ExchangeWire Industry Review: Reframing The Future
What happens when the biggest platforms in the marketing industry implement the strictest privacy controls ever seen? Chaos and carnage? End of days? No, it’s none of these. Instead of tilting furiously at the windmill, think about this transition to a privacy-first environment as an opportunity to recalibrate, and to prioritise the consumer, rather than the apocalyptic end of advertising and marketing as we know it. Silverbullet joined forces with ExchangeWire and other industry experts to share what’s in store for the future of (M)adtech, as we look to reframe the industry.
The Industry Review outlines some of the hottest areas across the service layer, (m)adtech middleware, and the commerce and media ecosystem — with industry leaders giving their expert opinion on the tech and market opportunities that will define this decade. There is a prevailing narrative that we are in the mire — and GAFA have won. I disagree on so many levels with that thesis. Our best days are ahead of us. Once we move beyond these existing legacy models, I believe we will finally realise the potential of the innovation that runs deep in this industry.
What Google’s Announcement Actually Means.
So let’s review some critical details of what has – and still is – happening in the industry:
- The only change that was announced was the timing, which means that Google is still deprecating cookies. As Google’s Director of Privacy states, the pause in deprecating cookies until 2023 is a result of pressure from the industry, expressing the need for more “time to evaluate the new technologies, gather feedback and iterate to ensure they meet our goals for both privacy and performance.”
- Consumer sentiment has not changed so the underlying force is still in play.
- Regulations including GDPR, CCPA and a handful of other guidelines are already enacted to protect the rights of the consumers. Additionally, there are hundreds of regulations being evaluated to change the way the industry treats consumer data.
- While Google is slowing their rollout, several major players are not. Apple and Firefox maintain large browser market shares and have both dropped 3P cookie tracking. The percentages in the US alone, speak for themselves.
Browser Market Share | Desktop | Mobile | Tablet |
Chrome | 50% | 39% | 32% |
Safari and Firefox | 40% | 55% | 45% |
How does this impact advertisers and their agencies?
- Consumer expectations remain the same. They want the rights to browse the web in a privacy friendly environment and advertisers need to keep focus on retaining their customers and ensuring a privacy friendly environment.
- Data legislations are here to stay. Why? When Google first announced deprecating 3P cookies, it was due to the severe consumer backlash that they were facing, and this is still a problem that exists today. Let’s not forget the infamous case where Google had to pay a €50 million penalty for collecting personal data without providing any transparency. With GDPR landing in 2018, the likes of CCPA and other legislations follow suit, as they strive to protect consumers. Advertisers should not push these regulations to the curb, because consumer and data privacy will continue to be major themes in years to come, “beyond California’s CCPA, see Brazil’s LGPD, plus developments in Canada, Australia, India and a clutch of American states,” according to Danny Bluestone, CEO of Cyber-Duck.
- Lastly, while Google’s domination attracted headlines, Apple does not fall behind, who in recent news has dropped 2P Cookie support along with Firefox. The results from Apple’s release of the ATT framework in IOS 14.5 indicates that less than 4% of users are opting in to tracking across web advertising (desktop, mobile web and tablet). According to Stetic, the combined percent of the largest browsers still make up over 50% of the marketer share. Advertisers must consider that Apple’s market share alone contains a coveted audience target and their lack of support for cookies is a critical point that can be overlooked.
Our take:
Google’s announcement is exactly the wakeup call the industry needs to highlight several key factors, and is pivotal as we transform to a consumer friendly internet.
- Consumer expectations for privacy are high and replacing the 3P cookie with another identifier does not comply with the spirit of GDPR, CCPA and other regulations in place or under consideration around the globe.
- Marketers are at risk of missing half of all consumers as a result of the fragmented state of browsers
To best meet current and future privacy regulations and increase digital performance, agencies should immediately move forward with innovative solutions.
- Advertisers should leverage the unique window provided by the Google delay to use comparative datasets between 3P cookies and ‘new era cookieless solutions’ to identify a targeting approach that performs best for their brand.
- Identify partners and rapidly implement a transition strategy to create look-alike models and other key learnings that can be used as a baseline for the future.
- Immediately extend targeting strategies to engage with the 50% of consumers using browsers that do not support 3P cookies.
