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Digital and Native Advertising Growth: A Full Assessment on Media Ad Spend

Increasingly mobile lifestyles and new innovations in advertising technology have created a new set of opportunities for marketers in the world of digital advertising.

Now, brands and agencies in search of vast audiences and consumer attention have to consider budget allocations and long-term strategies in a fast changing sphere.

As many of us will be heavily influenced by future marketing and advertising trends, we decided to do a full assessment on media ad spend, including the growth of native and video advertising, to see where media spend is (and should) be going.

Print Decline Accelerating; Television Poised for a Takedown

Recently, Victoria’s Secret discontinued their famous direct-mail catalogue which had been helping the brand increase awareness for 29 years. The event illustrates the current state of print, whose decline is expected to accelerate 20% by 2017. Over the same period, total media ad spend will increase by 11%, from $177.76 billion to $196.95 billion (eMarketer). 

As recently as 2014, Television accounted for 39.6% of all media ad spend globally. This number will shrink to 37.4% by 2017 (a 5.5% decline), opening the door for a new champion.


Watch the Throne, Digital Will Be New King by 2017

Digital ad spend is set to officially surpass TV in 2017, and by 2020, digital will account for 44.9% of all media ad spend (eMarketer). Within just four short years, digital is expected to have an impressive 12% margin over TV.

With this uptick, many brands have allocated a higher proportion of their marketing budget towards digital and found success with their target audiences, especially amongst certain channels.

Mobile Leads Digital Video Advertising’s Growth

Thus far, mobile has been the catalyst for digital’s ascension over TV due to their unique ability to reach audiences anywhere. Currently, mobile ads are achieving over 2X the amount of brand awareness and up to 3X the level of purchase intent as their desktop counterparts (Opera MediaWorks).

Mobile video, in particular, has seen the greatest success, where spending in the US jumped 80.6% in 2015. That trend is expected to continue, albeit at a more reasonable rate, well into the future.

Set to experience doubledigit growth every year, the US digital video advertising market will nearly double by 2019, at which point it will account for roughly 43% of all media ad spend. (eMarketer)

Mobile video has been a goldmine for advertisers who have been able to show targeted audiences more personal ads in real time, everywhere they go. A marketing budget that doesn’t include mobile video ad spend will soon be a rarity.

Native Advertising Also Anchoring Digital Growth

Many sources estimate that accidental clicks on banner ads are as high as 50 percent (Business Insider). This wasteful spend has hurt brands and brand equity, leading to a massive shift towards native advertising.

By 2021, native display ad revenue in the US, which includes native in-feed ads on publisher properties and social platforms, will make up 74% of total US display ad revenue, up from a 56% share in 2016.

Total media ad spend on native ads will grow 20%+ up until 2021 and beyond (eMarketer). During that span, we will witness spend on digital banner ads decline for the first time, as brands produce more content and resort to storytelling as a way to better connect with their digital audiences.

Native Advertising Top Digital Focus for Marketers

Brands and agencies have found success with native ads, including in-feed sponsored content and outstream video, which integrate well with the user experience.

Recently, native ads ranked as the top priority for  B2B marketers when asked where they will focus their mobile ad buys over the next six months (VentureBeat).

As a result, native display ad revenue in the US is expected to rise to $36B within the next 5 years (Business Insider).

Media Ad Spend Growth and Trends (Summary)

  • Print media ad spend (newspapers and magazine) will decline 20% by 2017
  • Long-time king TV set to be surpassed by Digital in 2017
  • Digital now accounts for roughly 35% of all media ad spend, roughly $60Billion USD. This number will grow to 45% and about $90Billion USD by 2020
  • Digital triumph will continue to be led mainly by mobile video (80% increase in spend in 2015), and native advertising (20%+ growth each year into the foreseeable future)



We see that digital will continue to soar and its ascension will be led primarily by mobile video and native advertising, where brands have achieved the best outcomes.

As the industry continuously changes, brands will accelerate their search for new and innovative ways to tell their unique story across the mediums and channels that best resonate with their target audiences. Currently, that means good news for native and non-intrusive video ads.

4 min read

The Future Of Advertising Is Content ‘Performance’ Marketing

This article originally appeared on the Huffington Post.


