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67% of Digital Display Expected to be Sold through Programmatic in 2019

admin, November 21, 2018

More than two thirds of the world’s programmatic display advertising is predicted to be sold programmatically by 2019, according to Zenith’s recently published report titled, “Programmatic Marketing Forecasts.”

The report predicts that the industry will to continue to climb in value, sharply rising from $57.5b to $85b, amounting to a 38% growth spike in 2019.

Programmatic advertising is most widely used in three of the world’s largest English speaking markets; the United States, Canada and the United Kingdom. Zenith estimates that in the three aforementioned countries, programmatic display advertising dominates – accounting for 81%, 78% and 77% of all of the advertising purchased.

Read the report here

 

 

The state of programmatic in 2015.

admin, January 8, 2015

“For years most online media was sold directly through ad sales reps. Over the past year there has been a dramatic change in this field”, Sivan Tafla, Total Media.

 

According to the article, today most of the pricy display ads in publisher sites are still sold by sales people, but robots and ad exchanges are expected to replace the rep and revolutionize the way online ads are sold.  In the coming years, ad sales will function through complex algorithms in a new marketplace that will make automatic decisions about online ad pricing and placement.

 

In our local market it is predicted that by 2017 30% of media will be sold through exchanges. Already many publishers are replacing sales reps with automated IT environments.

Programmatic is a new online advertising model that automatically identifies the optimum target audience for each ad campaign. It is a booking mechanism to sell inventory for advertisers over an exchange or through direct and even premium channels.

RTB (Real Time Bidding), a component of programmatic creates an auction environment where marketers can bid to show a different ad to a specific user based on data about that user. RTB holds the promise of delivering the right ad to the right person at the right time. Advertising inventory bought and sold through Real Time Bidding (RTB) on a per impression basis, operates similar to the way financial markets work.

Today programmatic advertising is one of the hottest buzz words in the industry and reached 45% of all display advertising. eMarketer recently released figures indicating that programmatic in the US grew by 140% in 2014, reaching $10 Billion.

Magna Marketing research predicts that by 2016 programmatic will be double and reach $20.4 Billion, and will represent approximately 63% of all display advertising.

Premium and remnant traffic
Until recently, programmatic ad bids were conducted on remnant traffic. In 2014 a shift paved the way to a direct marketplace. Programmatic Direct opened a new market for premium placement of ad display spaces in prized real estate locations. Today only a small portion of premium ad inventory is sold through programmatic, while the rest is still sold by ad sales reps. eMarketer predicts a shift in the next few years, so much so that by 2016 the premium RTB market turnover is expected to reach $8 billion compared to $80 million today.

Programmatic for mobile and video advertising
Industry findings indicate that most programmatic sales will come from mobile advertising. The online video marketplace will also witness exponential growth; eMarketer predicts programmatic video will reach $3.8 billion by 2016.

According to Sivan Tafla, the local market is already using advanced systems, but is not yet realizing its full potential.

“We are in the midst of a process. 25% of online media here is sold through RTB, but the market is uncertain . In the US, a sizable portion of media is sold this very way. In 2017, 30% of media is expected to be sold through programmatic.”

Industry misconceptions
Meanwhile, most publishers still want to hold onto their premium ad placement to preserve their high rates. There is a misconception that placing ad inventory in programmatic exchanges, where there is uncapped user data, can harm publishers’ ability to demand higher fees on prized page placements.

Tafla believes that serving campaigns through programmatic exchanges will actually contribute to publisher’s bargaining power. With exchanges there are more bidders for every impression and more useful data accessible to marketers.

“As soon as you can use sophisticated viewer data, you can increase the value of every impression. This is bound to affect revenue making capabilities.”  The immediate impact is firstly and for mostly in heightened efficiency. Human resources costs allocated to direct sales are suddenly challenged by automatic systems. There is a shift in focus from the traditional direct sales to trade room management and analysts.” said Sivan Tafla.

