Last Week In Digital Advertising

The Wall Street Journal’s piece entitled “The Web’s New Gold Mine: Your Secrets” influenced much comment around the web throughout the week. There’s a great deal of validity to the piece but, as with many articles about digital privacy, I think, by grouping many of the different tracking stories together without the space for full explanation simply serves to scare more than inform.

admits he was sceptical but this Magic Whiteboard is very clever  stuff. My drawing? Not so much.

Apologies for the uninspiring title of this first entry. What can I say, inspiration has left me and run off into the night. Still, it’s probably going to be the only post with images so look at the pretty pictures and ignore the banality of the title. Unless the title becomes a regular feature, in which case I should note, somewhere, that last week began on 2nd August 2010 (Yes, my week starts on a Monday. Hey, I’m nothing but a traditionalist in that sense).

The aim behind this space is to allow a little more commentary on links that I posted via Twitter. 140 characters is great at making you think of ways not to use ‘text speak’ but not a great amount of space to say why you think something is important. And that’s the point of this place – to try to add some context around why I considered last week’s work-related tweets important. Fortunately, I decided not to attempt to justify the personal ones in my tweet feed and, as this week didn’t have a Grand Prix, of the Formula One variety, I don’t have to justify my opinions on that either.

I started the week by moving into a new office (hence the pictures) and being the subject of a press release. I’m only linking to the version without a picture (misplaced vanity?) but I’m incredibly excited to be at aiMatch, I think what’s coming will appeal to many of the biggest digital publishers. However, that’s not the purpose of writing here but, if you’re interested, check us out. And, for clarity, anything I comment herein is my view, I don’t pretend to be representing the views of any of my colleagues (who I know are capable of talking for themselves).

Oh, and the drawing of the rabbit in the hat: there’s a little more information on that on the original Flickr picture (although I am very impressed, I don’t own stock in the company so the review is true!).

But onto the main business of the day. What stories did I link to that need a little explanation about why I considered them important. Well, although I didn’t mention it directly, The Wall Street Journal’s piece entitled “The Web’s New Gold Mine: Your Secrets” influenced much comment around the web throughout the week. There’s a great deal of validity to the piece but, as with many articles about digital privacy, I think, by grouping many of the different tracking stories together without the space for full explanation simply serves to scare more than inform. On Friday, I did link to George Simpson’s amusing rebuttal on MediaPost which attempted to point out the WSJ’s apparent hypocrisy as they, according to George, happily say they’ll link the personal data they store to online data they collect along with their “64 third party partners”.  Privacy is something that this industry does take very seriously and I’m all for a more informed discussion because, as I have pointed out before, data is going to be increasingly important in the digital advertising ecosystem to get relevant advertising in front of people. Finally, on this topic, I linked to a video interview the very same WSJ did with Sir Martin Sorrell where he addressed this issue and it was good to hear that, he too, believes hidden tracking to be a problem and that transparency is a good thing.

If reports are to be believed then, according to netimperative, audience targeting – which is what most of the data is used for –  is now the “cornerstone of most online ad campaigns, helping to boost revenue for both branding and direct response” so I handily linked (thank me later) to their 4 steps to avoid behavioural targeting pitfalls. The quoted survey (as @exchangewire pointed out) was based on US figures but, to me, the useful nugget was the confirmation of the higher publisher returns for properly managed audience targeting.

At the start of the week I also linked to the Financial Times’ opinion of digital advertising tracking and note that their editorial acknowledges the advantages of targeted advertising,

There is nothing wrong in principle with advertisers using data about people based on their browsing habits. Such information enables them to place more relevant adverts – ones that are more likely to be of interest – on the sites that people visit. If executed correctly, that can benefit not only publishers but their customers (link)

Sadly, most of the FT’s piece is behind their paywall so I didn’t get to the meat. I hope the extract reflects the content. In the aforementioned WSJ interview, Sir Martin also discussed paywalls, something many digital publishers are paying close attention to, and stated a belief that the ability for advertising to finance media, as has been done in the past, is going away because of industry fragmentation. Nothing new there but timely as Rupert Murdoch was reported to have said that the paywall model was going well (“encouraging” was the word he used, as reported in New Media Age on Friday).

There has been much encouraging news of late about increased ad spend. This week it was the turn of the Irish to announce that in 2009 online advertising in Ireland approached the €100m threshold. To shamelessly steal the other headlines from the IAB’s piece, the online ad sector achieved 10% of Irish ad spend 2009 and 75% of study participants predict growth or strong growth for 2010. There’s much more than those headlines in the original article. I like good industry news, so enjoyed quoting Businessweek’s interview with Facebook’s COO, Sheryl Sandberg, that, on Facebook, “some advertisers have increased spending by as much as 20-fold or more”. Pretty impressive numbers, huh?

It won’t come as a revelation to hear that much ad spend, for the sake of an easy link I’m guessing in Ireland and on Facebook  as everywhere else, is shifting to mobile. Commsdealer reported that ad agencies are increasingly going mobile with TV losing ground quickly and noted “that competition in the mobile advertising space is getting heated, with Amobee on Wednesday announcing a major European deal with publishing house Gruner and Jahr”. As an industry we have been saying for the last ten years that ‘this is the year of mobile advertising’ but we may be at a tipping point, partly thanks to the popularity of the iPhone. Friday saw the news that UK iPhone users would total 6.4m this year or, to see it another way, the number of iPhones in UK will grow 200% during 2010. One Friday tweet said that I thought Dave Morgan was bold to suggest that mobile’s personal nature, scale, ease of use and great person-to-person-to-place connectivity would lead to location based services devastating local media. I have a feeling his prediction that 25% of their revenue base will be lost by 2014 may not be far wrong. As another of my tweets said this week, “4Sq may (or may not) be a fad right now but localisation & geo-awareness isn’t”. Still, to add some balance The Wall Street Journal (very popular this week, I’ll admit), suggested that some advertisers were still a little skittish about using cellphones for advertising and so were turning more and more to “immersive—and possibly intrusive—mobile ads”.  More at Newest Cellphone Ads Crave Entire Screen.

Now, why not follow all this week’s industry news at @curns or even send me your ideas for digital advertising news.