AT Internet recently held its\u00a0Media Workshop\u00a0and\u00a0found out how\u00a0Dutch advertising agency\u00a0Ster\u2019s\u00a0groundbreaking\u00a0approach to\u00a0online advertising is making waves in the media world.\u00a0By switching its\u00a0business\u00a0model from targeted\u00a0programmatic\u00a0ad tech to contextual advertising, they have\u00a0set an important precedent\u00a0in the industry.\u00a0<\/p>\n
Introduction<\/strong>\u00a0<\/h2>\nSter<\/a>\u00a0is the exclusive sales house for the Dutch public broadcaster and media group NPO. Since 1965, it has been selling ad inventory across the NPO\u2019s range of television & radio channels as well as digital outlets.\u00a0\u00a0<\/p>\nSter\u2019s goal is to ensure that all adverts on NPO\u2019s channels reach as wide an audience as possible.\u00a0It provides both broad and specific ad targeting that leverages\u00a0the media group\u2019s\u00a0quality programming\u00a0in order to boost the advertisers\u2019 brand awareness and consumer buying intent.\u00a0<\/p>\n
B<\/strong>ackground<\/strong>\u00a0<\/h2>\nNPO has a display reach of\u00a06.8\u00a0million per month, with\u00a030 websites \/ apps, and online video audience of\u00a08.4\u00a0million\u00a0per month.\u00a0As the Dutch national broadcaster, NPO is funded by the Dutch Ministry of Education, Culture & Science\u00a0\u2013\u00a0however\u00a020% of the funding comes from Ster\u2019s advertising\u00a0revenue.\u00a0NPO thus relies heavily on the money it makes through its ad house Ster to provide high quality programmes & content and drive audience reach.\u00a0<\/p>\n
Ster had previously used 3rd\u202fparty\u00a0tracking\u00a0and programmatic ad targeting to maximise the reach and impact of its advertising space and sell inventory. However, the arrival of the GDPR\u00a0in 2018\u00a0led to\u00a090% of visitors opting out of cookie consent\u00a0and\u00a0had a significant impact on business. With users increasingly concerned that their personal information was being (ab)used within the digital advertising flow, the agency was left with only 10% of its audience now legally eligible for\u00a0\u201cnormal\u201d\u00a0targeted advertising.\u00a0No system\u00a0was yet\u00a0available that was\u00a0GDPR-compliant and\u00a0that\u00a0made it\u00a0possible\u00a0to serve ads without using or implementing\u00a0any cookies.\u00a0\u00a0<\/p>\n
Ster therefore began looking for new GDPR-compliant ways to target its adverts in a transparent ad environment that could be trusted by the public, advertisers and legislators.\u00a0\u00a0<\/p>\n
C<\/strong>hallenges<\/strong>\u00a0<\/h2>\nAs well as they\u00a0issue of personal data being used for advertising purposes,\u00a0the other hot topic\u00a0involves\u00a0the transparency of online technical solutions.\u00a0\u00a0<\/p>\n
In order to\u00a0create\u00a0an\u00a0ad-tech free\u00a0and transparent\u00a0business model, Ster\u00a0therefore\u00a0needed\u00a0a clear picture of the programmatic advertising universe\u00a0to\u00a0<\/strong>understand all the players involved. It was also crucial to breakdown the costs of getting an advert from the source to the end user and find ways to reduce or even completely remove the money leakage.\u00a0<\/p>\nThen there was the issue of\u00a0persuading\u00a0advertisers that it was economically viable to carry on buying ads that weren\u2019t based on user behaviour.\u00a0It\u2019s widely accepted in the industry that cutting\u00a0out 3rd\u00a0party trackers\/cookies can\u00a0significantly reduce<\/a>\u00a0publisher revenue\u00a0with some reports claiming a potential loss of up to\u00a050%<\/a>.\u00a0<\/p>\nSolution<\/strong>\u00a0<\/h2>\n\u00a0As Ster intended to operate in a completely ad-tech free environment, they had to design a system that was still able to leverage users\u2019 online interests, without the need to invade their private data.\u00a0<\/p>\n
