Tip of the Spear Blog

Control your Ad Preferences (and Cookies) 2011!

2011-10-30T10:14:00.001-05:00

What a difference a year makes! New posts are brewing but in a continuing effort to help ease the privacy data paranoia and highlight progress, this popular Tip of the Spear Blog post has been updated for 2011. Can't wait for the 2012 election fueled update...

With all the hub-ub from the New York Times, WSJ, gubment (including former Black Panther and Chicago's very own Bobby Rush) and consumer privacy fanatics you must be growing VERY concerned. For your handy reference below is a list of major consumer settings panels where you can adjust your advertising preferences that is actually much easier than correcting information on your credit report.

Global Opt-in Cookie Managers
These services have emerged as a one-stop shop for consumers.

PrivacyChoice - Very easy to use and includes Yahoo, Bizo, BlueKai & Exelate. Individual publishers can skin this with their ad partners.
PreferenceCentral - Not sure what control this really provides just yet but it looks interesting.
TrustE - a recent effort and competitive to NAI; it has more non-participatns provided seemingly to get them off the fence. Not a bad approach.
NAI opt-out - The industry choice. If you really don't want ANY advertising tailored to you, set your opt-out centrally and then get lots of irelavant ads - enjoy...also, don't change computers or delete the cookie!

The Consumer Portals
You get your email 24x7 and store your personal life's electronic communiques in there for free - somebody has to pay for this!

Google - comprehensive and interest-based; no observed behavior included (yet). There is also the Google Dashboard for general privacy.
Microsoft - another comprehensive list of interests; no observed behavior.
Yahoo - fairly deep interest profile; no observed behavior. Their Ad Interest Manager currently only allows 7 catagory opt-outs - seems like an odd limit on something that makes the advertising more valuable.
AOL - not much control here yet.

Specific Advertising Provider Preference Managers

The data providers of the world mostly work behind the scenes but have a variety of services for consumers to control their advertising.

Blue Kai - by far the most interesting with a new interface. Plenty of behavioral ad targeting fodder in here. Also, you can really see the presence of offline credit ratings companies busily creating a whole new revenue stream off of you; interesting that because it is just as creepy yet harder to see. Still, Blue Kai stands out as offering a benefit to charities.
Exelate - they changed the URL! No worries, we found the new one for you. Exelate is not as behavior dominated but has many interest categories. Also, it doesn't seem to update in real-time.
Lotame - fairly innocuous interest and sub-interest categories with observed behavior.
Bizo - known as the B2B player in the digital advertising data business. Nice approach actually.
Safecount - from the DynamicLogic (WPP) family comes a totally different approach; with no behavioral segments but plenty of ad creative and sites you've been to; no interest preferences here. Actually shows you the creative units.
Amazon - pretty simplistic control over personalization of Amazon ads.
Blue Cava - mobile targeting manager.
RapLeaf - Opt-out and preference manager; associates to an email address.

If anyone has any other suggestions for the above list, please drop me a line!

Also, in case you were looking for a Flash cookie control panel to view and/remove such locally stored objects: http://bit.ly/2fZi

Last, don't be evil and enjoy your new Google Toilet (tm)!

Recent Privacy & Targeting Coverage

2011-09-04T17:47:00.000-05:00

New posts are brewing, in the meantime here is a repost of the OPA's roundup.

Consumers Are Getting Savvier About Behavioral Targeting (paidContent)

Behavioral Targeting On Rise Regardless Of Pushback (MediaPost)

Consumers to Behavioral Advertisers: We Know You’re There (eMarketer)

Trends in Behavioral and Contextual-based Advertising shows consumers accepting of targeted advertising (Parks Associates release)

homeValence RIP

2011-06-24T18:16:00.001-05:00

homeValence.com is being retired. Launched in 2006, it was an innovative Web site that represented a bold idea for monitoring residential home appreciation; unlike Zillow, homeValence set out to use national HPI data and eventually broker opinions to drive valuation...there was also a neat hook into Facebook Connect to share updates.

With the meltdown of the residential real estate and appraisal industry, other priorities quickly eclipsed the site's need for updating and ongoing development.

The concepts are still solid so it may re-emerge at some point!

Pandora IPO Media Coverage Redux

2011-06-23T09:17:00.002-05:00

Hmmm...do any of them actually know what they are talking about?

Listing courtesy of OPA.

Fascinating Stats on City of Chicago Employee Pay

2011-06-08T22:33:00.002-05:00

Ever wonder where all the money goes that the City of Chicago takes for running our lovely municipality? Recently elected Mayor Rahm Emmanuel took a bold step in transparency to post this one!

The reason for the skew towards $77k is that is about the pay for most of the employees who are police officers and firefighters. This appears to be a union-set wage, which doesn't make sense, e.g. as a new police officer/firefighter makes just about as much (not much percentgae difference in pay) as one that has been on the job for many years....and like all collective bargaining schemes there is no room for management to differentiate pay on performance let alone between competent vs. incompetent.

The reason for the sharp drop off at the bottom-right is that this includes part-time employees, interns and those that receive salaries for being foster parents, police cadets and others.

mean	$73,829
median	$77,238
mode	$77,238
standard deviation	$77,238
min	$1
max	$260,004

POINT OF REFERENCE

Estimated (mean) per capita income in 2009: $27,138
Estimated median household income in 2009: $45,734 (it was $38,625 in 2000)

It would really be interesting to see the Board of Education and teachers (not necessarily by name)!

Agency Trading Desk Myths & Memes Debunked (Part I)

2011-05-31T15:25:00.003-05:00

Fear, uncertainty and doubt has worked well for many incumbents in the technology and online media game over the years. Why should sell-siders be any different when it comes to Agency Trading Desks (ATDs)? Don't worry...they're not.

With buy-siders generally tight-lipped about the subject of ATDs, the resulting vacuum is being filled by constant industry sniping and chatter. Since the advent of the ATD, they have had aspersions notoriously put on them - perpetuating FUD. That the industry trade media and blogs are the only place that a consistently negative view of ATDs can be found should come as no surprise. Yet, the recent spate of chicken-little articles, posts and heated comments represent what is apparently a really threatened sell-side point of view.

While agencies are notoriously silent about their and their client's businesses (as they should be), two anti-ATD blog posts (The Trouble With Agency Trading Desks and Thumb on the Scale) warranted a response from a different point-of-view...the advertiser. The spin and rhetoric have reached epic proportions and so a debunking of popular myths and memes follow below:

Double-dipping. From the best defense is offense school. It is as if the basic math around billable hours and the service-layer around managing Demand Side Platforms have no value. Data-driven media buying is very different from traditional demo-driven index based methods and takes alot of time as clients and agency partners get up to speed. Moreover, the measurement planning, analytics, technical and media accounting and media reconciliation that are required to manage these campaigns are also very different.

The notion of "double-dipping" belies a basic misunderstanding of the process: DSPs are not exactly push-button. It is nothing like an in-house production studio - it is very strategic not simple production. Leveraging the expertise associated with intricate technical aspects of tags and data sources alone is a significant effort. Also as a reminder, digital advertising used to be commissionable or marked-up like traditional media. Meanwhile, where is the outrage at ad networks double-dipping with advertiser data?

Profit-margins. The implication that agencies shouldn't be seeking profitable service offerings is simply outrageous. In the end, it is a service business and comprised of talented specialists that care about client business. With the prevalence of small-scale site retargeting making up alot of the business today, the ad volume and associated fees that ATDs are charging suggest that they may be running somewhat in the red; at least, until the business scales up or broadens to warrant the resource investment.

Advertisers squeezing too hard here run the risk of running the people (not machines) doing the work into the ground - not good either. ATDs are not charitable organizations so it is not clear why they should be expected not to earn fees or why they have to justify it ad nauseaum. That said, it is in ATDs best interest to be very transparent with clients about the fees they are charging.

Agency Technology Investment. Holding company ATDs, for the most part are not building their own buying technologies in-house. The spin-out of Adnetik being an exception and who's success remains to be seen. Instead they are licensing DSP tools/white-labelling and applying their tech-savvy marketing teams to enable a platform for the benefit of clients. While their marketing often use the term platform, they mean technology and the service-layer to support it - not literally hardware and software.