While this announcement may have caught the industry off guard, it does spotlight that major changes are coming and it is important for advertisers to immediately prepare for the future. Thinking strategically about marketer needs, testing partners, and building on the learnings from these tests will be essential when shaping a performance driven, consumer friendly internet for all.
Resources
- https://www.thetradedesk.com/us/articles/google-chrome-pushes-back-plans-to-phase-out-third-party-cookies-heres-what-it-means-for-advertisers?&utm_source=linkedin&utm_medium=organic_social&utm_campaign=blog_post%E2%80%8B
- https://blog.google/products/chrome/updated-timeline-privacy-sandbox-milestones/
- https://www.stetic.com/market-share/browser/
- https://www.theverge.com/2020/1/14/21064698/google-third-party-cookies-chrome-two-years-privacy-safari-firefox.
- https://www.smashingmagazine.com/2021/02/state-gdpr-2021-key-updates/
The Bullet Podcast, Episode One – Justin Pearse
Who can create media has changed dramatically as well. We are a partner of Bluestripe, we are a group that owns a PR agency and a content agency. We’ve got a media arm which owns titles such as New Digital Age (NDA) and Ecommerce Age (soon to launch). An agency couldn’t launch a respected media title 20 years ago, it was unheard of. Whereas nowadays, we can publish a title as long as you produce content with the same value to the audience, as you do within a publisher. It matters far less who’s actually producing media. The rules have shifted hugely and trade media itself has shifted.
In the UK, for example, we’ve got titles such as The Drum, which has become a global powerhouse. Trade media is evolving, and it will never stop evolving. The rules have changed, the one thing that’s paramount is as long as you still have respect for your audience and produce valuable content.
Q: Your most recent venture sees you as Editor at New Digital Age, and partner at Bluestripe which acts as both a PR and content agency. Bringing these three worlds together feels like an innovative approach in supporting your clients by cutting through the noise. How did this business model come about and why?
A: In Bluestripe Group, there are three founders, which is myself, Andy Oakes and Lydia Oakes. Lydia spent 20 years working in PR. I spent almost 20 years working in standard journalism. Andy spent the same amount of time in publishing; he was MD and publisher for titles like Drum and New Media Age. When we all came together, we realised two things: firstly, the world does not have enough media. Secondly, people need media, they want an edited view of the world.
We wanted to create a company that could do great PR for clients, to make sure they were represented as the best across the media landscape from video to articles to events, through to our content lab and also within our own media.
We decided to build a three-part company, all interlinked and all standing on their own two feet. The media arm in which NDA sits is an independent media operation. Our PR clients essentially have to pitch to be in NDA as much they would have to pitch to be in Campaign or Drum. We’re totally transparent, we write about our clients, as much we’ll write about their competitors. We write about a whole spade of companies, but our clients get priority access to our top jobs.
I used to sit a few years ago on the board of the IAB when it was coming up with the rules for branded content, essentially what publishers should be doing to educate readers about what was paid for, and what wasn’t. It’s very important to me to offer clarity in terms of never pulling the wool over your readers’ eyes.
We’ve been totally transparent, the fact is every publisher has to make money. Every publisher has a commercial content operation now. At Bluestripe, we say we will write about our clients. We’re lucky we have the best clients in the industry; if I was the editor of magazines, I’d write about Liveramp, Xandr and all our clients. But because the NDA media arm is independent, we can write about their competitors, and we can write about their partners. It is about providing a totally interlinked model, with the three parts working seamlessly together.
Q: The global pandemic forced us to adapt at the speed of light in terms of B2B marketing; events were cancelled across the globe, with many creating new and exciting virtual experiences whilst others postponed.
What were some of the biggest challenges you saw – not just from your clients and how they adapted to change, but the trade media itself?
A: The biggest change has probably been events. In normal time, I spend what seems like most of my life at an event somewhere, whether that be in Cannes, Mexico, or the multiple events in London itself. Events are a core part of our industry, not only for the education it provides and inspiration from the main speakers. Our industry thrives on networking, one of the fascinating things from last year is how we’ve still managed to do that without being together.
With the lack of events, everyone moved pretty quickly to virtual events. We produce a huge number of events, both for our media arm NDA and for our clients. In the first lockdown in June last year, we put on a week-long virtual Festival, which was one of the first virtual events for us. We hosted that in our SoHo office, it was weird because London was shut down and dark. Over the last year, we’ve seen some incredible virtual events, people like Mediatel, pivoted quickly with their virtual events.