Understanding tech chain\u00a0black-boxing<\/strong>\u00a0<\/h3>\nThrough\u00a0a study by the\u00a0ISBA<\/a>, the society representing UK advertisers, Ster were able to get a clear overview of the ad tech chain structure and its value.\u00a0\u00a0<\/p>\nBy clearly displaying all the exchanges with the\u00a0Demand-side platforms<\/a>\u00a0(DSPs),\u00a0Supply Side Platforms<\/a>\u00a0(SSPs)\u00a0and\u00a0Data Management Platforms (DMPs), as well as first exchange partners, the\u00a0study\u00a0shows how the advertiser\u2019s euro\u00a0has to\u00a0pass through many different counters before it reaches the publisher. As well as nearly 50% of the revenue being siphoned off, 15% of the revenue mysteriously disappears in all paths and can\u2019t be traced.\u00a0\u00a0<\/p>\n![\"\"](\"https:\/\/blog.atinternet.com\/wp-content\/uploads\/2020\/12\/ster-advertising.png\" "\\"D\u00e9sol\u00e9\u2026")
<\/figure>\nSwitching to contextual advertising<\/strong>\u00a0<\/h3>\nTo\u00a0target\u00a0the most relevant audience without using ad tech,\u00a0Ster\u00a0shifted\u00a0to\u00a0a\u00a0data-driven\u00a0contextual\u00a0ad\u00a0model.\u00a0\u00a0<\/p>\n
Although a\u00a0long established\u00a0method which was\u00a0in place\u00a0before the rise of ad tech,\u00a0contextual targeting\u00a0was\u00a0previously\u00a0used as more of a\u00a0basic indicator of\u00a0user preference\u00a0and\u00a0based\u00a0on simple elements such as a program\u2019s title and genre\u00a0\u2013 with only a\u00a030% rate of accuracy<\/strong>.\u00a0\u00a0<\/p>\nSter\u2019s\u00a0innovative\u00a0approach was to\u00a0leverage\u00a0specific\u00a0metadata\u00a0from\u00a0NPO\u2019s\u00a0programme\u00a0subtitles\u00a0(integrated into all their programmes)\u00a0to\u00a0get high-precision info about the\u00a0context.\u00a0By using a data-driven\u00a0multidimensional\u00a0wordcloud\u00a0called \u2018Word2Vec\u2019, Ster\u00a0is\u00a0able to\u00a0ascertain how often words occur together and their distance from different categories or contexts, prioritising the most\u00a0important words.\u00a0Then\u00a0with\u00a0mathematical formulae based on syntactic relationships, the model\u00a0is able to\u00a0connect\u00a0up\u00a0the words in the metadata subtitles\u00a0and pinpoint the context of a\u00a0program, episode or article\u00a0with a\u00a095%<\/strong>\u00a0<\/strong>accuracy<\/strong>\u00a0rate<\/strong>.\u00a0This can then be used to sell ad inventory\u00a0and still reach the most interested\u00a0and relevant\u00a0audience.\u00a0<\/p>\n![\"ster-data-driven\"](\"https:\/\/blog.atinternet.com\/wp-content\/uploads\/2020\/12\/ster-data-driven.png\" "\\"D\u00e9sol\u00e9\u2026")
<\/figure>\nSuccessfully measuring cookie-free campaigns<\/strong>\u00a0<\/h3>\nOne drawback of running ad campaigns without cookies is that it\u2019s more difficult to measure users\u00a0after<\/em>\u00a0they\u2019ve viewed content. It\u2019s therefore difficult to track the success of the various campaigns.\u00a0<\/p>\nTo work round this, Ster started working with a research partner\u00a0Brand Metrics, who enabled them to measure the brand effects of cookie-free campaigns. By asking visitors a brief question in the display slot about their relationship with the advertiser, Ster could gain info on the key brand KPIs such as familiarity, consideration, preference and behaviour. This measurement is done carried out before and after campaigns and the difference in the brand KPIs indicates their effectiveness. Although this approach only works for display campaigns, they saw positive results for several advertising brands including\u00a0Exterioo\u00a0garden furniture, who saw an 8% increase in awareness as well as larger brands such as DAS and\u00a0Nationale\u00a0Nederlanden.\u00a0<\/p>\n
Results<\/strong>\u00a0<\/h2>\nIncreased ad sales despite\u00a0global pandemic<\/strong>\u00a0<\/h3>\nNPO switched from tracking-based targeting to targeting\u00a0without any personal data\u00a0in\u00a0January 2020. In the following\u00a0weeks,\u00a0their\u00a0revenue increased\u00a0by\u00a061%\u00a0compared to\u00a0January 2019.\u00a0This continued into\u00a0February,\u00a0where\u00a0revenue increased 76% over the previous year.\u00a0Then despite the\u00a0arrival of\u00a0Covid-19, revenue increased 18% in March over the previous year,\u00a09% in April, and\u00a014% in May.\u00a0In total, Ster saw\u00a027<\/strong>% growth from January \u2013 September 2020<\/strong>, vs. 2019 and\u00a0are\u00a0expecting\u00a0up to\u00a0\u20ac2M\u00a0increased\u00a0revenue\u00a0in 2020 vs. 2019.\u00a0<\/p>\nImproved\u00a0CTRs and\u00a0conversion<\/strong>\u00a0<\/h3>\nSter also\u00a0saw that contextual campaigns generated\u00a0clicks more often than non-contextual campaigns.\u00a0\u00a0<\/p>\n