In some cases, agencies may be using their business intelligence tools to support ATD reporting - that makes sense and is nothing new. Agency analytics teams have been using home-grown BI for years. Advertisers really just need to ask their agency questions if they don't understand how all of it works...this recalls a famous Chinese proverb: He who asks a question is a fool for five minutes; he who does not ask a question remains a fool forever.

Data-hoarding ATDs. Really? The sell-sider rhetoric on this point is very misleading. Most ATDs are essentially service-providers, consultants armed with a DSP SLA (service level agreement) and the expertise. While agency BI tools attempt to provide handy storage of performance data (with debatable proficiency). Historical benchmarks and campaign reporting data are not the same as actionable behavioral user-level data, i.e. cookies. No, afraid that data is sitting inside ad networks, ad servers (which, by the way sometimes turns out to be the same cookie used by the ad exchange) or in a Data Management Platform.

Now that said, there is simply no excuse for an ATD or agency to clandestinely re-purpose
so-called 4th party data from ad campaigns for later use. That is a major ethical lapse and sell-siders (publishers) should not tolerate. Ironically though, at the same time, far too many major ad networks are happy to re-purpose advertiser and publisher campaign performance data when it can maximize their revenue.

Mandate. Just what are sell-siders so afraid of? Perhaps their advertiser clients getting the most experienced and savvy teams working on their behalf and more transparancy. That is a huge benefit for client-side marketers that remarkably all too often have few senior digital media natives in-house. As a result, there is a huge-learning curve and time means money in a service business.

The flip-side is that an agency holding company not consolidating their technical and negotiating expertise on one team raises management competency questions. With the level of technology change today, a centralized team is exactly what holding companies should be doing to effectively manage their resources. A better question and especially so for site retargeting is, that ad networks are still being considered. If old-school planner-buyers are concerned then they ought to put in for a transfer to the ATD.

Conflict of Interest. Wow - look at who is talking. Most advertisers would probably prefer the dedicated separate team within their ATD (usually closely directed by their agency-of-record) than what naked and supposedly independent sell-siders and technology vendors have to offer to protect their interests, i.e. nothing. It seems no different than a client directly buying from a media vendor, where that really new "big idea" has actually been shopped to several other advertisers (probably not all that new.) Plus, if an advertiser decides to pass, 100% probability that "idea" will be offered up to an advertiser's competitor. Hey, clients can certainly pay a premium for category exclusivity - that option is always available.

On the other hand, AORs by definition get the concept of category exclusivity. With ATDs, there is semblance of brand stewardship and a compeitive firewall. Moreover, an ATD's media planning agency partners are very unlikely to put any one client account at risk. That's because in game theory terms, branding is a zero-sum game, i.e. it is about brand X winning, which means that brands A, B and C lose. As such, the ad strategies that are successful cannot be shared, nor the ones that didn't. The problem is that sell-siders and technology vendors often have the opposite - industry specialists.

The Machine Knows Better. Of course it makes sense to leverage automatic optimization and novel algorithmic approaches to improve results. However, far too many of the sell-siders and arms vendors out there purport that an ATD just can't keep up. That may or may not be true but consider the source. How many sellers are transparent enough to report on the performance of their supposed-machine learning technologies? Some will do it but only when asked.

In any case, marketers will always have a need to explain and justify their actions. The client-side CFO does not want to hear about magic or blackboxes. They want to understand how to allocate cash to generate ROAS and ROI in a predictable way. People can be held accountable in a way machines cannot. The simple fact is that advertisers need expert brains to adjust to the changing marketplace and resources - managing campaigns on their behalf.

Early-in-session User Performance. One of the more clever rhetorical devices that pops up when sellers realize they are about to get disintermediated. It essentially questions the competition's inventory quality suggesting that either directly or indirectly that only they have access to the special ad inventory. That's right, through first dibs or exclusive relationships, the seller's inventory "performs better" and therefore more valuable than the other. It is possible but depends on the seller's definition of perform - for their bottom line or for their client's? BTW, still waiting for the data or performance reports that back-this up after multiple requests. Ironically, most of these sellers are also getting a portion of their inventory from the same exchange sources as the ATD; the real question is just how much.

Simplistic Wall Street Metaphors. This is an oldie...first of all day-trading media is a very one-dimensional way of viewing media consumption. It is not the same as a financial asset that has intrinsic value (stocks, bonds, options)...however it does make for nefarious and ominous metaphors with the recent financial crisis and all. Digging past the hackneyed writing, RTB by definition doesn't allow positions to be taken in the same way as financial trading. These are real-time transactions, i.e. a spot market where ATDs aren't owning inventory or taking a position. It seems that there is a fundamental misunderstanding of financial atribitraging.

It seems like the amount of technology required to squeeze out any kind of profit through exploiting information inefficiencies across many RTB decisions is more likely going to come from a DSPs that can hedge across multiple advertisers. ATDs just don't have the financial structure, engineering or research staff to pull this off. In practice, this is nothing more than another red herring. Any ATDs that could save client's big money would want that to be known.

Kick-backs. One of the more outrageous charges about kickbakcs was refuted in public and so the matter should be closed. Yet, the meme continues to proliferate. It may also depend on the definition of a kick-back. Is free user training or better support a kick-back? How about box seats to the Cubs game and fancy meals? Without knowing the internal accounting between DSPs, exchanges and ATDs it may never be known for certain. Clients can always ask for audit rights but like all memes this one can be difficult to prove or disprove.

Did I miss any or do you have any others to add? Feel free to submit a comment below!

Digital Media Lesson II – Saying No to Free-riders

2011-05-09T13:00:00.007-05:00

In the last post, Shooting One's Foot, the perfect storm of looming regulation, technology change and growing acceptance of tech-savvy freeloading in the US was considered. We also saw how kowtowing to mindless traffic growth has all too often warped common sense business management.

The focus of this post is on what leading digital media companies can do about it before it's too late. Considering that browser cookies today are used for most measurement and targeting technologies, any drastic changes from the government could mean an effective collapse of today's digital ad ecosystem as we now know it. For digital marketers, the cookiepocalypse would be the end of cookie-based ad targeting and site measurement as we know it today.

Regulatory Threat Looms Large

With 2012 elections rapidly approaching, new regulatory threats are appearing almost daily. It seems that
US Web site users are essentially preparing to make a Coasean entitlement bargain similar to what Professor Steven A. Hetcher described in Norm Proselytizers Create a Privacy Entitlement in Cyberspace. Published by UC-Berkeley in 2001, it is a seminal but prescient study that provides remarkable clarity on digital media's current predicament.

In short, years of social entrepreneurs moralizing data collection have made self-regulation attempts by Chief Privacy Officers (although always good for PR) and industry trade groups (IAB, OPA, NAI, WAA) vulnerable against a paternalist federal administration, power-seeking bureaucrats and high-minded lawmakers in need of a quick win. Industry group strategies break down as follows:

1. Education. Teach consumers about the benefits of more relevant advertising while explaining just how cookie-based ad targeting works; ultimately to empower consumers with tangible options to manage their online data trail.

Comment: Most people just don't care all that much about it.

2. Choice. Require advertisers (interestingly, not site publishers though) insert the cute ad icon via an overlay within their ad units. Clicking on it brings users to a Web page that then allows them to opt-out from any or all of dozens of participating ad networks. Another albeit special, opt-out cookie is being placed in the user's browser; it instructs the associated network/ad server to not target advertising to that particular browser.

Comment: Aside from being a complex technical concept, the critical assumption is that consumers won't later deliberately or inadvertently delete the NAI opt-out cookie itself thus defeating the purpose. Also this does not effect users with multiple computing devices. Also, cluttering advertisers' very limited on-screen real estate while publishers have no skin in the game is very telling.

3. Politicking. Unfortunately but realistically, playing obeisant to politicians and bureaucrats probably has the best chance of action. For many industries, the ROI on lobbying is better than R&D.

Comment: Hiring a squad of well-connected Washington lawyers to wine and dine politicians is not cheap. Worse, lobbying will have the usual perverse and unintended consequences due to the requisite back-room horse-trading/crony capitalism side-effects. Any deals will be near impossible to later undo as the government tends to have a heavy hand that ignores the signals from an ever-changing economy. As Hizzoner Richard J. Daley, was known to say, "to the victors, go the spoils."

