AdTech Is Alive and Well: I’ll Have the Full Stack, Please

National-Pancake-Day-at-IHOPReading The Information’s piece on Facebook’s reported re-introduction of the Atlas ad-serving technology, I wondered – Does the market really need six or more full stack adtech solutions?

Google is the undisputed leader in the field – it’s spent nearly ten years stitching its own technology into acquisitions like DoubleClick (the original ad server), AdMeld (supply side platform), AdWords (search), AdMobs (mobile), Teracent (targeting), Invite Media (demand side platform),  spider.io (anti-fraud), Adometry (attribution) and many others.

So why would anyone want to challenge Google’s dominance? Because if you’re a major Internet player, you can’t afford to hand Google all the leverage – both financial as well as data and insight. If you have hundreds of millions of logged in customers (all of whom create valuable data), you need to be able to understand their actions across multiple channels and offer those insights to your marketing clients. And that means you need to own your own ad stack.

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Else 6.23.14: Questioning Valley Idols

A fascinating week of links, starting with a blast from the past (see above), but the real meat of the week came in the debates around some of the Valley’s most scared cows. For more, read on….

Tech Time Warp of the Week: Watch IBM Warn Us About Glassholes 10 Years Ago- Wired I am particularly enamored with “Park Bench” – if I saw a guy doing what this guy is doing in public, I’d throw something at him. I recall seeing this way back when it first came out, and I hated him then. Now it’s insufferable.

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Hasta La Alta Vista, Baby.

I just saw the news that Yahoo! is “sunsetting” Alta Vista, one of the first “good” search engines. This makes me a little misty, as Alta Vista was the search engine I used BG – Before Google – and it had a real shot at *being* Google, had its various owners not utterly screwed it up over the years. Did you know, for example, that at one point Alta Vista was the largest and most widely used search tool on the web? Its driving force, Lois Monier, once told me “search should be a pencil” – he was adamant that Alta Vista not become a portal.

But Alta Vista was owned by DEC, a now dead computer company, which was bought by Compaq, another now dead computer company. And they made it a portal. And through the now defunct Overture, the assets of Alta Vista made their way to Yahoo!, a still alive portal. But now, Alta Vista is going to truly be dead.

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Yahoo! And Tumblr: It’s About Display, Streams & Native at Scale

The world is atwitter about Tumblr’s big exit to Yahoo!, and from what I can tell it seems this one is going to really happen (ATD is covering it well).   There are plenty of smart and appropriate takes on why this move makes sense (see GigaOm) but I think a lot of it boils down to the trends driving Yahoo’s massive display business.

If there’s one thing we all know, it’s that a new form of native advertising is spreading throughout the Internet. It started with Google and AdWords, it spread to Twitter and its Promoted Tweets, and Facebook quickly followed with Sponsored Stories. At FMP, we have sponsored posts and our Native Conversationalist suite, which we are scaling now across the “rest of the web” – the smaller but super influential independent sites that we believe are major suppliers of  “the oxygen of the Internet” – the content that drives true engagement. Other companies are adopting similar strategies – Buzzfeed is building a content marketing network, and Sharethrough has moved past its “wrap a YouTube ad in a player and call it native” phase and into more truly native units as well.

The reason native works is because the advertising is treated as a unit of content on the platform where it lives. That may seem obvious, but it’s an important observation. When a brands’s content competes on equal footing alongside a publisher’s content, everyone wins. Those search ads – they win if they are contextually relevant and add value to the consumer’s search results. Those promoted tweets only get promoted if people respond to them – a signal of relevance and value.  The same is true for all truly “native” ad products. If the native ad content is good, it will get engagement. The industry is evolving toward rewarding advertising that doesn’t interrupt and is relevant and value additive. That’s a good thing.

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We’ve Seen This Movie Before…On Traffic of Good Intent

(image) Back in 2005 I whipped off a post with a title that has recently become relevant again – “Traffic of Good Intent.” That post keyed off  a major issue in the burgeoning search industry – click fraud. In the early days of search, click fraud was a huge problem (that link is from 2002!). Pundits (like me) claimed that because everyone was getting paid from fraud, it was “something of a whistling-past-the-graveyard issue for the entire (industry).” Cnet ran a story in 2004 identifying bad actors who created fake content, then ran robots over AdSense links on those pages. It blamed the open nature of the Web as fueling the fraudsters, and it noted that Google could not comment, because  it was in its quiet period before an IPO.

