Google Ad Manager is Now Adopting First Price Auctions for Programmatic

Google Ad Manager - formerly known as DoubleClick - is now adopting first price auctions as means of simplifying programmatic buying and making it more transparent. 

What are first price auctions, you say? It's when the buyers pay the actual price they bid - so gone are the days where you could bid a ridiculously large amount and then end up paying half of that because the second competitor isn't as crazy as you (but still, thanks for driving up the average bid). While the old second price auction create date foundation of programatic buying (which also conveniently allowed publishers to fulfill their remaining inventory), this new method allows for Programmatic's increasing complexity to be addressed and make it easier for the publishers and advertisers to properly value their inventory. 

While Google wasn't the first one to adopt this, as a market leader, it is sure to create the biggest wave, so it'll be interesting to note how the ecosystem responds to this. 

“Since the change from second to first price will require both buyers and sellers to make changes in their programmatic strategies, we’ll give everyone time to prepare over the next few months before we start testing. During this time, publishers and app developers will need to rethink how they use price floors and technology partners will need to adjust how they bid for Google Ad Manager Inventory,” Google said.

Programmatic is expected to account for 86 percent of US digital display media buying by 2020, according to eMarketer, so this move is only for display and video inventory sold though Google Ad Manager. Search, YT, Adsense are still untouched - for now. 

Facebook Tests Video Feed to Sidestep YouTube With Friendly Discovery

Facebook has been focusing on video for a while, and now with its new feature, it seeks to keep people on the platform longer by providing content that users are likely to enjoy. A combination of videos liked by you, by your friends and trending on social networks will be available to view on a centralized dedicated feed on Facebook.
The goal is to provide a seamless experience for the user, who no longer has to search for specific videos or wait between clips. This focus on video is part of Facebook's strategy to capture a growing ad revenue generated from video ads.
Additionally, Facebook is actively protecting content creators against uploaders of non-original content for monetization purposes, ultimately making the social platform a more attractive destination for publishers.
Facebook video is not a direct alternative to YouTube, where you might go search for something you intended to watch, but rather an option to discover content you didn't know you wanted.

Original article http://techcrunch.com/2015/10/13/facebook-video-feed/

Facebook introduces changes to video ads

Facebook is one of the sites with most viewed videos, but this is kind of controversial, as a person does not have to click the video for it to play.
Innovating in the video ad arena, Facebook announced that it will let advertisers pay only for video ads if it appeared 100% on a person's screen. This is definitely a move in favor of the advertisers as it will remove the uncertainty if the was played just because it is the way Facebook is considered or the person was actually interested.

Yahoo boosting video strategy

Acquisition of RayV

Yahoo announced recently the acquisition of RayV, an Israeli startup specialized in streaming high-quality video to online and mobile devices.

This shows, once more, Yahoo’s pursue for a more solid video strategy (including streaming video live or on demand), giving them technology infrastructure that enhances current capabilities.

Is Yahoo moving from search portal to content provider?

Several recent announces indicate the strategy of moving into content.

Only in 2014, several news came out about Yahoo and content / video related initiatives such as:

• Announcement of two 30-minte original series
• Commitment to revive Community, a popular ex-NBC sitcom
• Announced a partnership with LiveNation (live events promoter), to stream one concert per day for the next several years

The acquisition of RayV gives them the means to reach the users: they already had the content and now have the way to distribute it.

Main sources:

http://www.rayv.com/

http://yahoo.tumblr.com/post/91477497439/welcome-rayv

http://mashable.com/2014/07/11/yahoo-acquires-rayv/

http://www.cnet.com/news/yahoo-buys-startup-to-bolster-online-video-backend/

http://www.businessinsider.com/yahoo-buys-rayv-2014-7

http://recode.net/2014/07/11/yahoo-buys-israeli-video-startup-rayv/

Facebook playing strong on video

Since beginning of 2014 Facebook seems to be paranoid about video. Everything is evolving about the video content on the network. Let’s see.

Do you like to watch videos on Facebook? Don’t worry, we will provide you more.

Recent updates to Facebook’s newsfeed algorithm include a new video ranking system.

Until recently, the number of likes and shares would determine the popularity of the video, and so would determine if it would appear in someone’s newsfeed or not. 

The main idea of the new algorithm is that now Facebook takes into account if you actually watch the video and if so how much of it did you watch and uses that information to decide if that same video will appear, for example, in your friends’ feed. 

Besides, if you usually watch videos you probably like it, so Facebook will start showing you more videos. 

But if you are like me, and rarely see videos on Facebook (only when all of my friends have shared I start to believe that it’s worth to watch it), you will probably see less and less videos on your feed.

Thank you for your data, we can now show you some ads.

Although it is a very interesting update, it also has some valuable interest for Facebook.

