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Harnessing the Power of Retail Media in Digital Advertising

Choozle — Tue, 08 Oct 2024 06:25:42 +0000

Retail media is taking a strategic position in the digital advertising space, emerging as a powerful, future-proof channel to bring brands closer to their target audiences. According to a recent forecast by eMarketer, omnichannel retail media ad spend is set to hit $59.98 billion in 2024. With such substantial investment flowing into this channel and a growing demand for first-party data, it’s clear that many other businesses will seek to capitalize on the opportunities presented by retail media. In this blog, we’ll outline what retail media is and how you can capitalize on this advertising opportunity.

Leveraging Data for Precision Targeting

Successful retail brands are capitalizing on the rich reservoirs of data housed within major retailers’ ecosystems. By tapping into finely-tuned, purchase-based audiences, these brands achieve closed-loop measurement, accurately attributing online and in-store sales to their digital campaigns.

Retail media allows advertisers to target specific audiences based on their shopping behaviors, preferences, and demographics. This targeted approach enhances the effectiveness of advertising campaigns by reaching consumers who are more likely to be interested in the products or services being promoted.

Despite uncertainties surrounding cookie-based targeting and shifts towards opt-in advertising, retailers remain resilient, leveraging their vast repositories of first-party consumer data to drive personalized ad delivery and measured performance.

What is retail media?

In brief, retail media refers to advertising strategies where brands collaborate with retailers to reach their target audience. When you think of retail media, you probably think of more traditional examples, like branded in-store end caps or coupons and catalogs via direct mail, but modern retail media has evolved significantly with the digital transformation of the industry.

By becoming a more integral part of the digital marketing landscape, retail media has become a mechanism where brands can leverage the data and, in many cases, the on-site inventory of their retailers and their respective platforms to promote their own products or services. Today, retailers are rolling out their own advertising platforms (see: Walmart Connect, Amazon Ads, or Kroger Precision Marketing) or partnering up with industry-leading buy-side platforms to provide advertisers the ability to target against their first-party, purchase-based audiences and accurately measure the corresponding performance and impact of their marketing efforts. So which retailer is leading the charge?

Diversified Placement Opportunities

As retail and ad tech continue to merge, retailers are expanding their array of media placement options significantly. These encompass “on-site” advertising opportunities, which involve showcasing ads and videos directly on the retailer’s own websites or apps (for instance, Amazon Sponsored Product Ads). Meanwhile, there’s also what’s commonly known as “off-site advertising,” where retailers furnish advertisers with the necessary data to target their customers across third-party channels like Connected TV (CTV) streaming platforms, diverse web publishers, or social media platforms. Notably, all this is accomplished while leveraging the invaluable audience data inherent in their respective retail platforms.

4 Strategies for Retail Media Success

In the dynamic world of retail media, savvy brands are capitalizing on the wealth of data provided by retailers to execute highly effective omnichannel campaigns. These campaigns employ a diverse array of targeting strategies, each tailored to engage and resonate with specific audience segments, such as:

1. Competitive Conquesting: This tactic empowers advertisers to zero in on consumers who have previously or frequently purchased products from their competitors. Depending on the retailer’s capabilities, this approach can vary from broadly targeting frequent purchasers of products within your category to more precisely retargeting individuals who have recently bought specific items from your competitors.

2. Retargeting Past Purchasers: Particularly impactful for brands in industries like CPG, F&B, and apparel, retargeting past purchasers serves as a potent method to re-engage with an existing customer base. Whether the aim is to advertise a sale, introduce a new product, or maintain brand awareness, this tactic stands as a cornerstone within retail media, consistently delivering strong results across diverse campaign objectives.

3. Excluding Past Purchasers: Leveraging the same past purchaser data, many brands opt to exclude these individuals from their targeting efforts to ensure their ad impressions aren’t wasted on users who have already made a purchase and are no longer potential customers. This tactic is commonly employed by brands with a focus on one-time purchases, such as appliances or consumer electronics.

4. Targeting Lifestyle and Past & Predictive Category Buyers: Targeting Lifestyle and Past & Predictive Category Buyers: An essential aspect of retail media strategy involves leveraging retailer-syndicated lifestyle and purchase category segments to connect with the desired audience. Whether it’s a burgeoning healthy snack brand seeking out regular purchasers of organic or health-conscious products, or a pet food brand aiming to increase awareness among new or existing pet owners, this tactic serves as a fundamental upper-funnel approach for all retail media campaigns.

In summary, retail media is important due to its ability to target consumers effectively, provide valuable data insights, accurately measure results, and enhance the overall shopping experience. As the retail landscape evolves with technological advancements and changing consumer expectations, retail media is poised to become an even more crucial marketing strategy moving forward.

Ready to get started?

With Choozle, you gain access to a network of top-tier retailers and buy-side platforms, allowing you to execute strategic and high-performing media campaigns seamlessly. Whether your brand is featured on Amazon, Walmart, Target, Kroger, Albertsons, Walgreens, Meijer, Drizly, Fanatics, or any other major retailer, we’ve got you covered.

If your brand is already selling through these retail channels or simply interested in exploring the potential of retail media, our team is here to help. Reach out to us at sales@choozle.com, and let’s schedule a call to discuss how Choozle can tailor a solution to meet your specific marketing objectives. Let’s elevate your brand together.

Hunter Phillips

Hunter Phillips is the Director of Business Development and Learning at Choozle and is passionate about helping companies drive growth through marketing technologies. Throughout his seven-year tenure with Choozle he has worked in various roles across AdOps, Product, and Partnerships. Before Choozle, Hunter led marketing efforts for several early-stage technology companies. Outside of work, Hunter spends his time traversing Colorado outdoors with his rescue pup, Pepper, and exploring all the new restaurants and live music Denver offers.

The post Harnessing the Power of Retail Media in Digital Advertising appeared first on choozle.

Digital Advertising’s Future After Google’s Cookie Decision

ANNIE WISSNER — Mon, 29 Jul 2024 18:04:29 +0000

In a surprising move, Google has announced that it will indefinitely retain third-party cookies on its Chrome browser. This decision marks a significant departure from its previous plan to phase out cookies by 2024, offering a new direction for advertisers who rely on these tools for tracking and targeting. Let’s explore the implications of this decision and what it means for the future of digital advertising.

Google’s Announcement

Google’s recent decision to maintain third-party cookies has sent ripples through the digital advertising world. Initially, Google had planned to eliminate third-party cookies by the second half of 2024, a move that had the industry bracing for significant changes.

However, Anthony Chavez, Vice President of Privacy Sandbox at Google, announced a shift in strategy. He stated that moving to a cookieless environment would require “significant work from many participants and will have an impact on publishers, advertisers, and everyone involved in online advertising.” Instead of removing third-party cookies, Google plans to introduce a new experience in Chrome that gives users more control over their privacy settings and allows them to make informed choices about their browsing data.

Chavez didn’t provide specific details about the new user experience but emphasized that Google would continue to promote the use of cookie-less tracking alternatives through the Privacy Sandbox. Chavez stated, “We are proposing an updated approach that elevates user choice. Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.”

At the same time Google revealed its plans to keep third-party cookies, the company released its own testing results for Privacy Sandbox. The company began a test phase in early January by disabling cookies for 1% of Chrome users, affecting around 30 million randomly selected users as part of its Privacy Sandbox initiative.

Google analyzed the impact of removing third-party cookies on advertisers’ programmatic revenue in Ad Manager and AdSense, comparing this to the scenario with Privacy Sandbox as an alternative. According to Google, eliminating third-party cookies alone would lead to a 34% decrease in programmatic revenue for Ad Manager users and a 21% decrease for AdSense users. However, with Privacy Sandbox APIs enabled, the revenue dip was reduced to 20% for Ad Manager and 18% for AdSense.

However, a deeper insight from AdExchanger revealed that testing within Ad Manager showed significant bias. When compared to other Demand Side Platforms (DSPs), it was evident that this testing critically hampered publisher revenue while giving Google a substantial boost in market share for Google Ad Manager (GAM). This suggests that the results may not fully represent the broader impact on the industry and highlight the complexities of transitioning away from third-party cookies.

Immediate Benefits

While Google’s decision to retain third-party cookies provides stability, it’s important to recognize that the digital advertising industry has already made significant strides toward privacy-first solutions. Here’s how this decision impacts advertisers:

Consistency in Personalization: Advertisers can maintain their current strategies for delivering personalized ads, ensuring high user engagement and satisfaction.
Stable Metrics: Retaining third-party cookies ensures that measurement and attribution models remain consistent, providing reliability in tracking campaign performance.
Optimized Tools: Existing tools and technologies that rely on third-party cookies can continue to be used without the need for immediate changes or adaptations.

However, the industry is not solely reliant on third-party cookies. Safari has already eliminated them, and signal quality is continuously evolving. Retail media networks and Connected TV (CTV) platforms have established robust identity solutions that provide strong alternatives. The Trade Desk (TTD) and other industry leaders have developed frameworks like UID 2.0 that offer privacy-centric, effective advertising methods. These advancements ensure the advertising ecosystem remains dynamic and resilient, even as it adapts to new privacy norms.

The story is far more complex than just reacting to Google’s decisions. The industry is actively progressing, embracing diverse and innovative solutions that are not dependent on third-party cookies.

Strategic Implications

While continuing third-party cookies offer short-term relief, advertisers should use this time to build more resilient and future-proof strategies. Here’s how:

Strengthen First-Party Data: Building robust first-party data strategies remains crucial. Engage directly with your audience through your website, apps, and other owned channels to enhance data reliability and user trust.
Innovate with Privacy in Mind: Despite the continued use of third-party cookies, privacy concerns are here to stay. Explore and integrate privacy-centric advertising solutions like contextual advertising and cohort-based targeting to stay ahead of potential regulatory changes.
Enhance Data Privacy Practices: Maintaining high data privacy and user consent standards will not only comply with current and future regulations but also build trust with your audience, fostering long-term relationships.

Leverage Contextual Advertising: Contextual advertising offers a privacy-compliant way to reach audiences by targeting ads based on the content they are currently viewing rather than relying on user-specific data. This method respects user privacy while delivering relevant ads, enhancing user experience, and maintaining engagement.

Future-Proofing Your Strategy

Even with third-party cookies remaining, the landscape of digital advertising is continually evolving. Future-proof your strategy by focusing on these areas:

Collaboration and Partnerships: Work closely with industry peers, technology providers, and data scientists to stay at the forefront of innovation. Collaborative efforts will be key to developing new solutions that balance effectiveness and privacy.
User Experience Focus: Prioritize creating valuable and relevant user experiences. By understanding your audience deeply, you can deliver impactful content and ads that resonate without over-relying on cookies.
Stay Informed and Agile: Keep up-to-date with industry developments, technological advancements, and regulatory changes. Being well-informed and agile in your approach will allow you to adapt quickly to any shifts in the landscape.

What’s Choozle’s Stance on Advertising in a Privacy-First World?

