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Google pledges $800 million to coronavirus relief, including Ad credits

Google announced in a blog post that it will be offering $340 million as free ad credits to small and medium businesses that have an account with them. It is committing more than $800 million which will be used towards a range of charities and to support initiatives to help those affected by the global pandemic.

Google CEO Sundar Pichai explained:

“As the coronavirus outbreak continues to worsen around the world, it’s taking a devastating toll on lives and communities. To help address some of these challenges, today we’re announcing a new $800+ million commitment to support small- and medium-sized businesses (SMBs), health organizations and governments, and health workers on the frontline of this global pandemic.”

Google’s commitment includes the following key areas:

• A $250 million in ad grants will be used to help the World Health Organization and other more than 100 government agencies globally to provide information about the pandemic.
• A $200 million investment fund will be set up that will support NGOs and financial institutions to provide small businesses with capital. This is in addition to the  $15 million in cash grants Google.org provides to non-profits to help bridge gaps for SMB’s.
• A $340 million in Google Ad credits to small and midsize business owners with active Google ad account over the past year. Credit notifications will appear in their Google Ads accounts and can be used at any point until the end of 2020 across our advertising platforms”, as mentioned on the blog.
• $20 million in Google Cloud Credits for academic institutions and researchers as they leverage Google’s computing capabilities and infrastructure as they study potential therapies, vaccines and identify new ways to combat COVID-19.
• Financial support and expertise to help increase production capacity for lifesaving equipment which includes masks and ventilators.

In addition to this, Google has increased the gift matching support program for its employees who donate to charities. Pichai said that employees from across Alphabet including Google, Verily and X, are

“bringing engineering, supply chain, and healthcare expertise to facilitate increased production of ventilators, working with equipment manufacturers, distributors and the government in this effort.”

Earlier this month, Verily, Google’s sister company launched a coronavirus testing screening website with 1,000 Google volunteers to test people with symptoms. It’s a significant commitment from the tech giant and growing contributions towards a social cause.

Over the past few weeks, we have seen major contributions for COVID-19 from Silicon giants like Apple, Facebook, LinkedIn, Twitter, Salesforce has also funded to relieve the economic stress amidst the global pandemic.

YouTube Shorts: Will it be Able to Capture TikTok’s Audience?

• TikTok is incredibly popular for lip-syncing and dancing videos.
• TikTok had nearly 1.7 billion downloads as of February 2020.
• Many have tried to imitate Tik Tok’s features but none could reproduce the success.
• YouTube is reportedly soon launching a short video sharing feature ‘Shorts’ which aims to rival TikTok but not as a standalone product.

YouTube was always the cool kid on the block with little real competition since inception. There are plenty of other video platforms like Dailymotion, Vimeo,  and Veoh that aren’t a threat to YouTube until TikTok came in. TikTok is a wildly popular app with over a billion downloads with Gen Z and recently witnessed a surge in its popularity during coronavirus quarantines especially with kids and young adults who are bored at home.  

Image Credit: Sensor Tower

Can YouTube overtake TikTok Audience and Popularity?

YouTube, a Google-owned company has been the most widely used video-sharing platform in the world for 15 years with 2 billion monthly users. Even though 81% of 15-25 years old using YouTube, it doesn’t have the short-form content. Therefore, it is eager to capture the younger audience segment who are crazy about short-form videos around music that makes Tik Tok a hit. As a result, YouTube is reportedly working on a new feature ‘Shorts’ that it hopes will make a dent on the surging popularity of Tik Tok and keep more people on the platform.

The website The Information reported that YT is working on its own short video feature ‘Shorts’ similar to TikTok operation within the YouTube app. According to the site:

“Shorts will include a feed of brief videos posted by users inside the Google-owned app and will take advantage of the video service’s catalog of licensed music, songs from which will be available to use as soundtracks for the videos created by users.”

MSNBC’s Dylan Byers additionally confirmed on Twitter shortly after The Information’s report was live. 

YouTube’s new features can have advantages over TikTok. For instance, it has extensive music licensing agreement in place which implies that there would be an array of music options to choose from short clips. It has a larger audience base, so influencers will find an advantage to stay over the platform as they would get access to reach more potential viewers. And lastly, YouTube has better monetization policies and systems in place which is a huge advantage for the influencers. 

If the service is easily monetized by the content creators, the associated advertising revenue could fund high-quality content in a short video, which can attract more viewers- a win-win situation for all. On the contrary, TikTok doesn’t offer a way to monetize videos for content creators and ad offering is in pipeline. 

Is YouTube Shorts different from other TikTok competitors?

Many established tech companies in Silicon Valley have tried to replicate the success of TikTok but in vain. Facebook tried Lasso in South America, a teen focused short video format app which has yet to gain traction. Instagram and Snapchat attempted to adopt some of TikTok’s features. Byte, launched by the founder of Vine witnessed some early success but is still young. However, none of the’ newly inspired TikTok apps’ have taken off the original.

