  The post talked about how I’d like to experience other phones and access devices but I’m locked into one mobile contract for one particular phone (iPhone 4).  These types of experiences are extremely limited and might do more harm than good to consumers in the long run.

To get back to the general thesis of this post, we’re seeing big bets made recently in what I like to call “experience platforms powered by technology.”  It’s not the technology itself that’s special, but rather the experiences that are built on top of the technology.  I explain the Twitter ecosystem here and why it’s special.  Facebook is fascinating too.  Quora – unless it opens up to be a platform that provides value creation for more than one business entity, it’s not that fascinating as a platform.

In a world where digital is going to penetrate most of our media vehicles, crafting the user interface and experience (overall presentation layer) is going to be of utmost importance.  Differentiating on features isn’t going to win, but differentiating on the experience that these features deliver is going to create lasting power with consumers.  At kbs+p Ventures, this is one of our major thesis and we are on the look out of awesome innovators in this area.

This post is all over the place, apologies for the rambling!