Publishers Answer to a Changing Advertising Market
The advertising market is nearing a breakthrough. Within 5 years, 80-100% display ads will be traded in a programmatic model – that’s the prognosis, at least. Are publishers ready for this revolution that has already started?
Various data and sources report that ad spendings via programmatic are growing and will continue to grow. According to the latest report by IAB Europe, it’s increased by 70% globally. Go back not even a few years ago and programmatic was still a novelty. But that’s not the case today. In the UK, 70% of all display ads are purchased in programmatic. As was said by Ulrich Hegge, VP Strategic Market Development DACH AppNexus, in 5 years in Germany the programmatic trading will reach a level between 80% and 100%. These numbers may seem overwhelming, but it seems that programmatic is bravely stepping into the mainstream and will soon dominate all ad trading.
Publishers in the ecosystem
On the other hand, more and more brands want to tell their stories, while using premium media to do it. This is their way to reach more valuable users. However, the number of top websites with high-quality content is limited. Well, think of it this way: how many Rolls-Royces can you spot on a street compared to other cars?
This trend has already started to reshape the position of publishers in the ecosystem. At a glance, they may appear to be in a sweet spot. But upon taking a closer look, you will notice that they face the revolution unprepared: 180-degree different expectations from advertisers, a shortage of trained staff in programmatic, and a lack of in-depth knowledge on this constantly changing phenomenon. How can you deal with this and still intelligently monetize your inventory?
There are 3 possible answers.
No matter your size, business model, and experience, one of these is right for you:
Let somebody help you.
Learn how to solve these puzzles faster.
Or if you know it all, take more of the advertising pie.
Outsource your programmatic yield management and focus on your core business
There is always a risk in giving part of your business into external hands. Many people downright fear it. But in reality, you outsource things every day: going to a doctor, taking the kids to school, or leaving your car in the garage. In all these cases you’re letting someone else take care of an important part of your life. And you trust them to do it well.
When using an external yield optimizer, you are in a much more comfortable situation. Most yield optimizers charge you through a rev-share model, so it’s a win-win situation – they’re extra motivated to earn more for you. But you have additional indicators telling you if everything is going in the right direction. Just like when choosing your partner in monetization, check their reporting, go for a test with them, and see if there is extra revenue on your bank account when the trial is over.
Unfortunately, not so many of them can offer you guaranteed revenue during the test, but there are some that do. The hard data you can see yourself and you can feel the actual money in your pocket during the test. The test takes no risk on your part. And it will help you to assess if a yield optimizer really delivers results, or they’re just luring you in with lofty talk of blue skies for the rest of your days.
Become a programmatic geek
If you have your own direct sales team, use a few programmatic tools, and monetize your content in other ways, it can then be difficult to bring everything all together. So why not open your doors to someone who is experienced in uniting different sources of revenue streams together?
But be aware that you don’t need another business consultant covering every industry – from ironworks up to red goods factories. You need someone who understands the digital publishing business inside-out and knows exactly where you are coming from.
On the other hand, your supporter should also understand the demand side: advertisers. What is important to them, what they expect, where they can pay extra, and where they will hassle you for every single penny. As a result, you should know how to analyze their constantly fluctuating goals. And lastly, you have to meet media agency, trading desk, and advertiser needs with your offer!
Monetize additional traffic streams
If you are a premium publisher with a lot of foreign traffic, it is blindingly obvious for you how much potential yield you end up losing. All of us know it’s hard to find on the market ad-ops with the appropriate qualifications. But when you have them on board, you take advantage of their savvy skills. Since efforts and resources to monetize traffic from various countries are similar, the potential of each state is still different. So when faced with a choice between optimizing yield in programmatic from Czech traffic or Chinese traffic, you won’t spend long deciding.
However, when doing some big-game hunting, perhaps someone can help you to get smaller but still palatable pieces? Nobody likes to leave cash on the table, then don’t! You can only get a guaranteed win if having monetized traffic from the markets that are peripherals for you!
What’s more, you can even gather an extra bonus. It’s somehow obvious how informal contacts and connections can benefit from business life. Local yield optimizers keep close to local advertisers – meeting every time the same people on different branch events, expert panels, working groups tight them together. That’s why it’s easier for them to talk about PMP’s, PD’s and business in general. So let colleagues do a job for you. And most probably you will like the results – your local partner knows what to ask for advertisers and how to do it.
Of course, you don’t have to follow any of the paths pointed out above. But will you be ready then for the programmatic revolution that’s just around the corner, speeding at you like a gamma-ray burst.? Have a short coffee break with our report on the latest eCPMs in Europe, LATAM and North America. Enjoy!