YouTube has also previously replicated the feature that resembled Instagram stories in 2018 which was successful for creators increasing the subscriber base on average by 8% over those who didn’t use the feature.

The YouTube Shorts app release date is expected to be the end of the year. It would be interesting to see whether TikTok users migrate to YouTube Shorts and YouTube can capture some thunder from the rival. It will be exciting to see how things develop and as a result, TikTok develops a monetization system and comes up with ad offering.

COVID 19 Effect : How Could It Impact The Digital Ad Spend

The Great Recession was the lowest point in the history of advertising. The only time digital spend dropped in absolute terms was in 2009. However, according to the IAB survey of nearly 400 media buys and brands, 74 percent of buy-side decision-makers think coronavirus pandemic will have a larger impact on the digital ad spend than the 2008 financial crisis. The struggle against the ongoing coronavirus pandemic looks grim among the buy-side decision-makers.

Meanwhile, nearly a quarter of all respondents have paused all ad spend for the first and second quarters while another 46 percent have adjusted their media spend during the first half of the year as researched conducted by Interactive Advertising Bureau.

As quoted in Forbes, IAB President David Cohen said,

“This is what happens in times of crisis. Typically marketers will press pause for a moment, take a breath, assess the situation, replay and reevaluate.”

The COVID-19 crisis is going to have a material impact on the calendar year 2020. According to the report, the buy-side expects an increase in spending during May/June but no rebound for the final six months of the year.

The report suggests digital advertising to fair better than any other medium. Digital ad spends from March to June down by 33% compared to traditional media declined by 39%. Traditional out-of-the home advertising is highly affected by an estimated ad spend down by 51% for March and April and 41% for May and June. This makes sense considering people are home in self-isolation across countries, there would be fewer people to see billboards and digital displays.

With all the changes in the ad spend, 63 percent of advertisers are adjusting their messaging to focus on mission-based marketing and cause-related marketing. Meanwhile, tactical changes are also happening as a 38 percent plan to increase audience targeting and 35 percent plan to increase device marketing for OTT and CTV.

Media consumption is going to increase with this stay-at-home and work-from-home. The report also reflects that the crisis is going to hit the annual Upfronts in late April and May with Disney, Hulu, and Discovery pulling out as 73 percent of buyers said COVID-19 will impact their spending plans for 2020 and 2021. While 20 percent expect a decrease in their Upfront spends versus original plans.

Despite the bleak picture over the next few months, two-thirds of buyers are undecided for making any ad spend changes in Q3 and Q4 and 25 percent plan to make changes due to COVID-19. The IAB surveyed the marketers about the milestones they will be watching to calibrate their decisions. 65 percent said they will be watching the quarantine status while 49 percent are focused on the number of coronaviruses cases. Other milestones amongst the top five were business openings and closing (47%) and stock market (44%).

Speaking to Forbes, Sue Hogan, the IAB’s senior vice president of measurement expanded on the point,

“I would say that I think the optimism right now for the second half of 2020 is heartening,”

He further added,

“There’s definitely a pendulum swing in the minds of buyers to move from a pretty tight decrease in ad spend or pause entirely to what we hope will be close to planned by end of year.”

Brands Get Creative With Their Advertisements To Encourage Social Distancing

Who says Social Distancing can’t be creative? With creative advertisements, it surely can be!

• After Juan Delcan and Valentina Izaguirre’s Safety Match Art went viral, many iconic brands are getting creative with their advertisements to promote the importance of social distancing and creating advertisements to stay home during the coronavirus pandemic.

• As the situation around the world intensifies, the citizens of the world are called to understand and follow hygiene practices, self-isolation, and social distancing. Understandably, it is a challenging phase and including these behaviours in our day-to-day life isn’t easy.  Unfortunately, there have been cases of defiance and indifference. 

• Therefore, brands have stepped up to spread awareness on social distancing by altering the most essential element of their existence – Logos and slogans. While some consider it as a marketing gimmick and others as an incredible way to spread a vital message.

Whichever side you belong, take a look at brands like Audi, Fevicol, Nike and others spreading the message of “SOCIAL DISTANCING” on social media with their creative advertisements.

AUDI and VOLKSWAGEN

Held under the same ownership, Audi and Volkswagen tweaked their logos to promote social distancing messages on their social media accounts.

• AUDI

Audi took to Twitter to share a short video with a message “Stay at home, keep your distance, be healthy, support each other – we are in this together”. The post shows the interlocked rings of the luxury brand’s logo stretching out so it gets disconnected from each other to be four separate rings.

