Connect with us

Media

How Much Of Your Dollar Goes To Working Media In Digital? – Forbes

Published

 on


“Working media” was used to describe the portion of every ad dollar that went to showing ads, instead of to “non-working media” such as agency fees and other costs. It seems like too many marketers spending money in digital channels have forgotten about this simple but important concept. 

How much of your dollar, spent in programmatic digital channels, goes towards showing digital ads — i.e. “working media”? Don’t know? Let me ballpark it for you.

Three industry studies showed less than 50 cents of every dollar goes to showing ads. 

Three separate studies over the years have shown that at least 50% of every dollar spent in digital channels now goes to middlemen, instead of to the publishers for showing ads. The chart below shows the output of the Association of National Advertisers Study (2015), the World Federation of Advertisers (2016), and the Incorporated Society of British Advertisers (2020) studies that tracked an ad through the programmatic supply chain. Every waterfall chart shows that less than 50% goes to the publishers. What’s even more concerning is that the complexity and murkiness of the supply chain means a portion of the money “went missing.” This portion was 15% on average, with a high of 86% and a low of 2%. In one campaign 86% of the money could not be accounted for — i.e. traced all the way through the supply chain. 

In what other industry would customers be OK paying a 50% tax on goods and services, and on top of that be at risk of money simply gone missing? Better to take a closer look at your ad spending in digital programmatic channels. 

Other data from real campaigns over the years confirm the same observations. 

In the slide below, advertisers can try to target specific CPMs in their programmatic campaigns. What they end up paying is “in the ballpark” so to speak. But note the portion that goes to platforms and exchanges (middlemen) before they go to the publisher or media owner for the purpose of showing ads. The experiment was run at different price points – 50 cent CPMs, $1.00, $5.00, and $10.00 CPMs. Across the board you can see nearly 50% mark up before it gets to the advertiser; or put another way, the $1.00 spent by advertiser is taxed down to $0.57 – $0.63 before it reaches the publisher for showing ads. The working media is around 60 cents on the dollar, very similar to the other industry studies showing about 50%. 

You didn’t get the discount you thought you got? You paid extra for supporting services. 

So advertisers that think they got a bargain for buying digital ads may actually have ended up paying more, regardless of how you look at it. They paid a 50% tax on every dollar, so only 50 cents is left for showing ads. They also paid extra for fraud detection, brand safety detection, viewability detection services because they were buying ads in “shady neighborhoods” of the Internet, instead of buying ads directly from good publishers in “well-lit neighborhoods.” Think about that for a minute – if you bought ads from a smaller number of good, mainstream publishers that you have heard of (and that other humans have heard of) you have a good chance of showing your ads to humans, and much more of your dollar will go towards working media.

Right now, many marketers have been duped into buying low cost ads through programmatic channels, and have their ads sprayed to millions of sites and mobile apps that no one has ever heard of. Why? Because every single ad tech company listed in the chart below is trying to make money from gullible marketers who think they are doing better marketing by buying more ads through digital supply chains. But instead, they are lining the pockets of ad tech companies and the venture capital investors. 

Take a look at your own “working media” in digital and decide for yourself whether it is worth continuing. The alternative is simple – buy media as if it were 1995. Buy as much direct as possible from good publishers. The programmatic tech will place the ads for you, but you would have cut out most of the middlemen who are maximizing their own profits on your dime. 

Let’s block ads! (Why?)



Source link

Continue Reading

Media

New ETF tracks social-media buzz from platforms like Reddit | Venture – Daily Hive

Published

 on


Partnership content presented by Market Buzz.


January’s unprecedented GameStop saga completely changed the game for the stock market, as Redditors reigned over hedge fund superpowers. Who would have known that a social media community would single-handedly be responsible for the biggest short squeeze in recent history?

Although things might have simmered down on r/wallstreetbets lately, no longer is anyone underestimating the influence social media communities can have over the stock market.

This includes New York asset management firm VanEck, who is launching a new exchange traded fund (ETF) called BUZZ on Thursday. The clever business model will use AI to invest in the most-buzzed-about stocks in social media communities.

So how does it work? The index fund scours over 15 million online social media posts a month on sites like Twitter, Reddit, and StockTwits for investing hype using machine learning and artificial intelligence. It looks for patterns, trends, and sentiments that will impact the market value of certain stocks.

The algorithm will then produce a portfolio of 75 US large-cap stocks with the strongest market sentiment, which gets rebalanced once a month.

A big believer in BUZZ is Barstool Sports Founder Dave Portnoy, who excitedly shared the news of the ETF’s launch on Tuesday with a video press conference on Twitter. Portnoy is no newbie to the stock market game, tweeting daily about his stock trades and actively getting involved during the recent GameStop frenzy.

Not surprisingly, Portnoy is also part-owner and director of Buzz Holdings ULC, the business entity that licences strategy to VanEck.

Although the fund, that launches this Thursday, might just seem to be piggybacking off the success of recent Reddit-driven investing, it’s not the first time a social-media sentiment ETF has been created.