Total Media offers digital and mobile advertising solutions based on advanced technologies. The company is the sole Israel representative of Google’s advertising platform – DoubleClick, an ad serving and inventory management platform for publishers and advertisers. It has been integrated into large media publisher groups including: Ynet (largest daily digital newspaper), Mako (largest news and entertainment site ranked in third place), Haaretz, Globes and more. To find out more

Continue reading “The state of programmatic in 2015.”

Mobile ad monetization trends 2015. How to avoid the hype

admin, December 18, 2014

mobile-programmatic-advertising-2015The rise of mobile advertising technologies has not only sparked an evolution in standards and best practices, it has also created a lot of hype and misconceptions. So how can we separate the hope from the hype?

Similar to the way the cycle of experimentation-to-rude awakening-to-hard-nosed calculations typified the web and social media era, publishers and advertisers will become less patient with mobile hype, and more concerned about value.

Continue reading “Mobile ad monetization trends 2015. How to avoid the hype”

How can publishers benefit from premium programmatic?

admin, November 18, 2014

publishers-premium-programmaticPublishers who embrace premium programmatic will discover big revenue expansion opportunities.  One of the most powerful benefits of the private market place is the ability to segment target audiences more effectively and by doing so, justify increased advertiser spend. The idea of dealing with a new technology at first can be daunting, but is not hard to solve with some customization. The question is, are publishers willing to invest in the short term, even if it means hiring outside help, to benefit from the programmatic market place in 2015?

Programmatic buying is the flavor of the day for advertisers. More advertisers are demanding it and are earmarking it as a priority in their 2015 budgets.  Publishers on the other hand have shown distinct signs of discomfort in this new and open online arena.  Anxieties over inventory quality and a fear of lack of control have kept publishers away in droves.

But programmatic isn’t going away, rather its predicted to grow exponentially in 2015.  According to a study from eMarketer, RTB spend is expected to double between 2014 and 2017, moving from $4.6B to just over $9B.

 So how can publishers benefit from the programmatic boom in 2015?  What can be done to gain control over transparency, inventory quality and identity management?

Programmatic has the potential to hugely benefit publishers.

Estimates suggest that anywhere from 80-90% of the available online ad inventory is unsold each year. Publishers are working in an illiquid environment where supply often can’t find demand. Regardless of how many direct sales reps are hired inventory often remains unfilled.

Private programmatic fares well for publishers willing to adopt a long term approach.Programmatic when managed expertly enables publishers to:

  • Minimize unsold inventory
  • Control premium and remnant inventory more efficiently
  • Segment target audiences more effectively to justify increased advertiser spend
  • Increase content exposure at the audience segment level
  • Target premium audiences beyond the publisher site (audience extension)
  • Optimize content to grow high value audiences
  • Systematically sell paid subscriptions leveraging programmatic marketing
  • Demand maximum CPM rates for narrowly defined target audiences

Moving premium inventory more efficiently.

Premium inventory to date has been the bread and butter of the publisher’s advertising model. It created a safe haven for building brand relationships. It came with no transparency options to drive down costs. In this private garden, the publisher owned the keys. Even though to date the model depends on large sales teams, it is still lucrative for publishers. Conveniently, the burden of optimization is offloaded to the brand – it’s up to the brand or the agency to segment, target, and manage the advertising strategy.

But this practice of throwing all the weight on the brands and agency’s shoulders came with a hidden price. Publishers were less reluctant to innovate and seek higher yield on premium inventory.

Programmatic premium turns the table for publishers

Programmatic premium (or programmatic direct) works on rules-based algorithms that automate and simplify publishers’ sales process. On the buy side, advertisers can buy premium inventory with the same guarantees they got when dealing with the publisher’s sales team.

Ironically, many publishers fail to recognize that the same factors driving higher CPM on remnant RTB traffic can drive higher bids on premium inventory especially if the publication and audience targeting criteria are exposed.

So what can publishers do to make programmatic premium scale successfully?
Programmatic premium requires publishers to make their audience more ‘discoverable’. It encourages publishers to make it easier for brands to identify the audience they wish to target. These pre-conditions must exist to deliver optimized pricing for publishers. Buyers will only accept premium prices if they know they can target audiences as effectively as they can on remnant RTB inventory.