Altogether, the above strategies just might not be enough for privacy activists or digital advertisers. It's too little, too late. Arguably, the biggest digital media industry fail is that the digital media industry trade groups have failed to properly frame the privacy battle. They have been mostly reactive and not proactive about this; nor have they put the honus on their digital media membership to change the way they do business in any meaningful way.

Clearly, the prevailing ostrich technique has not worked out for digital media although the usual suspects are doing well. While fear may have boosted trade group membership, it has not helped advertisers at all. Quite the contrary, it seems like Web site publishers are ducking yet again, clearly passing the buck to ad networks and advertisers, e.g. ad icon. Yet, targeted ads are delivered to their users by their ad servers because of the tags on their sites generating them ad revenue. Let's not forget: people visits Web sites not ad networks.

Although the time for digital media to take responsibility is long overdue, most digital media companies still appear to be hoping that somebody else fixes this mess for them. Pinning hopes on premium iPad content and/or labyrinthine pay walls are indirect solutions with limited potential. Unless something drastic changes, digital media are going to continue to be held-up by loud activists, populist politicians, opportunistic trial lawyers and government bureaucrats.

Meanwhile, digital marketers and their agencies expect digital media partners to aggregate and deliver audiences as billed. It is painfully clear to advertisers that they are left to fend for themselves - caveat emptor applies.

Just Say No

Ironically, it is the digital media themselves that are actually in the best position to fix this issue for once and for all. Professor Hetcher explained this as the "filling the privacy norm gap" - a job that apparently nobody wants except the government. To heal this self-inflicted wound, digital media must first learn to just say no to traffic at all costs and the rampant user free-riding that it requires.

Such a strategy requires an analytical approach to audience measurement and ongoing inventory yield management. The fact is that users that block 3rd party ad server/targeting cookies or routinely delete their cookies effectively rob digital media companies. Content and services provided to the consumer by them are done so with the implicit expectation of a particular financial benefit (advertising revenue) to the digital media company.

A Simple Plan
While fair-minded consumers might not like being tracked, most will acknowledge that they personally and directly benefit from the vast free digital media that is subsidized by ad targeting. At the same time, digital media companies know full well that most users didn't read their respective terms of service agreements that legally allow them to track for advertising purposes.

As such, there are some simple steps that digital media can take in a matter of days or weeks to take active control of their businesses and tenuous audience relationships, i.e. fill the Hetcherian privacy norm gap. It is based on the simple premise of re-establishing the intrinsic quid-pro-quo about user data-sharing in exchange for free media. Some though-starters:

Block free-riders. Yes, that's right. This means severely limiting or altogether blocking the ad targeting cookie rejectors, likely cookie-deleters and those using ad-blockers. While this may anger the fringe activists and total traffic may even suffer, the real question digital media need to ask themselves is so what?
Require registration or paid access. Surprisingly, this is still an anomaly today. Instead of hoping people read the TOS, greet users pleasantly and offer them a clear choice, to either:

Share anonymous information about their interests and/or behavior with advertisers and get free unfettered access; provide a plain English explanation of what is tracked and how (use a colorful diagram) with clear acceptance of the Terms of Service. Thank them for their continued support and find ways to make it worth their while
OR, ask for them to pay a nominal subscription instead and receive no/un-targeted ads

Monitor the results and adjust

Overall, this strategy has several major benefits to both digital media companies and consumers, including:

Digital Media Benefits

Yield management. In the emerging audience-driven media buying model, free-riders are worth less revenue than users that are known or at least better defined. While free-riders consume digital media content as artificially “new” users (from the ad server standpoint) either through 3^rd party cookie blockers or regular cookie deletion they are enjoying the same resources. At the same time, their value is much less and possibly negative. In the aggregate, this obscured but often effectively undifferentiated audience represents zero or very low CPM ad inventory. Common sense yield management suggests optimizing away this audience and perhaps creating some scarcity in the process.

Subscription revenue for those that prefer no advertising/targeting and opt-out of ad targeting or advertising altogether. According to the McKinsey study, digital media can potentially generate incremental revenue from subscriptions. Again, removing this inventory has the effect of making total ad impressions more scarce likely raising average CPM yield.
Competitive advantage. With so few digital media doing this now, early-movers may have the potential to make this into a competitive advantage with advertisers.

Consumer Benefits

Sustainable transparency. With the implicit value exchange made more explicit and easier to understand than ever, most users probably wouldn't like all the tracking involved but most probably won't really care enough to pay for the content either. Consumers better understanding that supporting free-riders is financially unsustainable might also gain digital media some much-needed respect. Without the strong arm of the government, a rising tide could lift all ships.

Better privacy. With more buy-in from users, most privacy policies will probably be improved along the way; consumers will take more responsibility for what they are actively agreeing to share with a digital media business. Again, this could become a competitive advantage.
More relevant advertising. That is the ultimate purpose of targeted advertising which, provides consumers with a better site experience. Think how Amazon's recommendations can be trained or how some sites already let the user select ad preferences.

Taking A Stand
The good news is that some of the above are already being done - in places. Pulling it all together will require getting multiple stakeholders aligned and executing: legal, ad sales, engineering, marketing, technology, finance and certainly ad ops. The stakes are high and there is no guarantee of success. However, the days of traffic at all cost are coming to an end. All traffic is not created equal.

Savvy marketers are watching closely and aren’t waiting around while Rome burns. Data-driven media buying trends and improvements in measurement technologies are arming astute digital marketers and media companies with more options than ever.

Yet, until they muster the intestinal fortitude to just say no to free-riders, the vocal and technical activist minority will continue frame the debate and eventually prod the government into regulation and with it the end to digital advertising as we know it today.

Digital Media Lesson in Shooting One’s Foot (Part I)

2011-04-20T11:21:00.004-05:00

Ah tax season...with the greedy hand reaching for more tax money around the country (especially in Illinois), digital media today is arguably one of the few areas of Internet commerce that is unmolested by government regulation. It is amazing that so many consumers have benefited from the abundance of free information and innovative services provided by private industry. Management consulting firm, McKinsey recently estimated that consumers enjoy about $145MM per year worth of free content across the US and Europe alone.

Like most major media today – this free content is subsidized by advertising. Going forward, McKinsey expects this to nearly double in just 4 years due to broadband adoption. An interesting implication of McKinsey’s study for digital media companies in particular, is that it suggests that consumers may be willing to tolerate both advertising and more pay services.

Good news! For digital media companies they have a great opportunity if they can find the right balance for them and their audience – but are they up for it? With the hoopla about privacy, threats of “Do Not Track” regulation and developments in browser cookie blocking, it has become painfully apparent that individual digital media companies may not only have shot themselves in the foot but need to take action.

Well, How Did We Get Here?
It wasn’t always this way, during the 90s Internet boom, times were great for digital media – they were the darlings of Wall Street. Hockey stick ad revenues came with leveraging offline brands. Astronomical valuations thanks to investor’s fervor made it all seem so easy. Attempt to pay wall digital media continued to fail. Why charge for access when the advertising model realized growth from more users and from increased interest from advertisers?

Then, the 2001 crash came and money got tight. Scarce capital and advertising sales forced a more prudent, often direct-response approach to digital advertising. Paid search with its manufactured precision boomed while display media floundered. At the same time, little-noticed improvements in display ad targeting technologies continued to get more powerful...and more complex. Ad networks blossomed to help make markets, bundle sites, audiences and do much of the heavy-lifting of ad targeting.

Meanwhile, the recovering ad business models demanded more traffic: keep hitting the milestones, sales quotas and Internet rankings essentially at all costs. At the same time these promising new targeting technologies were being implemented, digital media legal teams dutifully but quietly continued to revise their Terms of Service agreements to reflect the changing methods. The trouble is that almost nobody read them (except class action lawyer Web bots). More importantly, risking the potential competitive hit in traffic would be a non-starter. The herd mentality that all traffic is sacrosanct created an atmosphere where burying the TOS became the norm.

Fast forward to today and think Terrence Kawakja’s Display Ecosystem, with it’s dynamic players and shifting definitions. It is safe to say that the advances in behavioral, dynamic creative, site retargeting, data-sharing and use of purchased data represent a major part of the industry today. Many of these systems rely entirely, if not in part on their ability to target cookies and identify specific machines. Sure, there are differences between 1^st and 3^rd party cookies but this is a nuance likely to be lost in the heavy-hand of government regulators. Deleting all your cookies is not practical and can be annoyingly inconvenient for users. One promising alternative, machine fingerprinting methodology raises other privacy issues.

