From today’s perspective, there are several noteworthy points about this breakthrough event:

● No other online advertisement existed before, so people didn’t even know to click on it, which is why the banner directly stated the challenge.
● Today, it is clear that you can click through from the ad to the website, but back then it was a novelty and the client had to have a page made for this purpose.
● The click-through rate (CTR) of this ad was a whopping 44% . Today, we are three orders of magnitude lower with conventional banner ads.
● And the subject of the campaign is interesting. The banner was part of the “You Will” campaign, which represented futuristic possibilities at the time. From today’s perspective, it’s mind-boggling what has become a normal part of our lives in those few decades. The commercials are available on YouTube .

Online advertising has developed rapidly and steeply and with it several now well-known companies and solutions have emerged. We will briefly list a few of them :

In 1996, the ad server solution DoubleClik was created (later acquired by Google in 2007). It was not the only ad server, but the most well-known from today’s perspective. In general, ad serving technology made it easy to manage online advertising. Without an ad server, each ad had to be manually inserted into the site by a developer. Ad servers handed this capability to people without direct access to HTML code. They also made it possible to target ads according to certain criteria and offered statistics on metrics achieved.
● In 1996, the IAB was founded.
● The Google search engine was born in 1998 in direct response to the growing number of websites. Until then, there were only site directories such as AltaVista.
● In 2000, Google introduced AdWords, which revolutionised the way paid search advertising was delivered. Incidentally, the pay-per-click (PPC) model was only added to AdWords in 2002.
● Facebook was launched in 2004, Twitter 2006, Istagram 2010…
● In 2010 the OpenRTb Consortium was founded and shortly afterwards the OpenRTB standard was defined. In the following two years, DSP, SSP and other systems for working with online advertising automation were massively developed. Thus, orders no longer needed to be mailed or faxed, but display advertising began to be sold online.
● The Prebid.sj solution for easier work with header bidding was created in 2015 and since then header bidding solutions started to spread massively.
● 2006, according to IAB data, for the first time, mobile advertising investments (spends) were higher than desktop
● In 2007, Apple introduced the iPhone and Google quickly followed with Android OS. These systems changed the rules of the game. As a direct consequence of the massive proliferation of smartphones, the cost of internet connectivity has dropped and today “being online” is as commonplace as having working electricity. After 2007, a massive increase in the number of sales of smart (mobile) devices began, which at the same time exceeded the decline in sales of traditional desktop computers by several times (see chart below).
● Apple has decided to stop using cookies on its systems. Other internet browsers and app providers have followed suit. All operators have phased out cookies except Google, which plans to end cookies in 2024 (but has already postponed the date twice).
● In 20018, the European Union’s GDPR legislation came into force, which will fundamentally change the way we work with personal data, changing the previously common OPT-OUT principle to OPT-IN.

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• Žádná jiná online reklama předtím neexistovala, proto ani lidé nevěděli že se na ní dát klikat a proto je tato výzva na banneru přímo uvedena.
• Dnes je jasné že z reklamy se dá prokliknout na webovou stránku, tehdy to byla novinka a klient si musel nechat pro tyto účely stránku vyrobit.
• Proklik (CTR) této reklamy byl neuvěřitelných 44%. Dnes se u běžné bannerové reklamy pohybujeme o tři řády níže.
• A zajímavý je i předmět kampaně. Banner byl součástí kampaně “You will”, která představovalo v té době futuristické možnosti. Z dnešního pohledu je až zarážející co všechno se za těch několik desítek let stalo běžnou součástí našeho života. Reklamní videospoty jsou dostupné na Youtube.

