The data management element serves audience-related insight directly into DataXu’s targeting platform, which can also leverage other DSPs for buying purposes. Inventory sources run the gamut and criss-cross channels — from exchanges to supply-side platforms to video ad networks and exchanges.

Like other data management platforms, DataXu offers the ability to incorporate and manage first-party customer data with access points to third-party data providers (BlueKai, eXelate, Datonics, Rapleaf, etc.). Throughout campaigns, analytics data is entered into the system for targeting optimization. As the company does not run a third-party data marketplace, DataXu is citing the platform’s neutrality as an advantage (i.e., no conflicts of interest).

Unlike Turn’s DMP, DataXu’s data management functions are not a standalone product. However, as DataXu VP of Marketing Aaron Kechley noted, “the product is integrated, but open — so we will work with other DSPs.”

The company claims the new platform doubles campaign effectiveness and offers a threefold increase in data ROI. Clients using the DMP-integrated platform have reported up to 300% improvement in customer retention while reducing media costs by 60%.

The biggest challenge for CMOs is creating value from the flood of consumer data as everything goes digital,” said DataXu cofounder and CEO Mike Baker. “DX3 is a game-changer because it allows marketers to use their existing digital investments to discover real-time consumer insights that drive sales.”

The DX platform emerged from stealth mode at TechCrunch 50 in 2009; video and mobile RTB capabilities were introduced last year, while DataXu rounded out its offerings with the DX Social solution.

In addition, the platform will support in-app advertising for television app developers through the LG SDK and YuMe’s Ace for Publishers platform. In addition, YuMe will also offer developers inventory management, monetization and optimization capabilities. App developers will have their pick of a variety of demand portals, including YuMe’s Connected Audience Network.

The platform is integrated into all LG Smart TV HDTVs, Blu-ray Disc™ players, Smart TV Upgraders and other LG Smart TV products. In addition to support for display banners, video banners and in-stream video ads, the platform will be capable of serving newer units that are search-related or feature click-to-application call to actions.

“Even as consumer attention fractures, we offer brands a way to seamlessly reach consumers at every stage of interaction with the TV, and across all platforms and devices; and as the interactive TV market grows we expect to be the leader in delivering relevant advertising to consumers,” said YuMe CEO Jayant Kadambi.

In November, LG and Yume will run pilot campaigns in the U.S. with charter advertiser Toyota Motors U.S.A. and other brands; broader rollout to advertisers is expected in spring 2012.

ADOTAS

Well, come third-quarter report time, CFO and interim CEO Tim Morse — on the job for a few weeks after the unceremonial firing of Carol Bartz — had a great deal of tap dancing to do. In general, revenue was down 5% year over year ex-TAC (24% GAAP-adjusted) and net earnings dropped 26% YOY, but now display revenue had actually slipped. See, in the second quarter, global display revenue was still up year over year (5% ex-TAC); in third quarter, display revenue ex-TAC was $449 million, down from $448 million during Q3 2010 — a 5% drop YOY. GAAP display revenue was $502 million, a decrease of 2% versus the $514 million reported in the third quarter of 2010.

Morse played the dip off as “flat,” but it takes a blind man not to see an inflection point. With the premium inventory sales team running at full steam, Yahoo! cited the culprit this time around as remnant inventory. Morse said straight up, premium (guaranteed) display revenue grew while non-premium (nonguaranteed) revenue display declined. It appeared that CPMs for non-premium inventory sold on RMX had been sinking like the Titanic, but Morse suggested that an in-house tech upgrade would turn the decline around. Kinda weird considering that the department has been running around headless for a few weeks.

Morse’s statement is only one reason why today’s announcement that Yahoo! is buying audience targeting platform Interclick for $270 million ($9 a share, a 22% premium to the price of the stock at Monday’s close) is a bit of a surprise. The others are a bit more obvious — Yahoo! doesn’t have a permanent CEO and is undergoing a “strategic review,” while cofounder and ex-CEO Jerry Yang is reportedly seeking funds to take the company private, or a merger with fellow beleaguered portal AOL is being considered. Seems like a weird time to lay down $270 million for a tech purchase.

But it’s definitely aimed at sealing the leak in Yahoo!’s remnant display revenue and getting more money out of the vast amount of remnant inventory on its content network, which is only growing through deals like the one recently signed with ABC News. In addition, Interclick features its own network of publishers, and a sales team that will be moving over.

It’s the audience segmentation and targeting technology that really has Yahoo! licking its chops. Interclick will be bringing over its Open Segment Manager audience targeting platform as well as inventory optimization technology for boosting remnant inventory CPMs via audience segmentation with smarter data insight. Earlier this year Interclick introduced a video ad platform designed to illuminate the correlations between display and video advertising campaigns. Also, the company recently released the self-service Genome platform for audience targeting and campaign planning.

