December 2013 Archives

Defining The Next Generation of Performance Marketing

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Defining The Next Generation of Performance Marketing

What exactly is performance marketing? Historically, it has been easy to define. Its objective was to drive a specific action, and advertisers only paid when that action, such as an acquisition or sale, was completed. Performance marketing included search advertising, pay per acquisition, email marketing and more. This was in contrast to brand advertising where the objective was to build awareness and payment was typically based on impressions (CPMs) or sponsorship.

Recently many different types of campaigns and programs are being called “performance.” This is in large part due to the development of programmatic buying and other technological platforms that allow for more opportunities in real-time measurement and optimization. As many have pointed out… in the future all digital marketing will be classified as “performance.”

As a result, a new vision is emerging of what is performance marketing. A group of more than 15 members of IAB’s Performance Marketing Committee have put together what we believe to be the new definition of performance marketing in the context of today’s digital landscape. 

Here is a preview.

Requirements for a Performance Marketing Campaign

  • The intention of the campaign is to drive consumer action, as opposed to raise awareness
  • The cause and effect between the advertising and consumer action can be clearly measured
  • The buyer can optimize their buy in real or near real-time based on the measurement
  • In many cases payment is made based on consumer action (this is not necessarily required if the other three criteria are met)

The closer the performance action is to a sale or transaction, the more accountable is the outcome.
The most important component of a performance marketing campaign is the performance action that is being measured, optimized and potentially monetized. The closer that consumer action is to the sale or final transaction, the more likely it can be used to calculate a true return on investment.  For example, a lead form or phone call is closer to a sale than a social engagement.

Real-Time or Near-Time Optimization is a key ingredient to continued growth in performance marketing.
Real-time bidding (RTB) has been a part of search engine marketing for a decade, and is a growing quickly in display advertising.  It is now a central component in today’s digital marketplace, growing to more than $3 billion (estimated) in 2013 and expected to more than double again in the next few years.  We expect that real-time performance optimization will move in lockstep with RTB over the next few years.

Download the full IAB Digital Simplified: Defining Performance Marketing in Today’s Digital Landscape PDF here.

On behalf of the IAB’s Defining Performance Marketing Working Group, we’d love your feedback.

About the Authors

John Busby, Senior Vice President, Marchex Institute and Co-Chair of IAB Performance Marketing Committee



Carl Kalapesi, Director Industry Initiatives, IAB  Reach him via Twitter @carlkalapesi or email  [email protected].




8 Headlines For Digital Publishers To Ponder

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In a din of daily tweets, press releases and stories covering the media space, some stories deserve more attention than others. Here are 8 signs of the times that digital publishers should peruse and ponder as they head into 2014.

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1. ESPN mobile traffic eclipses its desktop traffic

It’s been widely anticipated that mobile will overtake desktop traffic for most publishers in 2014. One by one you see brands like ESPN announcing that this milestone has already occurred. Publishers need to be ready for the implications of a mobile first world. New ad solutions and new business models are required. If you don’t have a strategy for mobile yet (and you should), it’s critical you get one before 1/1/14.

2. YouTube announced that they are adopting Nielsen OCR as currency

With this move YouTube should be poised to capture a large amount of the volume of investment spent on video advertising since they are now being seen as more friendly by marketers and their agencies. Anybody in the video advertising space knows that transacting on Nielsen OCR or comscore VCE is not an easy proposition since it can result in serving ads against impressions that don’t count towards the advertiser campaign goals. YouTube’s move is a big signal that these forms of currency are fast becoming the norm.

3. Yahoo News hires Katie Couric and FOX Business News hires Maria Bartiromo.

It’s important to ask if Yahoo thinks Couric will drive more 18-to-34-year-old news hounds to Yahoo News? Probably not. However it will make it easier for Yahoo News to earn a place in the White House press corps, secure big news gets, and help to continue to position Yahoo as more than an aggregator. Ditto with Maria Bartiromo. Her presence may not drive immediate ratings or hurt CNBC, but it will certainly attract high level exclusives and in the long run, potentially switch momentum.

4. Rolling Stone announces Rolling Stone Country.

The expansion of Rolling Stone content into country music is a sign that all publishers (online or off) are looking at new ways to get into businesses that are adjacent to their core business models. Every publisher should be going through the same exercise and making similar moves into adjacent businesses. As other examples of this, CNN recently launched a platform to share Instagram photos direct from the field, called Scenes, and dozens of publishers are publishing their content directly through Flipboard. These are the kinds of innovations each publisher should be seeking out.

5. Google adopts viewable impressions as currency in AdWords. 

In August Google quietly announced that it was going to transact with viewable impressions. The current proposed viewable impression definition is still only a recommendation from the Making Measurement Makes Sense consortium made up of the IAB, ANA, and 4A’s. Google’s running ahead with what they’re calling ‘active view’ as a currency that viewable impressions are something that every publisher needs to pay close attention to because it is absolutely going to become table stakes for ad campaign budgets moving forward.

6. The FTC review of native advertising

When hundreds of people descended on Washington to attend the FTC’s review of native advertising it signaled not only that native advertising was big (eMarketer estimates say it’s a $2.36 Billion market) but that it’s something the industry needs to get its act together on and self-regulate. Publishers should go out of their way to make sure readers are not confused on the difference between editorial content and advertising content. Proper labeling is the key. If publishers label paid content as coming from an advertiser, there should be no more confusion. If they do that, there should be no more FTC hearings. The IAB recently released their native advertising guidelines which is a first positive step to tackling this problem/opportunity.