Consumers: Something for Nothing?
Not much is free in life – except it seemed online media it seemed. All-you-can-eat digital media business models made it easy for users to consume content with abandon – seemingly with no strings attached. And by effectively putting the honus on the average user to locate, read and understand the TOS, digital media companies routinely obscured the intrinsic trade-off. This was no accident, but turned out to be colossally short-sighted. Reading the fine print was certainly not encouraged.

At the same time, users probably didn’t care because sites encouraged instant gratification offered by delivering consuming professionally produced branded content and innovative online services for free. With bragging rights added at stake, users became active participants in being there first.

Unfortunately, the proliferation of the above strategy by created a wider phenomenon:

It just about completely obscured the implicit (if not explicit) value exchange across many sites; this resulted in digital media individually and in the aggregate devaluing their own content
By not being more transparent about the tracking techniques that are used to subsidize user’s consumption. Despite TOS being there and detailing everything, the perception is that digital media and their corporate advertisers have something nefarious to hide.
Together, both have allowed fringe elements to reframe a private business arrangement

Who's Content Is It Anyway?
Over the last few years, loud online activists with collectivist agendas have hi-jacked the private relationship between consumers and digital media. The small but vocal and technically sophisticated minority rages on about privacy. Some even take it a step further to prevent ad targeting and ad delivery.
Perhaps to equivocate their latent content theft, these activists routinely delude consumers to believe that information wants to be free are that all are entitled to consume from private hands without paying or giving up anything for it. In essence, the act of consuming commercial content is being positioned as about "privacy" when it is really about something for nothing.

Like anything people have gotten for free for a long-time, its value is now perceived to be effectively zero; a variation on game theory’s tragedy of the commons. Not surprisingly, they have gotten very spoiled and a growing number now feel entitled to an inviolate surfing session.

We’re From the Government, We’re Here to Help You
More disturbing, is that these same fringe activist types are also clamoring for the federal government to step in and regulate tracking and data collection in a way that other media and businesses have never been. Big government now even purports to help citizens manage their data trail better than the private sector; their National Strategy for Trusted Identities in Cyberspace program is right out of George Orwell. Some are calling this cookiepocalypse, i.e. the end of cookie-based ad targeting and site measurement.

Even within the industry ranks, there are some paradoxically misguided and/or very frustrated people that have been bullied into submission. They actually think regulation by the federal government is a good idea to end the uncertainty of it all. Think Stanford prison experiment.

Have we not seen this movie before? Junk mail, Do Not Call List, Terrorist database, pedophiles registries, FEMA and the list goes on. Rest assured that with high-minded politicians looking for a populist cause to latch onto the likelihood of unintended consequences for the digital media industry is alarmingly high. Trusting the federal government to be the potential monitor and arbiter online activity should be chilling to any liberty-minded citizen.

And yet user’s expectation of total privacy and entitlement remains in the wake of digital media’s self-mortgaged future. Armed with new Web browsers (thanks to Microsoft and Mozilla) and nascent black lists, recently emboldened users demand to have their cake and can eat it too. Certainly, over time these targeted ad defeating technologies will become easier to use and more widespread

And that limits the efficacy of a digital media industry that as we’ve seen is largely based on cookies today. If digital media has a plan, advertisers would like to know about it...any day now.

Next Post, Digital Media Lesson Part II – Saying No to Freeloaders

Guest Speakers for Integrated Media Planning!

2011-03-20T18:29:00.003-05:00

Loyola University of Chicago' GSB is pleased to announce the following guest speakers this quarter:

3/25 - Rich Behrens, Internet advertising/media executive (Nielsen, RealMedia, Microsoft, most recently Pheedo) and LUC GSB alumnus
4/15 - Mike Sands, Former Leo Burnett, GM, Orbitz marketing exec, currently CEO and co-founder of BrightTag a Chicago-based tech company

Space is limited in the class room and LUC students and faculty are welcome to stop by Maguire Hall 324; the guest talk will start at 6:15 and continue on until about 7:15 or 7:30.

Fear & Loathing in the Ad Technology Stack

2011-03-08T07:32:00.048-06:00

Spring is upon us and many of us are coming from and going to conferences this week. With so many interesting events to chose from it is exciting to see all the innovations and industry continuing to grow; analyst Jack Myers put digital advertising at $47.6 Billion last year (8% share of total marketing spend). This is no doubt evidenced by the plethora of technology companies captured in Terrence Kawaja's ubiquitous Display Advertising Landscape diagram. Yet, the colorful framework belies the complex and fierce co-evolution that is happening behind-the-scenes of the so-called Ad Technology Stack.

Focused on hitting their milestones and/or quotas, investor-fueled and publicly-traded ventures alike will be putting on the hard-sell this trade show season. Panel and exhibit hall attendees certainly know the drill. Prospects will be dazzled, plans hatched and hopes dashed with the latest BSO (bright shiny object) hanging in the balance. On tap across booth chit-chat, panel pontification, martinis and outdoor activities will be information (not to mention outright disinformation). Perpetual conversion machines are the latest rage!

After years of consolidation and financial speed bumps the current industry, while seeing more revenue has definitely shrunk in terms of choices. It should not be a surprise that many battle-scarred survivors have benefitted from this and effective technology lock-in strategies. The result for some technology buyers has been worse service levels and slowed innovation. Nonetheless, gaps in the incumbent's vision or their inability to consistently innovate have spawned mini-me's up and down the stack; some trying to create their own lock-in. Unfortunately, all this has all been accepted as a cost of doing business.

To buyers of stack technologies: caveat emptor.

We Know What You're Up To

Once the technology deal is done - it is going to be too late. Control immediately begins to shift from the technology buyer to the seller. Why does leverage shift? In economic terms, the buyer may have just unwittingly entered into a deal with a micro-monopolist. While this could be arguably true for many industries, for stack buyers this has more severe consequences. The kind that are often obfuscated yet pervasive and only become fully understood in time. It goes way beyond simple buyer's remorse.

Ad Technology Stack business models that rely on technology lock-in do so because their investors and management have found that such switching inflexibility works for them. One need only look around to find many mainfestations across the stack, mainly in two areas:

Performance analytics - ownership, access and control of reporting data
Behavioral data - for both advertisers and publishers

Due to information asyncronicity, technology buyers often don't realize fast enough that they are really signing up to purchase a series of products and services -all when they are at the greatest informational disadvantage. As a result, stack buyers can easily become captives of their own making. A little diligence and research upfront can mitigate the common self-inflicted damage caused by lock-in.

Switching Cost and Lock-in

In game theory, a product or service has a switching cost when the buyer purchases it over multiple periods of time and experiences time, cash or opportunity costs to switch from one seller to another. Switching costs can also occur when a buyer purchases additional complementary products or services making substitutes relatively more expensive; increased complexity is positively correlated with higher switching costs.

Altogether this effectively shifts the supply curve and creates the "lock-in" effect thus raising costs for the buyer. Clearly, switching items in the stack can have unintended negative consequences. More specifically, when a businesses contracts with a stack company there are usually multiple economic components to what is effectively the total cost of ownership (TCO):

Implementation

Cash
Resource time

Learning Curve:

Application usage
Report data warehousing

Framework

Contractual
Network considerations
Opportunity

All of the above combine to create an effective transaction or cost of switching. Although implementation is an obvious one-time cost (sometimes the largest component), other costs are more subtle and may actually increase over time. Practical scenarios might include:

changing the ad server or site analytics technology
managing research or targeting page tags (and data sharing)

Staying Balanced in the Melee

While the lock-in strategy has worked well for technology sellers in the past, many Ad Technology Stack ventures are about to get their legs kicked from under them. Enter tag (data) management companies like BrightTag, Tagman, Ensighten and Tealium.These companies are exclusively, if not mostly focused on managing proliferating page tags which are a major culprit behind stack lock-in. Having one technology locked-in that you've planned for is probably better than fifteen that just happened over time.