They\u00a0also saw this in\u00a0a number of\u00a0specific campaigns, which showed that\u00a0a\u00a0campaign used in the right context led to stronger conversions. For example, a campaign by a travel advertiser proved to be more effective in the context of travel\/holiday programmes than if it was only used for a target group.\u00a0<\/p>\n
No consent module \u2192 Improved User Experience<\/strong>\u00a0<\/h3>\nSter\u2019s new approach\u00a0has\u00a0significantly\u00a0boosted the UX.\u00a0As\u00a0there\u00a0isn\u2019t\u00a0any\u00a0personal or login data\u00a0from\u00a0NPO users\u00a0in the\u00a0new\u00a0process, Ster\u00a0no longer\u00a0need to ask for\u00a0user\u00a0consent\u00a0to carry out\u00a0personalised\u00a0advertising.\u00a0This means the visitor experience is improved as they no longer get\u00a0bombarded by\u00a0cookie pop-ups. The reduced number of data points,\u00a0volume of data shared,\u00a0and intermediaries\u00a0also means that the pages load far more quickly.\u00a0Everything is fully controlled, and\u00a0they don\u2019t drop any cookies\u00a0whatsoever.\u00a0\u00a0<\/p>\n
Streamlining the process<\/strong>\u00a0<\/h3>\nWhen a user starts a video, Ster receives an ad call in their custom-made\u00a0adserver, without any personal information. There are then a range of possibilities for 3rd<\/sup>\u00a0parties to buy their inventory. Advertisers no longer need to use a DSP or agency to buy the content, and they no longer need different SSPs or DMPs to make sure the advert is relevant. Ster have full control over everything happening in their network.\u00a0\u00a0<\/p>\nAll\u00a0parties\u00a0benefit\u00a0from Ster\u2019s simple setup<\/strong>\u00a0<\/h3>\nSter have so far demonstrated that\u00a0it\u2019s entirely possible\u00a0for advertisers to\u00a0target the most relevant\u00a0audience\u00a0even without using\u00a0cookies.\u00a0In an ecosystem free from cookies or the need for personal data, value is based on the content.\u00a0\u00a0<\/p>\n
Instead of the different exchanges and difficult layouts, all parties profit as the users\u00a0have\u00a0a\u00a0privacy-friendly experience. Advertisers have more exposure for the same budget as they only need the ad-serving fee.\u00a0By\u00a0removing all\u00a0the\u00a0middle-men, they\u00a0keep\u00a0the process as minimal and\u00a0simple\u00a0as possible.\u00a0The publishers\u00a0also\u00a0receive more revenue as there are far fewer intermediate parties.\u00a0Ster\u00a0is fully transparent with the direct connection to the content inventory\u00a0and the 15% that previously vanished is no longer an issue.\u00a0<\/p>\n
Moving forward\u00a0<\/strong>(profitably)\u00a0<\/strong>without cookies<\/strong>\u00a0<\/h2>\nAs well as the\u00a0campaign results, the\u00a0outstanding\u00a0business\u00a0results have also\u00a0reassured advertising investors. Ster\u2019s\u00a0increased 2020\u00a0turnover\u00a0has already\u00a0generated a lot of\u00a0positive spin<\/a>\u00a0and\u00a0been a\u00a0good indicator that\u00a0their\u00a0non-cookie-based ad\u00a0business\u00a0model is sustainable.\u00a0They are also carrying out further development\u00a0in context targeting in terms of delivery and measurement to make it even more specific.\u00a0<\/p>\nGoing\u00a0into 2021 and beyond,\u00a0Ster\u2019s model has set the example that it\u2019s possible to\u00a0entirely remove the cookie-based ad tech ecosystem.\u00a0They\u00a0are also keen to\u00a0share their context\u00a0&\u00a0ad serving\u00a0tools soon with other parties who are dealing with the same no-consent issues.\u00a0\u00a0<\/p>\n
