By Gareth Holmes, UK publisher director at PubMatic
Spend into online advertising continues to grow with little sign of abating. With more and more inventory pouring into the potential mix, the buyer’s perspective should be of paramount importance for publishers of premium inventory. They should be able to position all of their digital assets in a way that allows buyers, regardless of buy methodology, to trade with them.
To explain and expand upon what is known within the industry we released the results of our Forrester Total Economic Impact study; this study revealed a (risk adjusted) return on investment of 334%; 30% lift on eCPM for discretionary inventory through RTB and a 50% incremental lift by leveraging Private Market Places with the use of our platform.
The core highlight of this study is the evidential increase and the continued return on investment (ROI); this coupled with the publisher learning experience of the differing methods of trading, shows a fundamental shift in how our publishers view both their own inventory and the opportunities associated with partnering with PubMatic.
Publisher focused technology platforms are forever providing innovative solutions, with features such as a Unified Optimisation Engine and a full Mobile offering enabling publishers using a platform to now have conversations around audience which previously was just possible in the realm of market intermediaries and buyers. This leads to empowering the publisher in order to trade at the varying levels now required given the proliferation of both intermediary businesses and non-direct inventory aggregators. They can now do this with their own inventory and they can shout about it instead of offering an Agency blind or other esoteric parlance inventory that is simply there to cloak the provenance of their offering.
I believe that this should be a ‘wake-up call’ for all publishers considering to work with Supply Side Platforms (SSPs). There needs to be some serious consideration given to the purpose of the partnership between a publisher and an SSP. Questions publishers should seriously ask themselves are if the partnership is actually improving the publisher’s business and if they are better positioned in the market due to working with an SSP. And last but not least if the relationship expands upon current publisher selling and trading opportunities and if not... Why? Using a liquidity platform to quit remnant or unsold impressions simply feeds the increase in inventory into these businesses and does little to add value back to the publisher or the buyer trying to find those nuggets within a publisher’s user session.
The report clearly spells out what an SSP should and must do for a publisher to be both a strategic and a trusted partner. They should work through technology in conjunction with the publisher to increase their overall yield. SSPs can’t magically make bad things go away – bad things being remnant inventory. But what they can do is realise the true media value of every impression and not just the ones they sell through agencies.
It also proves the benefits of partnering with a technology platform. A publisher should question the motivations of larger media companies when deciding to work with them even though it is a given that they are their biggest competitor. Publishers must realise they must move into the sophisticated technical space and really only have two proven options. One stay as is and nothing changes, or embrace a technology partner with proven, researched and unequivocal success with publishers.
At PubMatic we gain partnership through ensuring publishers are absolutely relevant throughout the buy chain. Every impression within every user session has to be traded at maximum value to the publisher (eCPM) and maximum value to the buyer, which can be achieved through first and third party data sold directly by the publisher to the buyer.
We publish research, white papers and independent reports into our effectiveness; we do not aggregate our client’s comScore ranking and market it as our own.
In 2013 spend on programmatic trading of display inventory is set to increase from £131.2 billion to £236.1 billion in the UK, a year-on-year growth of 70.2%*. With this in mind publishers have to seriously think about how to get the best value for their inventory and consider holistic solutions.
* IDC Report 2012: ‘Real-Time Bidding in the United States and Worldwide, 2011 – 2016’
Download the full report here