In addition to to making the business of digital marketing actually manageable from a logistical tag and data-sharing standpoint, the larger possibilities are tantalizing for stack buyers wrestling with IT/development queues. Simply put, tag management changes the balance of leverage away from the sellers towards their customers. Analytics expert, Eric Peterson called this out in a recent white paper saying:

"...as implementations become more involved and sophisticated the businesses willingness to switch vendors declines, even in situations where the relationship has been badly damaged by miss-set expectations, miscommunication, or outright lies"

Fear and Loathing

Yes, positive change is in the air for the industry. Widespread use of tag management systems make this an inevitability. However, reactions span the contninuum:

Guarantee us business and we'll integrate
These companies are risky start-ups
We have developed our own solution
Interesting, but never heard of it
No problem, we can work with anyone
Great idea, we want to get to market first

No wonder that the reactions from the ad technology stack about universal tag management have been mixed - these tag management companies are upsetting the status quo and threatening lock-in!

Laggards are doing what they do: delaying and holding out. They are not happy about this. Some are attempting to make tying deals to lock-in even more. For this desperate and unimaginative bunch, it will be a slow and steady burn as the balance of power swings back; some may even get crushed. Others will respond by acquiring companies or being acquired. Still others will hit the wall or just become irrelevant.

More proactive technology sellers see this as an opportunity for competitive advantage and customer relationship-building. This breed of stack company is already knows how to adapt to the new reality of constantly being tested. They are fast failers and built to optimize, now using the opportunity to proactively to gain compeititve advantage.

Moving Forward

Technology stack buyers must balance the fear of being left-behind with a more reasoned approach. Sellers must be able to provide value today without depending on technology lock-in to be successful in the long-term; management discipline and technology agility are essential.

On the upside, one promising trend is that for the first time since the implosion of the Web 1.0 industry, business development (not strategic sales execs) executives are popping up across Ad Technology Stack start-ups. Having the organizational competency to vet and manage strategic alliances is a step in the right direction. Kudos.

Interoperability matters. Compatibility across the stack is a must-have and stack players that didn't learn the lessson of Betamax (in hopes of another iPod) may be deluding themsleves. Such a fast-buck approach has the technology seller helping themselves at their customers long-term expense...almost becoming parastic. Investors and entrepreneurs take note: the new stack won't tolerate old stack micro-monopolies: plan on more Schumpeterian creative destruction.

In the end, it is all about risk-sharing: stack buyers that don't perform adequate diligence, risk being marginalized by lock-in. At the same time, stack sellers that cannot constantly adapt to the marketplace will become riskier bets.

Just make sure you're not stuck with them.

[UPDATE: AdExchanger had an intro which didn't quite capture the point. Whether you buy a la carte or bundled technologies doesn't matter. What matters is how those technologies integrate (or don't) with each other and how easily you can test them. Tag management/data sharing technologies (especially pure-plays) can mitigate the inflexibility of tag based lock-in.]

The Moratorium: No, you May Not Place a Tag on the Site...

2011-02-14T05:37:00.002-06:00

Digital marketers, the time has come to heed the call and end the rampant chaos and confusion by putting in place page tag moratoriums. Today.

WHY THE MORATORIUM?

Upon taking a closer look at the confusion and chaos that the industry has come to tolerate clearly illustrates the rationale.

CONFUSION
For too many and for too long, digital marketing brings with it page tagging needs that need to be executed by technical teams in other departments. Moreover, there are often precision measurement implications to retargeting and conversion tags. Although some legacy ad networks are making strategic moves, this confusion has definitely been a money-making opportunity. Adding to the confusion, the ad networks are rapidly right-sizing their staff, diversifying their offerings and/or reinventing themselves as exchanges, DMPs, DSPs, data layers and more.

That said, the real confusion can be split into three distinct aspects of communication within the digital marketing process:

1. Opaque Reporting - With the advent of DSP's, OpenRTB and the IAB's taxonomy, not sharing more performance information is problematic. From an analytics standpoint, not knowing where your high-performing audience segments are coming from and/or where they are in the conversion funnel becomes a opportuniy cost. If you are focused on conversion this makes your campaigns spray and pray.

2. Unclear Benefit - All too often, ad networks are quick and aggressive about getting their tags placed on pages...why? More details and in plain English are needed beyond anecdotal stories and faux studies of performance success. Agencies too have an oppotunity here to better steward their client's brands. Exactly what is the specific benefit of retargeting, optimization or incremental conversion. A simple litmus test is: proceed when and only when the level of benefit exceeds the level of effort.

3. Data Leakage Risk - In many cases, it is not clear who owns the cookies and/or the behavioral data vapor trail that is a byproduct of site traffic/ad campaigns. Without clarity on this important intellectual property it shouldn't be a surprise when you find that the competitors are benefitting from the campaigns that you just ran. With the growing calls for privacy and consumer control this should not be left to chance.

The reality is that digital media is confusing enough rife with opportunities for swirl. Client-side marketers need to continue leaning in, stepping-up and demanding more clarity about those bells and whistles. Those that are not comfortable dealing with the more technical aspects of digital marketing need to get an agency, consultant and/or in-house staff that are experienced and have demonstrated success.

CHAOS
To suggest that the technical aspects of today's page tagging create chaos would be an understatement. Historically, page tags have fallen between the organizational cracks into the cross-functional abyss. Page tags have created serious problems for digital marketers and IT/engineering teams alike. With neither resourced properly to deal with this fast-moving technology that is growing more complex – mayhem and frayed relationships are an all too common result.

The good news is that technology is now available to help deal with the chaos: universal tag management systems like BrightTag, Tealium, Ensighten and TagMan can help. The technology also offers three different kind of benefits:

1. Tag Management - There is no question that proliferating page tags are the Achilles heel of most digital marketer and site IT/engineering teams. Today page tags are often late being implemented due to resource constraints with seemingly simple requests triggering requirements-level justification. As a result, in order to get any tags in place the real need is often scaled back to avoid the upfront time - that means a less than ideal deployment and less meaningful measurement. If the tags actually do get implemented, they are at certainly risk of randomly disappearing mid-campaign further compromising measurement. Last, once they are live, some page tags are escape notice and are never decommissioned upon campaign end. Don't expect ad networks to remind you to remove their tags. Phantom cookie pools are probably rampant.

2. Data Sharing - Beyond rendering tags on pages at the right places and the right times, the better tag management systems are being baked into site CMS (content management systems) to enable the routine passing of data attributes. Instead of hot-rodding simplistic 3rd party ad server container tags, the newer platforms are deeply integrated and have Web-based interfaces that marketing, IT and agencies can access. A huge benefit of this is avoiding the software development-QA queue and the subsequent management hassle of dealing with one-off JavaScript code.

3. Tag Latency - Most page tags are "dumb," meaning that they always fire all the time. So-called “smart” tags now offer conditional tag rendering, which provides marketers with even more precise control. More advanced approaches like BrightTag's take advantage of super-fast asynchronous server-server connections, i.e. while the page is downloading in the user’s browser. If your page tag functionality can't be called through their server-side API connection then latency is unavoidable.

The result of this is compromised measurement and unnecessary latency putting digital ad campaigns at risk. It just doesn't have to be this way with universal tag management technologies that make the entire process easier. For the first-time ever, agency ad ops, analytics, media planning and engineering teams have the chance to collaboratively and proactively manage burgeoning page tags.

PRETZEL LOGIC
A recent article by Joe Marchese of MediaPost, Putting Lipstick On The Banner puts it best. While I vehemently disagree with the assessment of display ad efficacy (there's more to display than clicks), Mr. Marchese does make a good point about the apparent pretzel logic of digital media.

Already challenged to explain the value of their existing campaigns, by adding more complexity digital marketers are usually not really improving their campaigns. With more retargeting, research and tracking tags on the horizon (bright-shiny objects) - savvy digital marketers and even partners can see why getting their house in order with their own version of The Moratorium makes total sense.

The message of The Moratorium to ad networks, data providers and other meta media purveyors is a simple one: don't bother asking for page tags unless you're also bringing solutions to the chaos and confusion that you’re also bringing. Behind it is a more sustainable business relationship built on transparency and success.

Digital marketers will continue to get the results that they deserve, until they demand better from media partners and even digital agencies.

Until then the answer should be: No, you may not place a tag on the site.

Analytics Help Wanted

2011-02-05T17:26:00.002-06:00

Excellent Chicago-area career opportunity in Digital Media Analytics, learn more here:http://lnkd.in/DbQrWT

Round up of Do Not Track News

2011-02-02T07:38:00.002-06:00

Snowed in?

