AdTech is undergoing massive changes lately. One of the biggest casualties of this disruption are digital publishers. We recently saw Yahoo sell for $4.6B to Verizon ($VZ) which in 2008 was offered $44B from Microsoft ($MSFT). Disruption can also create winners. It creates opportunities for value seen only by visionaries. AdTech is still advancing with changes in this early market structure.
- Market efficiencies are still needed in this defragmented market.
- Fraud continues to be a major part of the ecosystem.
- Inefficient players will be wiped out.
- Ad blockers are a sign of a broken system.
- Lack of transparency is a problem.
- Decreasing CPM.
Innovation and creating value in the ecosystem is a must for survival. The players that continue to lack value will be purged from the ecosystem. This can be seen very clearly with the Yahoo sale. This market is ready for massive disruption. It happened on Wall St and it will happen in AdTech. Message me if you want to learn more.
I hope everyone enjoyed the long 4th of July weekend!! While you were watching fireworks, bot fraud was also exploding. Check out the Chinese ad agency Yingmob and their new mobile botnet “HummingBad” similar to “BreakingBad” raking in $300k in revenue per month by clicking ads. I wonder what Heisenberg would think of this? As mentioned last month, in “Who’s Your Daddy”, you better know your fraud bots and who they are coming from.
Also, I wanted to invite you to a new Ad group I organize. If you want to meet other Ad Professionals and throw back some cocktails like Mad Men/Women please join LA Ad Pros here.
A long time ago on a distant network before clouds with Sun servers and Cisco routers, there arose a search engine war. Players such as Altavista, Excite, Lycos, Yahoo, and Google fought for dominance. As the battle waged on, the internet bubble kept expanding like it’s own galaxy. At the apex, social networks were born as well as cyber security user threats.
The first of this new species would be named Friendster. A few years later, MySpace was spawned and would quickly dwarf it’s predecessor with an astonishing 360 million users. Like all battles, champions fall. What was once the mighty empire of Friendster, would soon become ancient ruins. Excavators recently stumbled upon these ruins of Friendster. We also see tomb raiders known as hackers selling the hieroglyphic writings of the MySpace walls (username/passwords) for 10 Bitcoins (BTC). What’s next? Will GeoCities or Netzero be offered in some online version of the Antiques Roadshow?
How much will your data fetch? When the man who created the most powerful social network empire is unable keep his own accounts safe, how long until your data is up for sale? This was a small automated program logging into Zuckerberg’s account, basic Hacker 101 from the LinkedIn hack. This shows no matter how big you think you are, you’re always vulnerable to bot attacks. Get with the program and establish better user authentication.
With all these automated bot attacks and ad click blockers, we are seeing how to make money with bots in the Ad Tech world. Major advertisers are getting hacked out of double digit billions per year. A new report from The Dhar Method came out called “Mystery Shopping Inside the Ad Fraud Verification Bubble” and audio version here. An inside look at creating a fake publisher with cheap ad flow to make revenue from digital ads. For the secret test, a few of the major ad fraud detection technologies and a few unheard of up and coming ad fraud detection companies were used. All but one failed! Who’s your Daddy?
This Father’s Day keep custody of your data in a bot battle. Keep your accounts safe and secure with BioChronometrics.
The Rubicon will be crossed in the advertising market with television and digital sometime in 2017. The special thing about this crossing is the advent of ad blockers and ad fraud as noted in the Economist titled Invisible Ads, Phantom Reader.
There are four parties involved here which are infected:
- Consumers which are overwhelmed with ads so they put ad blockers on.
- Advertisers trying to sell their products.
- Publishers that make money from ads for their free content.
- Exchanges that turn their shoulders on ad fraud.
The ecosystem is so polluted with ad fraud that the 4 parties are striving to create a balance of what works best for each party except all strategies have failed. One thing is clear, ad fraud needs to be eliminated. Contact me today if you have bots attacking your ads. We can fix those bots with Secure Ad.