Ster\u2019s goal is to ensure that all adverts on NPO\u2019s channels reach as wide an audience as possible.\u00a0It provides both broad and specific ad targeting that leverages\u00a0the media group\u2019s\u00a0quality programming\u00a0in order to boost the advertisers\u2019 brand awareness and consumer buying intent.\u00a0<\/p>\n
B<\/strong>ackground<\/strong>\u00a0<\/h2>\nNPO has a display reach of\u00a06.8\u00a0million per month, with\u00a030 websites \/ apps, and online video audience of\u00a08.4\u00a0million\u00a0per month.\u00a0As the Dutch national broadcaster, NPO is funded by the Dutch Ministry of Education, Culture & Science\u00a0\u2013\u00a0however\u00a020% of the funding comes from Ster\u2019s advertising\u00a0revenue.\u00a0NPO thus relies heavily on the money it makes through its ad house Ster to provide high quality programmes & content and drive audience reach.\u00a0<\/p>\n
Ster had previously used 3rd\u202fparty\u00a0tracking\u00a0and programmatic ad targeting to maximise the reach and impact of its advertising space and sell inventory. However, the arrival of the GDPR\u00a0in 2018\u00a0led to\u00a090% of visitors opting out of cookie consent\u00a0and\u00a0had a significant impact on business. With users increasingly concerned that their personal information was being (ab)used within the digital advertising flow, the agency was left with only 10% of its audience now legally eligible for\u00a0\u201cnormal\u201d\u00a0targeted advertising.\u00a0No system\u00a0was yet\u00a0available that was\u00a0GDPR-compliant and\u00a0that\u00a0made it\u00a0possible\u00a0to serve ads without using or implementing\u00a0any cookies.\u00a0\u00a0<\/p>\n
Ster therefore began looking for new GDPR-compliant ways to target its adverts in a transparent ad environment that could be trusted by the public, advertisers and legislators.\u00a0\u00a0<\/p>\n
C<\/strong>hallenges<\/strong>\u00a0<\/h2>\nAs well as they\u00a0issue of personal data being used for advertising purposes,\u00a0the other hot topic\u00a0involves\u00a0the transparency of online technical solutions.\u00a0\u00a0<\/p>\n
In order to\u00a0create\u00a0an\u00a0ad-tech free\u00a0and transparent\u00a0business model, Ster\u00a0therefore\u00a0needed\u00a0a clear picture of the programmatic advertising universe\u00a0to\u00a0<\/strong>understand all the players involved. It was also crucial to breakdown the costs of getting an advert from the source to the end user and find ways to reduce or even completely remove the money leakage.\u00a0<\/p>\nThen there was the issue of\u00a0persuading\u00a0advertisers that it was economically viable to carry on buying ads that weren\u2019t based on user behaviour.\u00a0It\u2019s widely accepted in the industry that cutting\u00a0out 3rd\u00a0party trackers\/cookies can\u00a0significantly reduce<\/a>\u00a0publisher revenue\u00a0with some reports claiming a potential loss of up to\u00a050%<\/a>.\u00a0<\/p>\nSolution<\/strong>\u00a0<\/h2>\n\u00a0As Ster intended to operate in a completely ad-tech free environment, they had to design a system that was still able to leverage users\u2019 online interests, without the need to invade their private data.\u00a0<\/p>\n
Understanding tech chain\u00a0black-boxing<\/strong>\u00a0<\/h3>\nThrough\u00a0a study by the\u00a0ISBA<\/a>, the society representing UK advertisers, Ster were able to get a clear overview of the ad tech chain structure and its value.\u00a0\u00a0<\/p>\nBy clearly displaying all the exchanges with the\u00a0Demand-side platforms<\/a>\u00a0(DSPs),\u00a0Supply Side Platforms<\/a>\u00a0(SSPs)\u00a0and\u00a0Data Management Platforms (DMPs), as well as first exchange partners, the\u00a0study\u00a0shows how the advertiser\u2019s euro\u00a0has to\u00a0pass through many different counters before it reaches the publisher. As well as nearly 50% of the revenue being siphoned off, 15% of the revenue mysteriously disappears in all paths and can\u2019t be traced.\u00a0\u00a0<\/p>\n<\/figure>\nSwitching to contextual advertising<\/strong>\u00a0<\/h3>\nTo\u00a0target\u00a0the most relevant audience without using ad tech,\u00a0Ster\u00a0shifted\u00a0to\u00a0a\u00a0data-driven\u00a0contextual\u00a0ad\u00a0model.\u00a0\u00a0<\/p>\n