Keep your distance – stay together. Only together we make the difference. #AudiTogether pic.twitter.com/othOsjRRYA

— Audi (@AudiOfficial) March 26, 2020

• VOLKSWAGEN

Volkswagen also shared a similar video with a message “Thanks for keeping your social distance!” and separated the iconic V and W.

We are #Volkswagen. Thanks for keeping your social distance! #FlattenTheCurve pic.twitter.com/JeY27epjhl

— Volkswagen News (@volkswagen) March 23, 2020

MERCEDES BENZ

The automotive brand unveiled a logo on Instagram account designed by one of its employees Marcel Hobrath. The logo features an iconic three-pronged star implying to keep a safe distance from the outer circle.

https://www.instagram.com/p/B-XZizpC8DX/?utm_source=ig_embed

COCO-COLA

Coco-Cola is presently running its ad in New York’s Time Square which shows the usual interlocked letters are spaced out  from each other with a slogan reading “Staying apart is the best way to stay united.”

Before experts jump to any conclusion that the brand is taking advantage of the situation, Coco-Cola through its Coco-Cola foundation has pledged to donate USD 13.5 million to five non-profit organizations in Canada and the United States for those involved in helping the affected to the pandemic.

Image Credit: The Coco-Cola Company

McDonald’s (BRAZIL) 

One of the controversial logo changes from McDonald’s Brazil, which shows its iconic golden arches are pulled apart as posted on its Facebook page. Designed by ad agency DPZ&T, it explained that the distance between the customers and the company is temporary so that we can stay always together. McDonald’s is providing food through delivery and drive-thru.

It faced a backlash from consumers including Bernie Sanders, who tweeted about the company’s sick leave policy for its employees.

Image Credit: McDonald’s Facebook Page

IKEA

In Israel, advertising agency McCann designed IKEA assembly manual with a caption “Stay Home” showing a picture of the house with a key, lock and toilet paper.

Image Credit: Dezeen

CHIQUITA

The international provider of bananas and other fruits produce tweaked its logo on Instagram. It posted the logo without the iconic mascot and captioned the post saying she was “already home” and asked the followers “to do the same and protect yourself.” The social accounts of the brand are operated by Portugal-based digital agency Alice from the Young Network group. This post received positive feedback including heart emojis and claps.

https://www.instagram.com/p/B-E7kQjIj1D/?utm_source=ig_embed

ADIDAS

Sportswear manufacturer started a series #hometeam virtually to encourage everyone to be creative and fit while staying indoors.

Image credit: Money Control

MUCINEX

Mucinex created a series of informational ads promoting facts about COVID-19 to combat misinformation. The campaign promotes hand sanitization, maintain at least 6 feet distance, refrain from touching faces and debunks many myths. Each campaign directs people to visit website COVID-19facts.com run by the World Health Organization, John Hopkins and international experts.

Created by McCann New York and McCann Health New York in association with award-winning art illustrator Noma Bar, Mucinex’s campaign will run across all mediums to help calm people and provide the right information.

Image Credit: Money Control

NIKE

Nike didn’t tweak its logo but launched a social media campaign with a global roster of star athletes which includes NBA player LeBron James and golfer Tiger Woods. The campaign shows how these sports stars are practicing social distancing by “playing inside.”

Nike had to closed several of its global stores due to the pandemic. Many sports events like NBA and Olympics have been postponed or canceled. Earlier a logo was redesigned by Slovenia based creative director Jure Tovaljan with a catchphrase modified to “Just Don’t Do It” but the company opted to stick to its identity.

https://www.instagram.com/p/B-AguSsAL0o/?utm_source=ig_embed

MERCADO LIBRE

Argentina Ecommerce platform tweaked its logo from changing handshakes to elbow bumps.

Image Credit: India Television

FEVICOL

The world’s strongest adhesive product owned by Indian company Pidilite Industries tweaked its logo which showed two elephants pulling away from each other with a tagline in Hindi that means “For future bonding, maintain some distance today.”

https://www.instagram.com/p/B91G66rlS3q/?utm_source=ig_embed

Surely, this unique initiative of creative advertisements by brands can help to bring awareness to social distancing and encourage more people to adopt the practice.

AdLedger, Madhive Releases Study on Ad Tech Industry, Only 6% Satisfied with Current Digital Ecosystem

A survey by Industry Index suggests that just 6% of the industry is satisfied with the current digital advertising ecosystem. The survey was released by Adledger, non-profit research and development consortium developing the global technology solutions for the digital media in partnership with Madhive, a TV advertising solutions company.

More than 100 brands, advertisers and publishers were surveyed to understand the current and future state of adtech with only 6% are satisfied with the present ecosystem of digital advertising. Another 92% of respondents believe there is a need for an industry-wide revolution. Christiana Cacciapuoti, executive director at AdLedger said,

“Digital advertising is still suffering from the same issues of transparency, fraud and fragmentation. And it’s because we just keep slapping band-aids on a fundamentally broken system, when we need to be developing a new infrastructure that’s driven by innovative technologies.”