One of the most powerful effects of optimizing sales with Premium programmatic (or programmatic direct) is the ability to grow the total amount of revenue a publisher can generate.

To optimize premium programmatic, ensure brand safety and avoid price erosion, publishers need to keep their antennas up for better solutions.

They need to provide more granular audience targeting on premium ad inventory. They need to work with trusted partners to increase the value of their data and user and ensure their inventory yields maximum ad revenue.

At Total Media we welcome the opportunity to explore strategies for growing publisher revenues. 

Why programmatic for publishers will grow exponentially in 2015

admin, November 18, 2014

programmatic-for-publishers-1

Just when we thought it was running out of steam, last month’s IAB report on global internet ad spend revealed revenues soared to a historic half-year high of $23.1 billion. The report not only highlighted brand’s deepening commitment to interactive advertising, it showed that programmatic spend is about to double in the next two years.

More mainstream publishers and advertisers to realize the benefits of programmatic!  

During 2014 programmatic edged its way out of the side show to become mainstream. Programmatic by the end of 2014 is predicted to reach 10.1 billion and to double in 2015 to 20.4 billion. Forrester and eMarketer mirror IAB’s predictions and
BI Intelligence, a research division of Business Insider, predicts a rise to more than $18.2 billion by 2018. These numbers are phenomenal!

Although programmatic is trending heavily and the buzz is deafening, the industry is still in its infancy. Until it is truly standardized, marketers will continue to leap over menacing hurdles to deliver data integration, brand safety, site quality and effective measurement through programmatic channels.

Even so, Fortune 500 companies show no signs of backing away, rather, their appetite for programmatic is increasing.

Marketers are acknowledging that programmatic benefits them over time. More than a buzz word, programmatic’s appeal is heightened by its ability to perform cross- device-targeting, better insights, better performance and growing cost effectiveness.

On the demand side, publishers too are warming to programmatic. Publishers are gradually recognizing it as a new monetization source for generating more advertising revenue.

Programmatic is fueled by these technological developments and industry perceptions:

Ad fraud detection technologies battling botnets head on
Ad fraud technologies, in response to market demands, are combating botnets and other foreboding tyrants. Companies such as DoubleVerify aim to plug the security gap where nearly 45% of URLs are mismatched with the ad placement’s “true” URL.

Ad fraud technologies popularity flourished on the heels of IAB’s warning that media sellers who won’t deal with fraud, will be blacklisted by media buyers.

Marketers continuing to explore in-house and outsourced programmatic operations
In 2014 some major brands including Kimberly-Clark, Kellogs and Procter and Gamble moved their programmatic in-house. But these companies acknowledge it comes with a high cost. On an operational level it is extremely difficult to process and analyze multiple sources of data in real time.

Arun Kumar, senior executive at Mediabrands, shared similar reservations: “There’s the mistaken belief from clients that if they take it in-house, they’ll somehow sort it out… I don’t think companies appreciate the amount of investment … It’s not about getting two DSPs and a couple of full time employees on it…”

Ironically, many advertisers know more about publisher audiences than publishers
Publishers who hesitated to date about the shift to programmatic are pulled into it through the back door.  Realizing they simply cannot afford to sit on the fence any longer, publishers are increasingly exploring programmatic platforms.

Outsourced programmatic for publishers to gain momentum
Publishers are slowly adopting programmatic as a core part of their monetization strategy. Many publishers who have identified lucrative opportunities, will choose to outsource their programmatic operations.  The choice to outsource is driven by two main statuses: The first, publishers who already have an internal programmatic setup, but are not realizing the full benefits of programmatic. The second, publishers who initially refrained from programmatic, but feared losing out on revenue potential.

