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.
10. 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
12. 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
14. 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
15. 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.
20. 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
22. 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
23. New expertise needed - hard to acquire
Technical
Sales
Yield
Management
Data
Scientists
Technology
Management
Agile
Strategy
Admin
Processes
24. Dealing with the complexity…
We’ve already seen that in other industries…
End User Skilled Service Provider Software Company
25.
26. 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