programmatic buying: unlocking better monetization for publishers
DESCRIPTION
Elias Gagas, the Managing Director of TailWind, participated at IAB Romania's “Digital Publishing & Αdvertising day 2014” in Bucharest, where he explained how Publishers can monetize the rapidly growing Programmatic market.TRANSCRIPT
Programmatic Buying Unlocking Better Monetization for Publishers!
Market Status
Programmatic
Collaboration Standalone
Source: ZenithOptimedia April 2014
Source: IDC October 2013
Rest of Central & Eastern Europe
A tale of two pies…
Local Publishers
Global Internet Media Companies
Programmatic…
The Core Revolution:
Automation of media buying and selling (through technology)
RTB = Real Time Bidding An online advertising technology that enables you to trade display advertising inventory - impression-by-impression - in real-time - on an auction basis
The protocol for automation is called
& Data Affecting the valuation of each impression
Source: IAB Spain 2014
Technology & Expertise
› Ad Serving › SSP for sellers › DSP for buyers › DMP for all › Integration › Consulting
Agency Trading Desks
Other Traders › Independent Trading Desks › Retargeters › Ad Networks
Ad Exchanges
&
Publisher Alliances
Other Sellers › Publishing Groups › Telcos / ISPs › Ad Networks
Standalone Monetization leveraging unique selling points against local competition
More than an open bidding exchange…
One to One Non RTB
Automates Traditional Direct Sales Longer Commitments
Audience Buying
Buyer Seller
Few to Few Known as Private Marketplace
Non RTB & RTB Both parties know each other
Extension of Traditional Direct Sales Automated Trading
Audience Buying
Many to Many Known as Open Ad Exchange
RTB Parties don’t necessarily know each other
Automated Trading Audience Buying
Source: Forrester’s “Selling In A Programmatic World Publishers In Control Of Their Ad Businesses” February 2014
2 4
3
Key Findings
1
Pricing, packaging, inventory volume, and brand controls rest with the publisher. These are the levers that, when managed actively by the publisher, can affect the revenue generated by inventory that would otherwise go unmonetized.
Channel overlap is an opportunity not a conflict. When actively coordinated and controlled by the publisher — with adequate sales team education and constant internal communication— channel conflict can be avoided and also lead to additional sales opportunities.
Programmatic efficiencies, data capabilities, and private marketplaces can grow incremental revenue. By employing these evolving capabilities, publishers can create new opportunities with which to serve their best advertisers and enhance relationships.
Partners like supply-side platforms (SSPs) and exchanges help, but the onus is on the publisher to generate demand. Publishers require adequate demand to monetize their inventory, so, while partners can help, it is in the publisher’s best interests to closely manage the demand flow.
Collaborative Monetization Standing up to the global media competition
Canada
CPAX
France
Audience Square
La Place Media
Denmark
DUN
Czech Republic
CPEx
Established Alliance
Discussion on Alliance
Publisher alliances around the world
Tools & Expertise Heft
key components to building a digital leader 2
Publisher #1
Publisher #2 Publisher
#3
Publisher Alliance
A single point of access to remnant inventory
Direct Sales
Remnant Inventory
Unique Selling Proposition = PREMIUM Programmatic
An offer tailored to advertiser needs
Affinity
Brand Premium
Audience
Targeted reach
Performance
Clicks Lead Sales
Sales Houses
Existing business
Publisher Alliance in Programmatic
New Business
Custom advertising solutions Automated advertising solutions
Preference
Special Operations
Publisher #1
Publisher #2 Publisher
#3
Publisher Alliance
Safeguarding existing sales channels
Agencies
Agency Trading
Desk
Guaranteed Transparent
Branding Special Ops
No publisher targeting Non-transparent
Performance Audience
Necessary components to create an offer in this market
Reach audiences Granularity in
targeting Frequency
capping
and critical mass is the only way to make it work
It is a numbers game
New expertise needed - hard to acquire
Technical Sales
Yield Management
Data Scientists
Technology Management
Agile Strategy
Admin Processes
Dealing with the complexity… We’ve already seen that in other industries…
End User Skilled Service Provider Software Company
It is time for publishers to understand RTB is their friend, not their enemy.
“
” Source: IDC October 2013
"Google doesn’t have a rate card. We can sit here all day and debate whether or not we want to embrace RTB for direct sales. In the meantime, Google is stepping on the gas. These guys have declared war on direct sales, and guess what, they are multiple times as big as we are. We can only survive if we embrace RTB," says a publisher executive.
“
” Source: IDC October 2013
CONCLUSION
RTB will revolutionize the display advertising to an extent few in the industry fully appreciate. By automating, integrating, and optimizing the way display advertising is being traded and served, both publishers and advertisers/ad agencies can improve ROI. They must embrace RTB to remain competitive.
“
” Source: IDC October 2013
Publishers must actively and aggressively manage their programmatic sales channels.
“
” Source: Forrester February 2014
It [DMP] gives us leverage to increase CPMs. We do set price floors. It gives us analytics that justify a 20% to 30% increase. Sometimes you charge higher than that depending on what advertisers might be looking for or what they land on.” — Digital publishing executive
“
” Source: Forrester February 2014
Elias Gagas Managing Director [email protected]