Goodway Group, a managed services programmatic media firm serving hundreds of advertising agencies and marketers across North America, has released its 2017 programmatic pricing forecast with projections for programmatic pricing over the next year. The report, titled “What’s Programmatic Costing You?: An Insider’s Guide to Understanding the Rising Costs of Programmatic Advertising,” predicts that programmatic display ad pricing will increase by 15 – 20 percent by 2018. The report also predicts several trends poised to take an even greater hold in the marketplace including a continued industry shift to dynamic CPMs, continued rise of header bidding, more robust price discovery practices, and continued adoption of artificial intelligence by ad tech next year.
Goodway Group released its “What’s Programmatic Costing You?: An Insider’s Guide to Understanding the Rising Costs of Programmatic Advertising” this week and in it advises you should adjust your expectations: programmatic pricing is going up and could increase sharply in 2017. The Drum interviewed Jay Friedman, Goodway Group COO, to get his opinions on this increase as well as his perspective on the digital media industry trends and challenges that lie ahead.
Programmatic media firm Goodway Group revealed this prediction among other programmatic pricing projections in its just-released 2017 programmatic pricing forecast, which is based on the analysis of billions of bids and weekly median media prices in the United States from September 2015 through September 2016. The guidebook reveals why programmatic media pricing is increasing and shares the latest up-and-coming digital media industry trends to watch.
Programmatic pricing has become a hot-button conversation in the ad tech industry; yet, few have published real research around what can be expected from media prices in 2017—until now. Today, Goodway Group published its newest research resource, “What’s Programmatic Costing You: An Insider’s Guide to Understanding the Rising Costs of Programmatic Advertising.” Inside, readers will find the latest results from an analysis of billions of bids and weekly median media prices in the United States over a 12-month time period—indicating programmatic display ad pricing will increase 15 – 20 percent by 2018. They’ll also learn about several trends poised to take an even greater hold in the marketplace in 2017, including a continued industry shift to dynamic CPMs, continued rise of header bidding, more robust price discovery practices, and continued adoption of artificial intelligence by ad tech next year. Goodway knows while we can’t make media prices go down, what we can do is help advertisers and agencies to understand why this is happening. Our free guidebook does just that, giving readers the CliffsNotes and easy-to-understand infographics they need to have real conversations about pricing with their programmatic partner. More than just a retrospective on what’s caused price increases, this guidebook also offers keen insights and advice on how marketers can get more value out of their media so their performance and brand safety actually improve beyond the price increases. Understanding programmatic advertising’s hottest debate starts here. Get the guide!
It’s no surprise to retailers that online holiday sales are expected to continue to rise in 2016, with some estimating that ecommerce holiday sales will make up almost 25% of total retail ecommerce sales for 2016. However, savvy retailers know this increase in online traffic will also spell increased foot traffic, especially during the holidays. For brick-and-mortar retailers, online advertising can be an exciting avenue to pursue new customers and to encourage repeat visits. Programmatic advertising from Goodway Group can help connect the dots between a consumer’s cyber footprint and your store’s foot traffic with three easy tactics: 1. Match offline data stored in a CRM system, loyalty program, or email-marketing platform to target customers online. By establishing the right data connections and algorithms, we can match consumer data to cookie IDs across devices to target users with digital ads based on their past purchases, browsing history, and more. Don’t worry; our technology preserves the integrity of all Personally Identifiable Information (PII) by using an algorithmic hash process that protects users’ anonymity. 2. Provide relevant, localized information to drive shoppers in-store and improve the customer experience. Consumers are online more than ever before, but ecommerce still only represents 8.1% of total U.S. retail sales as of June 2016. Retailers can retarget digital users who searched relevant terms previously, allowing the retailer to share product in-store availability to consumers looking for a similar product through seamless native content integrations. Then using beacons, complementary mobile coupons can be served in-app when that shopper is nearby to increase the likelihood that he or she will walk into the store and make the buy, or assist those in the store contemplating what purchase to make. A recent Google study showed 82 percent of shoppers consult their phones in-store about a purchase they’re about to make. 3. Leverage multiple ad tactics and optimize continuously to achieve better results with greater efficiency. Your store may be a one stop shop, but your digital ad programs shouldn’t be. Give special consideration to how you target consumers across all of their devices—desktops, mobile phones, and tablets—and be sure to leverage a variety of targeting tactics, such as behavioral targeting, predictive modeling, contextual targeting, and retargeting. Also, consider day-parting your campaigns to place ads during the optimal times of day that will encourage foot traffic, like lunchtime and rush hour, to deliver quick and efficient results. And don’t forget that the lines between shopping via ecommerce and in-store are blurring. Many people are literally doing both simultaneously by engaging in webrooming (researching items online then purchasing them in-store) and showrooming (browsing items in a store and purchasing them online later) behaviors throughout their shopping process. According to eMarketer, 85% of Internet users plan to webroom during the holiday season in 2016. Top products that users webroom include appliances, electronics, men’s apparel, toys and games, and kitchen items. Engaging them on both their desktop and mobile devices is critical to making your holiday revenue dreams come true! To learn how to keep your business competitive with programmatic media during the holidays and beyond, contact us today.
