We grade everything these days: restaurants, hotels, even attractiveness (Thanks, Tinder!). We regularly pass out awards to the top publishers, agencies and brands and shine a harsh light on the underperformers with aplomb. So why has it taken us so long to grade our programmatic partners, the players keeping our robust, automated transactions running day-in, day-out?
Over 600 professionals on both sides of the buy/sell divide had the chance to grade their partners across a number of areas – open markets, PMP and advance bidding/header bidding.
You’ll learn:
- How publishers and buyers grade their programmatic partners. What are the problem areas and what opportunities are there for improvement.
- How publishers and buyers view the effectiveness of private marketplaces. How do they each score their experiences and what strategies are working best·
- Why advance bidding/header bidding is emerging as a growing trend. What are the challenges and upside potential for publishers.
Technorati & Digiday - Programmatic Report Card: Buy and sell sides score their programmatic partners
1. David Amrani, Sr. Editor – Digiday
Shani Higgins, CEO – Technorati
Cory Wheeler, Programmatic Lead – Graphiq
August 27, 2015
2. Methodology
Over 600 buy- and sell-side professionals
Publisher
38.86%
Media
Agency
22.12%
Other
14.22%
Network
7.42%
DSP
6.95%
Brand/AdverIser
6.79%
Agency
Trading
Desk
3.63%
14.57%
32.45%
18.54%
12.58%
9.93%
11.92%
Buyer Size
(Annual Adspend)
25.74%
12.87%
14.34%
10.29%
8.09%
9.93%
18.75%
Publisher Size
(Monthly Ad Impressions)
3. The Open Markets
Publishers
7.72%
64.71%
27.57%
0
1
-‐
5
6+
3.41%
67.71%
28.98%
0
1
-‐
5
6+
Buyers
# of Programmatic Selling Solutions # of Programmatic Buying Solutions
4. The Open Markets
Time
and
effort
to
integrate
–
55%
Buyers/63%
Sellers
Time
and
efforts
to
manage
each
relaIonship
–
49%
Buyers/55%
Sellers
All
inventory
is
overlapping
–
41%
Time
and
effort
to
manage
inventory
quality
–
39%
Sufficient
return
with
exisIng
partners
–
38%
Time
and
effort
to
manage
ad
quality
–
47%
Loss
of
impressions
from
daisy
chaining
–
40%
Time
and
effort
to
manage
reporIng
–
33%
Why
isn’t
there
a
rush
to
integrate
more
programmaIc
partners?
Buyers
Sellers
5. The Open Markets -
Publisher Challenges
Daisy chaining or waterfalling partners is
inefficent
Not having my own internal developers to
support my needs
Not being able to have demand partners
compete with eachother on each impression
Top 3 biggest challenges publishers face working with programmatic partners
45.5%
44.4%
43.4%
Maximizing competition for inventory is top of mind
Not surprisingly – it’s all about the $$
Top 3 areas most in need of improvement… CPM 47%
Fill 43%
Revenue 36%
6. What techniques are publishers using?
The Open Markets -
Publisher Strategies
3.03%
9.60%
14.14%
29.29%
36.36%
38.89%
39.90%
48.99%
Other
Use a proprietary RTB System
Allocate a % of my inventory to each partner
Work with full-fill (no passbacks)
Use an SSP or exchange to manage
programmatic for me
Manually adjusting ad serving rules based on
eCPMS and fill
Work with fixed CPM partners
Using passbacks and floor prices
7. Private Marketplaces
Customized, invitation-only marketplaces where publishers can
make their (usually premium) inventory and audiences available to a
select group of buyers.
• About 67 percent of buyers and sellers use them
• On average, 15 percent of digital ad spend
8. Private Marketplaces
The problem areas:
• Publishers can’t find enough buyers to enter these deals
Ø If they do, it’s hard to ensure they’re buying
• Inventory discovery is not up to buyers’ expectations
• Deal negotiation mechanics are inefficient
9. Private Marketplaces
40%
31%
37%
45%
62%
63%
34%
38%
38%
45%
65%
67%
Streamlining Delivery
Campaign set up
Budget Fulfillment
Inventory Packaging
Deal Negotiation
Inventory/Demand Discovery
Sellers
Buyers
Buyers and Sellers are in agreement on areas in need of attention.