Although a\u00a0long established\u00a0method which was\u00a0in place\u00a0before the rise of ad tech,\u00a0contextual targeting\u00a0was\u00a0previously\u00a0used as more of a\u00a0basic indicator of\u00a0user preference\u00a0and\u00a0based\u00a0on simple elements such as a program\u2019s title and genre\u00a0\u2013 with only a\u00a030% rate of accuracy<\/strong>.\u00a0\u00a0<\/p>\nSter\u2019s\u00a0innovative\u00a0approach was to\u00a0leverage\u00a0specific\u00a0metadata\u00a0from\u00a0NPO\u2019s\u00a0programme\u00a0subtitles\u00a0(integrated into all their programmes)\u00a0to\u00a0get high-precision info about the\u00a0context.\u00a0By using a data-driven\u00a0multidimensional\u00a0wordcloud\u00a0called \u2018Word2Vec\u2019, Ster\u00a0is\u00a0able to\u00a0ascertain how often words occur together and their distance from different categories or contexts, prioritising the most\u00a0important words.\u00a0Then\u00a0with\u00a0mathematical formulae based on syntactic relationships, the model\u00a0is able to\u00a0connect\u00a0up\u00a0the words in the metadata subtitles\u00a0and pinpoint the context of a\u00a0program, episode or article\u00a0with a\u00a095%<\/strong>\u00a0<\/strong>accuracy<\/strong>\u00a0rate<\/strong>.\u00a0This can then be used to sell ad inventory\u00a0and still reach the most interested\u00a0and relevant\u00a0audience.\u00a0<\/p>\n<\/figure>\nSuccessfully measuring cookie-free campaigns<\/strong>\u00a0<\/h3>\nOne drawback of running ad campaigns without cookies is that it\u2019s more difficult to measure users\u00a0after<\/em>\u00a0they\u2019ve viewed content. It\u2019s therefore difficult to track the success of the various campaigns.\u00a0<\/p>\nTo work round this, Ster started working with a research partner\u00a0Brand Metrics, who enabled them to measure the brand effects of cookie-free campaigns. By asking visitors a brief question in the display slot about their relationship with the advertiser, Ster could gain info on the key brand KPIs such as familiarity, consideration, preference and behaviour. This measurement is done carried out before and after campaigns and the difference in the brand KPIs indicates their effectiveness. Although this approach only works for display campaigns, they saw positive results for several advertising brands including\u00a0Exterioo\u00a0garden furniture, who saw an 8% increase in awareness as well as larger brands such as DAS and\u00a0Nationale\u00a0Nederlanden.\u00a0<\/p>\n
Results<\/strong>\u00a0<\/h2>\nIncreased ad sales despite\u00a0global pandemic<\/strong>\u00a0<\/h3>\nNPO switched from tracking-based targeting to targeting\u00a0without any personal data\u00a0in\u00a0January 2020. In the following\u00a0weeks,\u00a0their\u00a0revenue increased\u00a0by\u00a061%\u00a0compared to\u00a0January 2019.\u00a0This continued into\u00a0February,\u00a0where\u00a0revenue increased 76% over the previous year.\u00a0Then despite the\u00a0arrival of\u00a0Covid-19, revenue increased 18% in March over the previous year,\u00a09% in April, and\u00a014% in May.\u00a0In total, Ster saw\u00a027<\/strong>% growth from January \u2013 September 2020<\/strong>, vs. 2019 and\u00a0are\u00a0expecting\u00a0up to\u00a0\u20ac2M\u00a0increased\u00a0revenue\u00a0in 2020 vs. 2019.\u00a0<\/p>\nImproved\u00a0CTRs and\u00a0conversion<\/strong>\u00a0<\/h3>\nSter also\u00a0saw that contextual campaigns generated\u00a0clicks more often than non-contextual campaigns.\u00a0\u00a0<\/p>\n
They\u00a0also saw this in\u00a0a number of\u00a0specific campaigns, which showed that\u00a0a\u00a0campaign used in the right context led to stronger conversions. For example, a campaign by a travel advertiser proved to be more effective in the context of travel\/holiday programmes than if it was only used for a target group.\u00a0<\/p>\n