The Drum ran an article sharing key insights from Goodway Group’s recent programmatic pricing study. Due to a rapidly changing market, publishers’ continued adoption of header bidding, a shift to more dynamic pricing models, and improved price-discovery software as well as other factors, display ad prices are increasing. Here, Jay Friedman, COO of Goodway Group, shares his thoughts and opinions on this hot topic.
Still unsure about programmatic media buying? You’re not alone—over 67% of CMOs do not totally understand programmatic or how to apply it to their marketing campaigns.* Yet, Dun & Bradstreet interviewed 100 marketers and found, “78 percent planned to spend up to half of their advertising budgets on programmatic this year. What’s more, 65 percent said they would spend more on programmatic this year than ever before.” If you’re not yet buying programmatic media, now is the time learn about this buying method and some of the advantages that it can offer. For our final post in the “Back to the Basics” series, we’ll put your fears to ease and focus on the outlook for programmatic in the years to come. The potential for brands investing in programmatic is enormous. In 2016, U.S. programmatic digital display ad spending will reach $22.10 billion, according to eMarketer. That’s a jump of 39.7% over last year and represents 67.0% of total digital display ad spending in the United States. Mobile programmatic display spending is set to increase as well to 59.6%, reaching $15.45 billion in 2016, and digital video isn’t too far behind at $5.51 billion. Programmatic is closing in on larger and larger portions of the overall advertising market. Thanks to efficiencies in programmatic targeting, cost, and delivery, it’s safe to say that the future of programmatic advertising is bright. So what do you do when your marketing needs outgrow traditional media? You redefine. Influencing today’s consumers isn’t about just a single touch. It’s a series of touch points over time—in both traditional and digital media—that add up to something really powerful. Programmatic isn’t going away, so make sure your strategy will continue to build brand loyalty and sentiment in the years to come. Goodway has redefined what it means to be strategic through programmatic media. For us, it’s about embracing new marketing tools early, then helping our clients understand and utilize those tools to get results that won’t break the bank or their backs. Contact us today and start to redefine your expectations of what programmatic can offer. For more “back to basics” training, see these posts about why programmatic is more efficient than traditional ad buys, why programmatic takes advantage of big data more effectively, and why programmatic enables more sophisticated targeting.
