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Market First Industry Benchmark and Analysis Point of View: Programmatic Ad Viewability in China Presents Powered by

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Market First Industry Benchmark

and Analysis

Point of View:

Programmatic Ad

Viewability in China

Presents

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Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

2

Introduction

In digital advertising, many marketers and agencies assume that ads are always visible and

therefore viewed by the audience. It has been believed that when an ad is viewed, the

audience is more likely to interact with the ad from clicking the ad to reading more about

the product and making a purchase. This belief leads marketers to pay for every single ad

exposure, although each ad exposure does not necessarily mean a viewable impression.

The definition and measurement of viewable impressions has been standardized in more

developed markets, such as US, UK and Australia, where marketers are more sophisticated

in measurement and programmatic trading is more widely adopted. In 2014, MRC (Media

Rating Council) collaborated with IAB (Interactive Advertising Bureau) and developed

industry-wide guidelines on viewability measurement. (Read more: MRC Viewable Ad

Impression Measurement Guidelines, IAB State of Viewability Transaction 2015)

While China is enjoying rapid growth and evolution in programmatic trading in the past 4

years, many marketers are still seeking confidence in this field because of three concerns:

Inventory quality: Is programmatic advertising effective because real-time bidding

(RTB) buying method involves long-tail inventory?

Adoption best practices: How can I adopt programmatic trading in China which

seems to be a less transparent market?

Trust and integrity: How can viewability measurement help programmatic trading

become more mature and credible?

In this article, Accuen aims to address these concerns by the following:

Initiate China’s first programmatic ad viewability benchmark and compare

to regular buy

Re-look at effectiveness in creative response between programmatic and regular

buy

Propose directions for marketers to adopt programmatic trading in China

Predict how viewability will influence China’s programmatic trading and the

ecosystem

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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Methodology

For this initiative, Accuen works with Sizmek as the viewability

measurement partner to leverage their technology solution aligned

to MRC definition and standard of viewability.

From September to November, programmatic ad campaigns

representing three different industries (IT, cosmetics and

automobile) were tracked by Sizmek on media delivery over a

month and viewability on PC standard display banner bought on

open exchange via real-time bidding buy (RTB) model.

In this experiment, the mechanism of impression tracking is

explained as follows:

Viewability rate is the ratio of viewable impressions to

measured impressions.

There are limitations in this experiment however:

MRC guidance in viewability only applies to PC browser. Mobile

programmatic campaign in mobile app environment is excluded in

viewability measurement

Among all PC display ad placements in each campaign, only top

ad placements (by inventory volume) were tracked for viewability

Viewability

MRC guidance addresses viewability on PC browser environment currently. Definition remains consistent regardless of buying method (i.e. direct or programmatic).

PC display Of all measured impressions, the percentage of impressions with 50% of display ad in view for at least 1 second

PC video Of all measured impressions, the percentage of impressions with 50% of video ad in view for a minimum of 2 seconds

DO YOU KNOW?

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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Programmatic Advertising Effects on

Viewability and Creative Response

Many marketers in China see programmatic trading as buying low quality of media

inventory and hence are reluctant to adopt this new media buying methodology. Our

market-first analysis on viewability and what it means to programmatic trading may bust the

myth about buying inventory of low quality.

54% PC Programmatic Ad Viewability in China is Comparable to Worldwide Benchmarks

From our experiment of measuring viewable impressions in RTB campaigns across three

industries, an average viewability of 54% was seen.

To assess the credibility of 54% as the initial PC programmatic ad viewability benchmark in

China, we looked into global benchmark studies from Google and Sizmek based on

programmatic and regular buys combined. (Both companies use IAB standard for PC

display viewability)

In November 2014, Google reported US

benchmark of 50% (source: The

Importance of Being Seen by Google)

In October 2015, Sizmek reported

worldwide benchmark of 51% (source:

Viewability Benchmarks by Sizmek)

In the same Sizmek report, North America

and Asia Pacific saw respectively 49% and

53% as regional viewability benchmarks

In comparison to worldwide benchmarks, 54% viewability of PC programmatic ads in China

is believable. As a move to lead the programmatic industry in this market, we therefore

propose to set the first industry benchmark of PC programmatic ad viewability in China as

54%.

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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Within China, Inventory of Open Exchange is 28% More Viewable than Inventory of Direct Buy

Considering 54% is the PC programmatic ad viewability benchmark in China, our next step

was to compare against viewability of regular buy.

Sizmek’s China viewability report reported 42% as the viewability benchmark of direct buy.

This figure derived from analyzing 8 billion measured impressions of standard PC display

banners (across four placements – skyscraper, top, middle and bottom banners) covering

20% of digital media page views on mainstream portals, video sites, lifestyle sites and

finance news sites. (Source: Viewability – The First Step to Evaluate User Interaction by

Sizmek) Results from Sizmek’s study are believed to be representative and also the only

China regular buy benchmark we have observed at the time of writing.

