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Programmatic Buying: Unlocking Better Monetization for Publishers

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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.

Published in: Technology, Business

Programmatic Buying: Unlocking Better Monetization for Publishers

  1. 1. Programmatic Buying Unlocking Better Monetization for Publishers!
  2. 2. Market Status Programmatic Collaboration Standalone
  3. 3. Source: ZenithOptimedia April 2014
  4. 4. Source: IDC October 2013 Rest of Central & Eastern Europe
  5. 5. A tale of two pies…
  6. 6. Local Publishers Global Internet Media Companies
  7. 7. Programmatic…
  8. 8. The Core Revolution: Automation of media buying and selling (through technology)
  9. 9. 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
  10. 10. Source: IAB Spain 2014
  11. 11. 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
  12. 12. Standalone Monetization leveraging unique selling points against local competition
  13. 13. More than an open bidding exchange… One to One Non RTB Automates Traditional Direct Sales Longer Commitments Audience Buying Buyer Seller Few to FewKnown 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
  14. 14. Source: Forrester’s “Selling In A Programmatic World Publishers In Control Of Their Ad Businesses” February 2014 24 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.
  15. 15. Collaborative Monetization Standing up to the global media competition
  16. 16. Canada CPAX France Audience Square La Place Media Denmark DUN Czech Republic CPEx Established Alliance Discussion on Alliance Publisher alliances around the world
  17. 17. Tools & ExpertiseHeft key components to building a digital leader 2
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. New expertise needed - hard to acquire Technical Sales Yield Management Data Scientists Technology Management Agile Strategy Admin Processes
  23. 23. Dealing with the complexity… We’ve already seen that in other industries… End User Skilled Service Provider Software Company
  24. 24. 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
  25. 25. Elias Gagas Managing Director eliasg@tailwindemea.net

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