But once public, Google did respond, suing bad actors and posting extensive explanations of its anti-fraud practices. Conversely, a major fraud-based class action lawsuit was filed against all of the major search engines. Subsequent research suggested that as much as 30% of commercial clicks were fraudulent  – remember, this was after Google had gone public, and after the issue had been well-documented and endlessly discussed in the business and industry press. The major players in search finally banded together to fight the problem – understanding full well that without a united front and open communication, trust would never be established.

Think about that little history lesson – a massive, emerging new industry, one that was upending the entire marketing ecosystem, was operating under a constant cloud of “fraud” which may have been poisoning nearly a third of the revenues in the space. Yet billions in revenue and hundreds of billions in market value was still created. And after several years of lawsuits, negative press, and lord-knows-how-much-fraud, the clickfraud story has pretty much been forgotten.

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On Mayer, Yahoo!, and The (Other) Customer

Mayer at the Web 2 Summit, San Francisco

(image James Duncan Davidson)

I try to let big news percolate for a few days before weighing in, and it seems even more appropriate to follow that playbook when it came to the scrum around Marissa Mayer joining Yahoo.

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Get to Know Ross Levinsohn

The remarkable news today that, among other important board moves, Ross Levinsohn will take over as interim CEO at Yahoo may well mark the end of an era – should his tenure stick, perhaps we can stop talking about the web pioneer in past or conditional tenses. If you’d like to get to know him a bit better, here’s an interview I did with him at Web 2 last Fall.

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San Francisco In The Spring: Come To Signal

Over at the FM blog, I just posted the draft agenda for the first of five conferences I’ll be chairing as part of my day job at Federated Media. Signal San Francisco is a one-day event (March 21) focused on the theme of  integrating digital marketing across large platforms (what I’ve called “dependent web” properties) and the Independent Web. The two are deeply connected, as I’ve written here. As we explore that “interdependency,” we’ll also be talking about some of the most heated topics in media today: the role of mobile, the rise of brand-driven content, the impact of real-time bidded exchanges, and more.

Signal builds on the format I spent almost a decade crafting at the Web 2 Summit – the “high order bit,” or short, impactful presentation, as well as case studies and deeper-dive one-on-one interviews with industry leaders. Those include Jeff Weiner, CEO of LinkedIn, Adam Bain, President of Revenue at Twitter, Neal Mohan, who leads Google’s ad products, and Ross Levinsohn, who runs Yahoo! Americas, among others.

Others represented include Instagram, AKQA, Babycenter, Intel, Tumblr, WordPress, ShareThis, Facebook, and many more. I hope you’ll consider registering (the earlybird expires next week), and joining me for what’s certain to be a great conversation.

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Yahoo Visualizes Its Content CORE

Yahoo has always been proud of the algorithms that drive its choice of personalized content, but it’s hard to grok exactly what they do behind the scenes to make the magic happen. Today the company released a visualization of its “C.O.R.E.” (Content Optimization and Relevance Engine) technology, and the result is pretty cool. From a release sent to me by Yahoo:

 

  • C.O.R.E. (Content Optimization and Relevance Engine) is a suite of technologies developed by Yahoo! Labs to surface the stories most interesting to you, based on your reading behavior over time.
  • Every hour C.O.R.E. processes 1.2 terrabytes of data in order to learn how a user’s behaviors and interests influence the likelihood of clicking on a specific article. And, every day, C.O.R.E. personalizes 2.2 billion pieces of content for Yahoo! users.
  • Since optimizing with C.O.R.E., Yahoo!’s Homepage click-through rate has increased 300%.
  • Yahoo!’s personalization approach is a clever mix of scientific algorithms and human judgment, as editors have control to override C.O.R.E. at any time, to ensure certain stories are seen.
  • Initially developed within Yahoo! Labs, C.O.R.E. has become a vital tool used throughout the day by editors across the company to bring our users personalized news, first.

The visualization lets you see stories through filters of gender, age, and interest. The image above, for example, shows a male in may age range interested in business and finance. Well worth playing around with, and a very good example of what I call “dependent web” content.

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