Programmatic Adoption by Publishers Grows
Based on data from an AdExchanger report titled “The State of Programmatic Selling, 2015,” publishers continue to adopt programmatic advertising. Nearly a quarter of the study’s participants state that programmatic accounts for at least 40% of their total revenue today.
Gaining efficiency is the main reason for publishers to adopt programmatic, namely trading and operational efficiencies, according to a Winterberry Group report. Aside from gaining maximum value for their ad inventory, publishers are also keen to respond to client demand and ensure they have the desired inventory.
But Some Publishers still Fear Programmatic
Despite the growth in the adoption of programmatic technology, and potential upside such as increased revenue, there are still publishers who fear the automated selling of ad inventory.
William Ammerman, vice president of programmatic at Tribune Media, conducted a survey for his MA thesis and found that about 30.4% of the publishers surveyed were concerned that programmatic sales will undermine direct advertiser relationships, and 28.4% were afraid that programmatic sales will cause CPMs to drop.
It’s Possible to Adopt Programmatic AND Increase Traditional Direct Sales and Total CPMs
A recent study done by The Boston Consulting Group, titled “The Programmatic Path to Profit for Publishers”, argues that publishers can adopt programmatic to sell inventory AND increase direct sales and total CPMs. The study found that outperforming companies employ increasingly well-defined approaches to achieve their success.
These best practices according to BCG include:
1. Take a data-driven approach across both direct and programmatic channels
To maximise revenue and avoid cannibalisation and the risk of CPMs dropping, “publishers need to carefully think through pricing structure and go-to-market approaches across their direct and programmatic strategies, including their guaranteed and non-guaranteed models.”
2. Identify which inventory and audience is valued by advertisers, and effectively use technology and data to match audiences to buyers and achieve higher CPMs
How? By including targeting based on the following criteria:
- The position of the impression (quality)
- The ad’s context – what the content of the web page relates to
- First-party data – the publisher’s data on audience attributes and behaviours
3. Assemble technology that will help you efficiently access demand and act as a decision engine to maximise revenue
The chosen ad tech stack should help publishers maximise revenue by providing inventory management and process controls, as well as the gateway to advertiser demand. There are many technology decisions that impact a publisher’s revenue, however these are the most important:
- Choosing an ad serving technology
- Determine the ideal quantity of programmatic demand sources and tools
- Configure demand sources and tools with the aim of maximising CPMs and fill rate
4. Develop the right capabilities in Sales and Yield Optimisation
“Publishers who are successful with programmatic will rely more and more on a consultive approach, supported by data analysis, with deep knowledge of different buyer’s needs, including optimal targeting and understanding of when different sales channels and models are most appropriate”, states BCG.
For small to mid-sized publishers, hiring specialised staff for programmatic can be difficult. A solution for these companies is to partner with a SSP that offers ad serving and programmatic technology in a unified stack.
BCG’s study found clear benefits to using a unified stack (a technology package where the ad server and SSP are provided by the same company and are designed to work in concert). Less than 0.5 percent of ad impressions are lost when using a unified technology stack. Other technology setups lose between 3-10 percent of impressions between the ad server and the exchange.”
Publishers that are still concerned about programmatic cannibalising their direct sales efforts should know that it is is possible to adopt programmatic, and actually increase direct sales and CPMs by following these four steps:
- Employ a data-driven approach across direct and programmatic channels.
- Understand which advertisers value which inventory and audiences and why, and leverage technology and data to match audiences to buyers and achieve higher prices.
- Assemble the right technology, both as an efficient way to access demand and as a decision engine to maximise revenue.
- Develop the right capabilities (particularly in sales and yield management) and realign their organisations and incentives to support a cross-channel strategy and programmatic sales goals.
MADS ONE YIELD
How does MADS help publishers with their programmatic activities?
Our ONE YIELD platform helps publishers auction between all demand sources, – including direct sold, programmatic and ad networks in one exchange – to the highest bidder and enables them to achieve maximum eCPMs.
The ONE YIELD platform helps publishers achieve higher eCPMS by providing various (targeting) options such as:
- The position of the impression (quality)
- The Ad’s context – what the content of the web page relates to
- First-party data – publisher’s data on audience attributes and behaviours
- Extensive data sharing between publishers and buyers (user, device channel, GPS, and more)
- Rules management to help manage inventory with demand sources (block lists, targeting, ad sizes, creative attributes, etc)
Another way ONE YIELD is able to maximise revenue is by providing inventory management and process controls for publishers in order to maximise CPMs and fill rate.
MADS offers ad serving technology and programmatic technology in a unified stack. This is beneficial for small to medium size publishers who do not have specialised staff for programmatic. We enable publishers to do yield management directly via our dashboard, and offer our expertise so they do not need to hire extra personnel.
Want to learn more about how MADS can help you generate higher CPMs with your programmatic campaigns? Contact us at email@example.com, and don’t forget to subscribe to our newsletter below!