No consent module \u2192 Improved User Experience<\/strong>\u00a0<\/h3>\nSter\u2019s new approach\u00a0has\u00a0significantly\u00a0boosted the UX.\u00a0As\u00a0there\u00a0isn\u2019t\u00a0any\u00a0personal or login data\u00a0from\u00a0NPO users\u00a0in the\u00a0new\u00a0process, Ster\u00a0no longer\u00a0need to ask for\u00a0user\u00a0consent\u00a0to carry out\u00a0personalised\u00a0advertising.\u00a0This means the visitor experience is improved as they no longer get\u00a0bombarded by\u00a0cookie pop-ups. The reduced number of data points,\u00a0volume of data shared,\u00a0and intermediaries\u00a0also means that the pages load far more quickly.\u00a0Everything is fully controlled, and\u00a0they don\u2019t drop any cookies\u00a0whatsoever.\u00a0\u00a0<\/p>\n
Streamlining the process<\/strong>\u00a0<\/h3>\nWhen a user starts a video, Ster receives an ad call in their custom-made\u00a0adserver, without any personal information. There are then a range of possibilities for 3rd<\/sup>\u00a0parties to buy their inventory. Advertisers no longer need to use a DSP or agency to buy the content, and they no longer need different SSPs or DMPs to make sure the advert is relevant. Ster have full control over everything happening in their network.\u00a0\u00a0<\/p>\nAll\u00a0parties\u00a0benefit\u00a0from Ster\u2019s simple setup<\/strong>\u00a0<\/h3>\nSter have so far demonstrated that\u00a0it\u2019s entirely possible\u00a0for advertisers to\u00a0target the most relevant\u00a0audience\u00a0even without using\u00a0cookies.\u00a0In an ecosystem free from cookies or the need for personal data, value is based on the content.\u00a0\u00a0<\/p>\n
Instead of the different exchanges and difficult layouts, all parties profit as the users\u00a0have\u00a0a\u00a0privacy-friendly experience. Advertisers have more exposure for the same budget as they only need the ad-serving fee.\u00a0By\u00a0removing all\u00a0the\u00a0middle-men, they\u00a0keep\u00a0the process as minimal and\u00a0simple\u00a0as possible.\u00a0The publishers\u00a0also\u00a0receive more revenue as there are far fewer intermediate parties.\u00a0Ster\u00a0is fully transparent with the direct connection to the content inventory\u00a0and the 15% that previously vanished is no longer an issue.\u00a0<\/p>\n
Moving forward\u00a0<\/strong>(profitably)\u00a0<\/strong>without cookies<\/strong>\u00a0<\/h2>\nAs well as the\u00a0campaign results, the\u00a0outstanding\u00a0business\u00a0results have also\u00a0reassured advertising investors. Ster\u2019s\u00a0increased 2020\u00a0turnover\u00a0has already\u00a0generated a lot of\u00a0positive spin<\/a>\u00a0and\u00a0been a\u00a0good indicator that\u00a0their\u00a0non-cookie-based ad\u00a0business\u00a0model is sustainable.\u00a0They are also carrying out further development\u00a0in context targeting in terms of delivery and measurement to make it even more specific.\u00a0<\/p>\nGoing\u00a0into 2021 and beyond,\u00a0Ster\u2019s model has set the example that it\u2019s possible to\u00a0entirely remove the cookie-based ad tech ecosystem.\u00a0They\u00a0are also keen to\u00a0share their context\u00a0&\u00a0ad serving\u00a0tools soon with other parties who are dealing with the same no-consent issues.\u00a0\u00a0<\/p>\n
As well as they\u00a0issue of personal data being used for advertising purposes,\u00a0the other hot topic\u00a0involves\u00a0the transparency of online technical solutions.\u00a0\u00a0<\/p>\n
In order to\u00a0create\u00a0an\u00a0ad-tech free\u00a0and transparent\u00a0business model, Ster\u00a0therefore\u00a0needed\u00a0a clear picture of the programmatic advertising universe\u00a0to\u00a0<\/strong>understand all the players involved. It was also crucial to breakdown the costs of getting an advert from the source to the end user and find ways to reduce or even completely remove the money leakage.\u00a0<\/p>\n Then there was the issue of\u00a0persuading\u00a0advertisers that it was economically viable to carry on buying ads that weren\u2019t based on user behaviour.\u00a0It\u2019s widely accepted in the industry that cutting\u00a0out 3rd\u00a0party trackers\/cookies can\u00a0significantly reduce<\/a>\u00a0publisher revenue\u00a0with some reports claiming a potential loss of up to\u00a050%<\/a>.\u00a0<\/p>\n \u00a0As Ster intended to operate in a completely ad-tech free environment, they had to design a system that was still able to leverage users\u2019 online interests, without the need to invade their private data.