I am...so feed your paranoia or revel in the latest regulatory threats from DC bureaucrats and the Bobby Rush's of the world.

rats

		Ad Groups Granted Extension To Comment On Do-Not-Track (Online Media Daily \| MediaPost)
		Firefox Web Tool to Deter Tracking (Wall Street Journal)
		Mozilla offers do-not-track tool to thwart ads (Deep Tech \| CNET News)
		Google Offers Privacy Plug-In for Chrome (ClickZ)
		Google and Mozilla Announce New Privacy Features (Media Decoder \| NYTimes)
		Firefox and Chrome Add ‘Do Not Track’ Tools To Their Browsers (ReadWriteWeb)
		Mozilla, Google Take Different Paths Toward Privacy Protection (paidContent)
		Mozilla, Google Take Small Steps Toward Browser Privacy (GigaOm)
		Will Do-Not-Track Become Law This Year? (Daily Online Examiner \| MediaPost)
		Privacy Insiders Weigh In on FTC and Commerce Reports (Future of Privacy Forum)
		Rockefeller Eyes Online Privacy, Consumer Protection Issues (Adweek)
		Senate to Hold Hearings on Online Privacy (Adweek) From the nice people at the Online Publishers Association:

Loyola MBA Class - Spring 2011

2011-01-09T12:15:00.004-06:00

In business, professional managers that do not teach (not just train) are either in denial or are missing a huge opportunity. Trite sayings aside, management is an experiential skill where learning by observation can be reinforced with shared experiences, discussion and writing. For this reason, formal business education is kind of a big deal to me.

That's why, I'm pleased to announce that I will be joining the Loyola University of Chicago, Graduate School of Business as a member of their adjunct faculty for the Spring 2011 Quarter. I will be teaching a 500-level course: Integrated Media Planning (MARK 566). The course is offered on Friday evenings for 10 weeks to to matriculating MBA students.

After almost 20 years in the field and some teaching (Columbia College), university guest lectures (Loyola, DePaul and UIC) plus Loyola's Continuum - it is quite an honor. Teaching alongside some of my own professors Mary Ann McGrath, Stanley Stasch, Dawn Harris and the very active in the local digital industry via CIMA Linda Tuncay is going to be a great experience.

Here is the current course description for Integrated Media Planning (MARK 566):

The course provides an overall understanding of media planning: basic media concepts, buying and selling of media, development and evaluating effective media strategies and plans, and the role that media plays in an integrated marketing and communications plan. The course is recommended for students with little or no media planning experience.

I'm currently enhancing the syllabus and if I haven't already approached you, feel free to reach out if you have thoughts on the media/advertising business today, recommend good books/articles or want to be a guest speaker. The textbook used will be Marian Azzaro's Strategic Media Decisions 2nd Edition.

As a nice plus, I'll also have access to the Loyola GSB's vast academic research library to further add to the course and also provide a better understanding of the latest business research across leading business research journals.

Consider this post, I'm extending an open call to colleagues in the Chicago advertising and media business: buy-side and sell-side planners, media buyers and planners and folks on the measurement side. It is an opportunity to help mold the next crop of high-potential business leaders - professionals that you might like to work with one day!

On the flipside, the second run of the Web Analytics course offered through Continuum for the Spring is on hold.

History of Web Analytics...Annotated.

2010-12-29T15:47:00.001-06:00

Most history of Web analytics postings and stories routinely cover Analog by Dr. Steve Turner a rather simplistic log file analyzer. Others mention i/Pro, netGenesis, Interse, NetCount and WebTrends.

What they often miss is Lilypad, a marketing and adertising oriented Web-based analytics application. Lilypad was developed by Streams Online Media Development in 1995 and announced in the Falle of 1995. Unlike most of the other technical log file analytics tools, Lilypad was original in that it focused on promotional measurement. Importantly, Lilypad utilized its own database of activity and was coded in Perl leveraging server-side inludes the predecessor to JavaScript page tags.

Lilypad was programmed by James Allenspach under my direction during dowtime in-between client projects. Dave Skwarzek and I worked to brand and promote the product in way that marketers could appreciate. A seminal offering by a scrappy Web boutique start-up to be sure, Lilypad was influential as an early site metrics tracking application:

Written up in AdAge, Crain's Chicago Business and others
Featured in Rick Stout's book Web Site Stats (1996)
Referenced in numerous patent applications
Led Streams to presentr at an ARF panel in 1995 and academic research poceedings
Caused the author to be deposed as an expert witness for Amazon
Was utilized by several Streams Online Media Development's clients

If you are doing research on the history of site analytics, digital media tracking or online media measurement, you can learn more about Lilypad here.

Response to Who Will Rid Us of this Meddlesome Click?

2010-12-13T07:52:00.002-06:00

Great post by Gian Fulgoni of ComScore and very timely!

After over a decade in the digital advertising industry, I don't find the click emphasis to be a fascination as much as a perpetual crutch. Continuing to nibble at our heels, clickthrough has really just been the path of least resistance. I've heard this from many colleagues:

• Ad sales execs seeking to close business tread uneasily and rarely bring up alternate success measures that require too much thought or set-up

• Agencies attempt to educate clients about such matters but that doesn’t always work (relationship/credibility/pick your battles/technical complexity)

• Client-side marketers are all too often organizationally overwhelmed and only now starting to internalize meaningful digital measurement process

• Technology vendors who often have the most expertise, ironically tend to be perceived as the most unreliable sources with their marketing often ahead of actual capabilities

For some reason, easy-to-measure clickthrough are meticulously collected, analyzed and reported. It is as if through the mass willing suspension of disbelief that somehow the display clicks might conceivably convert or are implicitly valuable. The ongoing independent reports from ComScore suggest otherwise to anyone listening. While this post rightfully educates all of us about the troublesome reliance on clickthrough, it also raises the opportunity to raise awareness about passive incremental response.

Instead of skipping down the funnel past post-view response and straight on to purchase, consider the in-between, i.e. non-clicker viewthrough. Even in Gian’s post, viewthrough is not mentioned explicitly but post-view reponse is only suggested in the context of conversion – this is part of the problem. Yet, in practice we all know that very few clickers will convert (super promo-oriented messaging aside).

This measurement incongruity routinely happens whenever post-view activity is mentioned. In so doing, the more executionally challenged, but likely valuable viewthrough response remains unmeasured and therefore invisible.

It is analogous to calculating auto mileage looking at RPMs (engine speed) and not MPH (land speed).

The reality is that implementing an alternative quantitative measurement like viewthrough pushes many marketers to the edge, requiring patience, precise technical set-up and methodical execution. To Gian’s point clickthroughs are fast, cheap and easy to measure; they’re also potentially misleading for all the reasons ComScore and others have researched. What’s more, viewthrough impact accrues over time, which flies in the face of the commonplace action bias to optimize campaigns on something.

So while probably not that final Canterburian cleric’s foot-on-the-neck of clickthrough, viewthrough might at least be one of the assasinative knights.

An industry appeal to standardize or define viewthrough can be found here http://goo.gl/LA8Iv

Groupon vs. Advertising? Response to Bernhard

2010-12-12T10:19:00.007-06:00

Of course, I disagree with Eric Bernhard's simplistic view of advertising posted on TechCunch.

It echoes the obsession with media decisions that are simply easier to measure (vis-a-vis conversion rates) alluded to in my prior post about defining viewthrough. Rule #1 of analytics: Just because it is easy to measure doesn't mean you should - although there are some cynical arguments about job security.

Effective advertising is dangerous as Jeff Molander put it, but potentially very powerful - it always has been as it continues to evolve. Unfortunately, executing and measuring advertising is *much* more complex than pushing a button and signing up for a Groupon promotion: there are media choices to plan and buy as well as serious creative and messaging decisions.

Compare that to Groupon's appeal: "No one makes it happen faster","savvy young audience",etc...

Sales pitch aside, Eric is onto something deeper in his primal mistrust of brand advertising. The perception that a Groupon is inherently less risky than advertising alternatives is actually a clever meme that is apparently being well-tapped by Groupon's sales force and marketing.

That a business can actually tangibly see people (customers as they are buying) coming in the door (profitable transactions or not) is new, powerful and real. Less easy to measure is the long-term impact of this Pavlovian bell. Naturally, business owners assume some will be sticky to make up for the price-sensitive deal shoppers. Basic accounting should clue the business owner in as to the actual cost of the promotion.