Programmatic to grow exponentially in Europe
According to Patrick Dolan, Executive Vice President and COO, IAB; “programmatic advertising strategies have paid dividends for U.S. publishers, brand marketers, ad technology vendors… now it’s time for this practice to benefit marketplaces around the world.” The programmatic drive began in the US, but growth is spreading worldwide particularly in the UK and Europe. The meteoric rise in Europe is attributed mostly to improved targeting capabilities, according to recent IAB Europe findings.

As brands become programmatic savvy, publishers will need to step up their game
Programmatic adoption to date has been fueled from the buy side, with many publishers hesitant to get on board. But there are dramatic efficiency gains to be made on the sell side as well.

At Total Media we believe publishers must tread carefully to reap the full benefits of programmatic. One thing is certain, programmatic trading will continue to evolve. For publishers, finding the right professional partners is key.

Steps to make more revenue from your ads on Google DFP

admin, October 30, 2014

dfp-small-business-monetizingSay your site began to reach high volume traffic and you have a large audience following you. Sooner or later you realize you can generate a lot more advertising revenue through the ad networks. You did your research and concluded that Google DFP is the best tool for you. 

Now what?

If you are reaching over 200,000 monthly impressions but have not yet crossed the 90 million monthly impression threshold, Google will automatically refer you to DFP Small Business.

DFP Small Business advantages and demystifications

DFP Small Business is a free ad server that offers your inventory to multiple ad networks. In the process it gives you more control over your ad delivery than AdSense and exposes your inventory to a lot more competition. If you are left with unsold inventory, Google encourages you to integrate AdSense with DFP to grant your unsold spaces a second chance. DFP SB will optimize your revenue by automatically selecting the highest paying ads.

The overall benefit of advancing to Google DFP is that more competition exposes you to more revenue earning opportunities. On the other hand, there will be no low hanging fruits dangling in front of you if you do not roll up your sleeves and work on serving the highest yielding ads.

Unfortunately basic ad serving is not always effective. The path to a simple low-cost solution to maximize yield from ad networks is becoming increasingly difficult.

Most publishers eventually hit that Eureka moment and realize a need to work on better ad monetization.

They discover that ad networks alone as a strategy for selling inventory, can heavily compromise earning potential. There is also the threat of diluting the ad-to-content relevance. The outcome can even drive down performance.

google-dfp-sb-and-total-media

Ad units monetization through DFP is tricky business

Even a small increase or decline in your page’s revenue can significantly impact your profit.

For instance; in a small site generating merely 250,000 monthly page views, each $5.00 surge in display RPM (Revenue per 1,000 impressions) will increase profits by $1000.00.

 The complexities of the DFP SB set up process

To demonstrate to you how complex it can be, see the sample set up diagram. Here’s the unnerving issue;  if you don’t know the particular network’s CPM you may have trouble following these steps, as most ad networks are based on a CPC system (revenues earned by clicks). At best you are left with a trial and error experimentation process until you find the ideal CPM.

For every hurdle flung in your direction, there are tips, tricks and trial versions worth experimenting with. One of the advantages of working with Google is that it’s products are a work in process and there is always an influx of many great upgrades. You just got to make sure you have your finger on the pulse, or can at least consult with someone that does to know which feature or tool to work with to boost your revenues.

Today, to reap the full benefits of multiple ad networks demands, there is a need to invest in research and perhaps reach out to monetization experts.

For more information, tips or tricks, we’ll be glad to help. You can reach us at:info@totalmedia.co.il

Keep in touch

Debbie Meltzer, Total Media Group

Digital advertising mega trends shaping 2015

admin, September 30, 2014

2015-digital-advertising-predictionsThe future is personalized marketing and its agent of change is the “Cookie.” Yep, that string of data, storing all our personal habits is at the center of a digital storm. A storm that is about to disrupt our entire online eco-system. Reporting back from the recent DMEXCO Cologne conference this month, Total Media’s co-founder, Yaniv Levi shed some light on the state of digital advertising and marketing, and the gale forces looming ahead.

Above all, he said technology was ordained queen, beyond the “holy trinity” of creative, content and context. Technology is also gnawing away at the traditional disciplines of; marketing segmentation, demographics and other online behavior analysis methods. And who might be the Queen maker?