\u00a0<\/p>\n Through\u00a0a study by the\u00a0ISBA<\/a>, the society representing UK advertisers, Ster were able to get a clear overview of the ad tech chain structure and its value.\u00a0\u00a0<\/p>\n By clearly displaying all the exchanges with the\u00a0Demand-side platforms<\/a>\u00a0(DSPs),\u00a0Supply Side Platforms<\/a>\u00a0(SSPs)\u00a0and\u00a0Data Management Platforms (DMPs), as well as first exchange partners, the\u00a0study\u00a0shows how the advertiser\u2019s euro\u00a0has to\u00a0pass through many different counters before it reaches the publisher. As well as nearly 50% of the revenue being siphoned off, 15% of the revenue mysteriously disappears in all paths and can\u2019t be traced.\u00a0\u00a0<\/p>\n To\u00a0target\u00a0the most relevant audience without using ad tech,\u00a0Ster\u00a0shifted\u00a0to\u00a0a\u00a0data-driven\u00a0contextual\u00a0ad\u00a0model.\u00a0\u00a0<\/p>\n Although a\u00a0long established\u00a0method which was\u00a0in place\u00a0before the rise of ad tech,\u00a0contextual targeting\u00a0was\u00a0previously\u00a0used as more of a\u00a0basic indicator of\u00a0user preference\u00a0and\u00a0based\u00a0on simple elements such as a program\u2019s title and genre\u00a0\u2013 with only a\u00a030% rate of accuracy<\/strong>.\u00a0\u00a0<\/p>\n Ster\u2019s\u00a0innovative\u00a0approach was to\u00a0leverage\u00a0specific\u00a0metadata\u00a0from\u00a0NPO\u2019s\u00a0programme\u00a0subtitles\u00a0(integrated into all their programmes)\u00a0to\u00a0get high-precision info about the\u00a0context.\u00a0By using a data-driven\u00a0multidimensional\u00a0wordcloud\u00a0called \u2018Word2Vec\u2019, Ster\u00a0is\u00a0able to\u00a0ascertain how often words occur together and their distance from different categories or contexts, prioritising the most\u00a0important words.\u00a0Then\u00a0with\u00a0mathematical formulae based on syntactic relationships, the model\u00a0is able to\u00a0connect\u00a0up\u00a0the words in the metadata subtitles\u00a0and pinpoint the context of a\u00a0program, episode or article\u00a0with a\u00a095%<\/strong>\u00a0<\/strong>accuracy<\/strong>\u00a0rate<\/strong>.\u00a0This can then be used to sell ad inventory\u00a0and still reach the most interested\u00a0and relevant\u00a0audience.\u00a0<\/p>\n One drawback of running ad campaigns without cookies is that it\u2019s more difficult to measure users\u00a0after<\/em>\u00a0they\u2019ve viewed content. It\u2019s therefore difficult to track the success of the various campaigns.\u00a0<\/p>\n To work round this, Ster started working with a research partner\u00a0Brand Metrics, who enabled them to measure the brand effects of cookie-free campaigns. By asking visitors a brief question in the display slot about their relationship with the advertiser, Ster could gain info on the key brand KPIs such as familiarity, consideration, preference and behaviour. This measurement is done carried out before and after campaigns and the difference in the brand KPIs indicates their effectiveness. Although this approach only works for display campaigns, they saw positive results for several advertising brands including\u00a0Exterioo\u00a0garden furniture, who saw an 8% increase in awareness as well as larger brands such as DAS and\u00a0Nationale\u00a0Nederlanden.\u00a0<\/p>\n NPO switched from tracking-based targeting to targeting\u00a0without any personal data\u00a0in\u00a0January 2020. In the following\u00a0weeks,\u00a0their\u00a0revenue increased\u00a0by\u00a061%\u00a0compared to\u00a0January 2019.\u00a0This continued into\u00a0February,\u00a0where\u00a0revenue increased 76% over the previous year.\u00a0Then despite the\u00a0arrival of\u00a0Covid-19, revenue increased 18% in March over the previous year,\u00a09% in April, and\u00a014% in May.\u00a0In total, Ster saw\u00a027<\/strong>% growth from January \u2013 September 2020<\/strong>, vs. 2019 and\u00a0are\u00a0expecting\u00a0up to\u00a0\u20ac2M\u00a0increased\u00a0revenue\u00a0in 2020 vs. 2019.