As the digital advertising ecosystem grapples with privacy concerns, Choozle remains committed to championing privacy-first solutions. Our approach is multifaceted, aiming to balance the needs of advertisers with the growing demand for user privacy. Here are some of the key initiatives and strategies that define our stance:

Implementing Privacy-First Frameworks like UID 2.0: Once publishers achieve critical mass with opted-in emails, the industry needs them to provide this signal at scale in ad placements. Privacy-first frameworks like UID 2.0 facilitate secure interactions without third-party cookie matching.
Geospatial Data Drives Better Insights: Leveraging advanced technologies such as Geocoding, converting addresses into geographic coordinates brings a transformative edge to digital maps for retailers. This process revolutionizes the understanding of customer behavior and demographics. The resulting data not only supports precise geotargeting but also aligns with privacy requirements and legislative frameworks. This alignment ensures that the precision achieved serves both advertisers and the broader regulatory landscape. As a result, retailers can craft highly tailored marketing campaigns, reaping benefits that span from increased foot traffic to personalized messaging.
Enhancing First-Party Engagement for Advertisers: Advertisers, especially outside e-commerce, must improve strategies to authentically collect first-party engagement. Creating strategies to expand consumer interactions is challenging in non-e-commerce spaces like CPG, where retailers often intervene.
Ensuring Compliance and Security for Third-Party Data Providers: Third-party data providers must ensure compliance and security in collecting identity data.
Collecting Opted-In First-Party Data from Publishers: Many publishers and streaming content providers with logged-in experiences and scaled data are adopting paywalls and daily caps to incentivize email collection.
Contextual Advertising: While Choozle can target specific audience profiles, such as “Males, 20-49,” and follow them online, it also offers contextual targeting. This means targeting sites categorized by their topics, like “Baseball” or “Sports,” as defined by publishers. Contextual targeting doesn’t have a data CPM associated with it, so only the media CPM (bid) applies. This makes contextual targeting a more cost-effective solution compared to data targeting and can help lower the effective CPM in campaigns using data-targeted audiences. Additionally, contextual targeting is beneficial for campaigns within a small geolocation as it tends to offer a broader reach.

Amid increasing privacy regulation, we recognize the magnitude of altering entrenched behaviors across tens of thousands of organizations. Choozle stands out by collaborating with The Trade Desk and Amazon, leading companies with viable DSP solutions for a cookieless future.

Conclusion

Google’s decision to retain third-party cookies indefinitely offers digital advertisers stability and continuity. However, this doesn’t mean the industry should become complacent. The evolving digital landscape, coupled with growing privacy concerns, requires a proactive and innovative approach.

Seize this opportunity to refine your current strategies, invest in privacy-centric solutions, and diversify your marketing efforts. By doing so, you’ll not only navigate the current environment successfully but also be well-prepared for any future changes.

The decision to keep third-party cookies is significant, but the journey toward a more privacy-conscious and user-focused digital advertising ecosystem continues. Stay ahead, stay informed, and lead the way in this dynamic landscape.

Adam Woods

Adam Woods is the Chief Executive Officer (CEO) and held two other roles at Choozle — Chief Client Officer and Chief Technology Officer. Throughout his tenure at Choozle, he has been improving the way that advertisers buy media through the Choozle platform. He has led initiatives to ensure that Choozle leads the space in terms of being a consultative partner that helps ensure the effective deployment of media through a combination of omni-channel planning, targeting best practices, upfront goal setting, and effective measurement.

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Driving Results with Paid Media: 6 Key Trends for 2024

Choozle — Tue, 30 Apr 2024 10:18:27 +0000

In today’s digital landscape, change isn’t just happening; it’s accelerating. According to Gartner’s 2023 CMO Spend and Strategy Survey, 25.6% of marketing budgets are now dedicated to paid media, underscoring its critical role in marketing strategies. The combination of new technology, changing consumer behavior, and updated regulations means the old ways of reaching customers aren’t going to cut it anymore. It’s crucial not just to keep up but to lead.

This blog is your roadmap through the key trends in paid media that will shape not only 2024 but also the years ahead. Identifying these trends is step one. The real game-changer is knowing how to use them to get real results—increasing engagement, driving up ROI, and building meaningful connections with your audience.

We’re diving into the essential paid media trends for 2024, showing you how to thrive in a digital advertising world that never stands still. This isn’t about keeping up with the future of advertising; it’s about defining it.

Understanding Digital Paid Media

Paid media is all about strategic promotion. Brands buy exposure and visibility across digital channels like search engines, social media, display networks, Connected TV (CTV), and other online spaces. The main goal? Target the right people, drive traffic, and convert leads.

Let’s break down paid media into five key elements:

1. Search Engine Advertising (SEA): Have you ever noticed those ads at the top of your search results? That’s paid search in action. When you search for something, like “best pizza near me,” those businesses have paid to appear there. Platforms like Google Ads allow companies to bid on keywords to increase ad visibility. And it’s a significant industry. According to eMarketer, 42% of all digital marketing spending goes into search marketing. Its popularity stems from its effectiveness.

2. Social Media Advertising: You’ve probably seen sponsored posts pop up on. your Facebook or Instagram feed.edia advertising at work. Advertisers can target their campaigns based on your age, interests, and even what you’ve been chatting about online. According to a recent report from Datareportal, more people discover new brands, products, and services via social media ads than word-of-mouth recommendations, brand and product websites, and consumer review sites.

3. Display Advertising: You know those flashy banners or videos that sometimes show up on websites? That’s display advertising. They’re there to catch your attention and get you to click through to learn more. Google has the largest display ads network, reaching 90% of internet users worldwide. It includes over 35 million websites, apps, and Google-owned properties.

4. Native Advertising: Ever read an article online or caught a show on your favorite streaming service and noticed a recommendation for a product or service that fits seamlessly into the content? That’s native advertising. It blends right in with what you’re already reading or watching, making it feel like a natural part of the experience. And they work. Native ads can increase brand lift by as much as 82%, based on the 2024 Gitnux Marketdata Report.

5. Content Promotion Advertising: Sometimes, brands want to get their content in front of more people. That’s where content promotion comes in. Whether it’s a blog post, a video, or an infographic, companies can pay to boost it, making sure more folks see it and engage with it. And it continues to grow. In 2024, 45% of content marketers expect their content marketing budget to increase, according to Zippia.

Unlocking Growth: The Strategic Power of Paid Media

Paid media isn’t just a checkbox on your marketing to-do list; it’s a strategic powerhouse that fuels growth and amplifies your brand’s impact. Here’s why paid media is an indispensable part of any integrated marketing strategy:

Amplification Beyond Organic Reach: Paid media extends your voice beyond the confines of organic efforts. It’s like turning up the volume on your brand message, ensuring it resonates with a broader audience. When your organic reach hits its limits, paid media steps in, ensuring your content and messages reach the right people at the right time. Based on data from Techjury, PPC traffic converts 50% better than organic site visitors.

Laser-Sharp Targeting Efficiency: Imagine having a precision-guided missile for your marketing campaigns. That’s what paid media offers. You can zero in on specific demographics, behaviors, and interests with granular targeting options. Eliminate concerns about wasting resources on irrelevant audiences. With our outstanding strategy team backing you, your message resonates with the precise audience your brand aims to engage.

Driving Conversions and Revenue: Paid media isn’t just about impressions; it’s about action. It funnels traffic to your landing pages, product showcases, or lead forms. When a user clicks, subscribes, or purchases, that’s where the magic happens. Paid media directly impacts conversions and revenue.

Evolution of Paid Media

Over the years, paid media has evolved significantly:

Early 2000s: Keyword-Centric Approach Intense bidding wars for keywords with advertisers competing for top spots in search engine results.

2010s: Segmentation and Personalization Targeted ad placements based on demographics, behavior, and interests, thanks to more sophisticated platforms.

2010s-2020s: Mobile and Video Dominance Content optimized for smartphones and the rise of video ads, with platforms like YouTube becoming key for engaging video ads. Streaming platforms like Netflix and Disney+ gained prominence, offering a vast library of TV shows and movies. CTV became the technical core for programmatic TV (PTV), enabling precise audience-based targeting.

Present: Data-Driven Optimization Use of advanced analytics and machine learning to fine-tune campaigns in real-time, informed by every click, impression, and interaction. CTV ads are streamed through smart TVs, connected devices (Roku, Amazon Fire Stick, etc.), gaming consoles, and more. Advertisers leverage CTV’s flexibility to communicate with customers along their buying journey. CTV ad spending has surged, projected to reach over $41 billion by 2027.

But that’s just the beginning! Next, let’s review the top trends to watch in 2024 as paid media continues to evolve and shape the digital landscape.

6 Top Paid Media Trends to Watch in 2024

As we look at media trends for 2024, innovation is driving key shifts in advertising strategies. From location targeting to the rise of AI and machine learning, each trend brings unique opportunities and challenges for marketers seeking to stay ahead of the curve. Let’s explore these trends and their implications for advertisers in the ever-changing digital ecosystem.

Trend 1: Location Targeting

We’re witnessing a significant shift towards local advertising targeting. Location targeting is becoming a key player in delivering highly relevant content to specific audiences based on their location.

Location-based targeting tactics include geofencing, geoframing, and geolocation targeting:

Geofencing allows you to draw a virtual fence around a location and serve ads to mobile device users inside that geofenced area.
Geoframing collects mobile device IDs from users who have entered a predefined location at a specific time and allows you to target those users after they’ve left.
Geolocation targeting allows you to target countries, cities, neighborhoods, or regions by postal code.

By leveraging these tactics, you can increase brand visibility, compete with more prominent brands, and capture the attention of your target audience at the right place and time. The Choozle advertising platform is purpose-built to excel in location targeting, delivering impactful results for our clients.

“Choozle was incredibly supportive by increasing our website traffic and inbound marketing leads. I also like that they have solutions for CRM audience matching, geofencing and geoframing campaigns.” – Nicole C., G2 Review

Trend 2: The Rise of AI and Machine Learning in Ad Optimization

AI and machine learning are reshaping the paid media landscape, fundamentally altering ad targeting, bidding, and personalization. These cutting-edge technologies deliver unparalleled precision and efficiency, utilizing algorithms to forecast audience behavior and optimize campaigns in real time. Marketers are experiencing substantial improvements in ROI and campaign effectiveness as a result.

AI workflow streamlines processes and levels the playing field, empowering all stakeholders to prioritize strategy and outcomes. This AI-driven transformation enhances scalability and agility and equips marketers with deeper insights into campaign performance, facilitating data-driven decision-making and strategy refinement. As AI continues to advance, its pivotal role in paid media will undoubtedly redefine the future of advertising.

Trend 3: Interactive and Immersive Ad Formats

The emergence of interactive and immersive ad formats, such as AR, VR, and interactive video, reshapes how brands engage with their audiences. These formats allow for deeper and more engaging experiences, capturing consumers’ attention like never before. Brands leverage these technologies to create compelling experiences that resonate with their audience and drive meaningful interactions.

Trend 4: Social Commerce and Shoppable Ads

Social media platforms are evolving into full-fledged shopping destinations, with the integration of e-commerce capabilities directly into ads. Shoppable ads transform social platforms into valuable sales channels, allowing brands to turn engagement into revenue. Marketers are exploring best practices for leveraging these trends to drive sales and foster customer relationships.

