Interpublic Group’s MAGMA recently released their quarterly US Advertising Forecast report and predicted US digital advertising in 2017 will reach $80 billion in sales. This represents an almost 14% (~$10 billion in sales) growth over 2016.
On the flip side, offline ad sales will fall by about 3% to about $103 billion in 2017, a year without significant political and olympics ads spending.
Search is expected to remain the largest revenue generator, bringing in $39 billion, a 13% growth over 2016, while video and social is once again expected to post the strongest growth rates of about 28% each. MAGNA expects the social media vendors (Facebook, Snap, Twitter etc.) will continue to offer new innovative video ad formats to advertisers, including ads in live social streams, leading to social video ad sales to double again in 2017 to reach more than $4 billion, i.e. a third of total US digital video ad sales, and 20% of total social media ad sales.
Digital ad sales are expected to get close to 40% of the industry total in 2017 and are forecast to reach 50% by 2021.
In 2016, digital ad sales beat television (both national and local) ad sales for the first time with ~$70 billion versus ~$67 billion. The gap between digital and television ad sales is expected to widen in 2017 with ~$80 billion versus ~$64 billion.
You can read MAGNA’s summary report below that includes a recap of total media owners advertising revenues in 2016 or download it from their website.
Thank you everyone for attending the LA AdTech panel “How Ad Fraud & Other Factors Are Changing The Ad Tech Ecosystem” on March 22nd that was generously hosted by LA AdTech partner company Pathmatics.
We want to publicly thank the CEO and Co-Founder of Pathmatics, Gabe Gottlieb, who moderated the panel last night. We also want to thank our panelists Ben Plomion (CMO of GumGum), Matt Arkin (VP West of VideoAmp) and Nick Lynch (VP, Head of Digital at Icon Media Direct), who graciously contributed their time to the lively discussion.
Great conversations and networking were had by all the attendees before and after the panel with food and beverage generously sponsored by Pathmatics. So, make sure to check out more insights regularly published by Pathmatics at https://blog.pathmatics.com.
If you missed the event last night (or like a refresher), see below for livetweets on some topics from the panel discussion.
Special thanks must be given to Ken Roberts and Jordan Hieshetter from the Pathmatics team who helped organized the flawless event last night. You have our gratitude.
Don’t forget, Pathmatics is hosting this month’s LA AdTech panel on “How Ad Fraud And Other Factors Are Changing The Ad Tech Ecosystem” on March 22nd, to be moderated by its CEO Gabe Gottlieb.
Due to the venue size, seating is limited. So, make sure to RSVP now.
Meanwhile, let’s take a quick look back at who Pathmatics identified to be media’s biggest spenders in January 2017. Using their own proprietary ad spend data, Pathmatics found that CBS, while gaining the most number of impression in its industry, it was not the top spender.
1. NBC Universal Television
5. Starz Entertainment
Source: Pathmatics US Desktop, Mobile, and Video Data, January 1st, 2017 – January 31st, 2017.
In addition to gaining the most impressions among these media buyers but ranking only third in total spend amount, CBS also pushed 211 unique ad creatives, the second most after NBC’s 437 ad creatives. Direct advertising is not important to CBS as it ranked last among these media buyers in the amount spent in that media category.
You can read more about the spend amount by these media buyers on Pathmatics’ own blog.
Please RSVP to the Pathmatics Panel on 3/22 to learn more about how ad fraud, transparency and other factors are changing the ad tech ecosystem! Space is limited.
Through a strategic partnership with LA AdTech partner company, The Trade Desk, Nativo will make available its True Native and native video ad units programmatically to advertisers on the demand-side platform.
Nativo‘s True Native ad format allows the sponsored content to remain on the publisher’s site instead of clicking out to a branded landing page, hence not interrupting the consumer experience on the publisher’s site.
Nativo’s True Native sees significantly lower bounce rates and boasts an average of 90 seconds spent on its branded articles. Additionally, Nativo advertisers have seen up to a 13x lift in brand awareness, a 6.4x lift in purchase consideration, and a 5.4x lift in purchase intent.
GroupM’s native ad division, Plista, will be a key buyer in the new partnership between Nativo and The Trade Desk. Plista will overlay the data management platform Turbine for audience targeting in its sponsored content campaigns. The deals transact via a private marketplace, but with fixed pricing.
By integrating with demand-side platforms, Nativo is positioning itself for growth. Research from eMarketer found that in 2016 47% of U.S. marketers and agencies ran native advertising campaigns programmatically.
Factual, the Los Angeles-based location data company founded by Gil Elbaz from Applied Semantics, is partnering and integrating with Adobe, Liveramp and Oracle to provide location data to those platforms.
Currently over 400 customized audiences can be accessed by marketers in the mobile world on Factual’s Geopulse Audience through various DMPs.
Factual’s Geopulse Audiences allows advertisers to target based on people’s real world behavior. Factual’s Global Places™ data is comprised of over 100 million local business listings and points of interests in 50 countries and is updated in real time. The data includes multiple attributes for each place including name, address, phone number, latitude and longitude (geocode), category and many more.
As demand for location data by mobile ad request keeps growing in leaps and bounds (170% year-over-year expansion from 2015 to 2016 alone), Factual’s availability of their location data can only help grow the location-based mobile ad industry.
During SXSW 2017, LA AdTech partner company, Steelhouse released a self-served retargeting platform that gives advertisers full transparency to the cost of media spend on their platform.
This Premier Edition of Steelhouse’s Advertising Suite will allow marketers of any skill level on their own to quickly create ads, quickly place a pixel, define their campaign goal, set their budget, and launch their campaigns through multiple channels. In addition to transparent pricing in media spend, the platform’s transparent reporting will provide advertisers’ campaign performance down to the publisher level.
