Ad Innovation News: Programmatic Shift to Quality

Each weekday, we bring you the most relevant stories about ad tech, video innovation and publisher tools to keep you informed about industry happenings.

Snapchat catches up with competition, beefing up Snap’s ad API by partnering with seasoned media companies. A Forrester report finds that advertisers are shifting focus to quality rather than quantity, with mixed implications for programmatic.

Forrester Report: Programmatic Advertisers to Shift Focus to Quality, Not Quantity

By Sarah Sluis @ AdExchanger

Forrester research found that advertisers will focus less on quantity and more on quality over the next five years, shifting the role of programmatic– and also predict a decline in media buying agencies. Programmatic buying may experience a polarization effect– some brands will focus on high-quality experiences while others will use programmatic as the “always-on” part of their ad strategy.

Forrester: Digital Media Spending to Hit $118B by 2021

By David Kirkpatrick @ Marketing Dive

Forrester’s US Digital Marketing Forecast: 2016 to 2021 reveals that digital media spending will reach $118 billion by 2021, but spending is expected to slow as marketers begin emphasizing quality over quantity in digital ad spending.

Ticketmaster’s Head of Programmatic Shares Lessons Learned

By Digiday

Ticketmaster moved programmatic in-house, a decision which involves weighing the cost of investment against the benefits of gaining control and transparency in media buying. He advises against spreading programmatic decisions around to too many people, as this slows the decision-making process. He also suggests hiring talent, as agencies are not designed to buy and sell media.

Facebook Ads Debut On MailChimp — Google AdWords Could Be Next

By George Slefo @ Advertising Age

MailChimp is making moves from an email-only service to a complete marketing platform, debuting Facebook ads to its ~15 million customers on Thursday. This will help customers quickly reach users and create similar audiences on Facebook. In the near future, MailChimp may integrate the option for users to advertise through Google search, and in the distant future, it may include advanced targeting options that leverage first-party data.

Snapchat’s Ad Platform Is Growing Rapidly, But Will It Ever Be a Real Threat to Facebook?

By Sarah Sluis @ AdExchanger

Snapchat’s Ads API is developing quickly, thanks to a last-mover advantage. Snapchat’s current beta version debuted in November with 9 partners including 4C and Adaptly– it enables CRM audience matching, third-party measurement and basic targeting by age, gender, location and content consumption behavior. Snapchat also partnered with Oracle-owned Datalogix for campaign optimization, and 9 outside measurement partners (including Moat, Google DoubleClick and Sizmek) to alleviate concerns about poor reporting, and even includes brand lift studies from Millward Brown and Nielsen.

5 Things to Note from Google Parent Alphabet’s Earnings

By Mike Shields @ Wall Street Journal

Google parent company Alphabet Inc. reported a 22% surge in fourth-quarter revenue to $26.1 billion. Here are things to note: 1. Mobile search, programmatic and YouTube are driving Google’s growth 2. The holidays were a breakout period for mobile shopping and location-based ads 3. Google wants you to know it’s committed to admeasurement 4. Alphabet is aiming high with YouTube content 5. “AMP” is working.

Google is Cutting its Losses

By Kerry Flynn @ Mashable

Google’s success in Q4 was led by mobile search and YouTube, but its big bets in hardware will be the key to Google‘s long-term profit. Web and mobile ads are dropping in value– Google’s cost-per-click dropped 15% in the fourth quarter from the same period the year prior. Google CEO Sundar Pichai said the company is prioritizing YouTube, integrating more machine learning to improve content and advertising. Facebook, Snapchat and other over-the-top services are biting into that as they all look to pull from TV budgets.

Twitter’s New Explore Tab Spotlights Live Video

By David Kirkpatrick @ Marketing Dive

Twitter is adding a new “Explore” tab to its mobile app that will include Moments, search, trends and live video. The new tab follows popular social media platforms trends by emphasizing live video. The Explore tab prioritizes live video over other content, including curated tweets, which it previously made a big deal over when it launched Moments.

Huffington Post Joins the Vertical Craze with The Scope

By Max Willens @ Digiday

As wide scale falls out of vogue, AOL-owned Huffington Post invests its resources into a health-centric vertical called The Scope. The Scope will get content from its four staff writers, syndication partnerships with STAT and Reuters, and pulling content from their archives– an increasingly common practice in digital pubs. The Scope will not have new posts from contributors.

Conde Nast Restructures Ad Sales Workforce

By Jeffrey A Trachtenberg @ Wall Street Journal

Conde Nast is restructuring the magazine company’s advertising sales workforce, creating new teams to focus specifically on major categories. Conde Nast is creating teams of ad sales people to focus on eight categories, including auto; beauty, pharmaceuticals, and fashion/luxury. Time Inc. has been taking a similar approach– Time first endorsed category selling in January 2016, explaining that its major advertisers preferred to meet with fewer sales people.