Trend 5: Third-Party Cookie Alternatives

Google’s decision to eliminate third-party cookies from Chrome by early 2025 has sparked uncertainty among marketers and advertisers in medium-sized businesses regarding the future of tracking, targeting, and measurement. Despite the impending changes, this transition also opens doors for pioneering new and inventive strategies with the potential for substantial returns.

At Choozle, our approach to advertising in a post-cookie world is proactive and solution-oriented. While there are concerns about Google’s progress raised by the IAB, We see this shift as a significant opportunity for industry collaboration to strengthen the open web.

We’ve outlined five key actions to address the core challenge:

Implementing Privacy-First Frameworks like UID 2.0: Once they gather a critical mass of opted-in emails, publishers should seamlessly incorporate this signal into ad placements. Privacy-first frameworks like UID 2.0 enable secure interactions without relying on third-party cookies.
Geospatial Data Drives Better Insights: Leveraging technologies like Geocoding transforms digital maps for retailers. By understanding customer behavior and demographics, precise geotargeting becomes possible. This alignment with privacy regulations benefits advertisers and the broader regulatory landscape, leading to tailored marketing campaigns and increased foot traffic.
Enhancing First-Party Engagement for Advertisers: Advertisers, especially beyond e-commerce, need authentic strategies to collect first-party engagement. This challenge persists in non-e-commerce spaces like CPG, where retailers often mediate interactions.
Ensuring Compliance and Security for Third-Party Data Providers: Third-party data providers must prioritize compliance and security when collecting identity data.
Collecting Opted-In First-Party Data from Publishers: Publishers and streaming content providers are adopting paywalls and daily caps to incentivize email collection from logged-in users, yielding valuable first-party data.

Interested in learning how you can succeed in advertising in a post-cookie world? Check out our Guide to Navigating the Post-Cookie World.

Trend 6: Market Consolidation

The media industry continues to experience an intense phase of consolidation, marked by notable mergers such as Disney’s acquisition of Twentieth Century Fox and the CBS-Viacom merger, reshaping the landscape. This consolidation trend is centralizing control, forming larger media conglomerates with enhanced bargaining power and strategic capabilities in advertising. A recent World Federation of Advertisers survey found that 79% of brands planned an agency transformation process while 53% sought to centralize agency.

With this consolidation, the big players are delivering robust capabilities and strategies accessible at all levels, not just in creative aspects but also in workflow and predictive clearing. They’re streamlining the supply path, reducing intermediaries, and improving market clarity while creating more value.

With that said, as independent media outlets decrease, competition for ad spaces within these conglomerates intensifies. This can lead to higher prices and decreased negotiability in ad placements. Additionally, the concentration of media ownership may result in fewer, albeit more expansive, advertising platforms, influencing the strategy and execution of media buys.

Advertisers need to prioritize building strong relationships with conglomerates that control multiple media properties to navigate this consolidated landscape. Leveraging integrated advertising solutions these conglomerates offer can grant access to a wider audience through a single negotiation point. Advertisers should also examine advanced targeting and personalization options enabled by the consolidated data capabilities of these large entities to enhance campaign effectiveness.

Delivering Meaningful Outcomes

In today’s fiercely competitive digital landscape, aligning emerging trends with specific marketing objectives is crucial for brands and agencies aiming to stay relevant and succeed. Ensuring they’re aligned with your business goals is important to leverage these trends effectively. Whether your focus is on increasing brand awareness, boosting website traffic, enhancing customer loyalty, or improving conversion rates, this alignment forms the foundation of an effective strategy.

Media Mix Modeling (MMM) and Multi-Touch Attribution (MTA)

Media Mix Modeling (MMM) is a foundational method for evaluating how well different media channels contribute to achieving business goals. This method involves looking at past data to see how channels like CTV, audio, and digital-out-of-home (DOOH) advertising impact sales and other important metrics. By measuring each channel’s impact on overall marketing success, MMM gives marketers a thorough understanding of their media strategy.

Unlike Multi-Touch Attribution (MTA), which focuses on individual interactions, MMM provides a broad view of marketing effectiveness across all channels. Using advanced statistical techniques, MMM identifies connections between media spending and business results. With these insights, marketers can adjust their media mix to get the most out of their investment and effectively meet strategic goals.

In the end, Media Mix Modeling (MMM) and Multi-Touch Attribution (MTA) help marketers make smart decisions about allocating resources by showing which media channels drive the best results.

At Choozle, we leverage cutting-edge AI-powered tools such as Multi-Touch Attribution (MTA) and Marketing Mix Modeling (MMM) to empower our advertisers with invaluable insights that elevate their marketing strategies and drive tangible outcomes. These sophisticated tools not only unveil inefficiencies but also streamline resource allocation, enabling brands to achieve superior results by minimizing wastage. While MTA focuses on pinpointing the effectiveness of individual touchpoints, MMM broadens the scope by delving into wider marketing dynamics, encompassing external variables. By synergizing MTA’s granular insights with MMM’s comprehensive analysis, advertisers are equipped to make well-informed, data-backed decisions, optimize campaign performance, and ultimately maximize efficiency.

The Bottom Line

As we’ve explored the evolving landscape of paid media in 2024, it’s evident that the path to success lies in identifying key trends and harnessing them to deliver meaningful outcomes.

By aligning emerging trends with specific business objectives, brands and agencies can unlock new opportunities for growth and engagement. Whether leveraging location targeting to reach audiences with pinpoint accuracy or embracing AI and machine learning to optimize ad performance, strategically integrating these trends is essential for driving results.

Methodologies like Media Mix Modeling (MMM) and Multi-Touch Attribution (MTA) offer invaluable insights into the effectiveness of marketing efforts, empowering marketers to make data-driven decisions and optimize resource allocation for maximum impact.

Navigating the dynamic landscape of paid media requires innovation and adaptability. By embracing change and experimenting with new strategies, marketers can keep pace with the evolving digital ecosystem and define the future of advertising itself.

Adam Woods

The post Driving Results with Paid Media: 6 Key Trends for 2024 appeared first on choozle.

Navigating CTV Advertising: Taking Control in a Fragmented Landscape

ANNIE WISSNER — Wed, 27 Mar 2024 05:13:34 +0000

In today’s shifting TV landscape, advertisers are navigating a dynamic mix of opportunities and challenges, particularly when it comes to connected TV (CTV). With the rise of over 32,200 linear channels and 89 streaming video sources in the US alone, viewers have unprecedented access to a vast array of content.

This explosion of options has revolutionized media planning. According to a recent report from Nielsen, US marketers reallocated 45% of their ad budgets to CTV in 2023. With so much on the line, advertisers need to get it right. In this blog, we’ll explore the complexities of CTV advertising and outline strategies for advertisers to navigate this fragmented landscape successfully.

ANNIE WISSNER ● March 27,2024 ● Company , Education , Industry News

Fragmentation Woes: Challenges in CTV Advertising

A major challenge facing the CTV ecosystem is fragmentation. Unlike traditional linear television, where advertisers can reach broad audiences through a handful of major networks, CTV spans numerous platforms, apps, and devices. According to Comscore, as streaming TV gains momentum, a significant portion of newly acquired viewing hours—75% to be exact—are spent on content beyond the top six streaming apps like Netflix, YouTube, Prime Video, Hulu, Max, and Disney+. Peter Crofut of the Media Exchange emphasizes that the CTV industry is still relatively young and lacks significant mergers and acquisitions, a trend expected in a rapidly expanding market. Additionally, major CTV publishers and streamers often operate as walled gardens, prioritizing direct sales over transparency. This ongoing fragmentation in CTV results in inefficiencies in ad buying, negotiation challenges, and campaign management and measurement complexities across various platforms.

Frequency Capping Dilemma: Addressing Repetitive Ad Fatigue

The lack of frequency capping exacerbates the problem of fragmentation. Advertisers risk bombarding viewers with repetitive ads without adequate controls, leading to ad fatigue and diminishing investment returns. Improving frequency capping is a pressing concern across the entire CTV ecosystem, from advertisers to consumers. Addressing this issue necessitates using clean data and collaborative efforts among publishers, agencies, and platform and technology companies.

Manual Campaign Execution Amidst Fragmented Data

In addition to grappling with the intricate landscape of streaming platforms, advertisers face the daunting task of managing linear buying, increasing their challenges. The administrative burden of manually overseeing these transactions further consumes valuable time and resources, diverting attention away from more strategic endeavors. As a result, advertisers navigate through a maze of data points scattered across various platforms, each offering only a partial glimpse into the effectiveness of their campaigns. This fragmented approach not only hampers their ability to gauge overall performance but also complicates decision-making processes, making it difficult to optimize advertising strategies effectively. At Choozle, we see agencies and brands going direct to publishers to save a few dollars on the average cost per thousand impressions (CPM). However, in doing so, they lose the ability to frequency cap at the individual or household level, leading to diminishing returns.

Create efficiencies with Consolidation and Frequency control

Where numerous streaming platforms and devices vie for viewers’ attention, Choozle provides advertisers with a centralized hub to manage their campaigns seamlessly. By consolidating various CTV inventory sources into a unified interface, Choozle streamlines campaign setup and management processes, empowering advertisers to reach their target audiences more effectively while gaining comprehensive insights into campaign performance.

According to data from eMarketer, 30% of marketers and publishers believe more efficient frequency capping would increase their CTV advertising spend. The good news? Choozle’s advanced frequency control features enable advertisers to strike the right balance between exposure and engagement. With the ability to set frequency caps and leverage sophisticated targeting options, advertisers can ensure that viewers receive ads in a timely and non-intrusive manner. By tailoring ad frequency based on audience segments and demographics, Choozle enables advertisers to deliver personalized and relevant ad experiences, driving higher engagement and maximizing the impact of CTV advertising efforts.

CTV and Data Tracking: A New Dimension

One of the unique aspects of CTV advertising is its ability to track data in a manner distinct from traditional digital channels. While CTV operates in a cookieless environment, it uses other mechanisms to track viewer behavior and engagement. Advertisers can gather valuable insights into audience preferences, viewing habits, and content consumption patterns through device IDs, IP addresses, and other proprietary tracking methods. This data enables advertisers to deliver more personalized and relevant ads, enhancing the effectiveness of their CTV campaigns.

Deciphering CTV Ad Performance: Understanding Measurement and Attribution

Measuring and attributing the effectiveness of Connected TV (CTV) ads is a powerful capability. Here’s a comprehensive elucidation of how CTV measurement and attribution function:

1. Delivery and Household Identification:

Initially, an ad is transmitted to the CTV advertising platform, targeting a specific household.
The platform identifies and catalogs the household’s IP address within an exposure file.

2. Device Connectivity Mapping:

A device graph calculates any additional devices linked to the same IP address within the household.
Devices such as mobile phones, laptops, and others used by household members are included in the exposure file.

3. Action Recording:

When a connected device within the household is used to perform the desired action prompted by the ad (e.g., visiting a website or making a purchase), relevant data is captured via a pixel and stored in an outcome file.