We’re a partner of a company called Madfest, and they’re coming back into the real world in July. Even though we’ve all missed real-world events, we have proved how to make virtual events work. Virtual will always be a part of events going forward. Two years ago, a virtual event meant some dodgy webinar which often broke down a bit or a screen in the corner of a conference. No one knew how to make it really work, and now, the platforms are stable. There’s real innovation going on with platforms such as Socio, which lets you do proper networking virtually. This has been a really refreshing outcome from this pandemic.
Q: Diversity and inclusion have long been high on the agenda for our industry and have a long way to go. How are you in your team helping clients support diversity efforts and do it well?
A: Diversity has always been important to Andy, Lydia and I who run the company. For the last 20 years, we’ve always tried to make sure anything we’ve done has been diverse, from panels and content we produce to the clients who work for us. Over the last year, we launched Practice Makes Unperfect in association with Amy Kean. Its aim is to help women and men find their voice. It’s a mix of a training course, which Amy runs. Everyone on the course gets a podcast interview conducted by myself and an article about them published on NDA. We’ve run five cohorts now.
What’s been refreshing to me is when you interview someone it is generally the boss that’s been put forward by the press office. However, through PMU, I’ve spoken to different people from web designers up, and these women so far have been incredible. But they felt the need to go on a course like PMU.
There’s one woman who blew me away; for 20 years, she held senior global roles in America, the UK and Europe. Yet, she still felt that she needed to go on our course to help her find her voice. At the same time, if I look at all the inbound pitches I get for NDA, from PR agencies for opinion pieces, I would say 90% are from men. I know all these people sending in these pitches to me believe in the need for diversity and understand the need for a range of voices.
The problem is endemic. At our PR agency, we always work really hard to make sure when we’re putting up our clients for speaking ops or for interview ops, we offer up a diverse range of voices. Hand on heart, it is not easy, you have to work hard at it. Diversity is an endemic problem and it starts from the bottom. We hope things like PMU are helping, there’s been such a huge success over the last six months, and we were doing far more of these, but it’s everyone’s responsibility.
Q: Celebrating talent in our businesses is something we should all be doing. But it can often get sidetracked due to overwhelming workloads and limited resources and time. Do you have any tips and tricks for businesses when it comes to giving their organisation a voice?
A: Going back to having a diverse range of public faces, in most companies the CEO has been media trained within an inch of their life. Money is put into making sure that they can get up on stage and not appear in the press.
But any company has a huge range of credible talent, it’s the responsibility of the companies’ press departments to ensure there’s a huge variety of voices that are prepped to appear in public. We all know if you appear in the press or if you speak on conference stages, it’s going to help your career.
Any company wants to help their people, their staff, their talent, it also makes their own company better and act better. It’s incumbent on everyone to make sure everyone throughout the company is given the opportunity to have a public voice.
Yes, it’s not easy and yes, there’s no way you’ve got to put up someone to be interviewed with no preparation. We know what can happen, mistakes can be made in the press, but it’s just incumbent on organisations having agencies that support them to make sure they’re not just focusing on the top talent, often male, often white, often older board members.
Q: AdTech is going through a seismic shift, and many businesses are having to discard old ways of working and build a new business model for the future. Much of this change is about surrounding yourself with expert partners in order to get to grips with global regulations and the demise of the third-party cookie. How important do you think this change in mindset is for businesses in our sector?
A: Partnership and collaboration have always been a critical part of our industry. Back before the dot com boom, when I first started off in journalism, partnership and collaboration are what drove this industry. Some of the best results we see are from the collaboration with different partners.
Our clients on the PR side, people like Xandr, one of the world’s biggest ad tech companies. Its strength is not only within its own walls, it strengthens within the partnerships it builds an ecosystem it creates. It is the same for our clients like Liveramp, it’s creating this healthy, effective, efficient ecosystem you can do if you’re a strong player in this industry, that’s always going to be critically important.
Q: Looking ahead to the next one to two years, how do you see the trade media worlds adapt to the new normal? Do you think there will still be a place for virtual initiatives which can often be a fantastic cost-efficient way for businesses to engage with their clients? Or, do you think we’ll sink back into old habits?