The figures come into light as the Australian Competition and Consumer Commission (ACCC) commences its inquiry into the adtech industry which it has described as ‘opaque’ and also calling for feedback from the industry. 

“The AdTech ecosystem absolutely needs to be changed,” said Alysia Borsa, EVP/Chief Business & Data Officer at Meredith Corporation. She further added,

“There is a lack of transparency which leads to fraud, which leads to low quality, which leads to poor performance. It’s a really bad cycle.”

The other findings of the survey include, 83% of respondents believe cryptography can be used to create transparencies and efficiencies, most often agreeing that cryptography could improve problems associated with fraud (66%) and the ability to track results (66%). And 72% believe we will see significant integrations in the next five years.

Adam Helfgott, CEO at MadHive said,

“Sooner or later, the industry is going to realize that this dysfunctional relationship has got to end, and the only way to fix it is with next-generation technologies,”

“And with blockchain and cryptography already weeding out fraud and solving similar issues on OTT, it’s only a matter of time till the industry stands together and overhauls the system.”

MadHive, TEGNA and IBM originally founded AdLedger to unite the advertising industry towards developing next-generation technology standards that solve the current issues in the ecosystem.

Google rolls back Chrome’s cookie security measure due to COVID-19

Google is temporarily rolling back a recent privacy feature ‘SamSite Cookie’  it launched with Chrome 80, to ensure stability to websites amidst the coronavirus pandemic. 

Justin Schuh, Director of Chrome Engineering said in the blog,

“In light of the extraordinary global circumstances due to COVID-19, we are temporarily rolling back the enforcement of SameSite cookie labeling, starting today.”

The SameSite policy was the change in how Chrome treated cookies. Before this policy, Chrome allowed more cookies including third-party by default. SameSite, however, has turned that default. With the release of Chrome 80 in February, Chrome began to enforce secure-by default handling of third-party cookies to improve privacy and limit tracking. 

Google was planning to roll out this change slowly for all the users during the rest of the year and closely monitor the impact on the web. The SameSite cookies primary role would be to prevent third party domains from using browser cookie files to track users as they browsed on different sites across the internet. At a higher level, it meant a website owner should set a third-party cookie as being okay or else Chrome would block it.

Online advertisers and web analytics firms were most impacted by the changes that migrated to other tracking practices after the announcement of Google’s SameSite cookies. However, many government sites, banking, intranets, and others are using third-party cookies in other contexts.

The disabling of third-party cookies can cause some sites to break – even if SameSite cookies roughly shipped to 1% of the Chrome users. Therefore, temporary rollback will ensure that these small numbers of users are not much impacted. Many major sites were prepared for this change but Google said it wants 

“to ensure stability for websites providing essential services including banking, online groceries, government services, and healthcare that facilitate our daily life during this time.”

Schuh further added that as they roll back enforcement, organizations, users or sites should see no disruption. As social distancing measures have been followed worldwide, reliance on online services has increased and any kind of disruptions can cause big issues especially if it is concerned with healthcare resources.

Google also said that they plan to resume the enforcement in the future and will give advance notice on their blog. This isn’t the only announcement that is affected by the outbreak. Google has also paused temporarily adding new features to Chrome and Chrome OS and focus on security and stability owing to adjustments in their work schedules. 

Tech Giants Set To Lose billions in Ad revenue because of Coronavirus

The coronavirus has spread to 175 countries around the world, and it shows no sign of a slowdown. The virus has effectively shut down all major events around the world and has a major impact on the ad tech industry. Ad spending is falling off the cliff thanks to the disruption caused by the pandemic – major tech giants like Twitter, Google, Facebook, and others are expected to face the brunt of the slump in terms of losing billions of dollars in ad revenue this year.

Why we care

The losses aren’t going to weaken the companies but will put a dent in the extraordinary growth which everyone has experienced over the years. 

Numbers speak louder

Cowen & Co. analysts estimate that the two internet giants together could see more than $44 billion worldwide ad revenue evaporate this year. They predict the following losses:

• Facebook: Drop of $15.7 billion, 19% down from the previous estimate.
• Google: Down by $28.6 billion, an 18% decline from the previous estimate.
• Twitter: Down by $701 million, 17.9% below estimate
• Snapchat: Drop by $977 million, 31.8% down from the previous estimate.

Global advertising revenue grows in the ballpark of the GDP rate. Therefore, the global economic slowdown directly affects the global advertising market.

The tech giants were forthcoming with the investors on the expected losses and here what they have to say.