4. Result Attribution:

Matching IP addresses are identified by meticulously comparing data from exposure and outcome files.
These IP matches are attributed and documented, indicating that someone within the household completed the intended action directly from viewing the CTV ad.

A Clear Path to CTV Advertising Success

Ultimately, success in CTV advertising requires a comprehensive understanding of the challenges and opportunities inherent in the ecosystem. Integration with other channels is paramount for optimal outcomes, fostering a genuine omnichannel strategy. By expanding to three or more channels, companies can boost their order rate by a substantial 494%. By navigating the complexities of fragmentation, frequency capping, identity frameworks, and data tracking, advertisers can take control of CTV and unlock its full potential as a dynamic and effective advertising channel in the digital age.

Why Go it Alone?

Discover how Choozle, your strategic partner in navigating the modern media landscape, can help with strategic planning and precision media buying across CTV and other channels for a high-impact omnichannel approach. Schedule a conversation today.

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The Rise of Streaming and Audio Advertising Post Cookies

Choozle — Wed, 20 Mar 2024 05:46:08 +0000

In a world where cookies no longer reign supreme, savvy advertisers are charting new courses for success. In this blog, we explore the practical realities of this evolving landscape, spotlighting the growth of Connected TV (CTV) and audio platforms for reaching the right audience. From actionable insights to real-world strategies, discover how to seize the untapped potential of this cookieless frontier.

Video Streaming Market

Just how big is the video streaming market? According to Fortune, its current valuation exceeds $500 billion and is projected to expand further, reaching over $1.9 trillion by 2030. This growth is driven by factors such as increasing internet penetration, evolving consumer preferences, and the rise of 5G services, which offer faster downloads and smoother playback. As a result, online video services like Netflix, Hulu, Disney+, and Amazon Prime are expected to grow, supported by high-quality streaming, a diverse range of content including theatrical releases and digital sports, and the convenience of on-demand viewing.

Video Streaming Adoption

Back in 2020, Forbes estimated a global total of 1.1 billion subscriptions to online video streaming services. Fast forward to 2023, and that number has surged to approximately 1.8 billion. Remarkably, in 2024 99% of US households now have at least one streaming service subscription, a notable jump from the 52% reported in 2015.

Video Streaming Beats Linear TV and Cable TV

Streaming is now the preferred platform for television and video users in the US, capturing 36% of overall viewing time. Streaming services are rapidly gaining market share due to their diverse content offerings, which include original programming, licensed TV shows and movies, live sports, documentaries, and more, catering to a broad audience. Gracenote Global Video data reveals that streaming platforms offer 84% of the studio-produced video titles accessible to US audiences. Essentially, viewers have the freedom to watch what they want, when they want.

Cord Cutting and Streaming Demographics

A fascinating aspect of the transition to streaming that we’re witnessing is the evolving landscape of broadband ownership. The number of households cutting the cord and relying solely on broadband connections is on the rise. In the chart below, looking at the age group of 25 to 34-year-olds, a staggering 60% of households no longer have linear TV. This demographic represents prime earning and spending positions, emphasizing the importance of targeting them through CTV or alternative channels.

When examining different age groups and their engagement with streaming TV, we observe the highest penetration among 18-34 year-olds. Nonetheless, 35-54 year-olds are not far behind, and the 55+ age category approaches nearly 30%, and has continued to rise. This challenges common misconceptions about targeting the older demographic exclusively through traditional means and underscores the urgency for advertisers to adapt to the changing landscape.

How the Transition to CTV Impacts Advertisers

As traditional linear TV declines post-2025, the landscape for advertising placements is undergoing a transformation. The disparity in available placements between traditional TV and Connected TV (CTV) has become pivotal. As more brands pivot towards CTV, the crucial question arises: within the allocated budget, how many ads can effectively reach the target audience?

Viewing behavior significantly influences this shift. With people increasingly favoring streaming or internet-based linear TV, the inventory for traditional TV diminishes. This prompts considerations about pricing, capturing audience attention, and strategically placing ads.

In 2023, enthusiasm for Connected TV (CTV) took the spotlight for advertisers. The numbers speak volumes. By 2027, CTV ad spending is projected to reach a colossal $42.44B. This starkly contrasts with the current $24.6B figure, showcasing the immense growth potential within the industry.

What is Audio Advertising?

Audio advertising involves the promotion of products, services, or messages through auditory channels like radio, podcasts, or streaming music platforms. This method includes the development and delivery of audio ads tailored to reach specific audiences. These ads may manifest as concise commercials, sponsorships, or endorsements embedded within audio content. Leveraging sound, audio advertising provides businesses with a powerful means to connect with their audience, establishing it as a crucial element in a well-rounded marketing strategy.

Deloitte forecasts an increase in global consumer engagement with audio entertainment in 2024. This surge is expected to elevate monthly average podcast listeners to over 1.7 billion, monthly average audiobook listeners to 270 million, monthly average streaming music subscribers to 750 million, and monthly average radio listeners to nearly 4 billion.

According to an eMarketer, more than three-quarters of American internet users engage with digital audio formats like streaming music, streaming audio advertising, and podcasts at least once a month in 2024. Among these formats, podcast listenership is experiencing the most rapid growth, comprising approximately 26.9% of the US internet population.

5 Unique Advantages of Audio Advertising:

1. Immersive Connection:

Utilizes sound for a distinctive and immersive way to connect with the audience.
Creates memorable brand experiences through the power of audio.

2. Cost-Effective Production:

Lower production costs compared to video ads.
A cost-effective choice for businesses looking to optimize their marketing budget.

3. Highly Targeted Approach:

Allows precise targeting of specific demographics or listener interests.
Increases the likelihood of converting listeners into customers.

4. Versatile Integration:

Seamlessly integrates into various platforms, from podcasts to radio.
Provides flexibility in reaching a diverse range of audiences.

5. Precise Tracking and Analytics:

Capitalizes on the rise of digital streaming services.
Offers precise tracking and analytics for data-driven decisions.
Enables businesses to measure the effectiveness of campaigns and optimize marketing strategies.

The Bottom Line

As we navigate advertising in a cookieless world, the rise of streaming and audio consumption presents unparalleled opportunities for savvy marketers. From the explosive growth of the video streaming market, to the profound shift in listening behaviors, the potential for targeted and impactful advertising has never been greater. These trends span across all demographics, including the once-hard-to-reach older age groups, giving advertisers a wealth of possibilities to engage with all audiences.

Witnessing the transformative power of CTV and audio advertising, with its immersive connection, cost-effective production, highly targeted approach, versatile integration, and precise tracking capabilities, it’s clear that embracing these innovative mediums is essential for staying ahead in today’s dynamic marketing landscape. So, seize the moment, explore new strategies, and unlock the boundless potential of advertising in this exciting era of streaming and audio.

Interested in Having a Conversation?

Discover how Choozle, your strategic partner in navigating the modern media landscape can help with CTV and audio advertising. Schedule a conversation today.

Adam Woods

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Decoding California’s Privacy Changes: 5 Must-Read Updates for Digital Marketers

Choozle — Tue, 05 Mar 2024 06:42:46 +0000

Attention digital marketers and agencies: California’s recently updated privacy regulations are now in full effect. The California Privacy Protection Agency (CPPA) has signaled they intend to enforce them quickly.

Meet Ben Isaacson, Choozle’s Fractional Privacy Officer

When navigating the amended CCPA and its expanded Regulations, it’s critical for businesses to be clear about all their data uses and vendor relationships, and take necessary steps to meet the Regulations’ prescriptions. Here at Choozle, we’re privileged to have Ben Isaacson as our Fractional Privacy Officer. In this blog, Ben explores the 5 essential privacy-compliance requirements that are now enforceable in California.

Updated Privacy-Compliance Requirements

1. Privacy policies must be transparent and instructive. The Regulations illustrate how privacy policies should be a place of actionable instruction and not merely a restating of the text of the law. For example, to meet “notice at collection” requirements, businesses can link to a dedicated ‘collection’ section of their privacy policy, leverage just-in-time mobile disclosures, and other such strategic prompts. Privacy Policies must also inform consumers of not just their rights, but how to exercise them.

Under the CCPA as amended by the CPRA, consumers have the right to opt-out of data ‘sales’ and also from their data being ‘shared’ with targeted advertising providers. Additionally, if a website or mobile app collects ‘sensitive personal information’ such as precise geographic location (GPS), ethnicity or citizenship status, consumers must also be allowed to specifically opt-out of those uses. The privacy policy must state these (and all other consumer privacy rights) and mechanisms to exercise such rights.

2. Third party advertising opt-outs are through prescribed links and need to be ‘controlled’ by the Business. Businesses must provide opt-out links that post either a “Do Not Sell or Share My Personal Information” and a “Limit the Use of My Sensitive Personal Information” link (if such information is used). Instead of both links, businesses have an alternative option to reference a “Your Privacy Choices” link.

The link(s) must live in the website’s footer. The link(s) should direct users to specific, granular choices to opt out of targeted ads (aka; ‘cross contextual behavioral ads’) associated with third parties disclosed from visits to that Business website or app. For opt outs of the use of sensitive personal information, a Business may choose to make the opt outs granular and use-case specific.

To be clear; there is no requirement under California or any other state privacy laws to push a ‘proactive’ cookie consent banner to website or mobile app visitors, but many websites have chosen to do so as a best practice and simple way of providing user choices with targeted advertising.

However, we know from the CA AG’s enforcement examples that a Business must ‘control’ the opt-out, which means that websites or apps should enable a ‘one-stop shop’ mechanism where a consumer can opt-out and/or toggle their third-party advertising choices (such as through a consent management platform (CMP) ‘cookie banner.’)

Simply pointing visitors to the third party advertising service websites privacy pages or to industry opt outs like the Digital Advertising Alliance’s (DAA) opt-out from a privacy policy link may not be sufficient for compliance with these new regulations.

See below for more information on what to look for in selecting a consent management platform.

3. Websites must recognize ‘Opt-Out Preference Signals’ in addition to offering other opt-out mechanisms. Consumers may now be using privacy-forward browsers (eg. DuckDuckGo) or browser plugins (eg. Privacy Badger) to automatically broadcast their opt-out requests to all websites that may ‘sell or share’ personal information (under the CA or other state privacy laws). The Regulations confirm that Opt-Out Preference Signals like Global Privacy Control (GPC) are additive and not a replacement for the other designated opt-out mechanisms a Business must provide.

Every CMP should have simple options to enable these opt-out signals to now be honored, and to provide the user with a confirmation that their opt-out signal has been recognized. But note that many CMPs do not necessarily recognize opt out preference signals by default. Be sure to affirmatively enable your CMP to recognize and honor opt out preference signals, and to provide consumers with a confirmation notice that their signals are in fact being honored.