A source told The Wall Street Journal that remnant ad inventory is a $600 million a year business — is that it? Really? In theory — with a solid integration, which is no guarantee considering Yahoo!’s track record — the acquisition could not only stem the display revenue decline but seriously turn it around, as Interclick sounds like the kind of advanced data-driven targeting platform Yahoo! was lacking to clean up on its remnant inventory.

And Interclick kinda needed a hand too — the stock hadn’t rebounded to it’s all time-high of $8.94 (just short of the $9 offer price) since slipping during the big stock market selloff this summer. The company was reported to pull in $53 million in revenue this year.

“Having worked closely with Yahoo! for the past few years, we have a deep appreciation of the quality of the inventory that Yahoo! brings to market,” said Michael Katz, founder and CEO of Interclick. ”The combination of Yahoo!’s premium data and inventory with our platforms will create tremendous value for clients.”

So the real question is, what does this mean for RMX? I imagine we’ll start seeing a lot less Yahoo! content network inventory on it, but the will the exchange finally become useless?

ADOTAS –

“We believe the “tag” itself is an outdated method for collecting and sharing critical interactive marketing data,” said BrightTag founder Marc Kiven. “Through server-to-server integration with third-party providers… site owners now have the ability to send robust datasets in real-time directly to partners via the cloud rather than through legacy browser-based methods. This isn’t about making tags ‘fire’ faster — it’s about revolutionizing the way data is collected and shared so everyone in the digital marketing ecosystem is working better together and with better data.”

BrightTag is selling its ONE platform as a data flow system that is advantageous for both pubs and third parties. Pubs get better control over managing which third parties get what data when (also plugging up data leaks and keeping out data thieves) while the third-party collectors cut through the “data static” to get the meat, or rather the most relevant data for their goals. Oh, and consumers benefit too as tag loading and data transmission stop clogging up browser load times.

It’s a big step from BrightTag’s data rights management platform launched in August 2010 — that tool simplified the process of managing hordes of tracking tags and data transmission by giving publishers control over a single “BrightTag” with customizable data transmission instructions.

The ONE platform offers pubs and third parties complete transparency over data flow, and in real-time at that. The cloud-based tool can easily work complex configurations and is compatible with browser-based tracking tags.

However, don’t dare mistake BrightTag for a tag container system.

“The container approach does not scale; containers are just another way to encourage more third-party tags to be pushed through an already overloaded browser,”  Kiven said. “As browser-based tags continue to proliferate — either fueled by the advent of tag management solutions or from continued industry growth — both data collection and the site users’ experience become slow and unstable.”

ADOTAS -

If you haven’t seen one, the LUMAscape is a PowerPoint slide gone into hyperspeed and designed to illustrate the complex landscape of digital marketing. Mastered by Terence Kawaja from the LUMA Partners, the LUMAscapes have been designed for different areas of digital marketing such as display, search, mobile, social, video, commerce and gaming.

They seemingly cannot fit another company name on them without opting for agate type. It is inevitable that someone will close a presentation with a LUMAscape, leaving the audience to draw the stated or inferred conclusion that the digital marketing business is too crowded to avoid serious consolidation.

Let me cut to the chase—I love LUMAscapes. I love what they represent to me, which is the exact opposite of the oft-alluded-to consolidation. To me, a crowded slide with hundreds of companies all filling some kind of possibility in digital marketing is about as cool as the Sistine Chapel. It is a representation of how much room there actually is for innovation and value in the digital marketing business.

That’s not to say there won’t be some companies in this business that have a hard time finding their value proposition right now. It’s not to say that there won’t be some consolidation, especially if the economy stays flat. I would also argue, however, that not only is there room in the LUMAscape for more companies, there will be more companies expanding and starting up in the digital marketing space.

And the trends we’ve seen since the first LUMAscape was introduced in 2010 proves this with more and more logos being added to each revision and more areas are being mapped out.

I like the idea of talking about the LUMAscape from a different angle. Rather than talk about a consolidation of companies, it’s better to look at it from the angle of consolidation of tactics, especially when it comes to buying display media. For example, if Google acquired all 300 companies on the display slide, it wouldn’t change anything as there would still be 300 different ways to buy display media from different divisions of Google.

There has already been a consolidation of tactics in search as all SEM interfaces have campaigns, ad groups, keywords and text ads with 135 character ad units. What if other parts of the business adopted that simplified approach? What would be the universal way that people choose to target audiences?  By job title?  By income level?  By who they are linked to on a social network?  Or by the search term?

Obviously (and I admit my bias), I would argue that it is the search term that will become the De facto targeting method for display. However, my point is that we should look at the LUMAscape as a means for enacting a simplification of tactics over the proposed consolidation of companies.