• Facebook execs said in their blog post that the company has “seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of COVID-19.
• Twitter announced in the press release that the company is “withdrawing its revenue and operating income guidance for the first quarter of 2020, due to the growing impact of COVID-19 on the global operating and economic environment and their effect on advertiser demand.”

That said, Both Google and Facebook will continue to make profits even with double-digit revenue drops. Analysts think the largest tech companies could emerge stronger from the coronavirus crisis than ever because of their healthy balance sheets.

U.S. Ad Revenue Growth Forecasts, FY2020 

Image Credit: Axios Visuals

What is driving the news

All the advertising-based businesses are facing the COVID-19 risk but those who are dependent on the self-service advertising revenue from small businesses, which are now shut down will be highly affected in the short term.

As quoted in AXIOS, Vincent Letang, executive vice president and director of global forecasting for Magna Global, the media buying unit of global ad agency IPG said,

“In the first half of the year, digital media vendors will feel the heat. But I still think they will recover more strongly than traditional media in the second half.”

The tech platforms make their revenue by advertising on social media and search which will take a hit in the short term for two reasons:

1. They are self-serve which means anyone can buy ads through the automated platforms at any time without any contract. Therefore, unlike TV ad contracts, there are no policies in place and brands have to adhere to when pulling the plug.

2. Mostly the ads are purchased by small businesses. Letang expressed his views to Axios,

“Hundreds of thousands of small businesses who probably count for 70% of social and search, they will stop advertising for weeks as they are closed. For some of them, it will be hard to come back, as many won’t have the liquidity to start marketing.”

What’s the future

 Analysts expect overall ad revenue to go down by 4.4% excluding cyclical events due to the coronavirus impact on the economy. 

Growth in the digital ad market is dominated by big tech companies like Google, Facebook, Twitter, and Snapchat will emerge from the crisis strongly in 2021.

Magna predicts linear ad sales to decrease to 6 percent and digital media to grow 8  percent.

From Virtual Concerts to Classes, 9 Brands Respond To Corona Crisis In Their Own Style.

The rapidly spreading coronavirus is disrupting marketers including mandatory work from home, closing offices, cancelling events or tweaking advertisements. However, amidst the coronavirus crisis brands, media entities and others are taking actions to educate and inform the public about the pandemic while the world keeps its social distance.

Scroll through the article to know major actions taken by the brands as coronavirus has sent shockwaves across industries.

Kraft Heinz commits $12 million in money and food.

Kraft Heinz has committed to donating $12 million globally to ensure people across the globe have food in this crisis. The company will give $1.9 million in cash to hunger organization Feeding America in the U.S.A and provide $.4.7 million in products including Kraft Macaroni & Cheese, Heinz Gravy, Planters Nut Mixes, DEVOUR frozen meals to the food banks. They have also launched an internal campaign #WeGotYouAmerica for its U.S plant employees as they ramped up the food production to meet the consumer needs.

In the U.K, the company is partnering with a charity Magic Breakfast to provide 12 million healthy breakfasts to needy school children. In Canada, the company will make donations to the Food Bank of Canada which includes 100,000 boxes of KD/Kraft dinner.

CEO Miguel Patricio said,

“This donation is an immediate and impactful way we can help our neighbors in need around the world and help fill this critical gap.

Varsity Tutors launches Virtual Classes

The edtech company released a free product called Virtual school day for parents and teachers as schools are closed due to the coronavirus pandemic. It offers more than 20 hours of live, online classes in a variety of core subjects for students from kindergarten to 12th grade.

The Chief Marketing Officer Adam Weber said,

“We have 40,000 tutors and hundreds of thousands of students, and the vast majority of our business is done virtually.” 

It offers as basic as maths and science to high enrichment courses such as Science of Pandemics and Stock Market Crashes.

Snapchat rolls out mental health tool “Here for You”

Amidst coronavirus spread, Snapchat rolled out mental health tool “Here For You” to help users who might be feeling anxious or stressed over the pandemic.

The company said it has added a coronavirus-specific section to the tool “that will provide Snapchatters from the Ad Council, World Health Organization, the CDC, Crisis Text Line, NHS, and other partners who are creating content on anxiety specifically related to coronavirus.”

Image Credit: The Verge                                                                       

 Free Services by Dish tv and Pop Sugar

Dish network-owned TV streaming services ‘Sling’ is offering a selection of content free to the viewers. This free service ‘Stay in and SLING’ is for the significant number of Americans who are stuck home due to the coronavirus outbreak. 

Meanwhile, Popsugar is offering its paid app for free for a foreseeable future that features 5000 fitness classes.

 One Medical offers a virtual care

The healthcare provider One Medical offers 24 x 7 virtual care to its members amidst coronavirus tension. It has added Coronavirus related questions to its app “Treat Me Now”. As on March 12, the company stated there is an 82% increase in video visits and 30 % consulted online that reduces the burden on the hospitals.