When comparing to inventory of regular buy, inventory bought on open exchange

achieved 28% higher viewability. When programmatic ads are 28% more likely to be seen

than regular ads, it evidently shows that:

Inventory on open exchange may be long-tail

media inventory but it has better viewable value

because programmatic ads are delivered to the

right audience at the right time and offers real-

time optimization to maximize performance

Regular buy may offer premium media inventory

and is believed to be viewed by audience, but

inventory quality depends on the deal agreed

between publisher and marketer and has minimal

room for real-time optimization

This finding is not only a breakthrough in programmatic industry, but also a compelling

reason for brand marketers to include programmatic ads into brand awareness activity.

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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Creative Response in Click through Rate (CTR) Can Increase 20% With Above-average Viewability

Having proved the viewable value in programmatic, we now want to use click through rate

(CTR) to evaluate effectiveness in creative response.

For measurement consistency purpose, all three programmatic campaigns were evaluated

by CTR, regardless of final campaign objective. Also, CTR in this analysis takes measured

impressions into account (i.e. not all delivered impressions) and we used viewability rate of

each individual campaign as the baseline and indexed CTR above and below that

baseline.

We found that, by individual

campaign, CTR increment from

below-average viewability to

above-average viewability

varies from 13% to 56%, or 20%

on average. Influencing factors

include (but not limited to)

audience, frequency, targeting

tactics, creative assets and ad

placement.

Among these factors and based on the availability

of data, we looked into how ad placement may

play a role to influence viewability and CTR.

Positive correlation can be seen that, in one

campaign setting, higher viewability yields higher

CTR. These high-performing ad placements were

300x250 and 250x250, which are usually placed

closely adjacent to webpage content to bring as

much relevancy as possible.

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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How to Adopt Programmatic

Trading In Light of Viewability

For marketers that have been investing in programmatic ads, they are eager to apply best

practices of viewability to improve operational efficiency. In particular, brand marketers

with awareness and engagement goals may see more benefits from measuring and

optimizing towards viewable impressions than sales driven marketers. However,

programmatic trading is a fluid process and therefore programmatic tactics can influence

viewability outcome.

How Programmatic Tactics can Lead to Different Viewability Outcomes

When campaigns are set up differently (different audiences, different tactics), various levels

of viewability can be yielded.

Scenario 1

Target audience of clients A and B were

rather broad, but their different viewability

result could be due to the tactics used.

Client A using a tactic mix of contextual

targeting and run of category likely drove

more relevancy by delivering display banner

adjacent to the related content. Therefore, a

52% higher programmatic ad viewability was

seen in client A.

Scenario 2

Whitelist tactic is highly regarded among

marketers because they believe that this

tactic ensures ads served on desired media

list and hence achieves superior viewability. Client C using whitelist tactic achieved just a

moderate 13% above the benchmark however.

Client

Viewability

Index

(index

100=54%)

Audience Key Tactic

A 152

Geared towards

female with fashion

and skincare interests

Run of media category

Contextual targeting

B 98

Geared towards

people with 3C and

gaming interests

Run of media category

C 113

Geared towards male

with car racing, sports

and outdoor activity

interests

Whitelist

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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Strategic Best Practice: Directions to Take Programmatic Trading to Next Level with Viewability

There is an increasing an increasing number of industry publications about viewability, such

as Google US’s 5 Factors of Viewability. However, many publications talk about tactics from

executional perspective. To embrace viewability into programmatic trading, we

recommend the following strategic approaches for marketers and agencies in China:

Marketers add ad viewability into brand effectiveness measurement

Agencies and agency trading desks use viewability metric to optimize programmatic

campaigns, for instance, removing ad placement with low viewability

Agencies and agency trading desks develop, apply and benchmark CPvM (cost

per viewable thousand impressions) to evaluate effectiveness and efficiency of

media investment

Tactical Best Practice: Trial-and-error Approach on Programmatic Tactics to Maximize Viewability

As part of annual or quarterly planning, marketers and agencies together may exploit a

testing scheme with one or more of the following dimensions to deliver programmatic ad

viewability:

Buying model (open exchange RTB, private marketplace, programmatic direct buy)

Audience (1st party, 2nd party, 3rd party)

Affinity of media category

Interactivity of creative assets (flash, interactive e.g. HTML 5, rich media)

Ad size and placement

Page position (above the fold, below the fold)

Targeting tactics (run of category, contextual targeting, behavioral targeting,

retargeting, whitelist, look-alike modeling, dynamic creative)

Silver bullet of high viewability achievement is yet to come. Marketers and agencies are

advised to adopt a test-and-learn attitude when exploring the right formula in

programmatic ad viewability.

