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A Coming of Age Moment For Social Advertising

Written by: Juliana Casale, Director of Marketing

In case you missed it, TechCrunch covered our announcement of extending Nanigans software to mobile ad exchanges with an article titled “Facebook’s Top Ad Seller Nanigans Expands To Twitter’s MoPub After Hitting $500M A Year In Spend.” In the words of tech journalist Josh Constine, “The Nanigans expansion beyond Facebook is somewhat of a coming of age moment for social advertising.” There are several reasons why our integration with a mobile exchange is such big news for digital marketers; here are a few:

  • MoPub serves billions of ads every day to Android and iOS app users globally across thousands of mobile app publishers, dramatically extending audience reach
  • Customers can target across Facebook and MoPub, identifying best return on ad spend
  • Users can also benefit from cross-channel ROI optimization, using our sophisticated algorithms and mobile SDK
  • The ability to monitor and easily understand digital ad spend has been extended to mobile inventory

A CMO might be most excited by that last bullet point. Working within an industry with news headlines like Ad Age’s “Marketers double programmatic spend despite worries about transparency and fraud,” it’s understandable that Chief Marketing Officers would be concerned about their bottom line; every third-party vendor involved in programmatic advertising wants a piece of the action. According to Mark Butterfield, the head of global media at Boehringer Ingelheim, “We have little or no clear understanding of what percentage (of digital spend) is being delivered to the media owner, and what is being taken in fees from either the agency or middle men. There needs to be clarity in the value chain, otherwise clients will continue to question the validity of the digital buy.”

When you leverage an ad network, agency trading desk, or other black box vendor, a substantial portion of your budget is going to media markup costs. How substantial? Here’s a typical example of the breakdown:

In-house advertising cost savings

A lot of the arguments against in-house advertising involve how complex the digital ecosystem can be. As shown above, costs can really add up when your stack involves multiple vendors —to an average of 40% on the dollar in some cases. Nanigans saves time and reduces complexity with a single solution that spans ad building, bidding, real-time reporting, analytics and optimization. On top of that, we don’t take a cut from ad spend, which means putting money back where it belongs—in your budget. More money to spend gives you the ability to bid higher for the best impressions, which means more wins, which means more opportunities for revenue.

By 2017, IDC predicts that RTB will exceed 40% of sold and purchased digital ad inventory. As marketers continue to shift and invest higher percentages of budget to programmatic advertising, retaining control over spend becomes imperative. The good news? Nothing is standing between you, thousands of mobile publishers, and the largest social network on the planet.

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