Meanwhile, it is just not that easy to measure the impact of branding on an ephemeral mass of people that didn't come in - to the point about conversion rates.

What is going on here? Game Theory proves over and over again that most people are VERY risk-averse. Ultimately, if we reframed the opportunity instead by offering each of the $20K advertising deals for FREE to business owners - what do you think their response would be?

Many will prefer take the certainty of free advertising over a specific and likely loss.

New for 2011! Standardizing the Definition of View-through

2010-11-29T06:56:00.013-06:00

It has been over 17 years since the advent of the Netscape Web browser in 1993 and almost as many years since the first AT & T banner ads were served on Hotwired.com. Back then, the Internet was heralded as the most accountable medium ever.

Fast-forward to 2010: the digital advertising industry has gone mainstream and will likely generate more than $25 Billion (US only). At the same time, a subject that concerns far too many people is declining or flat click-through rates. Last week's gushing "news" from a rich media vendor that clickthrough rates have supposedly leveled off after years of decline is a good example.

Definition of Insanity
In a business that obsesses about such meaningless metrics, the digital advertising industry simply cannot continue worrying about click-through rates. Although most will recognize that the novelty of clicking banner ads has largely worn off, this measure which still provides almost no insight on the effectiveness of most campaigns just won't go away - regardless of marketing objectives.

In the no man's land somewhere between the ad server and site tracking is an analytics oddity called viewthough: a useful albeit tortured metric. Testament to this is thats not one of the major industry trade groups recognizes viewthrough by including it in their standards glossaries: IAB, OPA, ARF or the WAA.

Despite early work by DoubleClick, plenty of practioner interest and ongoing research by ComScore, the digital advertising industry still somehow lacks an official definition of a viewthrough. At times, it seems like we're all too often measuring what is easy or expedient. And, clearly that is not working for the industry.

Here is a sampling of viewthrough articles over the last 10 years:

Lilypad White Paper Response Assessment in the Web Site Promotional Mix (2/1997) A very early attempt by the author to describe the phenomenon in the context of measuring ad response; see the diagram.Online Awareness Model of Banner Advertising Promotional Models. At that time there was not yet a way to measure such passive behavior.
Conversion Measurement: Definitions and Discussions (9/2003) An early article that focused on "people that ultimately convert but did not click". Technically, viewthroughs are not people and are probably better described as visits. Also, depending on the campaign objective, a conversion event is optional.
Neglecting Non-Click Conversions (11/2003) A pretty thorough piece on the subject, although the term "viewthrough" is not used and there is again an emphasis on conversion.
Lies, Damn Lies and Viewthroughs (8/2005) Again, the focus is exclusively on viewthrough conversion, which is clearly a trend. However, it is misleading as it misses all the non-converter traffic.
The Most Measurable Medium? We Still Have A Lot To Do! (9/2007) David Smith actually made a literal plea for the industry trade groups to define viewthrough. A great idea, unfortunately it fell on deaf ears and several years later not much has changed.
Why view-through is a key component of campaign ROI (9/2010) provides a more balanced look at what viewthrough is but still brings up conversion. Also, th acronym "VTR" is confusing as that is what most people might consider a viewthrough rate similar to how a "CTR" means clickthrough rate.
Different Views of View-Through Tracking (10/2010) More of the same, although this article actually quotes Wikipedia (scary) and further convolutes the matter referencing a Google Display Network definition that focuses on viewthrough conversion. Consistent with the theme, the term VTR is used to mean viewthrough conversion rate not view-through rate - two very different measures. On the upside the potential of viewthrough for media planning and optimization was right on.

Curiously absent from the ongoing discussion is what viewthrough inherently represents: measurable incremental value from an affirmative self-directed post-exposure response. With just syndicated panels and qualitative market research to divine results, traditional electronic media could never quantify this .

At the same time, the advertising industry now has over 10 years of similar "directional" qualitative research focused on the familiar yet ephemeral measurements of post-exposure attitudes and intentions (notoriously unreliable). Many see these brand lift studies as rife with data collection challenges and ultimately of dubious value. Just this year, Professor Paul Lavrakas on behalf of the IAB released a critical assessment of the rampant practice.

Parsing The Metrics
It is bizarre that many digital marketers insist on defining viewthrough rates in conversion terms while clickthrough rates are always measured separate from subsequent conversion rates. Mixing metrics has confused the matter but effectively left viewthrough to be held to the higher standard of conversion. Ironic, since very few clickthrough (in volume and rate terms) even result in conversion.

While "clickthrough rate" is always understood to be relative to impressions (# of clicks / # of impressions), "viewthrough rate" seems to have skipped the middle response step and gone all the way to conversion. That doesn't make sense when there are so many other factors that influence the purchase decision after arriving on a Web site.

To be very specific, viewthrough rate (VTR) should be similarly calculated, i.e. # of (logical) viewthroughs / # of impressions. "Logical" means that the viewthrough is observed where a branded post-exposure visit is most likely to happen analogous to the target landing page of a click-through;usually this means the brand.com home page.

Measurement Details
The real problem underlying the apparent confusion is that viewthrough measurement invokes several raging and simultaneous, inter-related and often technical debates: branding vs. response, optimization, cookie-deletion, cookie-stuffing, panel recruitment bias, correlation vs. causation and last-click attribution. Anyone one of these arguments can cause a fight.

Nonetheless, in defining what viewthrough actually means it would be helpful to overview the two basic ways of measuring view-through:

Cookie-based: This a browser-server technique that relies on cookie synchronization between the ad server and the target brand site. When the user receives the ad, a cookie is set on their browser that is later recognized upon visit to the target site, which is then matched via speical page tags back to the associated campaign. There are several ways this can be done, e.g. DART for Agencies (DFA)/Atlas/Mediaplex page tags, ad server integrations (Omniture) or ad unit ridealong pixel tracking (Coremetrics). Optionally, PSA campaigns can be run alongside a camapign for a simultaneous test-control comparison of viewthrough "true" lift;essentially you can measure a baseline amount of viewthrough traffic that would end-up at the site anyway. Downside: subject to browser cookie limitations.
Panel-based: Alternately, a standing Internet behavioral panel can be utilized, e.g. ComScore and Compete. In this approach, two comparable groups are observed: an exposed test group and an unexposed control group that represents the baseline viewthrough. The difference between the rate by which the test group (exposed to ad campaign) and the control group (received PSA or other's ads) subsequently visit the target site reveals the lift that is explained by the presence of display advertising. This method may also include ad or page tracking, but does not require cookies. Downside: subject to panel bias.

The Impact of Time
Next, an additional layer to viewthrough measurement that is worth mentioning is time, i.e. delayed response. Like traditional advertising media, display ads exhibit an asynchronous response curve where the effect of the advertising decreases over time.In our real-time data collection world, it seems the common sense realities of human behavior are often overlooked.

Many factors can impact the viewthrough response curve, including messaging, frequency, share of voice and creative execution to start. And, one size does not fit all: a considered purchases could reasonably have longer shopping cycles than CPGs. Depending on the method of measuring view-through, typically 30 days or 4 weeks are often used as initial "lookback windows."

Et Cui Bono?
Although that was fairly straightforward, as soon as viewthrough is connected to a site conversion (through deeper page tracking), the thorny issue of attribution arises (and cookie-based measurement is implied). Viewthrough measurement often goes off on a tangent t this point because there are two layers to attribution.

Channel attribution is simply put: which digital channel is assignedtr credit for the conversion event? Measuring display advertising happens to be more complex and most site metrics tools punted on tracking this capability. That means that simpler response channels like paid search, natural search, affiliates, CSEs and email to receive last credit as a default. For many marketers, measuring conversion attribution or participation gets complex and often political very quickly.
Media attribution gets really contentious, especially for lead generation and ecommerce-oriented marketers. Performance ad networks often insist on having their own special page tag in place where the conversion event occurs;in this way they can independently measure conversions and potentially optimize their ad delivery. The problem is that there usually are multiple ad network vendor tags on the conversion event page and all of them will count the page load as a conversion. Worse, this is an easy way for the ad network to shoehorn themselves a retargeting cookie pool. Unchallenged, media vendors may claim credit for everything such that marketers end up overpaying for the same conversion. Alternately, some very Byzantine schemes have arisen to guestimate credit.