Content marketing is mainstream. Whether it’s a B2B startup or a large consumer enterprise, most marketers now understand that stories are superior to ads because they’re simply more impactful. More than half of Canadian consumers who have bought online responded that branded content had influenced their purchase decision.

However, at the moment, “gut feeling” is the reason marketers put content at the centre of their marketing. If probed about how to measure the ROI of content, many marketers would offer differing opinions.

Despite this uncertainty, the question of content marketing’s role in bringing tangible business results is moving to the forefront of all marketing conversations. The challenge of measuring ROI is largely tied to the lack of attribution models that would work specifically for content.

For such an attribution model to exist, it would have to be possible to connect the dots of who is reading your content and what impact that content creates. While some pieces of this puzzle are still missing (for example, the absence of qualitative metrics around the impact of content), there are some promising movements in repurposing existing technologies to serve the content marketing space.

One of particular note is the adoption of programmatic technologies for the distribution of branded content. Programmatic native advertising is quickly becoming the default channel for distributing branded content in an efficient and attributable way. Why so? Because it provides a fundamental edge over traditional channels: the ability for advertisers to speak only to their audiences of interest without creating unnecessary noise.

What does this ability to reach only relevant audiences with content on-demand mean for brands?

First, targeted storytelling lets brands build deeper relationships with consumers. Gone are the days of the transactional approach to doing business. Driving revenue from existing customers is simply much cheaper than continuously acquiring new ones. As competition becomes fiercer across all verticals and product categories, building brand loyalty is of paramount importance for brands that want to stay relevant in the years to come.

Second, if you have several buyer personas, it becomes a powerful channel for segmenting your messaging. Instead of doing what most marketers do—that is, “pumping” content out—granular segmentation allows marketers to step away from the shotgun approach of content marketing and towards a “sniper” mentality.

At the end of the day, it’s the right content delivered at the right time in the purchase funnel that truly moves the needle for brands. “Spray and pray” is simply not an approach that marketers should take two decades after the first ads appeared online.

Third, it brings convergence between brand advertising and performance teams. This can help brands and agencies build leaner teams, consolidate multiple platforms, and avoid an expensive overlap in reaching the same users. Awareness campaigns that have become synonymous with lack of accountability can start being closer tied to on-site engagements, events and ultimately sales.

Last but not least, as content-driven initiatives start moving down the funnel, we’ll see more brands invest in value-adding strategies to connect with consumers. Content’s non-interruptive delivery through native advertising creates a better user experience on the web and slows the ad blocking trend.

At the end of the day, all marketing and advertising efforts should accomplish one goal and one goal only: to drive sales now or in the future. With the adoption of real-time, data-driven technologies for the distribution of content, we’re witnessing a shift from content marketing to content “performance” marketing—a more sustainable and accountable way to drive business results by delivering value—adding content to consumers in a timely manner.

4 min read

How Trading Desks of all Shapes and Sizes Embrace Programmatic Native Advertising

In the year 2015, the concept of a trading desk is not new. While most industries’ programmatic veterans think of agency when they talk about trading desks, the fact is that trading desks have evolved into all shapes and sizes.

Nowadays, programmatic buying is so widely accepted that even the smallest agencies see the value in bringing a demand-side buying platform (DSP) on board. No longer having a trading desk is something that is reserved only for holding companies. In 2015, trading desks are formed from even a few team members using a DSP to buy media.

What’s also interesting is the breadth of companies that have started building trading desks. From individual publishers to large media companies, and from creative and PR agencies to ad networks – all see the value in bringing technology on board to power many outdated processes and bring targeting and optimization into the buying mix.

While trading desks usually have several platforms to buy various formats, for the sake of this article we will focus on Programmatic Native Advertising. (If you are unsure how native advertising is bought programmatically, please read up on it here).

What exactly do the above companies achieve by bringing a platform on board to buy native advertising programmatically?


Let us illustrate:

Creative and PR Agencies

Historically, there has been a clear delineation between creative and media agencies. Creative agencies came up with advertising campaigns, while media agencies made sure these campaigns got in front of the consumers. This may have worked when advertising was being pumped out in one direction – towards the consumers. But now the brand-to-consumer communication has evolved and it’s a two-way dialogue. The medium is the content that brands produce, and the distribution is social and native advertising channels.