So when you see one of those LUMAscapes over the next few weeks, I encourage you to look at the open spaces. Be impressed with the amount of companies that have taken digital marketing so far, so fast. Think more about the consolidation of tactics and what a universal approach would look like when it comes to audience buying and data driven advertising.

ADOTAS

But this year will be especially interesting as MediaMind was acquired by multi-channel marketer DG in July, which already owned ad platform Unicast and then acquired Eyewonder from Limelight Networks in late August to complete its “online media powerhouse.” So for the first time, campaigns from former rivals Unicast and Eyewonder are included in the nominees.

Today MediaMind announced the 2011 People’s Choice Awards Nominees:

• Personal PC Store – Crispin Porter & Bogusky, Microsoft Windows, Universal McCann
• Yellovator – Clemenger, Millipede, Yellowpages, OMD Melbourne
• Amazing You – Immerse Malaysia, Unilever, MindShare Malaysia
• Pernod-Havana Club 2011 – Isobar Denmark, Pernod Ricard Denmark A/S – DK, Vizeum Denmark
• Specsavers 2011 – Infinite Corridor@Annex, Specsavers, MEC
• White Collar – Glow Interactive, USA Network, Ignited
• Flip the Tortilla – Contrapunto, Gas Natural Fenosa, Media Contacts
• Inception – CBSi, Warner Brothers, Gamespot/CBS
• Assassin’s Creed: Brotherhood – Biborg Interactive, Ubisoft

You can review the entries and vote for your favorite here. But act fast as voting closes on Oct. 21.

As for attire for the actual event, this year’s bash is superhero themed, so attendees are encouraged to dress up as their favorite fighters of crime (or evildoers — MWAH HA HA HA!).

Since the party is at Crimson, I may dress up as the Crimson Bolt from this summer’s under-appreciated flick “Super” with Rainn Wilson and Ellen Page. It’s a real expectation-denying yarn about a cuckolded husband who receives a “message from God” to become a costumed vigilante. (Actually, in a wonderfully gross scene reminiscent of writer/director James Gunn’s last movie, comedy-horror flick “Slither,” sharpened tentacles slice open Wilson’s head so God can poke him on the brain.) Yes, it sounds a bit like “Kick-Ass,” but ultimately “Super” is more disturbing due to its gritty cinematography, unsettling imagery, graphic violence  and absolutely nihilistic third act — not for the feint of heart or those with easily upset stomachs.

It’s been 17 years and online advertising has grown tremendously; however the average CTR of banner ads today is only a fraction of a percent: a measly 0.1%. So how does one generate ad revenue in a world where online consumers have adapted to ignore banner advertising?

We must ask why the CTR of banner ads drop so much. This has a two part answer; banner ads are ignored, consciously and subconsciously, and when they aren’t, they don’t convert a high rate because the ads are not delivered at a relevant time. The solution to these issues is to reach online consumers when they want it and where their attention is. In-content advertising allows advertisers to reach this goal.

In-content advertising is much like the placement of products that you often see in movies and television. This advertising technique is contextually relevant and tightly integrated. It works for two reasons: consumers see and interact with these advertisements and they experience the advertisements when they’re actually looking for the information.

The easiest way to reach your viewer is with in-content advertising with link insertion. Link insertion allows users to scroll the mouse over a word that then pulls up a pop-up to link to the relevant site.

Kontera Technologies is one of the leaders in this technology field with a decade of research and development. Their technology is able to predict intent by understanding the meaning of the pages and how users interact with the site content. INTENTclick, part of Kontera and a company I work with, utilizes this technology while focusing on businesses and websites that have SEO driven making money or saving money content focused around purchase intent

You can read more about in-content advertising and link insertion in the eBook that
I recently wrote,”Content Monetization.” Also, please see “INTENETclick”: In-Text Advertising Secrets,” another eBook I recently wrote that dives into the new in-text advertising method using the popular company that I think works best, INTENTclick.

Xaxis is offering four ad units that can be employed in campaigns separately or jointly: classic In-Stream Video with its various rolls; Dynamic Content Distribution, which enables the syndication of branded content; an Ad Selector unit allowing consumers to choose the ad or product they feel is most relevant; and Social Share Activator, a branded video player that shoots for social engagement.

On the analytics side, metrics from the video platform will not only show advertisers the direct effects of a video campaign, but also its “attribution halo” to campaigns running on other channels.

More than 20 publishers and networks have already been integrated into the platfrom, including Sony Pictures Television, Auditude, Digital Broadcasting Group, Tidal TV and WPP’s own 24/7 Real Media.