Several news came out about Facebook rolling out their video ads. 

The algorithm described above is obviously very useful considering this fact, since Facebook now tracks and knows who is watching videos and who isn't, it can understand habits of watching videos, allowing a much more successful result in this new ad feature.

The idea of the video ads on Facebook as they were announced is 15-second Premium Video Ads that autoplay soundless (unless you click on them).

With more information available it will be possible to target people not only by their interests but also have a better estimate if they will actually watch the video and click on it.

Is this all? No. I want you to watch more videos

The overall video strategy is changing. Your video experience on Facebook is evolving quickly.

Facebook is testing a new feature: "related videos". The idea is to have something similar to Youtube, where after you watch a video you have some new suggestions. Facebook is currently testing this on mobile platforms.

An important remark is that apparently this still doesn't include videos that are not directly uploaded to Facebook. So all your shares of Youtube videos are not part of the new algorithm. Isn't that restricting the insights from all this?

Main sources and interesting articles about this:

http://mashable.com/2014/06/24/facebook-news-feed-videos/

http://mashable.com/2014/03/13/facebook-video-ads-news-feed/

http://mashable.com/2014/06/06/facebook-video-ads-target/

http://mashable.com/2014/07/07/facebook-video-recommendations/

More interactive video ads make you want to click

Fuisz Media just raised $2.1 million to develop a technology to make video ads more interactive. They recently struck testing deals with Kraft, Nike, Target and Walmar.

In the case of Kraft, a 15-second clip comes with pop-up information on the brand and its products. As the video runs, a click over one of the frames pulls up a pastry recipe or product details for Cool Whip.



Interactive video is a growing segment in digital advertising along with video in general. Making videos more interactive is a great way to increase user engagement and relevance of ads.

Source: http://www.adweek.com/news/technology/digital-video-ads-make-you-want-click-158743

Video has become the new photo

When companies evaluate their digital marketing strategies, text and photos are synonymous with “branded content.” However, more organizations are finding ways to capture digital momentum with arguably the hardest medium to search for: video. YouTube is the second largest search engine in the world, and now that Twitter and Facebook are experiencing booming trends in video sharing on their platforms, brands are chomping at the bit to find quality, sharable video content.

            Marissa Mayer announced today that Katie Couric will become a “global anchor” for Yahoo in an unprecedented partnership deal. This play by the media organization is one of many pushes towards building their video content library and virality. They have invested heavily into original content creators and curators, but Katie is the first established brand name to grace the purple banner.

            As more of these media organizations turn to established talent for their content, it is important to recognize the change in the winds for digital video. YouTube brought reach down the long tail in a big way, allowing any individuals to create a niche for themselves and build a significant following. As the platform evolves and Google finds additional ways to monetize it, more established brands and talent are looking to capture a piece of the pie.

            The future of digital video is a convergence of independent and professional content. Katie Couric will soon be synonymous with hundreds of similar voices each finding their own niche.  In order to remain relevant and more importantly valuable, media organizations will curate a diversified offering of both.

Display Marketing - Videos

I’ve been a movie buff since I can remember.  Not that I really had a choice since movies are a bit of a family tradition started by my grandmother “Granny Dura Anne”.  Granny would literally go to blockbuster (when they were relevant) and buy an arm full of movies.  Over the years she amassed literally thousands of films on VHS, the transition to DVD was a hard one for her to accept.  But needless to say when companies take the time to present their “experience” or products through a creative video I’m instantly and emotionally engaged.

When I came across TechCrunches “Google Admits It Spams TheHell Out Of You In New Gmail Commerical” it made me think of a few companies/startups that hooked me while selling me. Gmail addresses their Google+ spamming by easily allowing users to filter mail in a new way, here is the Google video.  Although, you could always filter specific emails to folders; to the unsophisticated emailer it looks like a solution to a problem you may or may not have even noticed.  Google’s catchy tunes and sharp product demo make the user want to open Gmail and get to work.  Could be why I have four Gmail accounts… damn you Google and your beautiful videos! But Google hits that mark and their videos inspire action.

Other companies like NYC based start-up Kohort used video marketing in a different way, beta launch build up.  If you’re unfamiliar, Kohort is a firm founded by entrepreneur turned venture capitalist turned entrepreneur Mark Davis, also a Columbia MBA.  Prior to Kohort's launch they were in stealth mode meaning they strategically let the press know they raised a large sum of money and encourage users to reserve their usernames before they were all gone BUT did not actually tell you what they did.  They had a mysterious buzz so when they finally launched in May of 2011 they already had thousands of users eager to use their product (me included) but no clue what it was.  They produced this AMAZING video to explain their offering. Unfortunately, for Kohort their commercial is the best part of their company.  The user interface and overall site design misses the mark, but that’s a topic for another day.  Although their product execution is horrible, Kohort's video does execute and again encourages the user to at the very least test the product.

