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Each month, Basis Technologies’ Programmatic 101 series tackles a different facet of programmatic advertising—from best practices for buyers, to competitors in the space, to trends you should know. Check out last month’s post to learn about the rise of the private marketplace (PMP)!
Voice-activated speakers, smart watches, connected TVs, tablets, and cell phones: With more devices than ever with which to reach consumers, why do they feel harder than ever to track?
According to a 2020 survey, the average American has access to more than 10 connected devices in their household. As our device ownership grows, advertisers are tasked with understanding consumer journeys across platforms, channels, and devices that don’t exactly speak to each other.
How do they do it? Enter cross-device targeting.
Cross-device targeting refers to the process of targeting one user across their multiple devices. You may be familiar with cross-device targeting if you've ever done sequential creative messaging, layered third-party audiences onto CTV inventory, or wanted to expand the reach of a hyperlocal campaign.
There are two main methods to tap into when it comes to cross-device tracking: deterministic and probabilistic data.
Deterministic data relies on a one-to-one match between devices through login data. Any company that requires a consumer to log in can create a deterministic data set—because no matter what device a user logs in with, their login information remains the same. While deterministic data is highly accurate, its scale is limited, as it relies on one data point to match consumers to devices.
Probabilistic data, on the other hand, is based on a variety of data points such as device type, operating system, browsing history, and IP address. Data companies use advanced audience models to see if they can confidently predict a group of devices—or device graph—that belongs to the same user. Probabilistic data isn’t limited in terms of scale, making it most advertisers’ first choice when it comes to cross-device targeting.
There are countless benefits to reaching a consumer at the various devices they interact with throughout their days, but here are the big three:
When advertisers elect to use cross-device targeting, they get access to more touchpoints (and more impressions) with highly qualified users. For example, let’s say you’re working on an e-commerce strategy and know that if a potential customer lands on your website they are fifty percent more likely to convert. With cross-device, you can re-engage with customers via multiple devices, ensuring that your brand is top of mind and increasing the probability that they'll convert.
The ever-increasing complexity of our industry makes it quite difficult to track a potential customer from the first ad to the last ad they're served. Walled gardens, a lack of cookie data, and the surge in screen ownership all make it difficult for marketers to answer questions like:
When advertisers tap into cross-device tracking, they can use device graphs to better understand a consumer’s action path. Understanding that customer journey is priceless information for marketers because it leads to smarter planning and optimizations.
One of the most powerful tools digital advertisers have is the ability to serve the right ad, in the right place, at the right time. Advertisers can take advantage of a device graph to control how their brand story is being told and customize their messaging depending on what part of the funnel a user is in.
Here are some common scenarios where cross-device targeting often makes sense:
Of course, each strategy is unique, and there are plenty of ways to get creative with cross-device targeting. In other words, now that we've covered the basic science of this marketing tool—the art is up to you!
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Want a deeper dive into how marketers can track consumers across devices? Check out Basis Technologies’ Data Essentials certification.
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so that you don't have to. Here’s what to read from the week of 4/28/22 - 5/5/22 to stay ahead of the curve:
In response to the leaked Supreme Court opinion that would strike down Roe v. Wade, which affords constitutional protection for abortion rights in the United States, some brands have chosen to speak out. Here’s a roundup of how companies like Yelp, OKCupid, and Ben & Jerry’s have responded to the controversy.
The social platform of the moment is helping advertisers tap into the targeting tactic of the moment. TikTok has launched a new tool that enables brands to advertise alongside its most engaging (and contextually relevant) videos—and early results show it can boost brand favorability and lift purchase intent.
Speaking of which…we get it: contextual has been around for a while, and a lot of people are (quite understandably!) uninterested in hearing more about it. But in the context of the forthcoming cookie-pocalypse, contextual is a surprisingly great solution for today’s digital advertiser. Here’s why.
The long-term trend of declining undergraduate enrollment appears to have been accelerated by COVID-19—and in response, colleges and universities are reevaluating their business and marketing models. Here’s how they’re pivoting to adjust to the “new normal.”