• V roce 1996 vzniklo ad serverové řešení DoubleClik (později v roce 2007 koupené Googlem). Nejednalo se o jediný ad server, ale z dnešního pohledu nejznámější. Obecně technologie ad servingu umožnila jednoduše spravovat online reklamu. Bez ad serveru bylo nutné každou reklamu do webu vložit ručně vývojářem. Ad servery předaly tuto možnost i lidem bez přímého přístupu do HTML kódu. Zároveň umožnily reklamu cílit podle některých kritérií a nabídly statistiky dosažených metrik.
• V roce 1996 vznilo sdružení IAB.
• Google vyhledávač se zrodil v roce 1998 v přímé reakci na vzrůstající počet www stránek. Do té doby existovaly pouze katalogy stránek jako například AltaVista.
• V roce 2000 Google představil nástroj AdWords, který revolučním způsobem změnil způsob placené reklamy ve vyhledávačích. Mimochodem model platby za kliknutí (PPC) byl do AdWords přidám až v roce 2002.
• Facebook byl spuštěn v roce 2004, Twitter 2006, Instagram 2010…
• V roce 2010 bylo založeno OpenRTb Consorcium krátce na to vydefinován standard OpenRTB. V následujících dvou letech se masívně rozvíjely DSP, SSP a další systémy pro práci s automatizací online reklamy. Tedy objednávky už nebylo potřeba posílat mailem či faxem, ale display reklama se začala prodávat online.
• Řešení Prebid.sj pro jednodušší práci s header biddingem vzniklo v roce 2015 a od té doby se řešení header biddingu začalo masově šířit.
• 2006 podle dat IAB poprvé byly investice (spendy) do mobilní reklamy vyšší než do desktopové
• V roce 2007 představil Apple iPhon a Google rychle následoval s Android OS. Tyhle systémy změnily pravidla hry. V přímém důsledků masivního rozšíření chytrých telefonů se náklady na internetové připojení snížily a dnes je pro nás “být online”, stejně samozřejmé, jako že funguje elektřina. Po roce 2007 začíná masivní nárůst počtu prodejů chytrých (mobilních) zařízení, který zároveň násobně převyšuje útlum prodeje klasických stolních počítačů (viz graf níže).
• Apple se rozhodl přestat ve svých systémech používat cookies. Postupně jej následovaly i další provozovatelé internetových prohlížečů a aplikací. Cookies postupně opustili všichni provozovatelé až na Google, který plánuje skončit s cookies v roce 2024 (ale už 2x datum odložil).
• V roce 20018 začala platit právní úprava Evropské Unie s označením GDPR, které zásadním způsobem změní práci s osobními daty a dosavadní běžný princip OPT-OUT změnila na OPT-IN. V ĆR je plně aplikovaná od roku 2022.

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Facebook and Google continue to in beating traditional Publishers

There is no doubt that digital advertising is the key medium for advertisers today. The following chart perfectly illustrates the ongoing trend of strong growth of digital advertising, particularly at the expense of traditional print advertising. Since the digital advertising emerged at the turn of the millennium, we have witnessed an obvious decline in investment in traditional publishing houses.

The chart shows the evolution of the advertising revenue of traditional publishing houses compared to online giants Google and Facebook. The values are reported in billions of dollars a year since 1950. Traditional publishers were at their peak period in the second half of the 1990s. Google and Facebook easily beat their current income. Source: Charman-Anderson.com

In less than 14 years, Google has been able to get to the revenue of the same amount all publishers of print media altogether have ever achieved. Facebook alone has exceeded the amount of investment in printed media in just seven years of advertising activity.

Significant changes can also be seen from Martin Sorrell, the CEO of British WPP group. Five years ago, his company invested the largest amount of money in advertising in traditional media. Google was at the fourth place in the amount of investment, Facebook was at the twenty-eighth place. However, in 2017 Google was definitely the first choice for WPP, and Facebook has become the second most important advertising channel for the entire group.

But not everything is lost for traditional publishers. Changing approaches will not be easy or cheap, but some possibilities exist.

By the way, do you know who are the largest media owners? According to revenue, the largest media house is the parent company of Google (Alphabet). Facebook is fifth alongside the giants such as Walt Disney, Comcast and 21st Century Fox.

Another interesting chart related to Facebook accounts for the largest share in the annual growth of revenue. As JACKDAW Research Analysis shows, Facebook is also behind Google on this scale.

The annual growth of revenue of media groups in billions of dollars. Facebook has a higher annual growth than Google. Source: Salesforce.com

The rise of video ads and mobile ads

We have already got used to the fact that mobile and video ads grow even faster than everything else in online advertising. It is interesting to compare the growth of digital video and TV – According to the eMarketer in 2018, digital video will grow 5.5 times faster than television. And, of course, Facebook and Google will be the biggest sharks in the ocean again. However, other groups are doing well – for example, Impression Media was completely sold out in December and is looking for new websites.

