Raj Chauhan is president of Adslot North America, an advertising-technology platform.
Programmatic buying is getting a bad rap. If you listen to publishers, it’s responsible for an oversupply of cheap impressions, low ad quality, channel conflict and declining CPMs. The New York Times placed a fair portion of blame for its most recent quarterly results squarely at the feet of programmatic buying and the downward price pressures exerted on its Web properties. Yet this negativity overshadows the significant efficiencies that the shift to a more automated model for buying display brings to the table.
While it’s certainly not perfect, programmatic buying makes buying and selling ads more cost-efficient and scalable. It’s painstakingly clear to all participants that display campaigns are still too expensive to launch and run manually. So if programmatic buying removes so many inefficiencies, why all the negative buzz from publishers?
All noise, column inches, fear and confusion have been largely focused on the remnant end of the market, which represents only a small percentage of overall display dollars. If we’re to accelerate our industry’s growth from $30 billion to $100 billion, we need to apply the efficiencies of automated buying to the area where most of the display market is being transacted and where publishers can realize the greatest value gains: the premium guaranteed market sold direct.
Guaranteed trading platforms now provide automated direct sales models to existing publisher sites. Often referred to as programmatic direct or programmatic premium, the new sector of GTPs are empowering publishers and enabling them to open up additional lines of revenue by creating a second-tier direct sales channel that creates a high value bridge between the analog relationship-driven, hand-held direct sale and the indirect channels for unsold inventory.
Publishers can lower their minimum spend thresholds and open access to their guaranteed inventory, extending supply to a wider pool of demand. This helps publishers improve revenues and yield and lower their sales operational costs — not to mention improving their site’s ad quality and freeing up time for their sales staff to focus on serving their high-value clients.
Automating the direct sales infrastructure to improve access and unlock latent advertiser demand for guaranteed inventory promises to change the conversation around programmatic buying, shifting the perception from being synonymous with ad exchanges and RTB to a broader and more attractive proposition. The term need no longer invoke distrust in publishers today, as it can — and should –be perceived as an opportunity to build a stronger direct sales channel, regain independence and drive revenues that can be re-invested back into the business.
Dentsu’s podcast celebrating Black empowerment tries to do its part to fill the advertising inequity gap
The Dentsu-backed More Than That with Gia Peppers kicked off season 3 last week, featuring several major advertisers (and Dentsu clients) including Procter & Gamble, General Motors, Kroger and Mastercard.
The Athletic’s Sebastian Tomich is looking beyond ads and subscriptions to reach profitability
The Athletic's path to profitability is set for 2025, and to achieve this goal, chief commercial officer Sebastian Tomich is focused on more than just selling ads directly to prospective advertisers.
How newsroom unions intervene when members get laid off
Amid the recent wave of media layoffs, here are some of the ways newsroom unions are intervening.
SponsoredAdvertising predictions that will shake up the media industry in 2023
Chris Kelly, CEO, Upwave Like many people, marketers and advertisers were ready to see 2022 come to a close. A year that started off promising was assailed by inflation, layoffs and the disastrous effects of RSV, the flu and additional COVID strains. Still, despite an uncertain outlook for 2023, there are plenty of reasons for […]
Despite Q1’s slow start, publishers are bullish about events revenue for 2023
Publishers like BDG and Apartment Therapy are banking on events revenue to give them a leg up in 2023.
Media Briefing: The case for and against monthly and annual subscriptions in the battle for retention
There are no one-size-fits-all solutions for improving retention in a subscriptions business. While annual subscribers might stick around longer for some, other publishers will have better luck with monthly plans.