Marriott is going to launch an advertising network (because, of course); CTV braces for ad fraud growing pains

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The 1% (no, not just 1%)

Hospitality and travel companies are following in the footsteps of others who have embraced ad revenue, including buy-it-now businesses, retailers and delivery startups…not to mention stores that have begun to transform any old distribution channel surface using digital screens. . (Ads on pharmacy fridge doors, anyone?)

The latest is hotel operator Marriott, which on Monday launched an ad network backed by Yahoo ad technology to target its own inventory using first-party site and loyalty program data, The Wall Street Journal reports.

Marriott, like grocery and retail-based ad networks, is limited as to where it will serve ads or apply first-party data. It starts with ads on the site and will later roll out video ads for hotel room TVs, which is a nice advantage over retail (up to Best Buy’s new advertising activity begins broadcasting spots on in-store demo TVs).

Companies are happily getting into the advertising business because it’s weak and, well, weak: low-margin, low-hanging fruit. Instacart can easily increase ad revenue, but also needs to hire more delivery people to develop the app.

“As the market expands, if you can get a percentage point out of the retail digital media market, that’s almost half a billion dollars in revenue,” said Insider Intelligence analyst Andrew Lipsman. , the newspaper.

It seems doable. But let’s be honest: most of these fledgling ad platforms will never reach 1%.

‘C’ to believe it

As CTV advertising grows, its shadow grows longer.

DoubleVerify Annual Global Outlook Report shows steady improvement in pre-bid ad viewability, attention, measurement and verification for CTV and video. But there’s still one flaw on the CTV bulletin: fraud.

The total number of ad fraud schemes increased by 70% year-over-year between 2020 and 2021 – and an “unprecedented amount” of these schemes targeted CTV and streaming video inventory, which together accounted for 140 millions of dollars spent worse than wasted.

It makes sense that CTV is more vulnerable to fraud than other digital channels. On the one hand, the proliferation of streaming services and content publishers has put a damper on tracking and transparency. (How can publishers filter out bad ads when they’re still struggling to count who’s even watched them?) Add sky-high CPMs for premium video inventory and you’ve got a fraudulent petri dish.

“The good news is that verification works,” says DV CEO Mark Zagorski. “But media quality is a table stake.”

In other words, serving legitimate ads requires more than just checking visibility.

Your database belongs to us

A big challenge for many social platforms is the siloing of fanbases. It can take years to build an audience on a single platform, even for experienced creators or professional influencers.

Meta has an easier time with this because Facebook, Instagram and its family of apps can easily transfer contacts and follower lists from one service to another. TikTok has some natural immunity because, unlike Snap, Twitter, Twitch, and YouTube, et al., it doesn’t rely on connections between friends or followers. Much of TikTok is made up of strangers talking to strangers.

But, The Washington Post reports, the creators believe that the platforms monitor whether they promote their presence on competing services – like a TikToker telling its fan base to also follow on YouTube and Instagram – and that this will cause them to be downgraded by the platform. original form. (Many creators use “algo language” code phrases to bypass almighty algorithms and create in peace.)

Small players, like a social network for photographers called Dispo, stand to gain from cross-promotion across all platforms. If professionals can turn strong audience numbers on Instagram, TikTok, YouTube or Snapchat into a consolidated following across all platforms, that would be a major boon for creators and an easy step for small social networks to help them reach the scale.

But wait, there’s more!

Mobile analyst Eric Seufert is launching a $10 million fund to invest in mobile advertising and gaming startups. [Insider]

TikTok boosts brand recall on TV. [Morning Brew]

Announcements who? Netflix could already be focusing on live streaming. [Deadline]

The case of an audiobook service in the subscription economy. [Vox]

Forget the metaverse, the game is the “real advertising opportunity”. [The Drum]

You are engaged!

Former 4A CEO Nancy Hill will lead Cleveland-based ad agency Marcus Thomas. [MediaPost]

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