Mark Douglas, SteelHouse president and CEO, said the company doesn’t markup the media buys. This further marks the transition in Steelhouse’s business model from a revenue media model to a platform usage fee model, a change that began a year ago.
LA AdTech partner company, OpenX, announced on Wednesday the launch of Ad Footprint, a free tool as a Chrome Extension that can help publishers optimize their desktop and mobile Web pages. Build by OpenX Labs, this Chrome Extension will help publishers analyze how the advertising on their page affects performance and user experience.
OpenX Ad Footprint will allow publishers to enhance user experience on their site, improve page speed and increase overall revenue. For any given desktop or mobile web page, Ad Footprint will provide insights gathered from in-depth page analysis, page performance comparison with other websites as well as customized recommendations for optimization.
“At OpenX we recognize that a publisher’s success relies on their ability to expertly balance user experience and business objectives,” said Caleb Sotelo, staff engineer and director of OpenX Labs. “The tools publishers rely on today only provide insight into one variable of speed rather than approaching page performance as a multi-variable equation, which is why we built Ad Footprint.”
According to OpenX, a number of its premium publishers, including CafeMedia, Intermarkets, Vice Media and Vox Media, are using the tool.
OpenX Ad Footprint is now available as a free download in the Chrome Web Store.
Building upon an existing integration relationship with Sharethrough and TripleLift from 2016, LA AdTech Partner Company, The Trade Desk looks to expand their native video offerings to allow in-feed native video placements to be purchased programmatically.
This expansion will allow media buyers access to The Trade Desk’s self-serve demand tools to purchase in-feed native video placements at scale across thousands of sites and apps. These native placement allows advertisers to deliver immersive brand messaging through in-feed and in-article ad units.
The Trade Desk’s platform allows media buyers to manage data-driven digital advertising campaigns across various advertising formats, including display, video, audio and social, on a multitude of devices, including computers, mobile devices, and connected TV.
In 2016, Sharethrough reported $140 million in gross native ad spend through its platform, with more than a third of that spend coming from native video and native video impressions. In-feed native video is expected to exceed $20 billion in spend in 2017, according to Business Insider Intelligence. Native video has been shown to offer a positive audience experience and return significant increases in brand lift, favorability and ad recall with just a few seconds of exposure, according to industry research.
Recent research found that 90% of U.S. marketers and agencies have adopted or are beginning to adopt native advertising. Additionally, eMarketer projects U.S. video ad spend to reach $14.77 billion by 2019.
The Trade Desk is also integrating with Ligatus to offer additional native display inventory at a global scale. Ligatus’ network consist of over 1,400 high-quality publishers in Europe that offer a brand-safe environment.
With so many discussions about ad fraud in online marketing and how the ad tech industry is battling it, one can be forgiven if one is not familiar with the nitty-gritty details behind online ad fraud.
Dr. Augustine Fou presented the “State of Digital Ad Fraud” at RampUp 2017, a marketing technology conference in early March. This presentation embedded below is a great way to familiar oneself with why there is online ad fraud (hint: it is very profitable), how does online ad fraud and how it harms both publishers and advertisers.
Learn more about ad fraud from Dr. Augustine Fou:
Dr. Augustine Fou is an industry-recognized thought leader in digital strategy and integrated marketing, and former Chief Digital Officer of Omnicom’s Healthcare Consultancy Group. Dr. Fou has over 20 years of management consulting experience and hands-on experience in creating and optimizing marketing across traditional and digital channels. Dr. Fou teaches digital and integrated marketing at Rutgers University and NYU.
In February, GroupM published its annual overview on the state of digital marketing and its implications for advertisers. 2017’s report titled “Interaction“, outlines what the firm sees as the key issues and trends facing digital marketers during the coming year.
One key highlight in this report is an update to their 2016 report where they discussed the integrity of the complex issues in the digital supply chain including fraud, viewability, measurement and ad avoidance. GroupM believes that the ad fraud situation has been significantly contained due to aggressive industry responses to this threat.
“It is likely that 2% of the impressions purchased by the biggest advertisers in Western markets remain non-human. Bad as this is (0% is a good number for fraud), the speed of detection and countermeasures seem to have caught and outpaced the development of new fraud strategies.” the GroupM report stated. This progress is due to “new and better detection tools, a coalition of advertisers, publishers and buyers (The Trustworthy Accountability Group TAG) to deploy those tools; and a reduction in the demand for bad supply.”
Download the GroupM 2017 Interaction report directly or click on the cover below.
Related: Pathmatics is leading a panel discussion on March 22nd, 2017 to address how ad fraud, brand safety and other industry factors are changing the ad tech ecosystem.
Other highlights from the GroupM 2017 report include:
- Tools from MOAT, Integral Ad Science and DoubleVerify are well-equipped to measure and track viewability.
- Ad block usage has peaked and is stabilizing due to growth in app usage (which is closed to adblocking technology and better advertising that can improve the consumer experience. The Coalition for Better Ads, a cross industry initiative set up in the US in September 2016 will lead initiatives for the latter.
- Artificial Intelligence is growing its impact on the consumer experience. Devices like Amazon’s Echo and Google’s Google Home may become typical part of the everyday shopping routine.
- Cross channel marketing will become more normalized as consumers combine their digital and analogs together.
- The report also touches upon opportunities and challenges facing the digital media ecosystem in 2017 as well as subjects such as live video, the resurgence of audio, artificial intelligence and machine learning, AR & VR.