By the way, mobile phones are the reason standing behind the huge growth of Facebook. The following chart shows that Facebook’s desktop revenue has been stable at around $ 1.22 billion a year during the last few years. However, mobile ads on Facebook yield up to 8 times more.

Google supports adblock in Chrome, publishers have to adapt to it

The increase in the popularity of ad blockers has inspired Google. Google claims that the best regulation is the one we ourselves make plans for and while sticking to this claim, it announced a new adblock feature in Google Chrome at the beginning of 2018. The blocker itself should be active by default and it will filter certain ad formats that users have poor experience with.

Inappropriate formats could include, for example, unsolicited advertising “pop-ups” or a video ad that plays automatically with the sound on.

Due to the clear dominance of Chrome on the browser market, all online publishers have to adapt to this new fact and they will have to come up with less invasive ways of online advertising.

The chart shows the evolution of the shares of individual web browsers on all platforms (desktop, smartphone, tablet) since 2011. Source: Andreas Gal

First-price auctions come to the forefront

Until recently, the term Second-price auctions was one of the basic concepts in the programmatic sale of advertising. However, first-price auctions are spreading very quickly with header bidding. It means that the advertiser pays the amount he/she actually bids regardless of the amount the other bidder is willing to pay.

This brings necessary changes for advertisers in the field of price optimization – especially when it comes to retargeting, it is necessary to start setting reasonable ceiling prices – see Criteo’s thoughts. And it is also a big change for publishers who can make more money the implementation of headerbidding with first-price auctions.

Fight against fraud and for more transparency with ads.txt

The online advertising market is also undergoing major changes in the area of fraud-fighting. For example, Adform recently reported the emergence of a major US-dedicated fraud network called HyphBot, Google is also developing a special series of filters to greatly help legitimate advertisers and content producers.

And the implementation of the ads.txt file has also been considerably expanding.

It is strange how quickly this activity spreads. While no one has ever been asked to implement the ads.txt before the summer holidays of 2017 (in Impression Media), all SSPs started to require it more or less strictly after the holidays.

Between September and December 2017, more than 70,000 players in the online advertising market joined the ads.txt implementation. Even in August, ads.txt was used by something over 3000 companies. For example, you can track the speed of implementation in the so-called 2017 Ads.txt Trends Report. The following chart comes from this report:

The implementation of the ads.txt file in the fourth quarter of 2017. The chart shows the number of involved subjects in particular weeks. Source: Pixalate.com

GDPR and ePrivacy

The real start of GDPR implementation is coming, the regulation will be effective as of May 25, 2018. Everybody knows about it, everybody focuses on how to deal with it

But if you are from the advertising industry and you feel that GDPR is getting on top of you, then get to know that it is much more focused on banks, insurance companies, hospitals and other institutions that handle personal data to a much greater extent than people in advertising.

From the point of view of advertising, however, ePrivacy and the form in which it will eventually be accepted is probably more crucial for us.

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A quote from the article:

NewsCorp., Twenty-First Century Fox, Sky and Foxtel all tied as the second-largest destinations for client spend.

By comparison, WPP spent between $750 million and $2 billion with traditional media owners this year, said CEO Martin Sorrell on the company’s earnings call. Just five years ago, Google was the fourth-largest destination for WPP’s media investment, and Facebook was 28th.

These are alarming numbers for the owners of “classic” media. But why is that so? Because advertising on Facebook and Google is “effective”. Both of them sell targeted advertising (= programmatic) and do not charge extra money for targeting (the price is included in the payment for space/placement). And targeted advertising brings better results for clients.

When comparing our own campaigns, investing into Facebook and Google has also been growing significantly faster than into traditional media.

Publishers do not only have to adapt to it, they have to be better to succeed, and some part of the lost has returned to them.

However, it is easy to say and difficult to do. But I will give some examples how to make it work:

1) Effect for the client foremost

Publishers, lets be honest, please. For how many of your clients are you sure you understand their goals and needs? Some customers want specific placements, others high CTR, other high visibility, other purchases on their eshop, … and what do you sell them?

