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"Even smaller businesses can now compete for premium stock offerings"

Digital advertising landscape scrutinized by Aaron Goldman, Mediaocean executive, who discusses current trends and forecasts future prospects for advertisers.

Digital advertising landscape analyzed by Aaron Goldman of Mediaocean, offering insights into...
Digital advertising landscape analyzed by Aaron Goldman of Mediaocean, offering insights into current trends and predictions for industry evolution.

"Even smaller businesses can now compete for premium stock offerings"

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Dive into the unruly landscape of digital advertising with Aaron Goldman, Mediaocean's Chief Marketing Officer. In this unfiltered chat, Goldman sheds light on the thorny issues plaguing today's digital media ecosystem, from the scrutiny on walled gardens to the future of media agencies and AI's role in all of it.

Why Is the Digital Ad Ecosystem Still So Messy?

The main culprit here are walled gardens. Facebook, Google, and even CTV platforms are constructing these virtual barriers to safeguard their data, making it a struggle for marketers to work cross-platform. While within a walled garden, things are peachy: Adjust your budget and let them handle the rest. But skipping from one walled garden to another, experimenting with TikTok, Snap, Pinterest, LinkedIn, and more, requires an entirely new solution.

Impact of Regulatory Pressure on Walled Gardens

In the case of Google, regulatory pressure has them spelling trouble. Rumors abound that some of Doubleclick and AdMeld will be spun off, eliminating the ability to intermingle data across all properties. Google's adtech solutions will no longer receive preferential treatment, paving the way for independent ad tech solutions. We're seeing growing interest in Mediaocean's offerings as brands can no longer rely on Google's ad serving for free.

Meta's antitrust issues are less centered on adtech, focusing instead on competition within the social networking market. Any potential regulations, such as forcing the sale of Instagram, would raise concerns about data co-mingling. The more promising regulations are the DMA and DSA, which limit data co-mingling and provide advertisers and publishers with greater transparency.

Will Advertising Become More Transparent — and Less Effective?

For now, yes, but only temporarily. As we adapt and figure out ways to compensate, the current transparency will yield its benefits.

The Aftermath of Apple's App Tracking Transparency (ATT) Intervention

Meta has been successful in adapting to the topsy-turvy world of ATT, but the effectiveness of its ads still falls short of pre-ATT levels. If your return on ad spend declined from 4:1 to 3:1, it's still a solid return—way better than non-targeted advertising.

Is the Open Web Benefiting from Walled Garden Regulation?

Regulation levies weight on the scales for the open web, providing it with a fighting chance to rival walled gardens. As regulations facilitate a more level playing field, opportunities for innovation will surge. In a world driven by AI, information sources will mainly hail from the open web.

Will AI Change the Incentive for Building Walled Gardens?

Absolutely! By providing access to new traffic sources—and, ultimately, customers—AI will empower publishers and media companies, offering alternatives beyond walled gardens.

Demand for Inventory and Formats

Paid social remains the frontrunner in terms of growth, with video being the preferred format in social feeds. The rosy picture? High-impact sight, sound, and motion, along with excellent targeting within a social network. The lessENchanting reality? Overconsumption of online content leading to "brain rot."

Close behind is CTV, with premium long-form content consumption soaring as viewers move towards CTV for entertainment. Budgets are pouring into CTV, but it's yet to catch up to consumer usage in various countries. Depending on the stats, time spent with CTV accounts for 15-20% of total usage, while ad spend lingers around 5-10%.

Retail media remains strong amidst uncertainty, largely due to its proximity to the point of purchase.

Are Retail Media Budgets Still Coming Out of Shopper Marketing Budgets?

Initially, yes, but with retail media's track record of high return on ad spend, budgets are now being drawn from other channels as well.

Why Isn't CTV Gaining Popularity as an Advertising Channel?

Advertising on CTV is harder to execute. One challenges is the pricing: Interactive creative, multiple formats, and dynamic ads raise the complexity and the cost. But the payoff? Worth it.

The Role of Small Advertisers and Media Agencies in the Future

The increasing accessibility of media platforms to smaller advertisers will reshape the industry. Once upon a time, having a bulging budget and clout was essential to secure the best inventory, but now programmatic advertising and walled gardens level the playing field. Creative quality—not just spending power—determines placement. As a result, creative and media functions must be reunited within agencies to strategize, collaborate, and deliver impactful campaigns.

In summary, the regulations imposed on walled gardens promise a slew of changes in the advertising industry, making way for increased competition, transparency, and innovation.

  1. As a result of regulatory pressure, brands are increasingly exploring independent ad tech solutions like Mediaocean's offerings, as they can no longer rely on Google's ad serving for free.
  2. In contrast to walled gardens, the open web benefits from regulations as they help create a more level playing field, offering opportunities for innovation and making it a potential rival to walled gardens.
  3. AI is poised to change the incentive for building walled gardens by providing publishers and media companies access to new traffic sources and customers, offering alternatives beyond walled gardens.
  4. Regulation of walled gardens is pushing creative and media functions within agencies to reunite, as creative quality, not just spending power, determines placement in the increasingly accessible media landscape.

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