4. Your advertising services contracts should be clear about whether the entity collecting or receiving personal information is a ‘service provider’ or a ‘third party business’ processing data related to ‘sales’ or ‘shares’. It’s imperative for companies to designate in their commercial agreements whether they are a ‘service provider’ (or ‘processor), and include the corresponding prescriptive language surrounding data disclosures that restrict any ‘selling or sharing’ without specific written instructions. The Regulations explicitly state that if the prescribed language is not included in the contract that the entity may be considered a ‘Third Party.’

For every other advertising and marketing service that is not classified as a ‘service provider’, they may then be classified as a ‘third party’ [as long as they meet the ‘business’ threshold under CA law]. Third party businesses are responsible for complying with Do Not Sell or Share opt-outs and other privacy requests they may receive from their clients (e.g., through a GPC-enabled CMP).

For example, the California Attorney General has entered into settlements with both Sephora and Doordash for not providing these sale/share opt-outs related to their third party advertising efforts (Sephora was specifically cited for not respecting GPC).

5. The consent bar is high and consent uses are limited. The original CCPA did not define the term ‘consent’ and used the term haphazardly in describing when it must be obtained. The Regulations now clarify that valid consent must be informed and explicit, and details some scenarios when it may or may not be used.

The key takeaways from this are:

Overt, freely-given consent must be obtained when re-establishing a relationship following an opt-out, including for third party advertising.
Implementing intrusive or overly proactive consent banners that may be attempting to coerce, mislead, or interfere with their ability to use a website or app may be deemed a ‘dark pattern’ which may also be enforced against by the CPPA or AG.
Consent may not be forced through bundled agreements to terms of service, privacy policies, or other unrelated use purposes, or implied through tangential actions like closing a consent pop-up or continuing to browse a site.
The most critical use case for consent is with the collection and selling/sharing of children’s data under 16 years of age. This dramatically differentiates from the federal Children’s Online Privacy Protection Act (COPPA) that requires parental consent for childrens data under 13 years of age. The new CA requirement can be enforced against any website targeting teenagers that uses third party advertising services where a sale or share may be taking place. As a result, websites or apps that are either ad supported, or actively engage in advertising retargeting to teens are encouraged to use proactive consent–based approaches to share visitor information with third party advertising services.

The Bottom Line

To comply with the amended CCPA and its expanded Regulations, it’s critical for businesses to be clear about all their data uses and vendor relationships, and take necessary technical, presentational and contractual steps to meet the Regulations’ prescriptions. As California Attorney General, Rob Bonta, recently stated, “There are no more excuses. Follow the law, do right by consumers, and process opt-out requests made via user-enabled global privacy controls.”

Ben Isaacson

Ben Isaacson is a Principal at In-House Privacy. For more than 25 years, he’s been a leading privacy professional and trusted counsel. During the ‘Internet 1.0’ era, he was instrumental in launching the first self-regulatory guidelines for email marketing, addressable TV, and mobile marketing, as well as lobbying extensively for the CAN-SPAM Act as Executive Director of the Association for Interactive Marketing (acquired by the DMA). He then served as Experian’s global head of digital privacy for a decade, and then built/sold the first push notification filtering app/wearable platform. Ben was one of the first privacy professionals to get certified as a CIPP/US with the IAPP in 2005, and completed the CIPP/E after the GDPR came into effect in 2018. He is a member of the State Bar of California, holds a J.D. from the Thomas Jefferson School of Law, and a B.A. from the University of Kansas.

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Navigating the Post-Cookie World: A Comprehensive Guide for Marketers and Advertisers

Choozle — Sat, 02 Mar 2024 07:11:48 +0000

Google’s announcement to remove third-party cookies on Chrome by early 2025 has left many marketers and advertisers at medium-sized businesses wondering about the future of tracking, targeting, and measurement. While things will be different, this shift also presents an opportunity for collaboration on new and innovative approaches that can deliver significant returns. If you’re looking to thrive in a world without third-party cookies, check out this comprehensive guide that provides a path forward with strategies that you can deploy today.

The Origin of the Cookie

In 1994, at the age of 23, Lou Montulli, an engineer at Netscape, the company responsible for constructing one of the internet’s earliest widely used browsers, conceived the cookie. The motivation behind this invention stemmed from a prevalent issue on the nascent web— websites lacked effective memory. Each time a user loaded a new page, the website treated them as a stranger, hindering the development of fundamental web features we now take for granted, such as persistent shopping carts across various e-commerce pages.

Montulli explored various potential solutions before ultimately opting for the cookie, a decision he later elaborated on in a blog post. A more straightforward approach could have involved assigning each user a unique, permanent ID number, revealed to every website they visited by their browser. However, Montulli and the Netscape team dismissed this option due to concerns about third-party tracking of people’s browsing activity. Instead, they chose the cookie.

The Netscape team’s initial intention was for the cookie to facilitate the management of “state” within a single website. However, the evolving demands of the open web, primarily fueled by advertising, led to the emergence of technologies and tools like ad servers and site analytics companies. These tools played a crucial role in driving growth but faced the challenge of managing and communicating state across multiple sites, particularly for functions such as counting and frequency controls. This necessitated leveraging the cookie framework but applying it to the domain of the enabling technology, such as DoubleClick.

Understanding the Different Types of Cookies

Navigating the intricacies of online browsing and user interactions requires a grasp of the various types of cookies. These digital markers play a key role in elevating user experience, facilitating website functionalities, and providing valuable analytics for publishers and advertisers.

Let’s explore categories of cookies and unravel their respective functionalities in more detail:

Understanding the two types of cookies is crucial in navigating the dynamics of online browsing and user interactions. Cookies are designed to enhance user experience, facilitating website functionalities, and aiding analytics for publishers and advertisers.

First-party cookies: Website visitors willingly opt into first-party cookies. These cookies are crucial in collecting data for tasks such as counting page views and users. Publishers can then share this data with agencies or advertisers, enabling the delivery of targeted ads. Additionally, analytics tools leverage first-party cookies to gain insights into user behavior, contributing to a comprehensive understanding of website interactions.
Third-party cookies: In contrast, third-party cookies are small pieces of data created by a domain other than the one currently being visited. Frequently used for tracking and collecting information about a user’s online behavior across various websites, these cookies serve a broader tracking purpose. Third-party cookies play a significant role in providing insights into user preferences and behaviors across the digital landscape, contributing to a more comprehensive understanding of user engagement and interaction patterns.

The Five Dimensions of Third-Party Cookie Depreciation

The initiation of third-party cookie deprecation by Google holds significant and potentially severe implications for the media activities of medium-sized businesses (e.g. those without direct ownership of or access to market-level data sets or comprehensive identity graphs). This change builds upon actions initiated by Apple and Firefox, involving the mediation/blocking of third-party cookies, as well as security software that routinely deletes them after a specific time period.

The focus here is on third-party cookies, so for advertisers exclusively operating within “walled gardens” (e.g., Google, Amazon, Meta), the impact is less significant. Yet, for mid-market advertisers who have established more comprehensive “full-funnel” models of engagement and price-performance advantage, there exists a significant risk. The risk is heightened when they depend on infrastructures (DSPs/bidders, etc.) that are not linked to comprehensive, permissioned identity frameworks. It’s important to note that media buys using CTV are less immediately impacted as they don’t rely on third-party cookies.

The phase-out of cookies further emphasizes the divide between advertising technologies with abundant resources “have mores” (scale, data, AI investment cloud infrastructure) and those with limited resources “have lesses” (reliance on in-house solutions, closed infrastructure, and dependence on single supply-side methods). This depreciation expedites a transition, compelling mid-level enterprises to strategically align themselves with capabilities that offer flexibility for making informed purchases on the open web or within walled gardens. This alignment is crucial in accordance with performance and the economics of performance.

1. Liability and Compliance: Third-party cookie depreciation cannot be seen in isolation of the changing compliance landscape and the increased commercial risk related to data, identity, and permissions. The new wave of US legislation breaks away from the traditional position held in the industry that data is separated between digital and analog. In Europe, GDPR established a model where all data is at some point identifiable and therefore needs to have adequate notice, choice, and consent. This should be a key driver of how mid-level enterprises consider their overall solution model. The penalty for getting it wrong is both fiscal and reputational.

2. Transit Mechanism: The deprecation of third-party cookies disrupts the stability and signaling of the transit mechanism across the open web advertising model, which is crucial for targeting, communicating state (cookies enable writing name-value pairs for basic functions like counting or remembering the last item in a sequence, etc.), and measurement. To effectively address the challenges posed by cookie deprecation, mid-level enterprises must ensure comprehensive coverage of every aspect of their solution framework affected by cookies. For those utilizing a multi-touch attribution (MTA) model, it is vital to monitor the performance of audience segments and how metrics are trending.

3. Targeting: The elimination of third-party cookies, removes the ability to pass variables in real-time and have that information drive a reaction if it is required to be stored. It also eliminates the “handshake” between partners that “synch” data to support targeting models. The solution for this is to align with partners that have strong permissioned identity graphs and data stores, this supports better, more transparent models (e.g. retail media and access to the enterprise-level DMPs such as TTD or Amazon DSP). There will also be improved options in contextual targets. These will be adequate for some use cases, as they are today but often fail on a price-performance scale.

4. CTV: The current actions on cookies do not directly affect CTV, which is more household-orientated and IP-based. However, we believe this is more of a short-term gap as Apple’s Safari browser offers the ability to block IP in their settings, and Google is considering options in this area. Additionally, it’s crucial to note that all the streaming platforms require logins using email, introducing an element of user identification that may undergo changes in the future. Again, we believe the best remedy is to align with capabilities that connect to enterprise-grade solutions offered by Choozle.

5. Measurement: The biggest net impact to mid-level enterprises from cookie deprecation is measurement. Again this is particularly impactful to those advertisers that have developed (or are developing) integrated strategies that blend open-web strategies that may include directly sourced CTV, retail media, native with search social, and “walled garden inventory”. While the click will still be able to pass parameters that can associate traffic, we will see an overall degradation of measurement capability that is based on view-through or other associated measurement methodologies. This challenges a model that is arguably already over-invested in the last click (visible measurement). As measurement drives investment, audience planning, and decisions related to channels and tactics, addressing this issue becomes paramount. Mid-level enterprises must ensure their partners provide a comprehensive solution for this. The emergence of AI-based causal modeling is making solutions available at an effective cost and scale, and this capability should be a top priority for your partner.

Before you get too concerned, consider that the third-party cookie-matching rates, representing the percentage of cookie IDs synchronized between two distinct platforms, significantly vary among AdTech and MarTech platforms. Generally, third-party cookies aren’t very effective, with attribution accuracy hovering between 40% and 60%. Advertisers should see this as the right moment for a much-needed infrastructure overhaul. Necessity not only sparks invention but also helps overcome inertia.

Why is the Use of Third-Party Cookies Under Scrutiny?

The decline of third-party cookies in web browsers is due to the changing privacy landscape. While cookies are not inherently bad and are used by most websites to ensure a seamless experience for returning visitors, tracking individuals across the web using third-party cookie tracking is becoming more regulated. Governments and web users are demanding more privacy and transparency regarding their data, introducing new privacy laws worldwide to protect user privacy and secure their data.