Why its Big Data. Yes, we know, big data is one of those buzz words that has been littering our digital marketing wastelands for the last few years. But it’s time to separate the hype from reality.

Analytics driven by relevant algorithms to deliver more speed, agility and power

The truth is; Big Data is a big deal when it comes to online advertising and conversion. Not that long ago advertising revenue success was a product of 90 per cent creative and 10 per cent technology. Today it is more balanced. In the future, we could see the scale tipping further in favor of technology driven by relevant algorithms. Big Data is already giving us the ability to engage with customers, subscribers and viewers, across every channel, in ways not possible before. Through acquired analytics it is delivering speed, power and agility in a bid to offer customers what they want and when they want it. Most importantly, it is driving marketing automation and analytics that are helping publishers and advertisers quickly forecast and estimate advertising revenue growth, and in doing so increase revenue growth.

Programmatic buying will continue to fuel digital advertising growth

Programmatic buying through display in all formats; mobile, tablets and video, is a key driving force that is reshaping digital advertising. In 2015 programmatic is predicted to increase its percentage share from 49% of users to 73%. Programmatic platforms are improving accuracy of measurement but are also causing confusion. In 2015 there will be a push to reduce confusion in the market place.

Traditional relationships between premium advertisers and publishers are rebooting on programmatic platforms

Ad Exchanges such as Google Double Click are making it possible for publishers to increase their revenue stream with new exclusive choices. Private auctions and preferred deals are already available through exchanges and are creating an opportunity for direct handshakes to happen across multiple platforms in multiple languages. According to Sivan Tafla, CEO, Total Media,“Programmatic direct has enormous potential for the future of online advertising because it helps advertisers find and buy relevant premium ad space automatically and channel their efforts into spaces that will give the highest ROI.” 

Native and sponsored ads to continue to evolve

Although technology is gradually tipping the scales, content will continue to pull its weight. Already news publishers are removing the road blocks to previously banned sponsored news content. Text based advertising not that long ago trailed across the bottom of publisher sites, seizing squalid digital real estate. Today news sites including The New York Times and even The Guardian are embracing sponsored and native ads and are running integrated display and text ad campaigns with carefully camouflaged references to the brand. The trouble is that readers are growing wary and can increasingly smell a sales pitch a mile away. Another source of sponsored content set to spread is the “promoted” link that refers readers to recommended articles based on recommendation technologies developed by companies such as OutBrain.

Technology will be the key differentiator between success and failure of digital campaigns

In its latest study of global media owner advertising revenues, covering 73 countries, MAGNA GLOBAL forecasts that revenues will grow by +6.4% in 2014 to $516 billion. So how can you make the most of the predicted increase in advertising spend? The general consensus is that data and technology will increasingly be the two critical success factors for effective audience targeting and revenue streaming in 2015. Technology will be a key differentiator between success and failure of digital ad campaigns and digital advertising technology experts will be increasingly sought after.

Total Media Group.
http://www.totalmedia.co.il

Total Analytics short demo live now

admin, September 29, 2014

Well, we had a lot of fun producing a short demo for Total Analytics. Total Analytics is a business intelligence dashboard designed to drive advertising revenue growth. It was developed by Total Media’s R&D team in response to growing customers demands for actionable insights into revenue growing activities .

Total Analytics displays critical advertising data in a powerful visual format. When using the dashboard you can simply drill down into ad pricing, traffic and performance to gain actionable insights into revenue boosting activity.Performance breakdowns by eCPM, indexed eCPM and fill-rate will help you to improve click-through rates. Forecasted revenue estimates show you where you business is going and what are your revenue generating opportunities. See a short demo below:

Private ad auctions & preferred deals for publishers now at Total Media Group

admin, August 28, 2014

total-media-group-google-programmaticSome of Total Media’s publishers are already benefiting from full programmatic choices

Publisher; have you been wondering if private auctions or preferred deals are a good fit for you? For the advertisers, and brands there’s no question; having an early peek at your premium inventory is worth paying the higher rate.