10. Private Marketplaces
So how do we improve?
• More accurate and descriptive packaging of inventory
• Publishers need to present their valuable, premium inventory
• Deal negotiation needs to go off without a hitch
Despite these issues, publishers and buyers expect their PMP revenue/spending to
increase.
11. Private Marketplaces
However, improvements will need to be made in aligning what Buyers
value and what Sellers think Buyers value.
First party data segments
Viewability
First look/exclusive access
Context
Frequency Capping
Ad sizes/formats
69%
60%
54%
38%
32%
23%
45%
45%
68%
52%
15%
50%
Buyers Value
Most valuable targeting for maximizing ROI/that you provide
Sellers Value
12. Buyer Feedback
• CPM floor prices are too high for sufficient ROI
• Perceived lack of transparency over ad context
• Buyers are usually looking for audience, not specific domains
• 75.5% of Buyers use in person meetings with Publishers to educate
themselves about the quality and unique capabilities of their
inventory
• Followed by 45% using Trade Press and 22% using independent
rating scores from Nielsen, Comscore, etc.
13. Difficulty is in the
Eye of the Beholder
Both sides think they have it the hardest
Is
the
difficulty
of
dealing
with
mul5ple
programma5c
pla8orms
felt
more
by
publishers
or
buyers?
10.78%
44.91%
44.31%
57.80%
7.34%
34.86%
Sellers
Buyers
Both Equally
Sellers
Buyers
14. A Deeper Dive into Advance Bidding
(aka header bidding)
15. Technorati
Defined: Those who are skilled at using, or knowledgable
about, technology
Our Focus: Ad Technology For Publishers
Our Future: Programmatic Parity, Optimization And Ease For
Publishers
Our Roots: Scoring, Aggregation, Publishing & Monetization
16. Advance Bidding Heating Up
While a little over half (53%) of large publishers are using Advance Bidding
demand partners, 86% have been approached by these potential partners.*
*
TechnoraI/Digiday
Survey
–
publishers
with
more
than
250MM
monthly
impressions
68%
59%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes
No
I
don't
know
Currently
work
with
advance
bidding
integraIons
Have
been
approached
by
advance
bidding
partners
17. Education is Key
For those not currently working with Advance bidding partners, lack of
understanding and concerns over development time are primary hurdles.*
*
TechnoraI/Digiday
Survey
–
sellers
68%
19%
20%
29%
Internal development time to integrate
Not sure of the value
I don't have enough information about
Advance Bidding
What most prevents you from working with Advance Bidding Partners?
18. Why Advanced Bidding?
• Eliminates the inefficiencies of the “daisy chain”
• Enables true competition across demand partners for each
impression
• Eliminates the headache of managing passbacks
• Reduces discrepancies and and impression loss resulting from
passbacks
19. • Page Latency
• Time And Resources Needed To Integrate
• Data Leakage
• Few Publisher Controls (Targeting And Time Outs)
• Limited Performance Visibility (i.e. Bid/Win Data, Response Time, Time outs)
• Cross Partner Compatibility
58%
69%
Time to integrate
Page load time &
latency
What’s the Downside?
*
TechnoraI/Digiday
Survey
–
publishers
with
more
than
250MM
monthly
impressions
68%
Areas Most in Need of
Improvement for Advance
Bidding*
20. Technorati’s Viewpoint
Programmatic should enable publishers to effectively:
• Drive revenue performance
• Reduce the friction in selling, managing & optimizing
advertising
• Obtain insight, transparency and accountability from
their demand partners
Introducing: Exchanges
SSPs
DSPs
Trade
Desks
Networks
AdverIsers
conTango
21. Contango and the
SmartWrapper Solution
Reduce management overhead and page latency
• Scale partner integrations quickly and effortlessly
• Control, analyze and manage timeouts
Single container tag to house all advance/header bidding integrations
Increase partner accountability
• Reporting, analytics on partner level response time, bid rate,
win rate and revenue
Maximize the number of Advance Bidding partners
• Allows for easy testing of new advance bidding partners
• Solves for cross partner compatibility