Privacy Regulations and The Current Climate

The Network Advertising Initiative (NAI), established in 2000, functions as a self-regulatory body within the online advertising industry, primarily focusing on addressing privacy concerns associated with online behavioral advertising. NAI actively develops and enforces industry standards and best practices, promoting responsible data collection and usage among its member companies.

Additionally, the NAI offers an opt-out page, allowing users to manage their browser’s opt-outs from interest-based advertising. Although the NAI facilitates the page, participating members are individually responsible for configuring and honoring opt-out cookies. Users can utilize the page to identify companies engaged in interest-based advertising, learn about individual privacy practices, check their browser’s current opt-out status, and selectively opt out of interest-based advertising from specific companies. It’s important to note that while opting out doesn’t eliminate online ads, it ensures they are not tailored to user interests. The service employs opt-out cookies, and users should be aware that browser settings may impact this process. Furthermore, the NAI recognizes the evolving landscape of advertising technology and provides guidance on non-cookie technologies.

Notably, Safari, and Firefox, two major browsers, emerged as pioneers in championing user privacy by taking a proactive stance against the setting of third-party cookies, blocking third-party cookies in 2020 and 2017, respectively. Apple heightened its commitment to privacy with the Intelligent Tracking Prevention (ITP) feature, significantly restricting third-party cookies. Governments, notably the European Commission, echoed this sentiment in 2021 by proposing a ban on third-party cookies across all sites, prompting updates to the EU General Data Protection Regulation (GDPR).

Response to increased privacy concerns has been slower in the United States. However, specific states, such as California, have enacted comprehensive laws like the California Consumer Privacy Act (CCPA), granting consumers rights over their personal information.

Navigating the Evolving Landscape: A World After Third-Party Cookies

The elimination of third-party cookies signals a new era. Google’s strategic move to phase out these cookies on Chrome is driving a global shift, ushering in a host of emerging alternatives and possibilities. As we navigate this exciting terrain together, let’s explore the avenues shaping the future of digital advertising post the third-party cookie era.

1. Google’s Privacy Sandbox: Google is phasing out third-party cookies on Google Chrome, starting this year, following a two-year delay from its original announcement. It’s worth mentioning that the first stage of Google’s update, affecting 1% of Chrome’s global users in Q1 2024, has a minimal impact on US internet users. Globally, this amounts to approximately 30 million users, with roughly 1.5 million in the US. With a total browser usage globally hovering around 4.6B worldwide, of which Google Chrome represents 66%, an additional 3B people impacted by Googles elimination of cookies this year.

2. Universal IDs and Unified ID 2.0: The concept of Universal IDs has evolved as a strategic response to the limitations and privacy issues associated with third-party cookies within the digital marketing ecosystem. Historically, ad tech agencies heavily depended on third-party cookies, causing websites to become slow and buggy due to the necessity of third-party software to synchronize cookie information across platforms. Recognizing these challenges, industry stakeholders embarked on exploring alternatives to not only improve user experience but also to address privacy concerns.

In addition to this shift, the emergence of IDs for mobile has become noteworthy. It’s essential to acknowledge that IDs for mobile leverage distinct mechanisms, notably Mobile Ad IDs. This distinction is crucial in understanding the evolving landscape of identification methods in the digital marketing realm.

Considering these advancements, it is pertinent to incorporate this input into discussions surrounding the impact of Universal IDs and Unified ID 2.0.

Universal ID Definition: According to Forbes, a Universal ID is a single identifier that recognizes the user in the digital marketing ecosystem and allows the information associated with the user to be passed onto approved partners in the supply chain. Unlike third-party cookies, Universal IDs open up the ability to create and share an ID with first-party information for the needs of the entire digital advertising ecosystem while respecting privacy.

Universal IDs were introduced as a standardized solution, providing a single identifier within the digital marketing ecosystem. This identifier is assigned to each user, streamlining the transmission of user-related information to approved partners in the supply chain. Unlike third-party cookies, Universal IDs eliminate the dependence on third-party software for syncing, resulting in a more efficient and privacy-conscious system.

LiveRamp introduced the first universal ID in 2016 as an alternative to traditional third-party tracking. Following suit, The Trade Desk launched Unified ID (UID) in 2018, serving as a universal cookie aggregation tool.

To make ad campaigns more resilient in the future, Unified ID underwent modifications and is now known as Unified ID 2.0 (UID2). This updated framework prioritizes transparency, requiring consumers to consent to advertisers’ use of their personal information. With many publishers, advertisers, demand-side platforms, and data providers adopting the framework, the momentum for UID2 continues to grow.

3. Retail Media Networks: Retail Media Networks, one of the fastest-growing channels in the industry, introduces an intriguing model for certain advertisers. These networks have strategically aligned themselves with DSPs that boast substantial size while offering a more effective closed-loop system.

Retail Media Networks offer a lifeline by capitalizing on first-party data, steering clear of the challenges posed by the demise of cookies. The ascendance of retail media, projected to reach a valuation of $100 billion by 2026, is spearheaded by industry behemoths such as Amazon, Tesco, and Walmart. Collaborating with retailers provides brands with access to valuable first-party data, facilitating targeted messaging through the utilization of loyalty schemes and dynamic content optimization.

These platforms empower advertisers to glean insights into shopping behaviors, construct privacy-conscious audiences, and fine-tune advertising formats to boost sales. The evolving landscape witnesses Retail Media Networks extending their reach beyond onsite monetization, integrating various media assets like in-store screens and email databases into comprehensive marketing programs. Investing in offline campaigns emerges as a strategic move for retail media networks, affording them a competitive edge and long-term advantages in the face of privacy concerns and legal interventions.

Success in this dynamic retail media environment hinges on making data-driven decisions and seamlessly integrating retail data analytics into the decision-making process. While the digital advertising realm adapts to a post-cookie era, Retail Media Networks stand out as resilient and data-rich solutions for marketers.

4. Contextual Advertising: Contextual advertising, an evolving approach, involves placing ads based on the content of a website or webpage, a departure from the traditional reliance on user behavior. For instance, a sports equipment brand might showcase ads on a sports news website, ensuring alignment between the ad content and the site’s context. This approach respects user privacy while still facilitating effective targeted advertising. While contextual advertising is a dynamic and evolving approach, it’s crucial to recognize that it constitutes a single tactic rather than a comprehensive advertising strategy.

5; First-Party Data Aggregation: Companies are increasingly recognizing the value of first-party data collected directly from customers with explicit consent. Consider a subscription-based streaming service like Netflix, which utilizes user viewing habits to recommend personalized content. This data-driven approach enhances marketing strategies, providing tailored recommendations and ultimately improving the overall customer experience.

6. Seller-Defined Audiences: The concept of seller-defined audiences revolutionizes how publishers leverage first-party data. Imagine an online fashion retailer collecting data on user preferences, enabling the creation of unique audience segments. These segments, such as “avid sneaker enthusiasts” or “casual wear enthusiasts,” are then offered directly to advertisers, allowing publishers to play a pivotal role in crafting nuanced and effective advertising approaches.

7. Privacy-Enhancing Technologies (PETs): Privacy-enhancing technologies like data clean rooms are gaining prominence for secure data usage. Suppose multiple companies in the healthcare industry collaborate through a data clean room to analyze patient data for research purposes. In this scenario, individual privacy is safeguarded as companies derive insights without directly accessing each other’s sensitive information, ensuring compliance with privacy regulations.

8. CTV—A Bright Spot Among Third-Party Cookie Depreciation: While the demise of third-party cookies poses challenges for digital advertising, the consensus among many media outlets is that Connected TV (CTV) stands to gain significantly from this shift.

Despite the growth in CTV viewership compared to traditional linear TV, advertising in the CTV space has not kept pace. Nielsen reports that 38.7% of TV viewing is through streaming, but only 29% of all TV ad spending in 2023 was allocated to CTV, as per Insider Intelligence.

The unique advantage of CTV lies in its advertising ecosystem, which doesn’t rely on third-party cookies like traditional digital media. This distinction is expected to lead to an influx of first-time CTV brands or a surge in spending for some existing brands in the coming year. With that said, the true opportunity for CTV advertising lies in forming partnerships with direct supply sources, facilitated through collaborations with partners possessing well-established and compliant data strategies.

What’s Choozle’s Stance on Advertising in a Post-Cookie World?

While the IAB raises concerns about Google’s progress, many advertisers are waiting to see what happens. Fortunately, if you need guidance amid this major shift, Choozle is here to help. We view this challenge as a significant opportunity for the industry to collaborate for success for a strong open web.

Addressing the core challenge involves solving for five key actions:

1. Implementing Privacy-First Frameworks like UID 2.0: Once publishers achieve critical mass with opted-in emails, the industry needs them to provide this signal at scale in ad placements. Privacy-first frameworks like UID 2.0 facilitate secure interactions without third-party cookie matching.

2. Geospatial Data Drives Better Insights: Leveraging advanced technologies such as Geocoding, the conversion of addresses into geographic coordinates, brings a transformative edge to digital maps for retailers. This process revolutionizes the understanding of customer behavior and demographics. The resulting data not only supports precise geotargeting but also aligns with privacy requirements and legislative frameworks. This alignment ensures that the precision achieved serves both advertisers and the broader regulatory landscape. As a result, retailers can craft highly tailored marketing campaigns, reaping benefits that span from increased foot traffic to personalized messaging.

3. Enhancing First-Party Engagement for Advertisers: Advertisers, especially outside e-commerce, must improve strategies to authentically collect first-party engagement. Creating strategies to expand consumer interactions is challenging in non-e-commerce spaces like CPG, where retailers often intervene.

4. Ensuring Compliance and Security for Third-Party Data Providers: Third-party data providers must ensure compliance and security in collecting identity data.

5. Collecting Opted-In First-Party Data from Publishers: Many publishers and streaming content providers with logged-in experiences and scaled data are adopting paywalls and daily caps to incentivize email collection.

Amid this considerable shift, we recognize the magnitude of altering entrenched behaviors across tens of thousands of organizations. Choozle stands out by collaborating with both The Trade Desk and Amazon, leading companies with viable DSP solutions for a cookieless future.

Exploring Choozle’s unique position within the advertising ecosystem is valuable for those worried about the future of targeted ads and measurement capabilities. If you haven’t partnered with Choozle yet, ask your DSP about their plans to navigate third-party cookie depreciation. Keep in mind that apart from Google, only The Trade Desk and Amazon are the only players with the scale required to get major publishers and advertisers to the table to align support behind a cookieless solution that relies on user log-in data.

10 Questions You Should Ask Your DSP About Cookie Depreciation if You’re Not Working With Amazon or The Trade Desk

In the evolving digital advertising landscape of third-party cookie depreciation, it’s crucial to ask your DSP the right questions. Explore ten key inquiries, from assessing the impact on your current strategies to understanding innovative roadmaps designed to tackle the challenges of cookie depreciation. Your DSP’s stance on these topics and their ability to answer in a clear manner will reveal their readiness to help you successfully navigate this new era of advertising.