With the increasing importance of having a tight feedback loop on content production and distribution, many creative and PR agencies are evolving to add paid channels as part of their offering. As content and media come closer together in the context of programmatic native advertising, creative and PR agencies that embrace new formats and channels to reach audiences at scale help their clients win big time.


Media Agencies

With content marketing booming, media agencies have the most pressure to redefine themselves. Built primarily for ‘push’ marketing strategies, many brands don’t see media agencies as being well equipped to execute campaigns beyond direct response initiatives. This has largely been due to the absence of media agencies’ capabilities to execute content-driven and social campaigns that many brands have brought in-house with the rise of social media as a content distribution channel.

As social is becoming more crowded, brands are now starting to move away from distributed media strategies and towards owning the content and engaging with consumers on their own properties.  Such developments are recent and many brands still need help with finding ways to reach new audiences with their content. This gives media agencies a perfect opportunity to bring innovative programmatic native advertising solutions in-house to take the lead on brands’ new content-driven strategies.


Publishers and Media Companies

The media landscape has drastically evolved over the last decade. With the wide adoption of real-time bidding and programmatic buying of banner ads, more and more brands care about the exact audiences they reach rather than where they do so. This has drastically commoditized publishers’ inventory.

What has not yet been commoditized is custom (or sponsored) content that publishers produce together with a brand. This content is then hosted on the publisher’s property and is read by its audience. As a part of the package, publishers often utilize an audience extension strategy to get additional reads to the custom content that they have produced for the brand. Unfortunately, up until now, they have been utilizing intrusive banner ads to deliver value-adding content.

In native advertising, where the branded content is discovered is very important. What many publishers and media companies have started doing is bringing native advertising buying platforms in-house to execute audience extension across the web. This is done through in-feed native ad formats that deliver content in a non-intrusive, cost-effective manner.


Independent Trading Desks and Ad Networks

These two have surprisingly grown close in their role over the last few years. Soon after the first independent trading desks (ITD) started popping up, ad networks realized the scale that they have is simply unmatched to the scale of the whole web that ITDs get through the demand-side platforms. When ITDs and ad networks rushed into programmatic buying of banner advertising, this commoditized their offering.

What ad networks have are relationships with publishers. That means by bringing programmatic native advertising in-house they can closely align brands’ campaigns with the sites they work with. Just like media companies, if ad networks create any custom content with their brands, they can utilize programmatic native advertising platforms to execute audience extension and amplify this content across the web for additional scale.

Programmatic native advertising technology can benefit ITDs in a different way. Because ITDs rarely have direct relationships with publishers, what they can bring to the table is a truly agnostic approach to supply sources and the technology. Since ITDs don’t have any obligations to publishers, their 100% focus on advertisers can deliver unparalleled results if the scale and cost-efficiencies of getting users to engage with content are what their brands are after.

4 min read

Challenges Brands Face When Executing Native Advertising (originally appeared on Marketing Magazine)

Article originally appeared on Marketing Magazine

Native advertising, which is a strategy to reach consumers with branded content in a non-interruptive fashion is being talked about a lot in 2015. This year in the US alone, eMarketer predicts native advertising will grow to the size of the entire digital ad spend in Canada, or about $4.5B.

Seeing the success of our neighbours to the south, it is not surprising that more brands in Canada are exploring how branded content can be leveraged to stand above the competition in speaking to consumers. Unfortunately, native advertising is not as simple as creating a banner ad and requires a fundamentally different mindset on how consumers build affection with a brand.

So what are the main challenges that brands face when it comes to executing native advertising?

Brands think interruption instead of engagement

When we talk about native advertising, it is hard not to speak about the overarching concept of content marketing. This is a strategic marketing approach focused on creating and distributing valuable, relevant and consistent content to attract and retain a clearly defined audience (CMI). The fundamental notion behind content marketing is communicating with consumers through content without selling.

Such an approach may seem counterintuitive to many marketers; however, the realities of breaking through the noise have changed. With so much advertising thrown at consumers, they simply tune out. For example, nearly 90% of TV viewers skip advertisements on their digital video recorders (The Guardian).

Consumers are tired of being sold to. They seek out content that brings them value, and oftentimes it is produced by brands. (Think of LEGO and their excellent content marketing in the form of theme parks and a recently released 3D cartoon.) Progressive brands that see value in content opt in to channels that deliver this value-adding content through non-interruptive channels. Native advertising offers just that. Unlike pop-up banner or pre-roll advertising that interrupts the user experience, native advertising offers consumers a choice to interact with a branded message.

