NEWSLETTER #149/ Feb. 10, 2019

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AD FRAUD HITS TV

 

Adtech turns everything to shit.

This week it was reported that 19% of TV impressions delivered by OTT platforms (I'll get to that in a minute) were "invalid." Invalid is a pleasant way to say fraudulent.

OTT is industry jargon (it stands for over-the-top) for TV programming delivered by apps over the web. Examples are Netflix, Hulu, Amazon, and YouTube TV.

 
 
 

OTT platforms are some of the fastest-growing ways people are watching TV, but advertising on OTT platforms is still a tiny component of total TV advertising.

There are basically two kinds of OTT platforms -- the ones you pay for monthly that don't carry advertising, and the ones that are free and make their money from advertisers.

As TV falls deeper down the rat hole of surveillance and behavioral targeting that web advertising has pioneered, the same fraudsters who are polluting the display advertising marketplace are now poisoning the OTT world.

It all starts with advertisers trying to game the system by not buying directly from sellers and instead buying adtech-enabled crap. Just as in display advertising, the cheap end of the behavioral marketplace is loaded with imaginary inventory that is sold to suckers for low prices. But the suckers can then show their bosses lower CPMs. "Look at the great prices we got for all these imaginary spots."

 
 

The Great Corn Syrup War Of 2019

Budweiser and MillerCoors spent the week in a pissing contest over corn syrup. It started in the Super Bowl with a Bud Light spot claiming that Miller Lite and Coors Light use corn syrup in their brewing process.

 

Then it escalated into print warfare when MillerCoors answered back with a full page ad in the New York Times. Then Bud rebutted with...oh, who really gives a shit? There aren't a dozen beer drinkers in America who are going to change brands over this baloney. The only people excited about this are corn farmers who have sworn off Bud for denigrating their glorious syrup.

And speaking of Super Bowl hot air, another thing beer drinkers couldn't give a flying shit about is wind power. "Hey, Bubba, you wanna brew? I don't know, Virgil, does it use wind power?"

Just for the record, I'd like to know exactly how much of the total energy Budweiser uses is derived from wind power? If it's more than 1% I'll eat a fucking Clydesdale.

 
 

Nest Of Vipers

There are too many people who don't care about privacy and don't believe that surveillance marketing is a threat to them. Here's a very frightening article - right out of a horror movie - taken directly from the Chicago Tribune that might change a few minds.

 

Arjun and Jessica Sud routinely use a baby monitor to keep tabs on their 7-month-old’s bedroom. Last month, they heard something chilling through the monitor: A deep male voice was speaking to their child.

“Immediately I barge into the room because I’m like, ‘Oh my God, maybe someone got in there,’” said Arjun Sud, 29. “The moment I walk in, it’s quiet.”

The couple grabbed their son, now fully awake, and headed downstairs. When they passed their Nest thermostat, normally set around 72 degrees, they noticed it had been turned up to 90. Then, the voice was back, coming through the speaker in a downstairs security camera. And this time, it was talking to them.

The voice was rude and vulgar, using the n-word and cursing...The Lake Barrington family’s Nest cameras and thermostat had been hacked.

“I felt like I (was) trapped in an episode of ‘Black Mirror,’” Arjun Sud said, referring to a television series that explores the darker aspects of technology. “All these devices you’ve put in there to safeguard yourself, to protect your home, your family, (are) now being used maliciously to turn against you.”

Nest users across the country have reported similar incidents in recent weeks, but the Google-owned company has insisted that it was not breached. Instead, Nest has said that affected customers could have done more to protect their devices.

Good job, Google. Blame the victims.

 
 

Publicis Stock Rocked

Agency holding company Publicis -- whose holdings include Saatchi & Saatchi, Zenith, BBH, Leo Burnett, Fallon, Starcom and SapientRazorfish -- took a beating this week when they reported worse than expected results. Their stock dropped 15% on Thursday, the biggest drop in almost 30 years.

 
 
 

The rest of the advertising sector was affected as ad shares tanked across the board.

The drop in Publicis' shares provided a very perverse delight to a jerk like me  because of the ungodly fuss they made last year about some wanky "disruptive" Artificial Intelligence gimmick called "Marcel" that was going to take them right to the top by making them...I don't know?... artificially intelligent?

 
 

You Can't Cheat An Honest Man

Last year it was reported that the "influencer" ecosystem was riddled with bullshit, and "influencers" were just buying millions of "followers" online to con clueless marketers.

 
 

Unilever, one of the world's largest advertisers, made a big fuss and said they "would stop working with influencers who buy fake followers" (AdAge). Yeah, right. A few years ago they were also quoted as saying they would pull out of online advertising unless it cleaned up its act. Still waiting...

Last week it was reported that "influencers" hired by Unilever's Dove brand had 25% fake followers. And always remember, the fraud that is detected and reported is only the lousy fraud. The good fraudsters go undetected.

 
 
 

Stop The Presses

Kudos to the NY Post for the greatest headline of the decade.

In three words they managed to tell two stories and give us a good laugh. Yes, it's just a double entendre, but to someone who's spent a lifetime writing lousy headlines, it's transcendent.

 
 
 
 
 
 

Don't Die Stupid

- ABOUT 25% of Americans have ad blockers loaded on their devices. This week Spotify told its users that anyone with an ad blocker would be 86'ed from their service.

 
 

- I GUESS I'm required to say something about this year's crop of Super Bowl ads. Compared to the game and the half-time show they were amazing. Five years from now the only spot anyone will remember will be Andy Warhol.

- SURVEY says: According to this piece in Forbes, "83% Of Consumers Believe Personalized Ads Are Morally Wrong." 100% of dumbass bloggers believe consumers have no idea what is meant by "personalized ads." Importance of this research? Zilch.

 

- TWO articles worth reading this week are Mark Ritson's commentary on Super Bowl advertising here, and Augustine Fou's piece on how surveillance marketing hijacked the internet, here.

- IT WOULD be remiss of me, and uncharacteristically modest, not to report that this week Laughing@Advertising was selected as one of the "Top Marketing Books of 2019" by the great Alan Hart at Marketing Today. Or, as the equally great Thomas Koch says, "If you don‘t read it, you will die stupid."

 
 
 
 
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