Hyundai revives Job loss Protection

As coronavirus is increasing rapidly, the economy is sinking. (Read how it is affecting the digital advertising industry)It is giving a challenging time to automobile companies who are facing low demand for big-ticket items like cars. It has revived the recession-era program “Assurance Job Loss Protection” that assures to make up to six months of payments for drivers who lose their job or have purchased between March 14 to April 30.

The CEO of Hyundai Motor North America stated in a press release,

“Bringing back the job loss protection program in this unprecedented time will allow our customers to have one less thing to worry about if something unexpected happens to their employment status.”

Dickey’s Barbeque Pit starts Contactless Delivery

Dickey’s Barbeque Pit launches a contactless delivery option for customers who order through the website or app. The delivery orders will be pre-sealed to avoid any tampering.

The company said,

“Guests who order Dickey’s for delivery can have peace of mind knowing their order has been carefully prepared by a certified Pit Master and sealed prior to delivery.”

Facebook pledges $100 Million for Small Businesses impacted by the coronavirus

In response to the coronavirus outbreak, Facebook has concentrated on fighting the spreading of misinformation by offering free WHO ads and banning false cures. It has pledged to invest $100 million in 30,000 small businesses affected by the pandemic in 30 countries where the employees work and live. The financial assistance will be in the form of cash and ad credit. In a Facebook post, Sheryl Sandberg shared,

“Small businesses are the heartbeat of our communities, and many of the people who run these businesses are heavily affected by the crisis – especially as more and more people sensibly stay home.” 

She further added to create a virtual training to support business in this new and unsettling environment through its e-learning platform Blueprint. It will also give a $1000 bonus to all the employees of Facebook. 

Why Outsourcing Ad Ops Makes Most Sense For Digital Advertising Companies!

Outsourcing is now a global phenomenon which allows companies and individuals to manage their work more efficiently and effectively, as technology has evolved over the last decade and one of its most powerful tools that we have got is The Internet. Smarter companies regardless of their size these days in digital advertising, marketing, or the publishing space have adapted to this noteworthy trend to outsource their ad ops, or Digital Media operations as we call it, to offshore countries like India.

Outsourcing advertising operations (ad ops) is a very strategic and game-changer move by companies to augment their core competencies and to have a competitive advantage. There is a critical factor that you as the business owner or the stakeholder should consider while choosing the right outsourcing partner.

Here are 12 reasons (10th is a must-read) on why you should consider before you start your Digital Media operations outsourced-

12 Reasons why Adops Outsourcing is best:

1) Increase effectiveness and efficiency:

Outsourcing operations do save your business, in the long run, it brings in a dramatic increase in the effectiveness of business operations and helps the organisation focus more on its core competence and in turn help increase revenues and get more sales efficiently. 

2) Expert Resources:

You get access to industry experts with the right amount of skill set and higher-level talent from around the globe, a critical factor for mid to high-level agency has digital marketers and publisher with advance level knowledge, a well-reputed outsourcing agency with multinational operations would have resources well versed with global trends and changes. New Publishers, on the other hand, get access to top spending buyers (advertisers) via outsourcing agencies Network, which might lead to high revenue generation through direct buy deals.

Image Credits- On Audience

3) Flexibility and Control:

As a manager of an advertising campaign you now can focus on innovative strategies and techniques while the offshore partner implements those strategies. 

4) Trackability:

With offshore operations, one of the key challenges publishers and agencies face is unable to micromanage task, an ideal outsources agency should implement daily activities effectively and with Reporting and time trackers and an open line communication with the outsourcing team will help achieve a higher level of transparency.

Image Credits- Datatoma

5) NO training required:

With constantly changing technology, it’s essential to be updated with upcoming technology and trends, Companies allot a lot of their resources to providing training employees and which could be saved and with a outsource partner, You now don’t pay hefty fees for training or Reserve resources. For eg, the latest development in the digital advertising world is the blockchain, and it is disrupting the industry as we know it. 

6) NO overhead expenses:

There aren’t any overhead expenses, you now don’t pay for office space, travel allowance, its infrastructure, no government permit, no legal obligations.

7) On-demand (plug and play):

Global and reputed outsourcing companies often offer service on an hourly basis, Weekend Support, Backup Resources and on-demand, so you pay only in need or at times you pay only on an hourly basis, which is a huge bonus too small to mid-level publishers and advertisers, Some outsource companies like ADscholars provide service on performance-based campaigns (for instance, you pay on CPL, CPA, CPI or CPC basis)

8) No Human Resource:

Companies need to invest nor worry on HR activities like salary slips, health benefits, employee benefits, sick leave and vacation leave management, unemployment insurance, company perks nor annual travel fares etc, which are often the most tedious and non-productive work. 