Brands don’t have processes built around content marketing

Content marketing is new; hence it’s the new-age companies that were super successful in adopting it. HubSpot, Shopify and Netflix are some of the very notable examples. What is interesting is that many mega-brands are becoming very savvy with content too. Intel, MasterCard and P&G are all starting to build internal teams to focus on producing value to consumers through content that brings benefits outside the core value proposition of their product. However, the unfortunate reality is that most brands are lost when it comes to content marketing. While two thirds of all B2C companies are using content marketing, only 27% of companies have a clearly documented strategy (CMI research). According to the study, 50% of the marketers have a strategy only in verbal form. This just shows how far we are from having brands take content seriously.

Brands are uncertain how to measure the results

Over the last 20 years of digital advertising, marketers have been molded into Direct Response-first thinkers: drivetraffic, increase conversions, and then increase sales. The realities have changed. Consumers are bombarded with offers and deals daily. What many companies are starting to realize is that one of the most sustainable ways to ensure brand loyalty is not by constantly incentivizing purchases, but by connecting with consumers on a deep level—aligning the company’s values with theirs.

According to the same study done by the Content Marketing Institute, the key metrics that are used to measure the success of content marketing are traffic (60%), sales (54%) and conversion rate (39%). These priorities signal one thing—brands still think of content (and in turn native advertising) as a performance channel. What is more interesting is how many companies attribute these metrics to actual return on investment (ROI). A shocking 21% of respondents admit to not even attempting to track it.

Tracking direct response metrics, having no documented strategy on creating and distributing content, and not tracking ROI from content that is produced are all reasons why only a third of marketers consider content marketing effective. That’s the bad news. The good news is that with native advertising being a paid media channel, tracking ROI is easier, as it leverages many of the familiar strategies used in other paid media channels.

When it comes to measuring the effectiveness of native advertising, Toronto-based StackAdapt encourages brands to get serious about data and analytics. First and foremost, brands need to set benchmarks. That is, to segment users based on the source they come from, look at the content engagement metrics (time on site, page views, social actions etc.) and take the holistic approach by understanding users’ path to conversion analysis. Second, companies that invest in upper- and mid-funnel strategies to build brand awareness, brand affinity, and purchase intent need to split test native advertising with existing paid media channels such as banner advertising. Key performance indicators can include reach, frequency, cost per visit, and engagement metrics described above.

4 min read

Will existing attribution models work for native advertising? (Guest Article on iMediaConnections)

Blog post originally appeared on iMediaConnections. Read the original story here.


The majority of B2B and B2C brands now invest in content marketing, yet 55 percent of B2B companies believe content marketing campaigns are ineffective. Could this be because we measure the effectiveness of content (and native advertising channels that distribute it) the same way we do banner advertising?

Let’s start by taking a closer look at how users have been engaging with brands through banner advertising and their typical consumer journey to a purchase:

  1. The user sees an ad and clicks on it to go to the brand’s website.
  2. The user adds a product to the cart, but doesn’t complete the purchase.
  3. A retargeting company that works with a brand displays ads to the user to get him or her to come back to the site and finish the purchase.
  4. Some days later, the user decides to return to the site and uses Google to find the home page.
  5. The user completes the purchase.
  6. A retargeting company gets a conversion based on the “last ad seen” post-view attribution model.

Now, let’s look at how native advertising and branded content fits in the consumer journey:

  1. The user reads a piece of content distributed through a native advertising channel and visits the brand’s website.
  2. The user adds a product to the cart, but doesn’t complete the purchase.
  3. A retargeting company that works with a brand displays ads to the user to get him or her to come back to the site and finish the purchase.
  4. Some days later, the user is engaged by branded content and decides to return to the site, using Google to find the home page.
  5. The user completes the purchase.
  6. A retargeting company gets a conversion based on the “last ad seen” post-view attribution model.

As you can see, the end result for both journeys is the same. A brand invested in producing and distributing branded content, but in the end it’s as if it had no impact on the conversion whatsoever. It becomes even more absurd if you take into consideration that 54 percent of all display ads are not seen. That means a retargeting company needs to simply “load” the ad, even if it’s below the fold, to get the conversion based on the most common attribution model — “last ad seen.” Because of the massive scale that a retargeting company can tap into with banner ads, it’s able to almost always be the last company to load the ad, before users go back to the site.