While traditional advertising formats like linear TV, radio, and newspaper have historically been on the decline, new data shows marketers predicting that traditional ad spend will increase in the years ahead thanks to benefits like breaking through digital clutter, tapping into consumer trust, and avoiding third-party cookies.
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With more and more big companies putting big money on the line, the race to build and monetize the metaverse has begun.
Of course, not everything this new, still-developing medium has to offer will be relevant for every brand. But, for those who are looking to explore and make a move into existing metaverse platforms, here are eight steps you can take to develop and shape your brand’s presence in these nascent spaces.
Start following metaverse-related news to educate yourself about what exactly this new frontier represents and how it’s unfolding. Stay abreast of any updates around the technologies and commercial infrastructure that are fundamental to the medium’s operability, including: augmented reality (AR), virtual reality (VR), hardware peripherals, conversational AI, blockchain, and non-fungible tokens (NFTs).
Break down the key branding objectives you’d be pursuing by taking this step into the metaverse. Explore the potential value of consumers perceiving your brand as a first adopter in an emerging sector—or, conversely, the risks and potential backlash involved in such a move.
Like other digital channels in your arsenal, the metaverse requires a comprehensive strategy with clear KPIs and an ROI model that justifies investment. Map out your various customer journeys and key touchpoints, then conceptualize how a virtual ecosystem could enhance those interactions.
Consider how much time your target audience/customers are spending in metaverse spaces and determine your speed of adoption proportionately. Today, the metaverse is a predominantly Gen Z-oriented, male-dominated, tech forward market. If your brand is geared toward any of those demographics, you may benefit from moving into the metaverse more quickly. If not, you may be better off taking things slow and monitoring the space as it develops.
Sign up for multiple metaverse platforms: The Sandbox, Cryptovoxels, Decentraland, Somnium Space, Roblox, Fortnite. Explore everything. Try everything. Take note of other brand activations and examine how you might be able to launch more refined versions of what already exists.
If you’re not already exploring augmented reality and the possibilities it offers, now is a great time to do so. Think of any experiments with AR as a steppingstone to creating a wider array of metaverse content. Find appropriate applications for your business and iterate on them until you have something that feels true to your brand.
Think community first. People don’t just sit in the metaverse and absorb webpages. They want to be immersed in interactive, fun, two-way experiences—they want to be active participants in a virtual world. Consider some of the following tactics:
Deploy small with low-budget initiatives—the space is still emerging and there are no safe bets yet. There are also no tried-and-true best practices for metaverse marketing, so there is room to be unique and experimental in your approach. Consider finding a suitable partner already in the metaverse and joining forces through value-add content (products, services, games).
Right now, an array of companies and agencies—including Gucci, Nike, Walmart, Gap, Atari, Hulu, Adidas, Vans, Accenture, McCann, Merkle, and Mediahub— are entering the metaverse through different means. That doesn’t mean you’re late to the party, though. You’re actually right on time.
So, whether you choose to enter the metaverse now, later, or not at all, these eight steps are a great way to start building a metaverse strategy and getting your virtual adventure started.
Want to learn more about the future of marketing and paid advertising in the metaverse? Check out our webinar, Prepare for Advertising in the Metaverse.
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so that you don't have to. Check out the following links to stay ahead of the curve:
1. Say Hello to the Workday Consumer [:04]
According to a new report from Microsoft, the shift to working from home has created a new buyer persona. The “workday consumer” researches and purchases products and services during the workday—and challenges marketers to figure out how to target audiences both in and out of work mode.
2. What’s the Perfect Length and Placement for a Podcast Ad? [:04]
As brands continue to invest heavily in audio ads, they’re bumping up against questions that marketers have asked about other channels for years: What’s the ideal ad length? Where’s the best place in an episode for an ad? Marketing Brew asked 15 podcast industry experts for their best practices.
3. E.U. Takes Aim at Social Media’s Harms With Landmark New Law [:07]
This week, the European Union reached a deal on the Digital Services Act—a landmark piece of legislation that will force Facebook, YouTube and other internet services to combat misinformation, disclose how their services amplify divisive content, and stop targeting online ads based on a person’s ethnicity, religion or sexual orientation. The cost of failing to do so: billions of dollars in potential fines.