A: At NDA, we’re not a traditional trade publisher, all the other traders are our friends or we work with them. We’re fascinated with what’s happening to trade media. We’re launching a new series where we’re interviewing people, like Greg Grimmer at Mediatel, and all the people running trade media because it’s such an important part of our industry.
Trade media has not covered itself enough, trade media spends its life reporting on the industry, but what it’s doing is equally interesting to the industry and the people are equally interested in the industry. We will be spending more time looking at how trade media is changing.
There’ll be huge changes over the last year or so. Personally, a lot of these changes will be maintained, because if you look to the success of people like Drum, Campaign and Mediatel, their virtual events have now become so good, so slick, so effective, why wouldn’t they keep going with these? We definitely will keep doing those events. I can’t wait to come back to the real world and start running events at The Ivy in London.
However, there’s a danger many of these great changes will be lost to the industry, as a lot of trade media agencies and brands will snap back to normal. We will see as London and New York reopen, and the offices reopen, although hopefully all the good work the pandemic has done in proving the validity of flexible working will remain.
I do believe people will want to get back to the office. Bosses will want their staff back in the office, people will want to be in the office, people want to see their colleagues again. If you look at how you learn in this industry, it’s through people, it always has been. The reason I’ve learned for the last 20 years is through people, we need to be together again. Yes, we’ve worked hard to make it work virtually. We can take the best of it forward, but we definitely need to be together.
Q: Having many hats as you do within your current remit, must be quite a challenge at times; not only are you supporting global brands to tell their story across a variety of channels, but you have to keep afloat of trends in the industry. What do you think is key for success in your role?
A: I’ve always enjoyed meeting people and bringing people together. Back when I was a young reporter, what I loved was going out and meeting people and 20 years ago, that’s all you did. The reason how you excel your career was going to the pub and meeting people. It’s always such an important thing for me.
As I’ve progressed my career, you meet more and more people and find out, especially in our industry, most people are interesting, creative people. Keeping your network going, was not really a hardship when you know lots of amazing people. Always keeping on top of what’s going on, again, nowadays not a hardship, with networks like Twitter and LinkedIn, always being aware of what’s happening.
This industry moves so fast, occasionally I’ll convince myself to take a few days off social media and talk to people in the industry, which is tough. You come back three days later and things have totally changed, a company has bought a different company, Google’s done something, Facebook’s done something, or something’s launched. This industry moves so fast, you can’t afford to ever be sort of not watching or not being part of it.
Silverbullet Group Go Live On The London Stock Exchange AIM Market
Silverbullet To Float On AIM And Proposed Placing.
Silverbullet is a provider of digital transformation services and products which assist brand owners and advertisers to optimise their digital marketing investment, with a particular focus on unlocking the potential of first party data and contextual intelligence. The Company announces its intention to seek admission of its shares to trading on AIM, with admission expected to take place on 28 June 2021.
The Group’s clients include global brands, such as Heineken, Dolce & Gabbana, Jägermeister and Channel 4, advertising marketplaces and trading desks, and the global media agency network, Local Planet, with which the Company has a joint venture partnership.
This announcement follows on from the recently released Schedule One announcement, which indicated that Admission is expected to occur in late June 2021. The Company intends to raise gross proceeds of approximately £9.5m via a proposed placing on Admission (the “Placing”) with an expected market capitalisation on Admission of £34.5m. The net proceeds of the Placing are intended to accelerate Silverbullet’s growth, primarily through the roll out of its 4D product and the expansion of its existing client base. Strand Hanson is the Nominated Adviser to Silverbullet and Oberon Capital is the Company’s broker.
Highlights:
- Significant market opportunity – the Group is geared towards capitalising on what the Board believes is the once in a generation, permanent, global shift in consumer behaviour towards digital media, with digital advertising spending forecast to reach US$645.80 billion by 2024, accounting for to 67.8 per cent. of total media advertising spend.
- Established existing client base – the Group has worked, directly or via agency partners, with over 100 brands, including many household names such as Heineken, Dolce & Gabbana, Jägermeister and Channel 4, and completed work for over 40 newly introduced brands in 2020.