Stats vary across different brands, but post-view conversions often take up more than 90 percent of all conversions, which means content gets no credit for its impact on any user’s consumer journey to purchase. An IPG Media Lab study commissioned by Forbes indicated that consumers were 41 percent more likely to express intent to buy the brand versus those who saw a regular web page with no branded content. The problem arises when it comes to actually attributing a purchase back to the original content. What existing attribution models are missing in a context of branded content and native advertising is the measurement of effectiveness of content — users’ engagement with it. Time of site, page views, social sharing — these are all ways to measure users’ engagement post-click.

There is no commonly agreed-upon way to tie in the branded content engagement to the most widespread attribution model — post-view. While likely there will never be a “one size fits all” approach to linking the impact of content to conversions, brands need to start taking steps to better understand this channel’s role in driving online sales. This could mean tagging all campaigns with ad serving tags in order to see where branded content affected the sale.

Attribution models are not perfect, and they are exponentially weaker in the context of native advertising. As more and more brands start investing in native advertising, it is important to understand how the existing models of attributing conversions work in the context of content-driven and native advertising.

4 min read

Trends That Gave Rise to Native Advertising (Featured on Marketing Magazine)

Digital advertising evolution: a closer look at the fundamentals. Piece originally appeared on Marketing Magazine

In 2015 the term that undeniably takes centre stage in the digital media world is native advertising. Even though many marketers continue to battle over exactly which advertisements should be called native, the fundamental premise is the same: uninterrupted delivery of content produced by or in collaboration with a brand. To understand why native advertising gained such momentum over the last couple of years, we ought to look at the underlying industry trends that will continue to shape native advertising as one of the dominant digital media channels.

Shift to values-based advertising

When advertising first emerged, the main focus was the list of its features to differentiate it from the competition. However, as more companies started competing for consumer attention, it became evident that it is impossible to win the ‘feature war.’ What more progressive brands came to realize is that in order to win consumers over, they had to connect with them on a level deeper than just transactional. The emergence of social media, which allowed brands to shift from a monologue to a two-way conversation with consumers, presented an opportunity to engage with consumers by showing shared values and being more human. The democratization of such powerful distribution channels allowed even smaller companies to show their human side. Take Green Shoe Studio, a production company based in East Peoria, IL. Instead of focusing on the capabilities of their recording studio, they instead showcased their values by allowing an elderly man to record a love song in tribute to his wife. This short documentary generated millions of views on YouTube.

Shift to Pull Marketing

According to a study done by the National Center for Biotechnology Information, the average attention span has dropped from 12 seconds in 2000 to eight seconds in 2013—a second shorter than that of a gold fish. This comes as no surprise, given that the typical Internet user is exposed to up to 3000 advertisements a day (Huffington Post). As a result, more brands see the value in finding ways to get users to discover them in order to stand above the crowd of competition that aggressively pushes their messages at consumers.

Such thinking gave rise to the concept of content marketing: a strategic initiative of creating content that delivers value beyond the core product offering. The underlying magic of content marketing is that it delivers value in a non-interruptive manner. “Instead of pitching your products or services, you are delivering information that makes your buyer more intelligent” (CMI). According to the Content Marketing Institute, over 90% of all companies now invest in content marketing. As the creation of content increases, so does the need for scalable distribution channels.

Brands start to think like publishers

Traditionally publishers approached their monetization by building an audience and then selling opportunities to engage with their audience to advertisers. Prior to the wide adoption of social and native channels, brands in turn relied heavily on these publishers with their established distribution channels to reach their consumers with content. However, with the proliferation of the aforementioned digital distribution channels, brands began to realize the efficiencies in reaching the right audience that these channels have created.

Instead of relying just on the audience of a particular publisher, brands take a publisher-agnostic approach to distribute their content through programmatic native advertising technology partners. By producing original content and hosting it on their properties, they are able to cherry pick the audience of interest and drive users to this content. Native advertising channels emerge to complement closed social media networks and reach users with branded content across the web.