But will you be able to net more revenue increases? The answer is clearly YES!

Today there’s a full range of advertising inventory tools designed to help you easily monetize your inventory. Finally with Total Media you have access to open auctions, private auctions and preferred deals.

Google’s DoubleClick Ad Exchange made it possible for you, the publisher to easily sell all direct and in-direct advertising inventory without hurting your direct sales. We simply outlined the choices below to help you understand how come savvy publishers are already increasing their revenue making opportunities with these new programmatic choices.

Open auctions: Believe it or not, today open auctions represent traditional RTB buying. These virtual centers attract massive demand from thousands of advertisers. AdX’s open auction sales have been growing at a manic pace, partly because the prices set by publishers are known upfront. The winner always pays the second price without any tampering or dynamic changes.

Private auctions: Private auctions work fantastically for strongly branded publishers with premium content that is recognized by buyers. Publishers can determine the number of buyers and can easily add buyers, and arrange separate prices for each one. Buyers respond very easily and quickly. Every publisher has a limited set of buyers that can access their non-negotiable premium inventory. Publishers sell at premium fixed prices to a select group of buyers who compete over the inventory at higher prices. It’s quite easy for buyers to work with, while the publishers enjoy extensive scalability and flexibility to optimize each campaign.

Preferred deals: These deals make it possible for publishers to sell premium inventory exclusively one-on-one, at a fixed fee that can be negotiated. The deal is then transacted in real time. Preferred deals provide publishers with a controlled and stable revenue stream through this secluded transaction environment. Buyers benefit from fixed deals too; knowing the price ahead helps them to better plan and control their campaign budget.

In both cases, private auctions and preferred deals let publishers expose the segmented audience for each ad space, turning it into an audience level deal. They are available in multiple languages across multiple platforms and can be measured on a highly granular level.

Our news behind your news

admin, August 7, 2014

total-analytics-sneek-peakA glimpse behind the scenes of our new analytics dashboard!

“Working on a project like this puts the business of news and content in a totally new perspective
.” Eran Levy, R&D team leader

Today more than ever we’re constantly connected to our online publisher portals. We hunger for the next big story and follow news with immense interest.
But we rarely stop to think how this entire online eco-system exists. Truth is without its digital advertising pillar, professional news and other online publisher portals will trickle to a halt.

Digital advertising is behind every news bite every second of the day. It operates at the pulsating center of every online publishing business.

The incredibly complex technologies operating on the maze of online advertising platforms are truly mind boggling.  These digital backbones require vast amounts of algorithms to help display and monetize every pixel, in every ad placement during every millisecond.

So, if you’re an online publisher, how on earth can you manage swarms of advertising data streamed through data warehouses across multiple platforms in multiple formats every second of the day?

Total Media’s R&D team was put to the test.  It was assigned with the task of developing a digital publisher business intelligence dashboard.  And not just any display…

The system had to drive online publishers to a new level of performance. It needed to make a significant difference to our customer’s bottom line.

“One of the biggest challenges I faced was setting up a data warehouse for generating a simple user-friendly holistic view of  the publisher’s ad inventory that displays forecasted revenue-making opportunities. Although simple to follow, it required complex cross-platform data sourcing.” Eran Levy

The team took it in stride, combining 10 years of advertising industry experience with technological skills including advanced algorithm programming. One of the biggest technological challenges was the retrieval of data from different platforms in different formats and integrating them into one data warehouse. Large volumes of data from multiple sources needed to be quickly processed to share vital insights immediately.

The team developed a system that monetizes publishers’ ad inventory more quickly and with greater returns.

The new system lets publishers simply manage ad performance analytics and monitor predictive forecasting through a visually pleasing dashboard. It captures complex digital advertising processes in a friendly view that displays performance reports, trends and predictive analysis in a powerful visual format.

The ability to deal with such huge volumes of data in such a dynamic environment has been such an exciting experience.”