9) Feedback and Technical support: 

A process-oriented outsourcing company with a dedicated technical support team, who are well versed with all ads platforms and capable of handling any discrepancies to make sure there is the flawless execution of campaigns.

10) Operational cost:

Global outsourcing job on average are 33% cheaper, which is the bottom line of any business or what some measure as the key health indicator of any business, i.e, Operating cost. it goes without the saying that outsourcing marketing operations are effective means to reduce the operating cost while maintaining a high level of professional standards.

 11) Pay on Demand:

With an onboard of every new client, agencies and advertisers have always struggled with getting the right resource available at the right time.

 12) Competitive Advantage:

With a Smarter move of outsourcing your Ads Ops, Companies would have that extra edge over a competitor on pricing and with more business and more dollars in the bank, Companies growth is inevitable.

To conclude, if you are an agency or an advertiser or a publisher irrespective of your size outsourcing your Digital Media ads operation will help you get access to experts with experience of handling multinational assignment at a pocket-friendly cost, if you still are unsure or have any questions of outsourcing your jobs effectively you can reach out to ADscholars, We will help you determine what works best for you and can give you more bang to your buck. 

ADscholars is one such company, a digital 360 company with a bunch of digital enthusiasts with varies skills in marketing and advertising operations, started by ex-google personnel and 5+ years of experience in the digital landscape, 

REAP the Benefits of Outsourcing Digital Media Operations

We outsource your Digital Media ads operation, while you focus on your business. Let’s talk at marketing@adscholars.com.

Evolution of Digital Advertising: Happy 25th Digital Advertising And Many More To Come

“ We have the technology, finally, that for the first time in human history allows people to really maintain rich connections with much large numbers of people.” -Pierre Omidyar

The medium which has genuinely changed the landscape of advertising is the internet. It is the single biggest event in the past two decades that has truly revolutionized the ad viewing experience. Considering the high volumes of digital advertising, it is surprising to see how young it is and far it has come. Let’s understand the exponential growth of the internet advertising market.

At the beginning of 90’s the investment in digital advertising was zero. But over the years it has increased multiple-folds and total ad spending worldwide in 2019 will rise by 17.6% to $333.25 bn. 

                                               Image Credit: eMarketer

Even though the journey of digital advertising has been short but quite intense. In the last 25 years, a key factor in the rapid rise of digital advertising is technological innovations. From banner ads to artificial intelligence, digital advertising has made an eventful journey to deliver the right content to the right potential customer at the right time. But how much has it evolved over the years? Let’s take a trip down memory lane and explore the evolution of digital advertising.

The Advent of Digital Advertising

When computers were introduced in the 1970s, it was a simple device to exchange e-mails and digital information. Little was known, that it will have such a huge impact on digital advertising. Many marketing pioneers perceived it as a big business opportunity as the number of connected people grew. Within a few years, we witnessed different types of ads that connected with the audience.

In 1995, the total number of internet users was 16 million worldwide and subsequently reached 558 million in 2002.

• The Banner Era (1994-1996):

The first online advertisement appeared in the year 1994 marking the start of digital advertising. The oldest and first online banner ad by At&T appeared on Hotwired magazine with a run time of three months for a price of $30,000. The ad produced click-through rates of 44%. Following the success of AT&T, online display ads became popular and advertisers were looking for ways to better target ads mostly bases on consumer demographics.

From the early start, advertisers were aware that internet advertising is different from traditional advertising. The businesses began to comprehend that messages through email are cost-effective than traditional advertising. The internet became a playing field and investors enjoyed the novelty factor of it.  It was a lucrative business so many entrepreneurs, investors, and advertisers started investing in this money-making machine.

Meanwhile, in 1995, Yahoo was launched and became the primary search engine. In its heyday, it charged up to $30 to $100 to run the banner ads. Back then, advertisers were required to provide the standard 468 x 60px banner ad for online campaigns. (see below)

                  Image Credit: 1st Webdesigner

In the same year, one of the first ad-serving technologies ‘Double Click’ was launched with an intent to track the performance of the ads and ROI on it. In 1997, Pop-up ads were invented to gain the attention of ad-blind users but soon it became a bane of online advertising that led to pop-up ad blockers.

                                          Image Credit: 1st 1webdesigner

• Channel Era (1999-2000)

This period saw the rise and fall of online advertising. 

The web was expanding rapidly and the number of websites was increased day-by-day. The year 1998 saw the birth of the Google search engine– a player to this day dominates the digital advertising industry and revolutionized advertising forever with the launch of its ad system ‘Google Adwords’ in 2000. The main objective of Google Adwords was sponsored search experience that didn’t undermine the quality and relevance of search results through the Google Quality Score model which is still used today. 

At the same time, ‘Mobile Advertising’ made its debut.’

