AD SUPPORTED ON-DEMAND: AdWeek is featuring an article today on Pandora’s latest value exchange ad innovation – the ability for listeners to earn on-demand functionalities like Replays and Skips in return for interacting with an advertiser. During the launch eBay will be featured during a holiday campaign – there are some nice collaboration quotes from both Suzy Deering, eBay’s CMO, and Alan Schanzer, Pandora’s SVP of Agency Relations. This new functionality represents a major expansion of Pandora’s CPE (cost per engagement) ad platform, a method of pricing and delivering guaranteed interaction, which was first debuted for Pandora’s Sponsored Listening product during Fall’15. Great coverage of a powerful new suite of ad products! (link)
HEADER BIDDING 101: Some of the most common blog-related questions I get are around the concept of Header Bidding . . . What is it? How does it compare to PMPs and Open Exchanges? And what are the advantages/disadvantages for the various partners in the HB transaction? I think the attached Digiday article gives a pretty good summary of what HB is and what it isn’t. In theory HB is supposed to connect advertisers and publishers without needing a direct PMP deal, or without having to bid battle on open exchanges like Google’s Doubleclick. But in reality HB is only as good as the inventory prioritization publishers make of it. In simplest terms, think of a publisher’s inventory as a waterfall where impressions cascade from the top of the falls (that’s the guaranteed IO’d business), and comes crashing into the foamy churn on the rocks below (that’s the remnant business sold on open exchanges). Now picture the water flowing between those two points along the height of the falls – the various points along the falls are different ways to buy that publisher’s inventory, including PMPs and HB. The order a publisher decides to prioritize it’s impression delivery determines how affective each of the demand channels are. So the higher up the falls Header Bidding pulls inventory from, the better it is as a purchasing tool, and vice versa. I know this is sort of dense stuff, but it’s good to be versed in. (link)
DIVERSIFYING MADISON AVENUE: And finally, yesterday the Wall Street Journal ran a pretty wide-ranging piece on the continued mindset reverberations being felt up and down Madison Avenue due to the outcome of the Presidential Election. This is along the lines of the questions I posed last week in my “Surveying The Echo Chamber” blog post, only this article is a much more in depth introspection on everything from marketing to “coastal elites” vs. “middle America”, all the way down to agency staffing which currently looks more like a hipster ridden Brooklyn coffee house than a cross section of the US population. There’s a ton of feedback in here from client and agency leaders alike. Since WSJ has a paywall I’ve linked this as a pdf. advertisers-are-grappling-with-a-stark-realization
Have a great Tuesday guys!
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