programmatic buying PUBLISHER VIEWS
THE PROGRAMMATIC ECONOMY PUBLISHER AND AGENCY ATTITUDES TOWARDS PROGRAMMATIC ADVERTISING IN THE UK. Q3 2013
How do you see your media owner sales model working in the future? 11%Complete programmatic
“I personally see it as completely programmatic” AD OPS MANAGER, ENTS VERTICAL.
Split between direct and programmatic offering 89%
“It’s still really new to us, but our inventory will be split into standard display for RTB, and direct sales for big partnerships, solution based buys, and bespoke high impact formats.” MANAGER, NEWS PUBLISHER
Which is your preferred programmatic management model? 3rd party managed solution 22% 78% In-house managed solution
“We need an external team to help us deliver this.” GAD, NEWS PUBLISHER
How likely are you to change SSP providers in the next 12 months? 45% Very likely
“We have no loyalty, it’s just about ease of use and revenue upside, as well as people who actively sell to us.” DIRECTOR, RADIO PUBLISHER
Unlikely 11% I don’t know 22%
Somewhat likely 11% Certain 0%
Not at all 22%
algorithms take over. Advertisers now have the ability to see which users go to a site and then target them in much cheaper environments at a later date. Although programmatic gets talked about in terms of audience buying, the context and environment in which a user is viewing an ad plays a huge role in how effective the ad is going to be. People respond to advertising very differently depending on what mind set they are in, so making sure you are showing a user the right ad at the right time in the right environment is imperative. On the positive side, programmatic enables many smaller advertisers who historically may not have had big enough budgets to work with a publisher to appear on their site. Programmatic also allows these niche advertisers who may be very relevant to a publisher’s audience to associate themselves with that brand.
how has programmatic evolved recently?
In most industries, it’s the lower end of the market that embraces automation first, and online advertising is no different. The first ad properties on airbnb were air mattresses and shared rooms, and now you have multi- million pound villas. eBay launched as an online garage sale and now cars represent 20 per cent of gross sales for the company. The first advertisers to embrace
buying and selling advertising by eliminating many of the inefficiencies associated with booking an IO, such as sending over tags, setting up daily reports etc.
what challenges does programmatic present to media owners?
LEON SIOTIS Senior director, Media and Publisher Development, BrightRoll, USA
how is programmatic advertising helping media owners?
The biggest benefit media owners see from programmatic is having the ability to connect to thousands of different advertisers and deliver much more relevant ads to their users. It also greatly reduces the friction and costs associated with
fipp.com
As with any sales channel, if you do not manage it properly you can end up hurting your brand. As a media owner, programmatic offers as much if not more control than traditional sales channels. You are able to put in a number of measures to prevent cannibalisation of your inventory such as setting floor prices, advertiser blocks, ring fencing of inventory, etc. Furthermore, by having a much more granular view of what advertisers are paying for users/segments you are able to determine what inventory is most valuable and start increasing your rates.
is programmatic destroying the ethos of selling a brand?
The main argument against programmatic is that it takes the human element out of advertising and lets computers and
programmatic were direct response advertisers who were looking for a more efficient way to drive down their CPAs. Brand advertisers started to see the value in being able to better target their audiences and reduced the friction in buying online advertising. Initially, only traditional display advertising could be bought programmatically, but now mobile, video and rich media formats are available.
will it become a permanent part of publishing?
It’s no longer a question of will it become a part of publishing, but how big a part of publishing will it become. We will see more advertisers and publishers embracing programmatic as a way to buy and sell ad space. Publishers will start selling new ad formats and unique inventory in an auction based environment, as ultimately it is a more efficient way to sell your ad space.
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It’s no longer a question of will it become a part of publishing, but how big a part of publishing will it become
issue 81_2014 | Magazine World |23
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© FAR / Improve Digital
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