When done properly video can inspire consumers to act by either signing up or buying a particular product or service.  Videos are an easy way, again if done correctly, to emotionally connect a brand with an individual.  Just don’t over sell your capabilities and fall into the Kohort trap.  

What videos hit the mark for you?

A new music revenue model: VEVO

Record labels are still searching for ways to earn money online and they may have stumbled upon a service that could bring them back into the value chain: it's called "Vevo". Universal Music started the site and they have already gotten a corsortium of the major labels to sign up.

Itunes has proven that there is still a market for downloading music singles. But it has also proven that people still love to watch music videos - and that they are willing to pay for them! Since MTV became a reality television show rather than a music video channel, there aren't many places these days to watch high quality music videos.

That's where Vevo comes in. Vevo is a music video site. It will host music videos from the major label, top grossing music artists. Universal plans to host music videos on its site and to complement the content with exclusive interviews, reality programming and live performances.

This time the music labels are not licensing and restricting content but making it all available in one easy to find space. And once they get a critical mass of users, they will be able to bring in the advertisers and start making big bucks again.

This model just might work. The videos on youtube are usually low grade and low quality. Vevo could ensure access to high quality and exclusive content. If it can pull it off, users may come en masse, and the music labels may finally be able to insert themselves back into the value chain.

Here's an article detailing a bit of what's to come...

Lost Ad Revenue

I kept CNN playing in the background while I was working on class project today. As I listened intermittently, I heard the segment about Susan Boyle’s defeat yesterday on the British television show, "Britain's Got Talent".  Her fans seemed to be disappointed, but others should be for a different reason.

Several weeks ago, the American media hype about the unlikely contestant’s performance on the show generated over 20 million views online. The video clips of Susan Boyle’s performance has made her a worldwide internet sensation. Her performance on  "Britain's Got Talent" was one of the most viewed videos on You Tube ever, but the producers of the show have not been able to capitalize on the success of the of the internet viewership worldwide. The primary reason is the producers of the show did not roll out online video strategy and the second reason is the video uploads to You Tube were done illegally, so no advertising revenue streams were generated. The video host as well as the content provider missed out on a significant advertising revenue stream. 

So why do many  video content providers  fail to execute on a strategy to generate online revenue streams as video advertising has become one of the fastest growing advertising mediums? One reason may be the producers are concerned with the cannibalization of TV advertizing dollars as more TV viewer convert to online viewers. One solution could be to broadcast original programming on TV and in syndication upload online. Another approach may be to upload original programming online to target a secondary geographic market.  Moreover, established content producers view online broadcasting as  experimental and do not quite understand what works effectively. Besides, one could argue that there are no established revenue models for online video.

As for Susan she still has a chance capitalize on this phenomenon and perhaps land projects such as a book deal, recording contract or a movie about her life.

DMR and Piracy

I have been argueing for a long time now that DRM has two different effects: 1) completely piss off users; 2) make users break the law and become pirates.

The following article from Wired, "How To Explain DRM to your Dad", gives a lot of examples that support my thesis. In summary, what usually happens is that after buying legally music, DVDs, ... there is one point in time when you have no choice that break the law to keep enjoying your legally acquired content. In my personal experience, my DVD collection with more than 100 titles that just play in Europe not in US.

Mashed Without the Lumps

Nike, like many companies this year, has enlisted users to create ads for their new product, Air Force. Nike has decided to take advantage of the popularity of "mashing" on YouTube. They offer a variety of clips and sound tracks that can be edited together by the user into a 1-minute ad. This isn't mashing in the purely democratic, free-for-all kind that has been the hallmark of YouTube. You are limited to their menu of clips and music and all ads will end with "The Second Coming," the tag line for the new product, and a patented Nike swoosh.

From a marketer's perspective, this sounds pretty amazing. You are engaging the consumer with your brand while generating buzz about the Air Force sneakers. Proud mashers will be sending their clip (i.e., your advertisement) around so all their friends can watch. PLUS, you get to see what your brand means to these users by which clips and music they choose. If Nike is smart, they will listen closely to hear where their brand is going when it is out of headquarters and in the street. Check out these two videos posted on YouTube and you'll see how different brand perceptions can be. (Wish I could post the videos but YouTube won't let me!)

Italian Craftsmanship

Detroit Attitude

From a user perspective, however, I am curious to see the reaction. Will mashers accept the limitations or are they contradictory with the whole idea of mashing. It seems that in this world, no one is supposed to claim ownership over any content and use by others should be a form of flattery, just as jazz musicians used to riff off of other artists' tunes. While this surrender of the material is unacceptable to a marketer, it may be difficult to come off as genuine in this milieu while keeping a grip of the left-brain of Web 2.0.