4. Connected TV: Best Practices for Planning, Targeting, and Measuring [:05]
Netflix, Hulu, Disney Plus, Paramount Plus, Peacock, and more—if CTV inventory fragmentation is frustrating for consumers, it’s doubly so for marketers. In this piece, Jane Frye breaks down how to work around channel-specific challenges to effectively plan, target, and measure CTV campaigns.
5. What Social Media Advertising Tells Us About Inflation [:02]
With Snap Inc. and YouTube reporting lower-than-expected Q1 earnings, some industry insiders are pointing to supply chain issues and inflation as potential culprits. In response, advertisers are shifting more of their marketing dollars toward building brand loyalty and developing customer relationships.
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Check the Basis blog next Thursday for another edition of Scout!
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so that you don't have to. Check out the following links to stay ahead of the curve:
1. Everything You Need to Know About Zero-Party Data [:04]
Every time you think you've got the hang of this industry, another new term comes along and makes its way into the ad tech buzzword bingo bonanza. The latest is “zero-party data,” and it may be a boon for publishers.
2. Netflix is Finally Ready to Sell Ads [:03]
Netflix is planning to incorporate ads into a lower-tier subscription service, the streaming giant confirmed on Tuesday. Advertisers should get excited about the potential vast new inventory, and price-sensitive consumers can look forward to a lower-cost option.
3. France Clamps Down on 'Zero Carbon' Advertising to Avoid Greenwashing [:02]
France has tamped down on greenwashing by passing a new truth in advertising law. Starting in 2023, it will be illegal for advertisers to promote products in France as “carbon neutral” without being able to prove it.
4. What is Responsible Advertising? [:02]
Mis- and dis-information, deepfakes, and fake news—the past several years have been marked by a proliferation of phrases that identify different varieties of untrustworthy online content. Learn how brands can (and should!) weave responsible advertising into their campaigns to avoid funding toxic content.
5. As TikTok Takes Over From Facebook, ‘Non-Perfect’ Advertising is Here [:03]
In this op-ed, George Sharpe argues that as TikTok comes closer to surpassing Facebook’s viewership, viewers will come to prefer “non-perfect video” over produced, polished media. The era of the Instagram filter is coming to an end, and advertisers would do well to consider the cultural shift towards TikTok-style, "real-life" video.
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Check the Basis blog next Thursday for another edition of Scout!
This is the seventh in an 11-part series of blog posts that focus on Basis Technologies’ corporate guiding principles, and how those values show up in the workplace and in the lives of our people.
People tend to underestimate their own power. In a world of almost eight billion people, it’s easy to feel like your individual actions are ineffectual. However, as I move through the world, I'm often reminded that small actions can add up to big impacts over time.
For example: Kindness is contagious. When we help others, others are more likely to pay those kindnesses forward. When large groups of people commit to helping each other, that common goal enacted by many people has a lasting impact.
At Basis Technologies, "Believe Impact is Possible" is one of our core principles. It describes the phenomenon that when we work hard, stay focused, and act in service to others, anything is possible. To better understand what the principle looks like in practice, I asked a few colleagues—Brittany Ryan (Sr Dir, Business Development), Mindy Zhang (Content Marketing Associate), and Robert Kurtz (Group VP, Paid Search)—a few questions about what making an impact means to them.
Brittany Ryan: To me, making an impact means creating positive change. That change could be something big like developing a revenue stream, or something as small like helping a teammate.
Mindy Zhang: Making an impact means doing what I can to change things for the better, whether it’s making work processes more efficient for my coworkers, or simply being there for my communities as a resource.
Robert Kurtz: Making an impact at Basis means we meet the needs of those in our organization as well as the community. Making an impact means we lead. We accept and encourage. Making an impact doesn’t stop with our client’s business but extends to the welfare and culture of our employees and beyond.
BR: I work to understand gaps and unmet needs within the industry and then work with teams at Basis to create solutions for those gaps. Ideally, those solutions improve user experience within Basis and create raving fan service.
MZ: I hope to be someone that other POCs can look up to as they build their careers in this industry. I want to grow into a level-headed, ethical, and innovative leader: I know from experience that embodying those traits makes an impact!
