I have created this website and creating content with a lot of effort and presenting it before you. Here, I am the Publisher of my content.
You are the audience who are reading this post on any device.
Likewise, Publishers create content and use multiple digital channels and methods to reach consumers and make the people as their audience who are likely to consume the content in various ways.
In online media, content is available in websites, blogs, mobile apps, social media, Email, Video, Youtube, smart tv, OTT media, audio platforms, search engines, Online Games, etc.
Let us know how do Publishers earn revenue out of this content?
They create Ad spaces beside the content and sell to advertisers or buyers to get revenue.
Advertisers purchase those ad spaces to place their ads to reach online audiences with the help of the Publishers.
Sellers are the ones either direct publishers who sell ad spaces or others who sell on behalf of Publishers. For example, you sell some space in your land to someone with the help of a middleman process.
Programmatic advertising has changed the ways not only in traditional media buying but also selling too.
In this post, we will cover Programmatic Advertising from the Seller’s Point of View. How Programmatic selling technologies gave various solutions to sellers when compared with the traditional method of Media selling
If you’re a publisher, you can partner with supply-side technologies in the Programmatic ecosystem to sell your ad inventory to media buyers or demand partners
When monetization partner has more connections with buyers, it gives more chance of building high value to every inventory you sell and get higher revenue and higher possible CPMs
Demand from the Advertisers is brought to Publishers by various ad technology platforms like Demand side platforms DSPs, Supply Side platform SSPs, wrapper technologies etc. As a Publisher, one motive is to get the best demand and get better yield always
Let’s assume that you are a media owner having a website with ad spaces. Out of three, You want to sell one ad space using a non-programmatic channel and another one using programmatic.
Let’s see what makes the difference for Publisher in both cases
In non Programmatic channels, only a few players and platforms are available to sell their ad-Inventory. Example like Adsense network only limited to buyers on google network.
Whereas, In programmatic, Integration of multiple Ad tech Platforms and Players in the Ecosystem makes them connect a large number of players and ad tech platforms to sell their ad-inventory
In Non-programmatic, Many manual things are involved like manual insertion orders, request for proposals, Invoicing, human negotiation etc
Programmatic selling involves automation, which makes it more efficient than any other media channel.
Sellers in non-programmatic sell ad inventory at a fixed price. There might be a chance of missing an advertiser who might be interested to pay more than that fixed price at that moment.
Programmatic selling helps to solve that problem. Having a wide range of opportunities of exposure to global buyers or advertisers, they may get a high price with a competitive advantage.
This is possible because In non-programmatic there is fixed for every impression and with the same price set for every impression.
Whereas in programmatic, a floor price is set which makes sellers or publishers sell their ad impressions only for the advertisers or buyers who can bid more than floor price or minimum which is set by Publisher.
For example, in this slide, the floor price set for the inventory is $4, whoever bid more than are eligible to win that Ad space first three advertisers with more than $4 are eligible and among them whoever bids more can be shown their ads and that money comes into publisher pocket
What makes this possible is because of Programmatic selling methods and one of them is Real-time bidding.
What exactly does that mean?
“Real-time bidding or RTB is an automated process of buying and selling of online ad Inventory on auction basis in real-time” which allows millions of ad opportunities to find the ideal customer
Sellers make every single impression available for bid. From the large number of eligible buyers who bid for every single impression, participate in the Auction.
Among the buyers, Whoever wins, their ads are placed in the seller’s inventory and sellers get revenue
The whole process takes place in milliseconds
Every single impression sold on a basis of bids to get the best value which inturn keeps revenue high with a competitive advantage.
The value of each impression determined by Machines
All this happens in Ad Exchange which is an online auction marketplace where a large number of buyers and sellers connect for buying and selling of ad inventory in real-time.
The Ad Exchange is similar to the Stock Exchange
In the early stages of Programmatic Advertising, real-time bidding is only one type of method of purchasing ad inventory
With innovations and advancements in Ad Technology, year-on-year basis, also providing solutions to every player as per their requirements in the ecosystem, there evolved new methods of buying along with an existing one
RTB is a subset of Programmatic Advertising.