Online advertising was at its peak in the late 1990s and investors were investing in millions in dot-com startups. $8.2 billion were invested in online advertising between 1995 and 2000. 

In mid-2000, the first-ever code was written for Adblocker which led to the beginning of a battle between publishers and adblocking. In 2002, Google revamped Adwords, introducing the option to advertise using the Pay-Per-Click (PPC) model. The year 2003 and 2004 marked launches of two prominent platforms LinkedIn and Facebook respectively. Exactly, one month after the launch, Facebook delivers its first advertisement in the form of banner ads called ‘Facebook Flyers’.

However, mid-2000  witnessed the biggest downfall as the dotcom bubble bursts. The huge influx of money that created the online advertising bubble began to dry up and the value of internet-based companies was decreasing. The stock market collapsed leading to recession. Many companies’ stock prices fell sharply and others shut down. 

                                             Image Credit: 1stwebdesigner

The only company that survived the dotcom bust was Google who took the opportunities that it had to offer in their stride and filled in the space left by the players.

• Social Era (2005-2008)

After the bubble burst, internet advertising saw a decline except for search engine technology. The highly efficient and dependable search engine technology market grew to USD 2.3 billion in 2003.

Meanwhile, in 2005 YouTube- the world’s largest video advertising platform made its debut and in the following year, Google purchases YouTube for $1.65 billion. The social network brought a new form of customer participation. It gives you the freedom to like, share or rate information. YouTube offered companies to promote their product and services on the most valued media platform by consumers ‘Video’ without any big investments.

In 2006, Facebook introduces sponsored links and smaller display ads that concentrate on user demographics and interest. Around the same time, a major advertising platform Twitter was launched with a concept of communication-based in 140 characters and making hashtag a household word. The introduction of the iPhone in 2007 was a major tipping point in mobile advertising. Social networks offer many opportunities to reach potential and existing customers. 

• The Native Era (2009-2011)

As the number of companies advertising through the internet increased, advertisers began to look for less conspicuous ways to promote products. Due to this, the use of native advertising gained momentum and was on a rise as a result of higher CTR and engagement.

The year 2010 gave birth to Instagram exclusively for iOS devices. In a matter of time, it became popular marketing and advertising platform which later was purchased by Facebook. In the following year, Snapchat was created and it supported the widespread use of video with augmented-reality enabled filters that have created a stir amongst millennials.

Twitter introduced promoted tweets and paid advertisements to celebrities. Promoted tweets allowed users to reach a larger audience and generate more engagement from the existing and new followers whereas paid advertisement means sponsored tweets. Businesses recruit celebrities to promote their brands and services to their followers. For instance, Charlie Sheen made a record as he became the first person to reach 1 million followers in 25 hours after his account was created. A  few days later, he started to sponsor tweets through ad.ly

• The Modern Era (2012- present)

Since 2004, digital advertising has recovered from the downfall and advertisers have accepted the importance of online advertising. Digital advertising is more sophisticated with innovative technologies and branding tools.it more interactive and uses Flash and Java for graphics. 

In 2012, the Internet of Things(IoT) came into picture influencing marketing and advertising. In the next few years, there were many interesting developments. Instagram introduced sponsored posts allowing users to run ads by promoting old or new posts. In 2014, Pinterest made its debut with social media advertising growing bigger.

The growing adoption of smartphones hinted advertisers to focus on in-app mobile advertising and leave the mobile web browser. For instance, voice technology ‘Alexa’ allows users to do voice searches. The year 2015 witnessed mobile ad traffic surpass Web traffic- IAB UK reported for the first time mobile overtakes desktop with total spend hitting £4.8bn mark. Video consumption proved to be the strongest area.

Real-Time marketing became a buzzword. In 2016, Pokemon Go became a sensation. A classic example of augmented-reality on mobile devices attracted more than 45 million users. In 2017, two technological development came happened. Firstly, Ad.txts  that were introduced by IAB Tech to improve transparency in the programmatic advertising ecosystem. Secondly, Apple announced AR Kit and Google followed with AR core for mobile AR apps and advertising.

The growing use of voice technology, artificial intelligence, and other digital technologies introduces new areas of advertising. A key point to include is an in-depth understanding of consumer behavior and delivering personalized and relevant advertisements.

The European Union’s General Data Protection Regulation (GDPR) was implemented in May imposing restrictions on companies to change the way of collecting data, protecting the privacy and personal information of the users. Even California passed a strict privacy law that changes the data collection method. Conforming to the recent changes, digital advertising Industry plans to replace Cookies with First-Party Data.

Wrapping up

In this phase of digital transformation, the top priority of companies is to provide a personalized end-to-end customer experience in real-time.  Millions of advertisers, marketers, companies, or businesses are relying on digital advertising.