“For the first time ever, we’re allowing advertisers to realize the same brand value that they get from a television campaign in the online video space,” explained Xaxis CEO Brian Lesser. “By aggregating and standardizing the broadest range of high quality online video properties within a single, comprehensive platform, we offer brands the ability to design and run online video campaigns with the same type of consistency and precision that they use for their television ads.”

From MediaMind: “Smart Trading Reduces Cost per Conversion by 58%”

Overview

For a U.S.-based Fortune 500 entertainment company, recruiting and retaining a large number of talented technicians throughout the nation is fundamental to meeting customer needs.

That’s why in Q1 of 2011, the company engaged the digital specialists at Bernard Hodes Group, the leading ad agency specializing in recruitment marketing, to develop a highly targeted online campaign to generate an ongoing stream of online completed applications.

The Bernard Hodes Group digital team developed an innovative multi- pronged strategy that included premium inventory on career sites, emails, AdWords, job sponsorships, and non-premium inventory via networks and exchange, the latter led by MediaMind Smart Trading.

Goals and Parameters

• Recruit job seekers with specific technical skills
• Online completed application = Conversion
• Hit below target cost per conversion
• Geo-targeting: USA

Strategy

To optimize reach and results for the non-premium buy, Bernard Hodes Group utilized networks and bought media from exchanges using MediaMind Smart Trading. Smart Trading is a demand-side platform (DSP) solution that allows clients to buy and easily manage media across ad exchanges.

Matt Luba, Senior Vice President at Bernard Hodes Group, oversees the client’s digital media planning, forecasting and performance. “Networks and exchanges play an increasingly important role in buying targeted media for our clients,” he says. “The MediaMind Smart Trading approach yielded great results. It outperformed all other buys, helping our client achieve their objectives while maintaining an impressive ROI. Smart Trading yielded the greatest number of conversions and hires, while producing the lowest cost per conversion and lowest cost per hire.”

Smart Trading was able to deliver dramatically superior results by every measure. Smart Trading averaged a cost per conversion that was 58% lower than all other non-premium buys combined.

Smart Trading’s advanced analytical and optimization technology and transparent pricing delivered unmatched ROI for the advertiser.

Conclusion

Advertisers and agencies are increasingly shifting budget toward exchange-based buys, in part because platforms like MediaMind Smart Trading enable strategic targeting to drive phenomenal ROI. Powered by a team of trading specialists, easy to manage for optimal performance, and designed for brand protection, Smart Trading enables agencies and advertisers to define, reach and engage an audience with exceptional precision and economy.

I am first to admit that there are display ads that are worth ignoring; however, this holds true for any type of advertisement. There will always be advertisements that fall into the best and worst categories. Rather than discounting the display channel all together, we should be challenging the advertisements themselves.

To ensure banner ads are set up for success, the following questions should be asked:

• What will they say? Key value offerings should be compelling and relevant to a target audience. The ads should communicate powerful brand-building messages.

• How will they look? The creative should deliver innovative brand experiences that are attention-grabbing and pleasing to the eye. Eyesores are not welcome.

• Where will they be placed? Strategic and premium brand environments are imperative. Publisher sites can make or break advertisements based on their content, credibility and overall value.

• How will they be communicated? Share of voice is incredibly important; advertisers should strive to have a strong, prominent voice/presence on a page so consumers can hear them.

• How many times will they be seen? Repetition is key. Increased ad exposure improves ad recall.

• What channels will accompany them? Banner ads can be used in conjunction with other ad formats and channels both online and offline to push consumers down the purchase funnel to a final action.

Beyond good advertising tactics, there are several studies that have proven that the pure presence of a display ad can have an effect on users, even from an emotional standpoint. This further validates the bogus banner blindness phenomenon. For example, an Online Publishers Association eye-tracking study found the following:

• 90% of participants noticed OPA ad units in the first 10 seconds of being on a webpage;
• 73% of participants who fixated on units after the first 10 seconds displayed a stronger emotional response to the advertising than to the rest of the webpage;
• 96% of participants paid attention to OPA ad units while naturally surfing; and
• 67% of participants returned to look at the OPA ad units after spending time elsewhere on the web page

According to the OPA president, “The findings show that OPA ad units are not only drawing attention back to the advertising, but are also generating significant interest and therefore are a very effective platform for brand marketers to deliver messages.”

While these results are extremely powerful, it is important to reemphasize the need for high quality, engaging ads that truly attract an audience. Advertisers should strive for strong connections, not just visibility.

The OPA findings also uncover another bogus theory: CTR is a good measurement for ad effectiveness. This historically low performing metric is often relied on as the sole indicator for ad effectiveness. A click does not determine an advertisement’s fate. More importantly, the lack of a click does not mean an ad has been ignored, similar to the banner blindness theory.

The ability to deliver an engaging and attractive brand-building experience is the true determinant of banner ad success. These types of experiences leave long, lasting impressions.