- Regulatory driven environment – changing regulation and corporate policy globally, as well as a desire for more reliable performance analysis in order to optimise digital marketing investments, is helping to drive the shift by brands towards ‘in-housing’ of the digital marketing process. Silverbullet is well positioned to capitalise on this trend as well as the wider trend away from the use of third-party cookies in the advertising environment.
- Strong established services business – the Company has an established and growing services business with significant accumulated industry experience and a proven track record of delivering strategic projects and activation services to its clients.
- Recently launched flagship product – the Group’s flagship digital marketing product, 4D, is a contextual intelligence cloud-based platform that seeks to improve brand engagement and marketing ROI, which the Board believes will enable the Group to deliver scalable revenues with low marginal costs.
- Global presence – Silverbullet has established a global presence, with established offices in the United Kingdom, Italy, Germany, Australia and a recently opened office the United States. The Group also continues to look at other opportunities for expansion worldwide.
- Experienced Board and management – the majority of the Board have held senior positions at global software companies, including a number of transactional exits such as, Oracle BlueKai DMP, DoubleVerify, FreeWheel Media, Inc., and Acxiom, Inc. (former owner of Liveramp, Inc.,), and have significant industry experience across data engineering, SAAS product development and marketing.
- Commercial partnerships – the Group has close technical and commercial partnerships with Salesforce, Oracle and Adobe, all of which have existing sales channels and are already delivering to clients.
- Material joint venture and strategic partnership – the Group has established a joint venture and strategic partnership with Local Planet, a scaled network of over 60 agencies across the globe which transact, in aggregate, over USD $16bn (£11.5bn) of media buying on behalf of their clients. The Local Planet joint venture, established in December 2020, which has already generated material services revenues for the Group, presents a significant opportunity to provide further data services and the 4D product to the Local Planet agency network
Visit our investor relations website to find out more.
Context Regains Its Crown: Fuelled By Deterministic Data, Context Is Now Driving Desired Outcomes
Seeking Suitability Over Brand Safety: The Key To Expanding Reach
Nearly $1bn Of Global Programmatic Spent On Unsuitable Content
4D Contextual Outcomes Engine, and Factmata, a London-based AI company, teamed up to run a series of A/B tests to compare the effectiveness of traditional brand safety solutions and whether they are able to identify or block complex suitability signals.
The testing found that unsuitable content missed by existing brand safety vendors, equates to 0.71% of total spend. With global programmatic spend in 2020 reaching US$126.5 billion, this equals $898 million wasted on content considered unsuitable or unsafe for brands. Specifically, 0.42% of this spend is on URLs containing high levels of hate speech, and 0.1% is on URLs containing high levels of propaganda.
The report also indicates that Factmata consistently blocks 4% to 5% of an average advertising budget, or $6.3 billion worth of spend that is otherwise unknowingly being spent on hate speech, propaganda, sexism, and racist content.
Marco Godina, SVP Product, 4D – a division of Silverbullet, says the vast majority of traditional brand safety solutions were built at the dawn of programmatic advertising, and many have not kept up to speed with the nuances in how harmful online content is framed, worded, and produced.
“As we step into the new marketing age, where third-party cookies fade away, and contextual intelligence will surge, brands can look to adopt a variety of tools to safeguard them against future threats,” he says.
“Together, 4D and Facmata’s effective contextual targeting and brand suitability engines can give brands holistic 360-degree guidance about a page’s true meaning. This partnership allows marketers to have greater confidence in where their ads are placed, in order to protect their identity and ethos.”
Dhruv Ghulati, CEO of Factmata, says dated algorithms rely on keywords, which alone do not protect a brand entirely. And, with restrictions of the walled gardens making it even more difficult to manage brand safety, businesses are searching for new solutions.
“Brands looking for safe environments need to move far beyond the scope of traditional brand safety and targeting methods. It’s no easy feat. Leading brand safety tools are playing a fantastic role in the effort to protect brands but cannot do it alone. Brands need to explore additional layers of protection to gain 100% confidence in where their ads are being placed.”
Ultimately, 4D and Factmata recommend brands take a blended approach to improve brand safety and suitability.
Recommendations include:
- One size does not fit all. Brands looking for safe and suitable solutions will want to align themselves with advanced solutions beyond traditional methods that move far beyond the scope of traditional brand safety methods.
