Aug. 7 - Consumers are moving to mobile- and as advertising follows, its causing a major disruption in the advertising business. Bobbi Rebell reports.
Digital advertising is center stage on Wall Street. YuMe the latest digital ad firm to go public- on the same day AOL announced it is buying Adap.tv for more than $400 million. They are part of growing but very crowded business tied to programmatic advertising- real time bidding for ads targeting specific viewers. Forrester Research's Jim Nail explains: SOUNDBITE: JIM NAIL, PRINCIPAL ANALYST, FORRESTER RESEARCH (ENGLISH) SAYING: "In the past advertising has been about, you buy a 30-second spot on a specific television show, or you buy a banner ad on a very specific website. What is happening now with programmatic buying is instead you are specifying- I want to reach this type of person and you know what? I am much less concerned about which TV show it's on or which website it's on." AOL has been experimenting with new ways to monetize ads- including having its own upfronts for advertisers- just like the TV networks. Ad Age Deputy Managing Editor Michael Learmonth: SOUNDBITE: MICHAEL LEARMONTH, DEPUTY MANAGING EDITOR, AD AGE (ENGLISH) SAYING: "AOL is trying to skate where the puck is going on this one, and I mean you've got $70 billion in the TV ad market and every year a little bit more comes online." Learmonth says online video ads can get four times as much money as banner ads. Research firm eMarketer forecasts that online will grow more than 40 percent this year to about $4 billion in the United States and that so-called programmatic buying- will leap 75 percent. But will consumers buy in? SOUNDBITE: JIM NAIL, PRINCIPAL ANALYST, FORRESTER RESEARCH (ENGLISH) SAYING: "I don't think they care. I don't think they are aware of it. If it works the way it's supposed to work the only thing they might notice is one day they might wake up and notice gee, I don't see any ads that I don't want. You know like for me, I'm a middle aged guy you know my kids are grown and out of the house, gee I don't see any pampers ads anymore. Gee that's actually ok. " But there are pitfalls to the strategy as well. SOUNDBITE: MICHAEL LEARMONTH, DEPUTY MANAGING EDITOR, AD AGE (ENGLISH) SAYING: "It can be a great experience but it can also be not great. Like if you are watching a short clip, like maybe it's a two minute interview and they ask you to watch a 30-second ad before that. That is terrible for consumers. So I think the ad business needs to think about doing shorter creative and making it sort of web friendly." And people friendly- to get exactly the target the clients now demand.