RK: Specifically in marketing and advertising, I make an impact by being a teacher. I have a passion for teaching and educating planners to grow their knowledge base. Through a mix of empathy and self-education I can help to push forward the best plans for not only my direct clients, but my entire team’s client roster.
BR: I’m continuously learning from my team. When I first started at Basis, my coworkers taught me how to navigate cross-functional teams. Learning this early on created a lasting impact—I still apply those skills on a daily basis.
MZ: I’ve definitely been impacted in so many amazing ways with the individuals I work with. I’ve been taught so many things in relation to my job as well as to my professional development. Through those experiences, I’ve also learned more about how to make positive impacts on them as well. I note what impact my colleagues have on me and try to pass the torch to others who could use that type of impact as well.
RK: I’ve been impacted by each one of my direct reports—as well as by numerous other coworkers during my time at Basis. Through their stories of struggle, triumph, and entrepreneurship, I find new ways to improve my own personal and professional life. Through our DEI efforts and education, I have become more self-aware of my own biases, and it’s helped me to be better leader—one who knows that he'll never stop learning and focusing on self-improvement.
BR: Outside of the workplace I try to create an impact through simple daily actions. It could be helping a family member with a task, providing a recommendation to a friend, etc. By focusing on the little things, I’m able to create a bigger and more consistent impact in my daily life.
MZ: I strive to make an impact outside of work through the simple things, like being a good listener and letting people around me know that I'm a reliable and dependable force in their lives.
RK: Outside of the workplace I focus on family and community. I strive to be the best dad and husband that I can be. I can’t wait to coach my daughter and work on homework with her. I volunteer at my church as well as in the community through programs like the First Tee, which is a youth development organization introducing the game of golf and its inherent values to young people. Most of the kids in the program are from lower income, minority families. My goal through the First Tee is to combine golf with life skills such as inner strength, self-confidence and resilience.
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Learn more about Basis Technologies’ core principles and workplace culture here.
What’s new in the realms of paid search and social media? Basis’ Senior Vice President of Paid Search and Social compiles all the latest news, trends, and resources each month for easy access.
Meta Lays Out Short and Long-term Plans for NFTs on Instagram [:02]
At SXSW, Mark Zuckerberg shared his vision for NFTs making their way to Instagram “in the near term.” In this article, eMarketer shares information on both the current state of NFTs as well as what will be needed to satisfy Meta’s longer-term goals for a metaverse + NFT ecosystem.
For more, read about Meta’s 10-year plan for the metaverse here.
Snap Aims at the Metaverse with New AR Product [:01]
A new Snapchat AR feature, “custom landmarkers,” lets users and marketers create AR visuals tied to a specific location, such as storefront displays, billboards and more. This is a good example of how some companies are focusing on empowering users to access virtual worlds through their phones instead of via expensive headsets.
YouTube Launches New Livestream Features [:02]
In (what's likely) a move to lure content creators away from other platforms, YouTube is investing in several new live streaming features that make it easy to connect and engage with fans in real-time. For example, a new pilot program, “Go Live Together,” will allow creators to invite guests to livestreams by sending a link.
Twitter Announces Three New Ad Formats [:02]
Pilot tests recently began for "interactive text," "product explorer" and "collection" ads. The first ad format appears with bolder text in user timelines with up to three words that can click out to separate landing pages. Product explorer ads offer 3D opportunities for users to swipe and rotate product images to see them from different angles. Collection ads display one primary image with up to five additional thumbnail images that can all drive to separate landing pages or websites.
TikTok Launches Search Ads BETA [:02]
Behind-the-scenes screenshots of a new TikTok ad format show a “sponsored” label in search results that appear above other content in the app. This will reportedly eventually enable advertisers to feature content to users based on specific terms they are looking for, reaching those with higher intent and interest.
Pinterest Partners with WooCommerce to Expand Product Listings [:01]
WooCommerce merchants can now convert product catalogs into Shoppable Pins, expanding opportunities for exposure and sales. By also launching a new Pinterest app within WooCommerce, merchants can enable automatic tag deployment and catalog ingestion, in addition to being able to launch ads directly from the interface via the Pinterest API.