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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How Viewability Will Influence

Programmatic Trading in 2016

Having conducted the first viewability study in the context of programmatic buying in

China, although we still see challenges that need to be further addressed in the future,

viewability is certainly steering programmatic trading to a deeper level in China. We

believe many opportunities will arise and marketers and agencies will experience a more

mature programmatic ecosystem in China.

In 2016, we predict three areas of programmatic trading ecosystem being influenced by

viewability:

Marketers

Marketers should have a sound measurement strategy in place to define marketing

success. We reckon the following steps to be taken to enhance the existing measurement

framework:

Add viewability rate and CPvM as key metrics onto scorecard

Iterate measuring viewability and CPvM measurement to observe trending over time

and define a benchmark

Explore the extension to video and mobile ads via a systematic test approach

Agencies and Agency Trading Desks

Agencies and agency trading desks will strengthen programmatic trading practice and

operation to a more sophisticated level, as follows:

Apply CPvM as trading currency or viewable impressions for billing purpose

(however, the latter approach is subject to vendors’ acceptance)

Integrate trading desk platform and 3rd party viewability solution provider to enable

viewability as a standard option for programmatic trading and optimization

Consider the use of private marketplace (private auction) programmatic buying

model to increase the affinity of media and hence increase viewability outcome

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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Media Publishers

A healthy and trustworthy programmatic marketplace cannot be achieved only by

marketers’ and agencies’ desires. Support from the entire ecosystem, especially publishers,

is equally important to put viewability into action:

Redesign publishers’ websites to have more ads in view and/or even guarantee

viewable placements

Open up more inventory for programmatic trading

Conclusion A mature programmatic marketplace in China has a long way to go, but the measurement

and application of viewability in programmatic trading will take marketers and agencies

one step closer. Marketers will begin to measure viewability and analyze the relat ionship

between viewability and CTR to evaluate brand effectiveness at a granular level. Agencies

and agency trading desks will integrate viewability in programmatic trading and

optimization for a more comprehensive view.

Our finding of PC programmatic ad viewability benchmark in China is only the first step.

With more marketers, agencies and agency trading desks and publishers entering the

horizon of programmatic trading, we hope that our discovery will inspire deeper

acceptance, adoption and standardization of viewability in China’s programmatic

ecosystem.

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

11

Further Reading

MRC Viewable Ad Impression Measurement Guidelines

http://mediaratingcouncil.org/063014%20Viewable%20Ad%20Impression%20Guideline_Final.pdf

IAB State of Viewability Transaction 2015

http://www.iab.com/wp-content/uploads/2015/06/2015_State_of_Viewability_Transaction.pdf

The Importance of Being Seen

https://think.storage.googleapis.com/docs/the-importance-of-being-seen_study.pdf

Viewability Benchmarks

http://go.sizmek.com/rs/dgfastchannel/images/Sizmek_Viewability_Benchmarks.pdf

Viewability – The First Step to Evaluate User Interaction

http://www.rtbchina.com/sizmek-publish-2015-china-digital-ads-viewability-report.html

5 Factors of Viewability

https://think.storage.googleapis.com/docs/5-factors-of-viewability_infographics.pdf

Point of View: Programmatic Ad Viewability in China

Market First Industry Benchmark and Analysis

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About Us

Accuen

Accuen is Omnicom Media Group’s programmatic agency, operating the industry’s first

open and flexible platform for programmatic media buying for the world’s leading

marketers. With specialists in 60 countries, Accuen delivers market-leading solutions across

channels, transforming data into competitive media advantage. Accuen is a division of

Omnicom Media Group, the media services division of Omnicom Group Inc.

Omnicom Media Group and Omnicom

Omnicom Media Group is the media services division of Omnicom Group, Inc. (NYSE: OMC).

Omnicom Media Group is made up of several media specialist companies. Among them is

OMD Worldwide (www.omd.com), the largest and most innovative media communications

specialists in the world, and PHD Network (www.phdnetwork.com), a leading media

services company widely recognized for its pioneering and innovative work for clients.

Sizmek

Sizmek, formerly known as Eyeblaster and MediaMind, is the world's largest independent

third party ad server working with over 3,400 agencies, over 17,000 brand advertisers and

22,000 global web publishers, serving ads in 70 countries. An Open Ad Management

company, Sizmek gives online advertisers, agencies and publishers in China full end-to-end

capabilities in the areas of programmatic solutions, verification powered by Peer39,

dynamic creative optimizations, data & attribution services across multiple

devices/channels and enabled via ad serving technology. With 10 years of China

experience and a global network, marketers & partners have in the past and continue to

benefit from best-in-class online advertising tools, technology and strategic guidance as

Sizmek continues to evolve in an ever-changing China digital landscape. That’s the Sizmek

effect. For more information, please visit www.sizmek.com.