Despite all of the above, here is a working definition of a viewthrough for 2011:

Definition of View-through
Viewthrough is a measure of the passive but self-directed impact from a partiucular display ad unit (banner, rich media, video or audio). The viewthrough event follows one or more ad exposures and when the ad unit is clickable can be post-click (initial click visit timed-out) or post-impression (with no click). Importantly, a viewthrough may or may not be associated with a purchase conversion event but must be associated with a target page load or other high-value action. VTR or viewthrough rate is calculated as # of viewthrough / # of impressions.

Viewthroughs decay over time from ad exposure. In-flight viewthrough are observed during the live ad campaign while the post-flight "vapor-trail" begins immediately after the associated ad is served.

Don't like this definition? Come up with a better one or edit the above...and, the sooner the better or the industry might get stuck with this sketchy Wikipedia entry.

RapLeaf and Privacy

2010-10-30T11:56:00.000-05:00

https://www.rapleaf.com/people/manage_preferences

Have you seen your RapLeaf profile? Apparently they scrape social media sites to use for targeting content and ads to you.

WARNING: they are not members of the Network Advertising Initiative and require you to enter an email address to authenticate an account.

Control Your Ad Preferences!

2010-09-04T13:44:00.006-05:00

With all the hub-ub from the New York Times, WSJ, gubment (including former Black Panther and Chicago's very own Bobby Rush) and consumer fanatics you must be growing VERY concerned. For your handy reference below is a list of major consumer settings panels where you can adjust your advertising preferences that is actually much easier than correcting information on your credit report.

Blue Kai - by far the most interesting. Plenty of behavioral ad targeting fodder in here. Also, you can really see the presence of offline credit ratings companies busily creating a whole new revenue stream off you; interesting that because it is just as creepy yet harder to see.
Exelate -not as behavior dominated but many interest categories.
Lotame - fairly innocuous interest and sub-interest categories with observed behavior.
Google - comprehensive interest-based; no observed behavior.
Microsoft - another comprehensive list of interests; no observed behavior
Yahoo - fairly deep interest profile; no observed behavior.
Safecount - totlly different with no behavioral segments but plenty of ad creative and sites you've been to; no interest preferences here.

If anyone has any other suggestions for the above list, please drop me a line!

If you really don't want advertising tailored to you and you can set your NAI opt-out cookie and then get lots of irelavant ads - enjoy!

Also, in case you were looking for a Flash cookie control panel to view and/remove such locally stored objects: http://bit.ly/2fZi

Last, don't be evil and enjoy your new Google Toilet (tm)!

CIMA Analytics Report June-July 2010 FINAL

2010-08-08T18:05:00.005-05:00

Here is the CIMA June-July 2010 Analytics Report FINAL.

Due to SlideShare's exorbitant fees for hosting and thin analytics, I won't be using that service.

Comment on Andy Grove's Bloomberg Opinion

2010-07-03T06:57:00.012-05:00

It's been while since the last post, but Andy Grove recently wrote an interesting Bloomberg opinion piece called, "How to Make an American Job Before It's Too Late: Andy Grove". It was mentioned by WebGuild, which usually offers some interesting angles to the technology business and Silicon Valley life.

MANUFACTURING VALUE. Certainly Andy Grove is a successful businessman with some very valid points about the back-end/residual value of manufacturing jobs to the broader US economy. Andy bemoans the fact that many Asian countries (and Mexico) have gained manufacturing jobs at the American economy's collective expense. Most people would agree that this has had a generally negative effect on the US economy.

GAME THEORY. Outside of winning on philosophy, game theory tells suggests that China, India, Mexico and others beat us at our own game; the USA's shrinking manufacturing economy and trade deficit suggests we lost a lot. It is a tricky situation because China and other countries rigged their economies to absorb more and more manufacturing business. At the same time, the US stuck to it's libertarian free-market roots on the one-hand (pushing for free trade) but continued to tack-on more and more regulation of business (nanny-state).

The bottom-line is that this was a terrible combination that resulted in fewer US manufacturing businesses, shrinking jobs with what was left over being even more costly (outside Silicon Valley, think Detroit auto-industry). Unfortunately, as many states (California, Illinois, Michigan, New York) are now finding, you can't collect tax revenues to fund their bureaucracies off of business and people that left or went bankrupt. Consider that it took just that - bankruptcy for GM to renegotiate with their unions.

Does eschewing those capitalist American ideas by imposing new tariffs on imported goods and new taxes on offshore operations make sense? Probably not.

DON'T THROW THE BABY OUT WITH THE BATHWATER. Rather than penalize smart businesses with higher costs and reward inefficient American companies, maybe a better approach is for the Federal government to provide more log-term incentives to build manufacturing plants in the US. In other words, change the game so that costs in the US could compete and be a much lower cost place to do business. However, that means allowing individual Americans to better control their own wages/compensation not the states, US Congress and certainly not grafty unions.

GET MANUFACTURING-FRIENDLY Many American businesses would prefer to build operations here but simply can't afford to when they are facing global competition. Think about it: there is a reason why the non-union auto industry developed away from the politics of the Michigan economy, e.g. BMW in North Carolina and Honda in Indiana, etc...Unfortunately, the current Obama administration is already going the wrong-way way with "health-care reform." Only by reducing the colossal HR red-tape and onerous labor laws states or counties could compete for business and WIN.

INTERNATIONAL TRADE-RELATIONS. To channel Keynes for a moment, "in the long run we are all dead." The US needs to play hardball with other countries when it comes to international trade negotiations. There is certainly some room for improvement there to Andy's point; no country should be permitted to "get" without "giving"...simple quid pro quo.

START-UPS. Andy also notes the media-driven fascination with start-ups by politicians and others. Few people speak about about their tiny *real* contribution to the economy...sure they can have an impact but the vast majority fail after burning through vast amounts of capital...capital that could have been invested in businesses that are more likely to produce return. Many people and start-ups chase their tails for a long-time wasting money...this is not always apparent to journalists. Meanwhile, big companies MUST make a profit from operations (usually) in order to continue. Yet the mythical start-up and the romanticized ideas of entrepreneurship makes for good stories and dreams.

Finally, I do agree with some of the posted WebGuild responses. It seems a bit hipocritical for Andy to be wagging his finger and arguing for more government influence over the economy today, while he's comfy retiring from massive wealth created by a less-regulated system (US in the 70s and 80s).

Maybe Andy will contribute from his Intel stock to help fund this!

Updated for Analytics Class Resources

2010-05-28T08:50:00.002-05:00

New content has been added for the Loyola - Spring 2010 Web Analytics course resources page.

CIMA May 2010 Panel on Analytics

2010-04-26T18:06:00.004-05:00

Measuring and Monetizing Digital Media ROI

- How has successful marketing ROI been measured?

- What are the standard measurements of ROI and what tools are available to support the standards?

- Should there be different ROI standards for digital media and offline media?

- Branding campaigns and DR campaigns?

- Differences in metrics associated with display and search vs. video, mobile & social.

- Examples of the best emerging tools for measurement.

- Upcoming changes throughout the next 5 years.

Pictured from Left to Right: Moderator Cary Goss , Brett Mowry of Digitas, Perianne Grignon of x+1, Domenico Tassone and Andy Stein, both of Sears Holdings - 5/19/10.

Photo by Dan Merlo

Interactive media and partipulation

2010-04-17T17:15:00.007-05:00

Advertising practitioner, political consultant and author Tony Schwartz coined the term "partipulation" - wherein you could heighten the involvement an individual has with any given commercial if you got them to participate in their own manipulation. The idea was not to tell the viewer something new but harness existing feelings; this would help the viewer to feel they'd reached any conclusions of their own volition; similar to Al Ries & Jack Trout's positioning ideas.

Streams Online Media Development's Amazing Virtual Subway Game* applied this premise to an online game for Subway Restaurants in 1996. Players assumed one of several characters and racked up points eating sandwiches before their soda ran out. The players scores were publicly posted much like arcade video games high scores.

Though Tony Schwartz passed away in 2008, partipulation is alive and well today.

* The Amazing Virtual Subway Game was created by Streams on behalf of Hal Riney Heartland for Subway; Flash programming was done by Stone Interactive.