\u00a0<\/p>\n Ster also\u00a0saw that contextual campaigns generated\u00a0clicks more often than non-contextual campaigns.\u00a0\u00a0<\/p>\n They\u00a0also saw this in\u00a0a number of\u00a0specific campaigns, which showed that\u00a0a\u00a0campaign used in the right context led to stronger conversions. For example, a campaign by a travel advertiser proved to be more effective in the context of travel\/holiday programmes than if it was only used for a target group.\u00a0<\/p>\n Ster\u2019s new approach\u00a0has\u00a0significantly\u00a0boosted the UX.\u00a0As\u00a0there\u00a0isn\u2019t\u00a0any\u00a0personal or login data\u00a0from\u00a0NPO users\u00a0in the\u00a0new\u00a0process, Ster\u00a0no longer\u00a0need to ask for\u00a0user\u00a0consent\u00a0to carry out\u00a0personalised\u00a0advertising.\u00a0This means the visitor experience is improved as they no longer get\u00a0bombarded by\u00a0cookie pop-ups. The reduced number of data points,\u00a0volume of data shared,\u00a0and intermediaries\u00a0also means that the pages load far more quickly.\u00a0Everything is fully controlled, and\u00a0they don\u2019t drop any cookies\u00a0whatsoever.\u00a0\u00a0<\/p>\n When a user starts a video, Ster receives an ad call in their custom-made\u00a0adserver, without any personal information. There are then a range of possibilities for 3rd<\/sup>\u00a0parties to buy their inventory. Advertisers no longer need to use a DSP or agency to buy the content, and they no longer need different SSPs or DMPs to make sure the advert is relevant. Ster have full control over everything happening in their network.\u00a0\u00a0<\/p>\n Ster have so far demonstrated that\u00a0it\u2019s entirely possible\u00a0for advertisers to\u00a0target the most relevant\u00a0audience\u00a0even without using\u00a0cookies.\u00a0In an ecosystem free from cookies or the need for personal data, value is based on the content.\u00a0\u00a0<\/p>\n Instead of the different exchanges and difficult layouts, all parties profit as the users\u00a0have\u00a0a\u00a0privacy-friendly experience. Advertisers have more exposure for the same budget as they only need the ad-serving fee.\u00a0By\u00a0removing all\u00a0the\u00a0middle-men, they\u00a0keep\u00a0the process as minimal and\u00a0simple\u00a0as possible.\u00a0The publishers\u00a0also\u00a0receive more revenue as there are far fewer intermediate parties.\u00a0Ster\u00a0is fully transparent with the direct connection to the content inventory\u00a0and the 15% that previously vanished is no longer an issue.\u00a0<\/p>\n As well as the\u00a0campaign results, the\u00a0outstanding\u00a0business\u00a0results have also\u00a0reassured advertising investors. Ster\u2019s\u00a0increased 2020\u00a0turnover\u00a0has already\u00a0generated a lot of\u00a0positive spin<\/a>\u00a0and\u00a0been a\u00a0good indicator that\u00a0their\u00a0non-cookie-based ad\u00a0business\u00a0model is sustainable.\u00a0They are also carrying out further development\u00a0in context targeting in terms of delivery and measurement to make it even more specific.\u00a0<\/p>\n Going\u00a0into 2021 and beyond,\u00a0Ster\u2019s model has set the example that it\u2019s possible to\u00a0entirely remove the cookie-based ad tech ecosystem.\u00a0They\u00a0are also keen to\u00a0share their context\u00a0&\u00a0ad serving\u00a0tools soon with other parties who are dealing with the same no-consent issues.\u00a0\u00a0<\/p>\nSolution<\/strong>\u00a0<\/h2>\n
Understanding tech chain\u00a0black-boxing<\/strong>\u00a0<\/h3>\n
<\/figure>\nSwitching to contextual advertising<\/strong>\u00a0<\/h3>\n
<\/figure>\nSuccessfully measuring cookie-free campaigns<\/strong>\u00a0<\/h3>\n
Results<\/strong>\u00a0<\/h2>\n
Increased ad sales despite\u00a0global pandemic<\/strong>\u00a0<\/h3>\n
Improved\u00a0CTRs and\u00a0conversion<\/strong>\u00a0<\/h3>\n
No consent module \u2192 Improved User Experience<\/strong>\u00a0<\/h3>\n
Streamlining the process<\/strong>\u00a0<\/h3>\n
All\u00a0parties\u00a0benefit\u00a0from Ster\u2019s simple setup<\/strong>\u00a0<\/h3>\n
Moving forward\u00a0<\/strong>(profitably)\u00a0<\/strong>without cookies<\/strong>\u00a0<\/h2>\n