1. Impact Assessment: How will the depreciation of third-party cookies impact my current advertising strategies and targeting capabilities

2. Alternative Targeting Methods: What alternative methods or technologies beyond contextual advertising and first-party data methods does the DSP offer for audience targeting in a post-cookie environment?

3. First-Party Data Integration: How does the DSP support the integration and utilization of first-party data in advertising campaigns?

4. Retail Media Network Integration: Can the DSP integrate with retail media networks to leverage retail-specific audience data and insights?

5. Privacy and Compliance: How does the DSP ensure compliance with privacy regulations while still providing effective targeting options?

6. Measurement and Attribution: What changes can I expect in terms of measuring campaign performance and attribution in the absence of third-party cookies?

7. Cross-Device Targeting: How does the DSP handle cross-device targeting without relying heavily on third-party cookies?

8. Ad Fraud Prevention: What measures does the DSP have in place to prevent ad fraud, especially in a scenario where traditional tracking methods are limited?

9. Education and Resources: Does the DSP provide educational resources or support to help advertisers adapt to the changing landscape of digital advertising?

10. Roadmap for Innovation: What innovations or features is the DSP planning to implement to address the challenges posed by cookie depreciation in the future?

The Bottom Line

As we wrap up our exploration of the evolution and impact of cookies, it’s evident that the digital landscape is undergoing a significant transformation. From the inception of Lou Montulli’s invention at Netscape to the widespread adoption of third-party cookies and their subsequent scrutiny, we’ve observed the delicate balance between user experience, personalization, and privacy.

The imminent depreciation of third-party cookies brings forth both challenges and opportunities. Lingering concerns about the limited viability of digital advertising use cases are being addressed through the industry’s response, marked by innovation and collaboration.

Choozle, uniquely positioned in collaboration with industry leaders like The Trade Desk, Amazon, and other prominent retail media networks, stands as a guiding force in the evolving advertising landscape. As we navigate this uncharted territory, Choozle remains at the forefront, ready to assist advertisers and marketers in comprehending the complexities and seizing the opportunities of a post-cookie world. If you haven’t joined us on this journey, we encourage you to reach out for a discussion.

Martin Smith

Martin Smith is the Senior Vice President of Sales at Choozle. He has over 30 years at the leading edge of innovation in media, data and data technology on both the agency and client-side. He is a veteran of businesses in their growth phases including Apple, Audible, MatchLogic and the Lowe Group. Martin has led revenue teams and been a key driver in effectively supporting business transformations enabled by technology and the effective application of data. He’s passionate about supporting advertisers and their agencies to maximize their investments in acquiring and developing their customer relationships.

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Market Polarity Shifts: How Changing Buying Models Impact GTM Strategies

Choozle — Wed, 07 Feb 2024 09:02:28 +0000

In today’s business world, we’re seeing a major shift in market dynamics. The economy is splitting into two main groups – those who have more and those who have less. This change is affecting how companies operate and how consumers interact with brands.

This article looks at how this economic divide influences consumer behavior and how businesses can adjust their strategies to keep up.

According to OXFAM International’s Annual Inequality Report, since 2020, the five richest men in the world have doubled their wealth. Meanwhile, nearly five billion people around the globe have become poorer. This growing economic gap is creating more working poor and shrinking the middle class.

The Dawn of Economic Bifurcation

With every passing day, the chasm between “Haves Mores” and “Have Lesses” becomes more prominent. It’s a very global phenomenon, and as a result, it is playing out in many peculiar ways around the world.

At the same time, economic difficulties, such as global recessions, have made inequalities even more pronounced, leading economically burdened shoppers, or the “Have Lesses,” to seek local, budget-friendly alternatives. Prominent instances of this trend are the rising popularity of no-frills retail chains like Aldi and budget-squeezing practices like, say, buying dollar-store toiletries and cleaning supplies before you buy their more expensive cousins. Another emerging retail model that Harbaugh focuses on is the dollar store, where practically everything is $1.

The “Have Mores”

The favorable end of the current economic divide gives some consumers the ability to enjoy a sophisticated level of choice which, despite the pandemic, is reflected in their purchasing decisions across an expansive range of products and services. Our familiarity with the kinds of choices these folks are likely to make and the “signals of purchase” that restaurants and retailers who cater to this group utilize leads us to conclude that if they are choosing your product, you must be doing something right.

These consumers, essentially a segment of the population that we’ll call the “Have Mores,” are now influencing markets far beyond their seemingly small numbers and amounts that they’ve spent so far. They are also beginning to influence their would-be followers—people who would pace them if they could and now understand that if they could afford to, they would probably make the same kinds of purchasing decisions.

What Does it Take to Feel Rich in America

According to a Edelman Financial Engines report, 67% of Americans said they would need at least $1 million to feel rich, up from 57% a year earlier. Roughly 20% said it would take $5 million or more.

How Many People Fall into the “Have Lesses” Category?

A report, which is mostly representative of the U.S. population, from Freashlean has made it clear that a great amount of Americans (92.87%, to be exact) believe that the cost of groceries is far too high. What’s even more disturbing is that the number of Americans who hold this not-so-rosy opinion may be even greater: 50% to 66% not only think food prices are too high but also say they have been forced to respond to the nosebleed prices by purchasing lesser-quality ingredients.

Adapting GTM Strategies: Navigating Dynamic Market Realities

1. Offering a Variety of Products

To be attractive to both the “Have Mores” and “Have Lesses,” it is necessary to offer something to each group. It is important to offer products that those with money will think are worth the price because they are luxurious, cool, or trendy and that the budget-conscious will think are worth the price because they are attractive, high-quality, and dependable. However, when it comes to the product mix for these two types of stores, we also have to think about the types of things we want to stock and sell in order to capture the market share that we need in order to remain viable and competitive in the marketplace.

2. Digital Innovation and Accessibility

The digital revolution means more than just being online, and businesses have to get better at it. For a generation raised on the internet, you’d think we would all have a seamless experience of digitalness by now. Actually, no. Why? The current generation of businesses is grandly overlooking some transformational elements: personalized artificial intelligence; interactive online experiences; platforms that aren’t digital replicas but are instead authentically digital-first; and, optimally, a mobile e-commerce experience that’s readily accessible and simple to use. Consistency of innovation across these dimensions is how forward-thinking businesses aim to revolutionize digitalness and, by doing so, ARE revolutionizing it.

3. Tailored Direct Marketing

To know what the “Have Mores” and “Have Lesses” like, a complete approach is necessary. Businesses that want to hit on precisely what these folks favor have to figure out not only what drives them but also what makes them unique. Imagine you’re a casino resort owner and you’ve decided to do two segmented campaigns: one for the “Have Mores” and one for the “Have Lesses.” How would you go about figuring out what each group really wants? If you’re thinking “lifestyle differences” and are already pulling together “household income and spending behavior” and “values” to try to screen these groups, you’re on the right track.

4. Omnichannel Advertising

Advertising across all channels is a highly effective way to reach a wide range of customers with a consistent message. With omnichannel marketing, you can use every opportunity to show your audience what you’re all about. It’s an acknowledgment that today’s consumers interact with your brand across platforms and devices; they’re rarely using one or the other alone. Instead, they go back and forth between smartphones, tablets, desktops, smart TVs, and even (getting into the really futuristic stuff now) augmented reality and virtual reality headsets.

It is important for businesses to adopt an omnichannel digital advertising approach in order to reach consumers effectively on various online touchpoints. This means advertising on multiple platforms—be it social media, search engines, email, or any other viable, cost-effective medium—and doing so with a well-thought-out, integrated strategy that ensures brand visibility, engagement, and recognition. Figuratively speaking, it ensures that your brand message is not an island, but a reef that encloses a lagoon and provides a unified, immersive visual, and aural consumer experience that is strong enough to push the consumer toward conversion while still keeping them inside the experience.

The Bottom Line

The change in market polarity, which is driven by the divide in economic prosperity, has produced affluent “Have Mores” and cost-conscious “Have Lesses” as its primary personas. This significant societal shift doesn’t just influence the way businesses operate but substantially impacts the ways consumers interact with brands. As we have previously discussed here, the divide in consumer behavior along this economic axis is pretty stark and doesn’t bode well for those “Have Lesses” or businesses that sell to them.

Businesses must be agile. They must personally understand the nuanced preferences of each cohort. This requires marketing that is not only traditional but extremely personalized, all the way down to an individual’s chosen routes to purchase. Strategic diversification of product offerings is necessary to cater to both ends of the economic spectrum. Not all customers will respond to what is effectively a two-class system, but by any definition, that’s what we have in America. Indeed, businesses might find it an exercise in confusion. On the other hand, perhaps they should look at it as an opportunity to have even more conversations with an even more diverse customer base across a larger number of touchpoints—thanks in no small part to the Internet.

Are you still fragmenting your omnichannel planning and buying across multiple groups? How much efficiency could you gain if you unified your approach? Download our Omnichannel Advertising eBook, where every chapter unveils strategies that will elevate your brand and your 2024 marketing plan. The key to success lies in your hands – read the complete eBook now and chart your course toward marketing success in 2024!

Adam Woods

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Seen and Heard at CES 2024 with Choozle CEO Adam Woods

Choozle — Tue, 23 Jan 2024 05:39:36 +0000

Themed ‘All ON’, The Consumer Electronics Show (CES) 2024, produced by the Consumer Technology Association (CTA), has reclaimed its position as the tech industry’s epicenter. Gary Shapiro, president and CEO of the CTA, emphasizes the evolving landscape, stating, “Every company must become a tech company,” a sentiment echoed by the diverse array of exhibitors at CES 2024. In this exploration of the event, we delve into the numbers, hot topics, and key takeaways for retail, streaming, AI, and advertising, shedding light on the ever-evolving world of technology.

CES 2024 By the Numbers

As we reflect on CES 2024, the sheer magnitude of the event is apparent through the numbers that define its scale and influence.

2.5+ million net square feet of exhibits, 15% larger than CES 2023
4,300+ exhibitors, including 1,400+ startups
135,000+ attendees from 150 countries, regions, and territories
5,000+ global media and content creators
60% of Fortune 500 companies
250+ conference sessions with 1,000+ speakers

What were the hot topics at CES 2024?

The conference highlighted advancements in digital health, Generative AI, sustainability, gaming, vehicle tech, cybersecurity, the future of money, space tech, streaming, and identity solutions as Google begins to deprecate third-party cookies.

Personally, it was interesting for me to hear the widespread optimism around what 2024 has in store. Nearly everyone I spoke with is looking at much better growth in 2024 than we saw last year. Across the board, there was excitement about the potential of new solutions in the marketplace and the opportunities that would come with the tectonic shifts in our industry.

Top of Mind for Digital Advertising Professionals

The deprecation of 3rd party cookies.
Continued adoption of streaming television with massive shifts in viewership habits.
Persistent consumer demand for authentic brand engagement.
How media responds to the changing ways people make purchases.

Artificial intelligence (AI) Was Everywhere

CES 2024 showcased widespread excitement about AI, with major brands and startups unveiling new AI applications. The commercialization of AI emerged as a significant theme as innovators transitioned from data centers to user-centric and immediate edge applications.

The event featured AI chatbots for diverse uses, from cars and bikes to smart TVs and personal devices. While AI was a prominent topic, some mature tech companies focused on embedding AI into larger solutions rather than highlighting it as a single point of differentiation. Sir Martin Sorrell, CEO of S4 Capital, expressed optimism about AI’s impact on marketing but found AI-enabled products like smart refrigerators disappointing.

Concerns were also raised about generative AI enabling misinformation during the election year, prompting discussions on addressing risks. A bipartisan panel of U.S. senators discussed Congress’s 2024 priorities for AI, emphasizing transparency and data privacy. Startups showcased AI applications in fintech and analyzing patent data. The event highlighted AI’s role in spatial computing, with notable announcements from companies like Sony and Apple. Tech Futurist Cathy Hackl identified AI models as crucial building blocks for 3D-centric computing in VR and mixed reality headsets, marking 2024 as the “year of vision” for AI.

Technology Innovation in Retail

In the spotlight of Walmart’s CES 2024 keynote, CEO Doug McMillon unveiled the company’s vision as a “people-led, tech-powered omnichannel retailer.” This underscores Walmart’s commitment to technology innovation in the retail sector, distinguishing it from Amazon’s challenges in seamlessly integrating digital advancements with traditional retail. McMillon showcased Walmart’s dedication to aligning technology with human needs through initiatives like ‘Scan & Go’ and the ‘In Home Replacement’ service.

Accompanied by Microsoft Chairman and CEO Satya Nadella, the two introduced groundbreaking AI innovations, notably the generative AI-powered search function and the ‘My Assistant’ app. This collaboration emphasizes both Walmart’s and Microsoft’s leadership roles in defining the future of retail, highlighting cutting-edge solutions, and leveraging Microsoft’s Azure OpenAI Service for logistics and customer-centric technology applications.

There appears to be a huge challenge for the brands to understand how to allocate their precious marketing resources. In particular, a brand selling across multiple retailers must now enhance its understanding of how it collaborates with each retail media network. This involves navigating contracted minimums, strategically allocating dollars, and determining optimal spending, not merely from a channel perspective but also considering specific channels and networks.

Acceleration of Streaming and Connected TV (CTV)

This year’s CES saw a significant presence of streaming platforms, with Netflix returning after six years and Disney unveiling new ad formats for a more engaging and simplified consumer experience. Panel discussions, including “The New Streaming Formula,” emphasized the industry’s shift from broadcasting to narrowcasting, highlighting a focus on simplicity and tailored content.

Lisa Valentino, Executive Vice President, Client and Brand Solutions at Disney, emphasized the success of bundling Hulu with Disney+ and ESPN, meeting consumers’ preferences for a unified app experience. Discussions also explored identity solutions to enhance streaming ad addressability, especially with Google phasing out third-party cookies. Despite this, concerns were raised about the industry’s overall readiness for this transition, with some experts expressing that brands might be lagging in addressing cookie deprecation and privacy sandbox challenges.

Disney presented its latest research, Generation Stream, revealing that a significant majority of families (77%) engage in shared viewing experiences, encompassing specific shows, seasonal content, or sports. Despite streaming’s personalized nature, certain content genres consistently bring families together in a communal viewing setting.

For advertisers, the challenge lies in effectively targeting and measuring these co-viewing groups within family, friend, and household dynamics. This sharply contrasts mobile platforms, where a single user is typically assumed to be behind the screen. The challenge, therefore, is adapting advertising strategies to align with the distinct dynamics of shared streaming experiences.

Data-driven Creative is Now Essential for Marketers and Advertisers

One thing is certain: organizations and brands need to get personal to succeed now and in the coming years. The importance of data-driven creative cannot be overstated for advertisers and marketers. This method involves a deep analysis of various data points, including consumer behaviors, preferences, and demographics, to inform the customization of ad content. The core tenet of data-driven creative is personalization, where marketers craft dynamic and targeted creative elements, such as images, copy, and messaging, to resonate with specific audience segments.

Key aspects of data-driven creative include:

Audience Segmentation: Analyzing data to identify distinct audience segments with specific characteristics, preferences, and behaviors.
Personalization: Customizing ad creative elements (such as images, copy, and messaging) to align with the preferences and interests of different audience segments.
Dynamic Content: Creating dynamic ad content that can be adjusted in real-time based on user interactions, location, demographics, or other data points.
Testing and Optimization: Using data to conduct A/B testing and optimize creative elements for better performance, ensuring the advertising resonates with the target audience.
Performance Analytics: Monitoring the performance of creative assets through data analytics, allowing advertisers to make data-driven decisions to improve effectiveness.

Overall, data-driven creative aims to enhance the relevance and impact of advertising by tailoring content to the specific needs and preferences of individual consumers or audience segments.

The Growing Need for Outcomes in Retail Media

There was an excellent session put on by Skai presenting research they did with the Path to Purchase Institute about the state of retail media. My biggest takeaway was a comment from the panel around brands wanting to really understand the incremental return on advertising spend (ROAS) that they were getting across retailers.

Moving a purchase from one retailer to another doesn’t help the brand at all. The conversation is about the critical distinction between simply shifting purchases from one retailer to another and the more strategic goal of not only retaining customers but also acquiring new ones while incrementally boosting product sales. This strategic shift reflects a deeper focus on optimizing advertising strategies to drive meaningful business outcomes in the retail space.

Navigating The Evolving Media Landscape With Choozle

The most widely used vowels of the week during CES were AI. No conversation was devoid of it and many of the sessions centered on it. However, one of the best framings of its application at scale came from Walmart CEO Doug McMillon, “People led, tech powered,” reorienting us to think a little harder about how we use technology to serve people. This core tenant resonated with me as we’ve transformed Choozle over the last few years, making a tighter connection between how our technology is in service to our people and business partners and not the other way around.

We’ve seen the types of breakthrough productivity improvements that AI-infused solutions can deliver. Over the last 12 months, AI predictive features have improved our media yield by 25%, redefining the conversation on margin and non-working media cost.

Given we spend a lot of time in retail media these days, it’s exciting to see the continued convergence between search and programmatic and some of the innovative ways CTV is being better integrated. The growing adoption of retail media continues to drive consideration of outcomes-based media metrics against both brand and shopper spend. The acceleration in CTV adoption within this is further expanding this – something we’re actively addressing at Choozle.

Interested in Having a Conversation?
Discover how Choozle, your strategic partner in navigating the modern media landscape can help with strategic planning and precision media buying. Schedule a conversation today.

Adam Woods

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Maintaining an Effective Digital Advertising Presence During Economic Uncertainty

Katie Harker — Wed, 26 Jul 2023 04:51:38 +0000

2023 has been an economic wild ride for almost every industry. The Fed continued to increase interest rates, Russia and Ukraine are still at war, and banking has been full of volatility. Almost every sector is directly impacted by this, and digital advertising is no different, as brands and agencies may be considering reducing their ad spend or pausing it altogether.

Many brands have been tightening their approaches to stay afloat – and in a time of unpredictability, it’s common to see marketing budgets trimmed. That said, we’ve also seen the reverse, with many brands doubling down on ad spend or trying to keep things going at a steady rate. As we navigate the turbulence, what approach is best for the long run, and how can brands and agencies meet their goals in this current environment?

Stay The Road

Despite today’s business climate, there are plenty of reasons brands and agencies should continue their marketing initiatives. It’s not a far-fetched thought that new products will continue being developed and evolving offers will be available to consumers. If anything, it’s more important to relay your messages to key audiences but in ways that are reflective of the current social and economic situation.

A report from NTC Publications found that marketers who increase spending during recessions or economically volatile periods reap large share-of-voice (SOV) and affinity rewards in the long run. By increasing spend by 48%, brands can double SOV gains compared to competitors who increase their spend modestly.

These are massive insights – now, we’re not saying to dismiss your business’ financial standing or overextend when you really shouldn’t. But, it’s important not to jump to conclusions where marketing spend is axed out of the gate. By playing the mid- and long-game, your brand can secure a position at the front of the pack.

Insights, Strategy, and Messaging Considerations

Rather than start from a place of hindering constraint, consider a new marketing approach with fresh strategies and data-driven accountability – so you know every dollar spent goes as far as possible.

One of the first things we recommend to our clients is incorporating multi-touch attribution (MTA). This is a measurement technique that analyzes every touchpoint along the customer journey, helping brands and agencies understand which channels and approaches drive conversions.

As an industry, we’ve all gotten used to the immediacy or quick reports the typical large ad platforms provide. While these are incredibly helpful, they showcase bottom-of-funnel metrics. MTA stands as one of the strongest tools in understanding both bottom-of-funnel and top-of-funnel tactics, which are typically a bit harder to track.

Many ad platforms, CRM systems, and website analytics tools typically default their attribution model to last-click – or assign all credit to the final touchpoint before the intended action is taken. Typically tactics like Paid Search, Social, and Retargeting see the bulk of the last-click credit. But most people are exposed to a plethora of messages across channels and platforms, so assigning all credit to the last touchpoint doesn’t show the full story or highlight the role that awareness investments had in influencing action.

Having a better understanding of each component of a campaign helps with realizing what messaging resonates – or doesn’t at all. By analyzing how campaigns perform in real time, you can lean in on what drives the best outcomes and adjust your investments and strategies accordingly. The key here is realizing how your audiences react to specific interactions based on the current environment.

For example, a hospitality brand is looking to market vacations abroad. However, the recent rounds of layoffs across various industries might encourage many people to pause their ability to travel. With this in mind, the hospitality brand needs to adjust how they engage their audiences – in this case, they can evolve messaging to talk about unique or affordable activities and showcase how they can help come up with enjoyable experiences. Or, they can focus their marketing around social causes the company is passionate about – showcasing how they help make a positive impact on society. These interactions will pay dividends once the consumer lands that new job and is ready to invest in travel again. These broader and more supportive messages ensure the brand is top-of-mind for relevant consumers and help them have a better recollection of the services the travel company provides. Ultimately, it encourages the target consumers to revisit their services in the future.

Another opportunity is to paint a picture of your brand’s ethos through your messaging and creative assets during times of uncertainty. For example, a restaurant brand could develop an ad campaign around a cause they care about. While these initiatives don’t drive immediate conversations – that’s okay. In moments where consumer spending is down, focusing on broader social good or supportive messages demonstrate how companies can play a role in benefitting the world around them. A second-tier benefit is staying top-of-mind when consumers regain confidence in spending.

Even through times of economic uncertainty, agencies and brands need to consider marching forward confidently with their marketing initiatives. Doing so helps secure new levels of share-of-voice and brand affinity and also provides them an opportunity to showcase unique aspects of their mission. By using insightful analytics solutions like multi-touch attribution, they can also ensure more top-of-funnel strategies track toward key goals and long-term returns.

Katie Harker is Choozle’s VP Media and Operations. An experienced media planner and buyer, solver of problems, and driver of results, Katie works closely with client’s media execution and emerging opportunities at Choozle. When she’s not at work, you can find her skiing, playing tennis or volleyball, and uncorking a bottle of wine.

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