CPGs Make Data Inroads
CPG brands like P&G and Clorox are starting to crack the code on digital spending, according to a report from L2. CPGs are getting smarter about using data-rich channels like search, where they can capture intent. By bidding on cheaper top-funnel queries and letting retailers like Target and Walmart fight over the more expensive brand names, CPGs are decreasing the bid costs while increasing visibility. Programmatic is still key, but these brands are moving away from the long tail and buying higher-quality inventory boosted by ecommerce data from Amazon and other retailers. “Programmatic is still an important tool to reach our target consumers in an effective and efficient way,” a P&G spokeswoman tells AdAge. “Of course, we continue to optimize our programmatic approach.” More.
Personnel File
For the first time ever in the United States, the number of ad industry jobs is declining while the economy is growing. Bureau of Labor Statistics data show the number of ad agency employees dropped by 5,000 last year, and media-buying agency employment hasn’t grown since 2013, reports The Atlantic. The slowdown can be partly explained by the bureau’s taxonomy, since tech companies like Google and Facebook fall under “data processing” and not advertising. But automation may be a factor too. “With programmatic technology … companies can buy access to specific audiences across several publishing platforms at once, bypassing the work of building relationships with each one.” More.
Do The Math
Google and Facebook make up less than 5% of publisher revenue, according to a report by trade group Digital Content Next. That number has grown a hair since last year, the first time DCN put out its report breaking down digital publisher revenue sources. The report concludes the duopoly is not yet meeting an implicit promise to sustain the publishing community by “sharing the demand,” but publishers are left with little choice as alternatives like Twitter, Snap and Instagram require expensive creative that’s hard to scale. “The biggest surprise is how little has changed,” said DCN CEO Jason Kint. “You’re still looking at a situation where the best in class in news and entertainment isn’t being supported in a way it should be.” Digiday has more.
Viacom’s Digital Dreams
Viacom didn’t address the real elephant in the room – CBS – when asked about a rumored merger with its fellow Redstone family-owned media company during its Q1 earnings call Thursday. But Viacom’s CEO, Bob Bakish, pointed to acquisitions of the influencer marketing platform WhoSay and VidCon conference as evidence of Viacom’s push for scale, whether through M&A or digital partnerships. Although Viacom’s US ad revenue decreased 5% to $937 million, Viacom plans to triple view times on Facebook Watch and YouTube this year by emphasizing social video distribution. And WhoSay will partner with Viacom’s sales team and digital studio to power ad-supported video for social audiences. Earnings.
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This post was syndicated from Ad Exchanger.