7. The Visual Revolution Summit

Early in December in New York City a first of its kind summit around the visual web occurred. The “Visual web” feels like it’s the new new thing. One only needs to look at the rise of Pinterest, Instagram, BuzzFeed, Tumblr and others to know that a picture is worth more than 1000 words. Publishers are actively redesigning for feed and gallery formats. Native advertising can be simplified with and an embrace of images over text is a way to communicate this. The emergence of the visual web is a big deal.

8. The Internet of things

While CES is only a few weeks away it’s safe to assume that the Internet of things is going to receive a tidal wave of attention coming out of this massive gathering in sunny Las Vegas. It’s hard to predict what digital publishers will do in this new ecosystem but it’s safe to assume that marketers will be looking for ways to bring their products and services into the home and workplace and non-conventional, non-media driven ways.

About the Author
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Peter Naylor is the IAB’s first Publisher-in-Residence, providing thought leadership and critical industry insights on the most important challenges and opportunities facing digital publishers today. Until recently, the digital media pioneer was the EVP of Sales for NBC News Digital. Prior to that, he oversaw advertising sales for the company’s entertainment and sports digital properties. Naylor was Chairman of the IAB Board of Directors from February 2012 through February 2013. You can reach him on Twitter @prnaylor.
 




Content Marketing is assuming an increasingly large role in the digital campaigns of both B2B and B2C marketers, and is providing digital publishers with a potentially rich source of both revenue and content. However, there is substantial confusion about the concept, due to a multiplicity of definitions, marketing platforms and strategies. To help publishers navigate this promising but complex field, IAB recently established the Content Marketing Task Force.

As a first step, the Task Force was charged with developing a Primer to define the various components of the marketplace. This Primer has now been completed, thanks to input from the nearly 50 Task Force members, including publishers, both legacy and digital-native, and technology providers active in this space. 

The Primer’s objectives are fourfold:
a) To eliminate confusion by providing alignment among competing definitions, marketing platforms, and strategies
b) To provide accurate, timely information about Content Marketing
c) To offer guidelines on conforming to editorial standards and identification of sponsorship
d) To address the need for clear disclosure to consumers and businesses

contentmarketingprimer-screenshot.PNGWe believe the Primer will help IAB members grapple with the issues and maximize the opportunities of Content Marketing. Because Content Marketing is a very broad term which encompasses a wide range of platforms and strategies, we felt it very important to promote understanding of what its purpose is, and how it differs from advertising.  We also wanted to clarify how marketers and publishers can avoid potential pitfalls by establishing guidelines for clear disclosure. Fellow co-chairs reflect on the importance of this primer:

Content marketing has the potential to be a substantial, long-term solution to many challenges publishers face with respect not just to revenue but satisfying audiences with the kinds of valuable content and experiences they’ve come to expect. Publishers have worked tremendously hard over the years to gain the credibility that they have with audiences.  Our goal is to lessen the likelihood of that happening with clear guidelines and best practices for working with their advertising partners on content marketing initiatives.
- Lisa LaCour, VP, Global Marketing, Outbrain

As marketers look to unlock the full value of their content assets and pursue even greater levels of engagement from their media investments, paid content distribution will continue to grow.  It’s through this primer, with support from the industry’s leading practitioners, that the IAB looks to shine a light on this dynamic and evolving space, and provide guidance and best practices that will ultimately help shape its formation.
- Chris Schraft, President, Time Inc. Content Solutions 

So, what is Content Marketing?

Recognizing that Content Marketing is a very broad term which has many competing definitions, the Primer offers this general statement:

                  “Content Marketing is the marketing technique of creating and distributing relevant and 
                   valuable content to attract, acquire and engage a clearly defined and understood target 
                   audience.”

It further notes that content marketing differs from advertising and other promotional vehicles because its intent is to provide entertainment/information that stands on its own merit - a “pull” strategy that enhances the consumer’s attitude towards the brand, rather than a “push” strategy with a specific call to action.

Within this overall description, the Primer shows how content marketing can work across the several platforms of owned, earned and paid media. Publishers have the opportunity to capitalize on all of them in a number of ways, both as distributors and as suppliers of content.

The Primer also provides marketers with an overview of the varieties of content - original, repurposed, and curated - they can use in their content marketing strategies. Each has its advantages, as well as complexities that require consideration. Sophisticated marketers will want to experiment across the spectrum.

The Need for Transparency and Disclosure

This Primer is clear that the key to the continued growth of Content Marketing is strict adherence to the IAB dictum that “Disclosure is not an option but a requirement.” The Primer states that content marketing efforts should always be clearly disclosed to the consumer as such, irrespective of whether they are paid units, third-party paid links or social-media endorsements. 

Specifically, regarding the subset of Content Marketing known as Native Advertising, the IAB Recommended Native Advertising Disclosure Principles, as outlined in the IAB Native Advertising Playbook states:
                                     
                   Regardless of context, a reasonable consumer should be able to distinguish between what 
                   is a paid native advertising unit vs. what is publisher editorial content.

In sum, Content Marketing represents an important strategy for marketers to engage their audiences in new and exciting ways, while offering publishers the opportunity for new revenue streams. By helping to reduce confusion about terminology and establishing guidelines for meeting editorial standards, the IAB’s new Primer will, it is hoped, help this industry reach its full potential.  Moving forward, according to Susan Borst, the IAB Director of Industry Initiatives, the Task Force will focus on additional topic areas related to content marketing such as the importance of social media and measurement.

About the Author
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Andrew Susman

Andrew is the CEO and a co-founder of Studio One and co-chair of the IAB Content Marketing Task Force. Previously, Susman was an executive at Time Warner and Young & Rubicam. In addition, he serves on the boards of the Advertising Educational Foundation, and Business for Diplomatic Action. A native of Missouri, he is also a certified sharpshooter and is a major supporter of the ASPCA.


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