BUZZ U.S. Sentiment Leaders ETF (BUZ) launched in 2016 that tracked the same index that BUZZ will, but was shut down in 2019 because it never caught on. You could say the timing was off. But due to recent GameStop mania, the timing couldn’t be better now for BUZZ.

According to its website, BUZZ is up 89.43% versus 32.08% for the S&P 500 over the past year. BUZZ’s top holdings are Twitter, Draft Kings, Ford, Facebook, Amazon, Apple, Netflix, AMD, American Airlines, Netflix, and Tesla.

The VanEck Vectors Social Sentiment ETF, trading on the New York Stock Exchange (NYSE) under the ticker “BUZZ,” will be available Thursday, March 4.


In partnership with Market Buzz. Subscribe to receive market investment stock news.

Let’s block ads! (Why?)



Source link

Continue Reading

Media

New ETF tracks social-media buzz from platforms like Reddit | Venture – Daily Hive

Published

 on


Partnership content presented by Market Buzz.


January’s unprecedented GameStop saga completely changed the game for the stock market, as Redditors reigned over hedge fund superpowers. Who would have known that a social media community would single-handedly be responsible for the biggest short squeeze in recent history?

Although things might have simmered down on r/wallstreetbets lately, no longer is anyone underestimating the influence social media communities can have over the stock market.

This includes New York asset management firm VanEck, who is launching a new exchange traded fund (ETF) called BUZZ on Thursday. The clever business model will use AI to invest in the most-buzzed-about stocks in social media communities.

So how does it work? The index fund scours over 15 million online social media posts a month on sites like Twitter, Reddit, and StockTwits for investing hype using machine learning and artificial intelligence. It looks for patterns, trends, and sentiments that will impact the market value of certain stocks.

The algorithm will then produce a portfolio of 75 US large-cap stocks with the strongest market sentiment, which gets rebalanced once a month.

A big believer in BUZZ is Barstool Sports Founder Dave Portnoy, who excitedly shared the news of the ETF’s launch on Tuesday with a video press conference on Twitter. Portnoy is no newbie to the stock market game, tweeting daily about his stock trades and actively getting involved during the recent GameStop frenzy.

Not surprisingly, Portnoy is also part-owner and director of Buzz Holdings ULC, the business entity that licences strategy to VanEck.

Although the fund, that launches this Thursday, might just seem to be piggybacking off the success of recent Reddit-driven investing, it’s not the first time a social-media sentiment ETF has been created.

BUZZ U.S. Sentiment Leaders ETF (BUZ) launched in 2016 that tracked the same index that BUZZ will, but was shut down in 2019 because it never caught on. You could say the timing was off. But due to recent GameStop mania, the timing couldn’t be better now for BUZZ.

According to its website, BUZZ is up 89.43% versus 32.08% for the S&P 500 over the past year. BUZZ’s top holdings are Twitter, Draft Kings, Ford, Facebook, Amazon, Apple, Netflix, AMD, American Airlines, Netflix, and Tesla.

The VanEck Vectors Social Sentiment ETF, trading on the New York Stock Exchange (NYSE) under the ticker “BUZZ,” will be available Thursday, March 4.


In partnership with Market Buzz. Subscribe to receive market investment stock news.

Let’s block ads! (Why?)



Source link

Continue Reading

Media

FOMO-obsessed people risk fraud via social media investment tips: BCSC – Richmond News

Published

 on


Social media is not the place to get your investment tips.

That’s the message from the British Columbia Securities Commission (BCSC), which is detailing new research that shows younger adults and those who experience the fear of missing out – also known as FOMO – are more likely to think social media is a good place to find investment opportunities.

To mark Fraud Prevention Month, the BCSC said it surveyed more than 2,000 Canadians, including 1,000 British Columbians, to measure how age and FOMO influence investment attitudes.

“Results of this new research are particularly concerning because we’ve seen a surge in potentially fraudulent schemes peddled on social media during the COVID-19 pandemic,” said Doug Muir, the BCSC’s director of enforcement, in a news release. “We also know that fraudsters put pressure on people to act quickly. It’s important to gather as much reliable information about an investment as you can before putting your money into it, and to not rush into it.”

One warning sign of investment fraud is claiming that an opportunity is exclusive or available only to select people, said the BCSC, while in reality, most legitimate investments for ordinary British Columbians are available to anyone with the money to invest. Another warning sign is rushing would-be investors, telling them they must sign now to get in on the deal.

To educate people about the risk of letting FOMO drive their investment decisions, the BCSC is running a multi-media campaign called Hi, My Name is FOMO. 

“The younger you are, the more FOMO you have,” said the news release. “Half of B.C. residents between 18 and 34 said they experience it, compared to just 19 per cent of adults 55 or older. B.C.’s young adults also seem to have more FOMO than their peers across Canada – 50 per cent in B.C. compared to 40 per cent nationally.”
This online survey was conducted for the BCSC by Innovative Research Group among a representative sample of British Columbians from February 11 to 23, 2021 as part of an omnibus survey. A total of 1,015 British Columbians aged 18 and over completed the survey. The results are weighted to a representative sample of 1,000 by age and gender within each region of the province using the latest available Census data to reflect the actual demographic composition of the population.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending