How Online Advertising Ecosystems Evolve and the Death of the Ad Salesman

 

Last week Clearspring Technologies [disclosure: I used to work there] publicly announced its new direction as an audience buying platform, leveraging the widespread distribution of its AddThis social sharing tool (which I include at the end of each of my blog posts) to aggregate intent-oriented data from keyword searches performed by web users (AddThis accomplishes this by capturing search query information contained in the referring URL string when a visitor lands on a web page where the tool is embedded). Search re-targeting has become a big driver in the growth of data-augmented display ad campaigns this year as advertisers look to find consumers that exhibit particular characteristics across the web versus targeting visitors to a particular website based on traditional geographic and demographic parameters. The incorporation of data into online advertising has been greatly aided by the creation of self-service platforms that allow advertisers and their agencies to define their audiences and buy access to these users, as well as the accompanying ad inventory, in the process.

These platforms are able to bring efficiencies to the demand side of the of the equation by automating components of the online display advertising ecosystem, something that wouldn’t have been possible without the standardization of display advertising units (which the IAB has achieved by defining such things as ad unit pixel dimensions, file weight and animation length). Without this type of inventory standardization neither the evolution of ad networks, ad exchanges and now demand side platforms (DSPs) would have never occurred, nor the ability to leverage data sources like Clearspring when buying online ad impressions.

This type of evolution hasn’t only been limited to the online display market though.  The IAB began the process of standardizing video advertising in online video players two years ago, creating guidelines that enabled online video ad networks to emerge. These specifications have matured enough to enable the likes of Adap.tv and BrightRoll, who coincidentally enough is a major video ad network itself, to launch video ad exchanges in an effort to bring efficiencies to the scale already available through these video ad networks. On the heels of launching BrightRoll Exchange (BRX) last week, BrightRoll announced this week that it will be leveraging search data from Magnetic to allow video advertisers to re-target audiences across the BrightRoll Video Network as well as BRX in the same manner they do with display advertising today.

As you can see the online video advertising market is following a very similar path as online display advertising has in its maturation- leveraging ad unit standardization to bring scale to the industry, which in turn has led to platforms being launched in order to bring efficiencies into the marketplace and incorporate data to enable audience targeting at scale- albeit in a much more condensed time line. Where online video advertising trails display advertising in delivery effectiveness is in the nascent state of its exchange marketplaces and integrations with DSPs and data sources, which should both evolve rapidly over the course of the next 12 months.

Based on this pattern, mobile applications should be the next advertising segment to follow this evolution as mobile ad networks focusing on the Android and iPhone platforms have proliferated. The biggest thing holding back the mobile application advertising industry from further efficiencies is ad unit standardization as the IAB is not yet willing to go down that path, only providing best practices as of yet.

This automation and scale being brought into buying online advertising inventory has started coming at the expense of ad sales people. Case in point, in June the Fox Audience Network disclosed that it would be laying off 5% of its staff, all from direct online ad sales, as a result of the success the company was seeing from the self-service display advertising part of its ad network business. So is there a future for ad sales people in online advertising or will they be a casualty of efficiency like blue-collar line workers of the industrial age?

To survive and thrive, ad sales people need to re-orient their thinking from selling impressions to creating experiences for brands and advertisers that focus on two core concepts: integration and social. Integrated campaigns enable advertisers to achieve higher engagement and mind share than through individual ad placements. In traditional display advertising this can be accomplished by implementing branded skins into websites or sponsoring sections of content. In video this might mean product placement in episodes or storylines and for mobile it might involve sponsoring the give-away of previously paid apps or premium features. The key is subtly associating the advertiser with the site and content so as to create a positive connection versus an annoying one elicited by standard display and pre-roll video ads.

In terms of social, I’ve previously written about the lack of innovation in online advertising since its advent 15 years ago and that the focus should be on creating socially-oriented ads (since social networking is what most web users are spending their time doing online these days). Developing ways for users to interact with and provide feedback on ads in real-time as well as leveraging a web property’s user base to collaborate in the creation of campaigns, which I’ve also written about, creates engagement because the users who participate have a vested interest in the outcome- just ask the Old Spice Guy.

Regardless of finding the right experiences to drive success for advertisers, ad sales people need to evolve ahead of these online advertising ecosystems or they will end up like Willy Loman.

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