US Search Ad Revenue Grew 33% Last Year [:02]
Paid search accounted for 41.4% of all digital ad revenue in 2021, according to this IAB Report. Digital video experienced the most growth, however, with 51% increase.
TikTok Ad Revenue to Triple in 2022 [:02]
According to eMarketer, TikTok’s ad revenues will surpass those of Twitter and Snapchat combined this year, claiming 2.4% of the US ad market. TikTok’s popularity among teens, along with its push for in-app shopping and social commerce, is helping.
Twitter Trends: 2022 Report [:10]
After analyzing billions of tweets over a two-year period, Twitter conversation data revealed three big trends that indicate where the world is going. “The Great Restoration” reveals a renewed focus on personal and planetary health. “Fan Built Worlds” explores how users are leaning into immersive experiences and virtual marketplaces. Finally, “Finance Goes Social” is about more than just cryptocurrency and Bitcoin—it indicates that people are looking for decentralized resources and products that help the average person become more comfortable with new types of financial investing.
The Snapchat Generation Report: 2022 [:13]
This report highlights what Snapchat knows about the users who access their platform daily to connect, communicate and create with filters, lenses, photos, and videos. In short, their users are aligned with a visual-first mentality, are 1.6x more likely to use AR for try-on capabilities, and are more loyal when it comes to supporting brands and connections.
The following is adapted from Basis Technologies’ guide, Meeting the Moment with Advertising Automation. To get even more advertising automation-related insights and statistics, download the guide today.
Data complexity is sky-high. Competition is tougher than ever. Expectations around privacy are growing. A brand’s social values must be front and center. To connect with today’s consumer, advertisers need to get just about everything right, and optimizing manually is simply no longer effective.
Modern campaign optimization should never be a set-it-and-forget-it task, but with the immense challenges of placing a winning programmatic bid, marketers can increasingly benefit from automating a wide-ranging set of actions across a number of different parameters. Every advertising activity has an end goal—from increasing brand awareness and lifting social engagement, to expanding lead generation and driving sales, and everything in between. Through various means, automation can help advertisers achieve those objectives in the most efficient way possible.
Let’s break some of them down:
Automated bidding solutions help advertisers harness data patterns to raise the odds of reaching consumers when they are most likely to respond. By leveraging the latest advances in data science—including machine learning algorithms, Bayesian modeling, predictive performance methodology, and natural language processing—automated engines can tailor bids for every auction to ensure media buyers are spending the optimal dollar amount for each impression. The result is less waste and increased returns on campaigns that are data protected from the outset and set up to help advertisers achieve their goals faster and more efficiently.
AI forecasting engines turn the art of planning into a data-driven science. AI analyzes historical performance and bid landscapes to surface trend data, which is subsequently fed into predictive models that help map strategies across channels and devices. Armed with this technology, advertisers no longer need to send trial balloons out into the real world to gauge interest, so say goodbye to costly designated learning budgets.
Instead, machine learning algorithms continuously learn from past campaigns to provide increasingly accurate forecasts, all so advertisers can predict the most lucrative investments before they spend a single dollar of their budget. Essentially, they take the guesswork out of the media buying equation.
Depending on a company’s size and its program ambition, the amount of money flowing through a digital media buyer’s hands can be daunting. The larger the budget, the greater the impact of even the smallest mistakes. This is where AI-powered budget pacing comes in.
Automated budget pacing can play a critical role in monitoring the movements of digital advertising spend and keeping campaigns on course to meet desired performance targets. Should advertisers encounter any volatility in the form of significant overspend or underspend, they will receive automatic alerts that allow them to rectify the issue and regain control over the budget.
Successful anomaly detection hinges on a capacity to accurately analyze time-series data in real-time. Considering the number of relevant metrics in any given campaign and the speed at which market trends shift, doing this manually—and at scale—is just not practical.