Everything goes mobile 

The current challenge that markets face is that most of the Internet, together with the advertising solutions to monetize it—banner ads—have evolved around static web. The nature of mobile content consumption rotates largely around the concept of infinite scrolling, similar to that of large social networks like Facebook. This evolution called for new ad formats that are integrated ‘in-feed.’ The historical solution for mobile has been tiny ads (300×50) that don’t provide enough room for delivering a brand message. On top of that, over 50% of clicks are reported accidental (Business Insider).

Today, well over half of Canadians own a smartphone (Catalyst) and their mobile usage grows exponentially. Mobile data traffic is expected to grow 762% by 2018 (Financial Post). As expected, advertisers see this growing appetite for mobile usage as an opportunity to reach consumers on the go. The strong demand for new ad formats to address the evolved nature of content consumption on mobile devices, called for a solution that would link the marketing message to the user experience.

First pioneered by social networks and search giant Google, we are seeing native advertising strategy being widely adopted. As per a study done by eMarketer, 73% of US media buyers now invest in native advertising. And rightfully so; according to a study done at IPG Media Lab, native advertising beats banner ads on every engagement metric, from increasing brand favorability to a lift in purchase intent.

4 min read

Native Advertising DSP: Programmatic Approach to Buying In-Feed Native Ads

Programmatic buying is breaking into the native advertising industry with IAB’s recent release of OpenRTB 2.3 and Native Ads v1.0 protocol for automated trading of media. The mission behind the release is to foster innovation in Real-Time Bidding (RTB) marketplace for Native Ads by providing a technology standard for companies to innovate around. By establishing this open, flexible, standard for the new ad format, In-Feed Native Advertising, the programmatic ecosystem will see its rapid adoption amongst publishers and advertisers.

The fundamental difference of the new OpenRTB 2.3 protocol is that it allows for passing individual ad elements in a form of metadata, unlike banner advertising where a static image file is being passed. This allows for virtually infinite variability in what native ads can look like. A company that played a major role in defining the key elements an in-feed native ad should have is Facebook.

Over last few years we have seen several companies enter the native advertising industry. Their work primarily resembled that of an ad network — they juggled working with both publishers and advertisers. Even though native advertising implies integration and customization, every company needed some degree of standardization to grow the size of the publisher network they can tap into, on the premise of which they can attract more advertiser dollars. We’ve seen this happen to banner and video ad formats, and it is now happening in native advertising too — companies start shifting towards either supply-side to represent publishers (and become an exchange or an SSP) or demand-side to represent advertisers. This narrow focus is instrumental in avoiding the conflict of interest ad networks have — having to maximize revenue for publishers while driving the most ROI for advertisers. These conflicting goals can on be avoided in an open marketplace environment.


Native Advertising is gobbling up budgets, but the novelty for the new format is quickly is wearing off and media buyers started to demand performance. It may have been sufficient to simply integrate a native ad in a contextually relevant environment 2 years ago, but in 2015 buyers want to make sure the right users see these ads. In fact, according to eMarketer, 70% of media buyers place audience-targeting as a top priority when buying native advertising. With the rise of native advertising exchanges such as AdsNative, PubNative, DistroScale etc., trading desks looked for a platform that would allow tapping into all of the exchanges for maximum scale, targeting and workflow efficiencies. Native Advertising DSP allows buying native advertising across all exchanges through one interface. Some of the most notable advantages of using a DSP to buy native advertising:

  1. Centralizing campaign reporting provides actionable data across all exchanges.
  2. Leveraging DSPs machine learning algorithms allows for optimization of campaigns across all exchanges towards one goal.
  3. Having full transparency on where the ads are running and the cost that is associated with buying native ads. Centralized platforms make campaign pacing decisions and budgeting easy.
  4. Appling frequency cap on all media buys. This eliminates scenarios in which a user is over-exposed to ads through different exchanges. Having a universal frequency cap ensures users that have converted on the site are removed from targeting across all exchanges and aren’t targeted over and over again.
  5. Buying advertising against 1st or 3rd party data across all exchanges. This ties into the point above, of having tight control of what users are targeted, how often, and with what message.

Native advertising channel is an infrequent opportunity for brands to get an upper hand on their competition by scaling engaging content to build deep connections with consumers. With the wide adoption of automated ad buying, Native Advertising DSPs provides brands with a cutting-edge access point to serve native ads to their target audience at scale with full pricing and site-level transparency.

4 min read