Archive for category Display Technology

Google + Teracent – display & search convergence continues

Very exciting news today with Google buying Teracent.  Dynamic creative is a key component in making display act more like search. Way back in my first post on this blog, I talked about how the ability to optimize the creative was critical in the convergence of search and display.  This acquisition shows that someone at Google thinks I’m right (still looking for them to credit me with that idea)Teracent

This acquisition will also drive some other changes in the market:

  • Accelerated Dynamic Creative adoption – while they may be upset they weren’t bought by Google, the other dynamic creative providers should be very happy.  First, while Google is huge, it doesn’t own display, not even close (not yet, anyway). So the rest of the display world is there for the taking.  Second, Google/Teracent will push marketers to think this way – which will accrue to Tumri and Dapper.  Finally, many more marketers of all sizes will now be exposed to dynamic creative – which will generate experience, case-studies, etc.  The only negative is that Google has this annoying habit of giving things away for free – which can sometimes be hard to compete with.   But Omniture seemed to handle it just fine.
  • Publisher Acceptance of Dynamic Creative – currently, due to file size restrictions, most dynamic creative is either flat out rejected or simply can’t scale on the exchanges.  This is either done because systems for approving creative haven’t recognized this new type or because the sellers want to keep the use of advanced technologies for their direct sales force (answer is likely a little of both).  Assuming Google makes Teracent the default dynamic creative provider in the Doubleclick Ad Exchange, then this will definitely force some changes in the market.  Yahoo, particularly, will need to respond (I wonder if Tumri has been invited to visit Sunnyvale tomorrow?).  At a minimum, it should become easier to get dynamic creative approved and scaled on the exchanges.   (Side note – rejecting creative simply due to file size without regard to the technology involved has to be the most poorly thought out tactic of publishers today.  Here’s a perfect example of where a display ad can pay more, and it’s being rejected. But that’s for another day)
  • Search to Display transition – In my post on the launch of the Doubleclick AdX2.0 and how Search and Display marketers would finally go head to head, I brought out how hard it would be for experienced search marketers to get up the learning curve in display. One reason is the creative – from creation to trafficking.  Teracent solves a lot, if not all, of these problems.  Ironically, the thinking behind how Teracent handles display ads is probably easier for an experienced search marketer to understand than your average display marketer.  Teracent breaks down creatives into components – it’s no longer an art, it’s a science.  That’s exactly how search marketers think.  Qualitative judgement goes out the window.   I may need to reevaluate my decision in the Search vs. Display battle (or it’s at least a lot closer).
  • More Acquisitions – I know 50+ companies that have some foot in the display “exchange” space.  This excludes all networks and publishers, simply companies adding technology and smarts to the management of display marketing on the exchanges.  Teracent is the first of those companies to be acquired (second if you count Acerno by Akamai last year).  Google gave notice in the recent earnings call that they would be interested in companies that “have figured out better ways of sorting and working on display ads.”  So it probably has more of these on the horizon and acquisitions are always copied so expect others to follow.   The only damper here is that, of the usual acquisition suspects, Yahoo and AOL are focused on other stuff.  So expect a Microsoft announcement in the next few months with Adobe being a dark horse acquirer in the space.
  • Everyone’s a DSP – We at MediaMath invented the DSP model back in 2007, but nowadays everyone is a DSP, or is claiming to be one.  While Teracent is known for its dynamic creative product, buried within its technology is the ability to buy media dynamically.  They just focus more on the creative while others focus on media and/or data.  So Google just bought a DSP, and I guarantee they know it.

In summary, this is exciting. The behemoth of search has (again) deemed display important, has said dynamic creative is critical, and has bought one of the leaders in the space.  Pretty cool stuff.  Convergence continues.

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Great Video on Display and Search Convergence by Dapper

This video is a bit dated (Feb 09), so I’m behind the times, but I had to post this video from the Dapper Blog.  This is EXACTLY what I am talking about when I say display search convergence.  Nice job Dapper!  I struggle to explain to outsiders just what we do in online advertising – anyone could understand this video.

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Across the Marketing Funnel – Display Advertising can do more than Build Awareness and Drive Search

Many of the studies related to the interaction between display and search focus on the impact that display has in driving a search. The story goes that people see a display ad and at some point down the road they decide to search for the product based on seeing that display ad. This is a very linear way of thinking about how people respond to advertising and, while valid and informative, does not capture the full picture.