Algorithmic anomaly detection systems, on the other hand, can alert advertisers instantaneously if a campaign’s performance is meaningfully deviating from forecasted models, while also providing actionable next steps so buyers can quickly make any requisite changes. This is a critical (yet oftentimes neglected) facet of campaign optimization. Imagine the cost per click on a certain ad is suddenly soaring—or, on the flip side, that sales volume is unexpectedly skyrocketing. If advertisers want to amend and optimize their campaigns, they need to be able to act on these valuable insights in the moment. With automated anomaly detection, they can do just that.
Inventory management refers to the process by which media buyers can track the availability of their products or services and, if necessary, avoid bidding on ads that direct consumers to an offering that is unavailable. The costs of disregarding this process are well-documented—just Google “Nike i2 fallout,” or “how Best Buy stole Christmas,” or “Target Canada merchandise management.”
One of the most rudimentary goals for any advertiser is to target the right people at the right time in the most profitable way possible, and they certainly can’t do that if they’re wasting money on redundant ads. Automated inventory management nullifies that risk.
By 2023, worldwide digital advertising fraud could cost companies over $100 billion. It is a problem lurking ominously, as measurement remains difficult and transparency standards like ads.txt are still nascent and not yet widely adopted.
Armed with the right tools, however, advertisers can automatically detect and abate fraudulent activity—and, in turn, ensure they are spending their budgets on real impressions. At higher levels of functionality, automated solutions include built-in systems designed to mitigate advertising fraud in addition to both allowlisting and blocklisting sources and publishers in paid media campaigns.
By embracing automation for granular campaign optimization, digital marketing professionals are better positioned to overcome the myriad of challenges facing modern advertisers. Simply put, automated campaign execution can help businesses realize what humans alone cannot.
Want to learn more about advertising automation? Check out our guide to see why digital advertising automation is essential to the future success and long-term growth of the media buying industry.
Mis- and dis-information, deepfakes, and fake news—the past several years have been marked by a proliferation of phrases that identify different varieties of untrustworthy online content. Events like Russian meddling in the 2016 election via social media and the spread of COVID-19 misinformation have opened the public’s eyes to the disastrous impacts of toxic internet content. It's a problem that impacts everyone, and one that isn’t going away any time soon.
Brands play a particularly tricky role in the problem because the internet runs on their advertising dollars. Since the inception of programmatic advertising, it’s become the norm for marketers to scale their campaigns by spreading their digital spend across thousands of websites. In 2019, the Global Disinformation Index estimated that ad tech companies spent $235 million every year running ads on sites characterized by misinformation.
Why are sites with toxic content attractive to programmatic algorithms? Andrew Casale, CEO of Index Exchange, explained it this way: “Fake news sites have really, really low prices and rates and tons of scale, so it’s almost like a drug.”
We've entered a new era of advertising—one where consumer trust and brand safety are of the utmost importance.
Consumers now expect brands to be more aware of who they are supporting—any not supporting—with this digital spend. In a 2020 survey from the Brand Safety Institute, almost 90% of respondents stated that it’s very or somewhat important for advertisers to ensure their ads don’t run near dangerous, offensive, or inappropriate content. Similarly, the IAB found that 55% of consumers are less likely to buy from a brand that advertises alongside fake news. And, according to Gartner, 81% of consumers won’t buy from a brand they don't trust.
It’s clear that the programmatic landscape must evolve to stop funding propaganda, hate speech, and mis- and dis-information online. In a 2021 Advertiser Perceptions Trust Report, 54% of advertisers said they’d change how and where they spend media budgets to avoid funding disinformation. Brands like Mastercard are leading the way, with CMO Raja Rajamannar stating all the way back in 2016 that he’d “Rather pay a little premium as a brand and go for verified sites.”
This is what brand responsibility looks like: taking care to spend your media dollars in places that don’t fund hate or falsities. Basis DSP, for example, empowers users to tap into NOBL, a tool that uses natural language processing and machine learning algorithms to categorize sites as high- or low-quality. High-quality pages are made available for advertising, while the rest are avoided, thus automating the process of vetting websites for brands.
Whatever tools marketers use to ensure that their ads run on reputable sites, one thing is clear: brand responsibility will be a critical element of advertising as the internet continues to evolve.
To learn more about how brands can protect themselves and forge a safer internet through ethical advertising, check out our recent webinar: Empowering Responsible Advertising.