Contributed by Jonathan Pinkerton, Media Product Manager at Goodway Group From Apple Watches to peppermint mochas to cozy sweaters on sale for $19.99, my in-box has reminded me that it’s time to break out the balsam fir candle and start planning for the holidays. This time of year, especially, I receive dozens of emails every day from companies promoting their newest product or suggesting how I can be the best gift-giver this December. But I also receive coveted emails with the latest news headlines, old photos from my father that make great #throwbackthursday tweets, and exciting travel deals. My in-box is uniquely Jonathan Pinkerton and your inbox is uniquely you. No two email in-boxes are the same, as they are incredibly personal to the user. Yet despite advances in technology over the past decade, the user experience has pretty much stayed the same across the board. You click, open, read, take a sip from your eggnog latte, file, and move on to the next message. Whether you’re reading on your smartphone while waiting to check out at the store or sitting at your computer taking a quick break from writing your next blog post, email is something people engage with almost daily. That’s why e-newsletters offer such an effective advertising platform to engage with users—we know they have to open the message to get what they are looking for, and, once they do, your ad can grab their attention and their focus. As a marketer, getting in front of a captive audience is half the battle, and e-newsletter ads actually make achieving a high conversion rate easier due to the high level of user focus involved. One in four users who see an ad in an email takes an action, making it one of the highest converting methods of delivery according to eMarketer. Email also has a 122% return on investment, more than four times the ROI for social media, direct mail, search, and display, also according to eMarketer: Not only do e-newsletters offer huge audience potential today, their audience continues to grow each year. In the United States, there are more than 240 million users who have an active email address, and that number is expected to grow nearly 3 percent next year to 247 million: It’s one thing to have the audience’s attention, but you wouldn’t advertise diapers with cute snowflakes to someone reading an e-newsletter from a jewelry store who is contemplating a surprise engagement over the holidays. Honing your message and targeting it to the right readers are equally important. Luckily, we can programmatically buy ads in more than 2,500 newsletter subscriptions broken down into more than 20 different categories to find your ideal customer. So if you’re looking to promote your warm beachfront property hotel in Orbitz’s or Priceline’s deal-saver emails or push your must-have electronic toy in CNET’s weekly-reader blast, we can do just that. For those worried about wasting dollars on emails that go to spam boxes or through cleaning services like Unroll.Me, your ads are only served once the email is opened, making e-newsletter advertising a highly viewable tactic. As you plan out your holiday programmatic spend, e-newsletter advertising is a great way to ensure your campaign doesn’t get Grinched. Contact us to learn more about how you can get started today. From as far back as he can remember, Jonathan has been fascinated by all things technology. After more than five years in corporate communication roles for The Walt Disney Company, he united his passion for technology with his professional aspirations at Goodway Group. Today as Media Product Manager for Goodway, Jonathan leads the charge to activate new solutions to address the evolving challenges in programmatic media. Backed with an unmatched level of technical knowledge about the mechanics and platforms for digital marketing, he translates emerging technology know-how into easy-to-understand resources to keep our team and our partners on the cutting edge of the ever-changing programmatic landscape.
Contributed by Amanda Benoist, Marketing Content Strategist at Goodway Group Have you taken the time to really understand and tap into the path your customers take to find you, research your products, compare you to other options, and to choose (or not choose) you? Today’s consumers will consult more than 12 sources before making a big purchase and nearly 75 percent of customers will read online reviews before buying. Sure, with your direct buy or ad network you get a reliable circulation or audience view, but do you really know who is seeing your ads? How do you know you aren’t paying for the wrong consumer on the right site or the right consumer in the wrong context? That’s the challenge with buying impressions rather than buying a consumer. Let’s take a look at the benefits of more sophisticated targeting in today’s “Back to the Basics” insight: More than a one-size-fits-all solution, programmatic serves up data to give you a real-time pulse on where, when, and who to target. Traditional segment-based buying filters audiences based on five to ten attributes like age, gender, income, etc. In contrast, programmatic buying enables you to evaluate based on millions of data features in real time. Targeting becomes incredibly sophisticated and precise, which means you can see with a high degree of detail exactly who your audience is and scale campaigns up to a very large volume. For example, if you’re selling cars, you can buy an in-market auto shopper audience to target those most likely to make a purchase. If you sell organic baby food, you can buy the intersection of a moms-with-young-children audience and a preference-for-organic-food audience. Being able to target so precisely increases the efficiency of your media buys. Thanks to programmatic buying, advertising messages get to the right person, at the right time, in the right place. If you truly care about helping customers explore, dream, and find what they are looking for, programmatic can get you there. For more “back to basics” training, see these posts about why programmatic is more efficient than traditional ad buys, how programmatic takes advantage of big data more effectively, and why the future of programmatic looks promising. A seasoned marketing pro with years of experience on both agency and client teams, Amanda brings valuable insight and solutions to today’s challenges in strategic communications, digital branding, and social media management. As marketing content strategist for Goodway Group, Amanda transforms complex digital media topics into easy-to-understand resources to keep all advertisers and marketers at the forefront of understanding the evolving programmatic landscape. Her favorite part of the job? She gets to share our compelling story with new audiences each and every day.
The FCC recently ruled that ISPs must get opt-in permission from their customers to collect meaningful data. How will this ruling affect marketers, publishers, and consumers? What unintended consequences will it cause? For now, that remains unclear. However, in this article, Jay Friedman, COO of Goodway Group, discusses how marketers can best prepare for a variety of potential outcomes.