This linear model confines display to the awareness section of the marketing funnel. Yet innovative solutions are allowing display to impact consumers throughout the funnel. Let’s break apart how display is addressing consumers throughout the funnel, because there is some really exciting stuff going on.

Consideration

Remarketing is one of the most powerful tools in a display marketer’s arsenal. At its most basic level, being able to message consumers after they have been to your website is incredibly valuable. The hundreds of catalogs my wife receives every month are the offline version of remarketing. Bloomingdale’s is assuming that because she bought something in the past, she is more likely to do it again. Thus she’s worth the added expense of printing and mailing a catalog to her even though, especially if I beat her home, the catalog often ends up in the recycle bin unopened.

But remarketing is getting even more precise and nuanced. Search marketers are segmenting users by the specific keywords they clicked on and messaging them with messages that directly address that keyword.  Choicestream is enabling ecommerce retailers to message consumers based on the product or product category that they looked at. Online marketers are tailoring remarketing messages based on customer characteristics (eg, customer vs. prospect), where they dropped out of the purchase process and other segmentation parameters.

Remarketing is just one use of cookie data. The decoupling of data and media is enabling advertisers to use data to address consumers who are in the consideration process but may not have been to the marketers site.  Exelate and BlueKai enable marketers to address consumers who are currently in the consideration phase for specific product categories.

Data is just one piece of the puzzle. New technologies are allowing consumers to experience the consideration process within the display ad itself.  Linkstorm is a great example of this.  Linkstorm’s technology “enhances any banner ad with navigational menu overlays that display on mouse roll over” which “allows users to instantly access a multitude of advertiser information from one ad unit.”  Among many other uses, Linkstorm allows consumers to explore an e-tailer’s entire product catalog from within the ad itself, enabling at least part of the consideration process can actually be done within the ad itself.

But every consumer deals with the consideration process differently.  Some are like me and like to browse the store alone and figure it out for themselves.  Linkstorm is ideal for that type – let the consumer find what they want.  But some people like the personal service of a sales rep.  Display addresses the consideration process for these people through chat enabled directly within the ad unit. Eyeblaster’s TalkBack and TrafficMarketplace’s Livemarkets (and probably many others) allow the consumer to chat with the advertiser within the ad itself.

Purchase

Search has taken over the “Purchase” segment of the marketing funnel, and rightly so. When consumers are ready to buy online, they invariably go to Google and search.  But display is developing some pretty nifty closing capabilities as well.

Spongecell has developed very flexible technology that enables many capabilities right in the ad itself.  Specifically relevant to purchase, it allows consumers to browse offers , print coupons and even register or sign up for something – all within the display ad itself.

Consumers buy things offline as well and display ads can help enable that. Eyeblaster and Spongecell, among others, allow maps to be embedded within the ad so the consumer can quickly find out where to get the product. I recently saw a demo of Spongecell’s mapping technology and one feature just blew me away. A campaign for GM dealerships actually allowed me to locate dealers within the ad and also sensed where my PC was located and centered the map on my location. Surely, Spongecell cannot be blamed for GM’s troubles.

If you’re buying offline but don’t have a pen or paper on you to write down where to go, many advertisers allow you to input your cell phone # so they can text you the offer, location or other information.

Finally, the ultimate in closing the marketing funnel, and something search cannot do, enable purchasing within the ad itself.  Tailgate has developed technology that does just this – enable the consumer to make a credit card purchase directly within the ad unit itself. Pretty amazing stuff

That basically closes the basic marketing funnel – Awareness > Consideration > Purchase. But there’s one more step that marketers love – the holy grail, so to speak.  Customer referral or Tell-a-friend.  Display can also help here.

Spongecell, there they are again, allows the consumer to share an ad with friends. Ads in Spongecell’s gallery demonstrate the ability to share an ad on Myspace, Facebook, twitter, email, or even to send an invite via gmail or outlook.

I think it’s now pretty obvious display can do a lot more than just build awareness and drive users to search. By using the technologies and capabilities I’ve described above, online display can be a cross-funnel workhorse that can help any smart marketer meet their advertisers’ goals.

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