- Unsuitable content, unsuitable spend. Unsuitable content flagged by Factmata (but not traditional brand safety solutions) is estimated to be £19.6 million (US$26.8 million) of UK programmatic spend, meaning 5% of budget is landing on unsafe or unsuitable environments. This investment could be utilised elsewhere.
- Nuance is key. Modern marketers who want to thrive in the new marketing age need to be aware of nuance and true context to identify the right moment and the right environment in order to align with the right message.
4D Partners With DeepSee To Protect From Fraud Tactics
Silverbullet’s 4D outcomes engine adds DeepSee to its ‘Dimension Marketplace’ to bolster brand suitability using AI.
Contextual outcomes engine, 4D, a division of marketing transformation company Silverbullet, has announced a new partnership with AI-powered insights platform, DeepSee, to further protect brand safety on the web, post cookie.
In April this year, 4D saw the addition of DeepSee to its Dimension Marketplace to enhance targeting and brand suitability contexts for its clients beyond traditional block-listing. DeepSee is at the forefront of identifying and protecting precious brand dollars against today’s site fraud, not yesterday’s; providing quality scores for domains, so marketers can determine whether they should trust a site enough to run advertising.
DeepSee’s analytics are not predicated on collecting large amounts of data from web users. Instead, DeepSee uses AI to examine the nature of websites and their networks to discover places that harbor site fraud.
By expanding its ‘Dimension Marketplace’ with the addition of DeepSee, 4D can now enable advertisers to further ensure their ads are running on suitable content and their customers have a good experience interacting with their advertising.
Umberto Torrielli, Co-Founder of 4D, says part of 4D’s mission is to deliver brands advertising in the most suitable environments, and go beyond the standard brand safety avoidance categories.
“With the industry changing at the speed of light and stringent privacy laws now finally being implemented, we’ve decided to build a platform that exceeds the rigid and manual requirements of blocklists,” he says.
“We’re therefore thrilled that DeepSee fits into this vision perfectly and is now part of our industry-leading Contextual Dimensions Marketplace. Through this partnership, brands have the ability to dynamically target or block across the best four performing and unique user experience signals which ultimately drive better outcomes for marketers.”
Rocky Moss, Co-founder and CEO of Deepsee, says the 4D and DeepSee partnership gives advertisers the ability to make sure their ads only appear on sites that provide great experiences for their users.
“4D is the first platform to offer the ability to filter with our risk metrics at the push of a button, and now it couldn’t be easier to protect brands from association with high-risk publishers,” he says.
“Previously, it wasn’t clear which publishers were taking advantage of users with hidden pop ups and redirects. It’s not something that can be detected with impression or click trackers; you have to take a direct approach, and visit the worst, most exploitative sites on the web to better understand opaque traffic marketplaces and traffic sourcing fraud.
“At the same time, our approach allows us to determine a lot of unique signals about the quality of the user experience of websites, and at scale.
“4D’s choice to offer our data as a dimension on their platform speaks to their ability to look forward at the changing digital media landscape and recognize the gaps that will be left by the deprecation of third party cookies. We both take a future-proof approach, grounded in what can be ethically known about the media that brands will be associated with.
“With DeepSee and 4D, advertisers can access sophisticated domain filtering controls to help protect their brand, avoid ad-fraud and eliminate bad domains across their programmatic buys; ensuring that advertisers get peace of mind.
Context Reborn: How The Industry Has Moved, In Four Stages, From “Contextual” To “Context”
Is Brand Safety Enough?
Brand safety technologies exist to help advertisers avoid placing ads on inappropriate sites or next to concerning content. Many of the leading brand safety tools that currently serve these needs do a great job at protecting brands across the web.
Yet, as with many challenges that reside within the (m)adtech landscape, brand safety technologies face their own issues, and given the high risk associated with failure, these tools often find themselves held to the highest scrutiny.
4D, the Contextual Outcomes Engine built by Silverbullet, and partner Factmata, an AI-company aimed at making the internet a better place, uncover the use case for a blended approach to brand safety and suitability. As we step into the new marketing age, where third-party cookies fade away, and contextual intelligence will surge, brands can look to adopt a variety of tools to safeguard them against future threats.
In this paper, you will discover:
• A ‘one-size fits all’ approach to brand safety and suitability will not serve for the post-cookie era
• Marketing spend is landing on unsuitable content – this investment could be spent elsewhere
• Nuance is key as we step into the new marketing age