Do not sell what is the easiest thing for you, sell what the clients want and reassure yourself that they are getting what they want.

2) Measure, analyze, optimize

The time when the campaign was set up at the beginning and the report was sent to the client at the end is gone. Set up your systems and processes so that the campaign is constantly compared with and optimized for the client’s desired goals.

3) Be transparent and apply a partnership approach

Our personal experience with Google campaigns says: “The results are usually very good, but God, I’m never sure that our client’s ad will not appear on a terrorist supporting site or fake news site.” This is very dangerous, and every brand does not want to be associated with certain content. And no account manager wants to explain his/her client why the campaign managed by the account was just realized on such sites.

Media publishers have a huge advantage of knowing exactly what content will never appear in their media and they can guarantee this advantage to their clients.

4) Do not sell your data and impressions, sell the effect

The common business model of publishers looks like this: Clients, we sell your impressions for X, targeting the region for Y, targeting sociodemo data for Z, … it’s like a puzzle.

Facebook and Google are successful just because they do not charge for data (targeting) and impressions separately. They offer everything in their bundle and actively invite clients to target as much as possible. Because a targeted campaign is more effective than the one which is not targeted. In the end, the targeted CPT campaign costs more, but it is not listed anywhere in the campaign, and the higher price is automatically calculated and the client is happy with it because he/she see a better result with such price.

Traditional media publishers have to change their attitude quickly or they are going to come to their end.

Image source: http://www.businessinsider.com/facebook-tests-mid-roll-video-ads-2017-1

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Book: The Retargeting Playbook

This is a perfect book to get the basic information about whole subject of retargeting. It was written by AdRoll employees – this company is specialized in remarketing. However, it was published in 2014 and some parts are getting outdated.
https://www.amazon.com/Retargeting-Playbook-Web-Window-Shoppers-Customers/dp/1118832647/ref=sr_1_sc_1

Book: A step-by-step guide to Facebook Dynamic Product Ads

My book about Facebook dynamic retargeting. It is rather a manual than a book and it is includes best practice tips and tricks.
https://www.amazon.com/Facebook-Dynamic-Product-Ads-guide/dp/1976134188/ref=sr_1_1

Infographic: The Seven Types of Effective Retargeting

Nice graphic elaborate of seven retargeting strategy – quick and easy.
https://neilpatel-qvjnwj7eutn3.netdna-ssl.com/wp-content/uploads/2015/11/image297.png

Infographic: Incredible Retargeting Ads stat

A very nice infographic about retargeting. Unfortunately, it is very old – from 2013.
https://corp.wishpond.com/wp-content/uploads/2013/01/7-incredible-retargeting-stats.png

Presentation: Retargeting 101: Everything You Need to Know About Retargeting

A presentation which is rich in information – a lot of texts, few pictures.
https://www.slideshare.net/Retargeter/retargeting-101-everything-you-need-to-know-about-retargeting

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Presentation: Q2 2017 Benchmark Report: Marketers Deepen Facebook Ad Investments as Mobile and Dynamic Ad Retargeting Soar

This presentation includes trends not only in remarketing regarding Facebook advertising.
https://www.slideshare.net/nanigans/q2-2017-benchmark-report-marketers-deepen-facebook-ad-investments-as-mobile-and-dynamic-ad-retargeting-soar-79538140

Presentation:  Intro to AdRoll Retargeting

It is not only an intro but a complete retargeting strategy. Unfortunately, it is from 2014 – so some parts are old. It is interesting but provides only superficial information.
https://www.slideshare.net/AdRoll/intro-to-ad-roll-retargeting

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Audience targeting isn’t a new idea, but as tools improve and the data we have access to gets increasingly more detailed, programmatic advertising solutions are getting smarter and better at reaching the exact group of viewers that a marketer wants to address.

Not only does the message go where it should, the return on marketing investment skyrockets and waste is reduced. There are a lot of benefits to like about programmatic advertising.

This is probably why it’s such a rapidly growing advertising trend, with programmatic ad spend expanding at a rate of about 20 percent annually. We’ve taken a deep look at programmatic advertising in this enlightening infographic to help you better understand where this marketing technique is going and what the future of programmatic advertising will look like.

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