If RTB is a subset, so, are there any other methods by which buyers can purchase Ad inventory in a programmatic way?
The answer is definitely YES.
Based on the Pricing Type, Number of Buyers and Sellers Involved
The volume of inventory,
Programmatic Selling methods can be divided into four main types
Open Auction which is also known as Real-Time Bidding, where the auction is open to all eligible buyers, for every impression that made available in the marketplace
Likewise, Private Auction is also the same as Open Auction only difference is auction is open to only a few eligible buyers
In this table, there are another two in selling methods called deals, Preferred deal, and Programmatic Guaranteed, which fixed pricing type and it is just taking over of Direct selling of premium inventory in Traditional method.
whereas, In the Traditional method of media selling, publishers or sellers cannot take the Advantage of Deals.
About all these Inventory selling methods will be discussed in more detail, in future videos.
In programmatic selling, sellers can effectively manage both Premium and Remnant inventory
It simplifies the process and operation involved in selling the inventory and makes it faster and time-saving too
Software platforms designed in such a way that it contains rules and options available for Publishers or sellers as per their requirement to sell their available Inventory
This gives various solutions for the problems involved in the manual process
In terms of operations in selling ad inventory, programmatic brings great efficiency eliminating human errors
Maximizing Media value
This makes media value higher in the case of programmatic than non-programmatic channels.
Brings more revenue for a publisher with global exposure to find a wide range of millions of opportunities to find the ideal buyer
Publisher get much higher revenue on inventory since buyers maximize the value of impressions
In Non-programmatic, Inventory has to be committed in advance and needs to sell all the inventory in bulk. So guaranteed inventory under the sale to any single buyer everytime
Whereas in Programmatic, impressions can be sold on an individual impression basis, and no need to guarantee for the single buyer at a time.
They can sell inventory that gives high value than the given floor price on a real-time basis.
In non-programmatic, Negotiating deals with the buyer to sell inventory use to take a lot of time and a separate team is required.
As the machines came to picture, this solves the problem whatever they have faced previously
The publisher can now easily find a way to sell their unsold inventory in programmatic
This in turn reduces the inventory wastage and can earn at least something out of them
Having more exposure leads to more demand
Publishers with various content, Topics, and sections are forced to sell at low value which is of higher worth to buyers who find those are a great one.
But in programmatic, Publisher can make their content with specific sections, topics, categories and which they can sell to specific buyers at a high price.
In Programmatic, Publishers make Ad inventory available for the buyers in various ad formats. Because any buyer or advertiser may have their requirements to purchase inventory related to their own ad format. For example, If Nike advertises wants to place video ads in times sports page if that page is with video ad inventory created by the publisher, Publishers can take advantage of monetizing it
Overall Efficiency increases in process and operations
In Programmatic selling, choosing the right technology is the major part and fulfill all Publishers technical needs
For example, You as a publisher which exchange or SSP suits for your media type and your investment.
Whether you want to monetize video, display, audio, etc
You can check if those platforms assist in Fraud detection, invalid traffic, ad-block recovery, viewability, etc
And also supports a different kind of devices and environment, so that you can provide opportunities for buyers for the ads to deliver on your media
You can use Publisher ad server to integrate with third-party servers, Ad Exchanges, DMPs, etc
Platforms give better insights into each inventory performance
Helps for future decision making on deals
Reduces cost of media selling
DMPs are adopted by Publishers for many uses
A publisher can collect data from their audience who visit their media and this is used for creating segments which advertiser wants
Audience segments include both contextual and behavioral data
Using first-party data, they can increase the value of inventory and even CTR for ads
Content Personalization helps to display content to their media visitors that match their demographics and others that they have shown interests
Having exposed to global buyers, there might chance of ads that might win but those maybe with low-quality ads
this may spoil the reputation of online content when users see that ad. The seller can have options to block that kind of creatives
As a Publisher, you must make sure to provide a better user experience for your content
So, showing relevant ads to the user makes it less annoying to users
Ads.txt implementation on-site helps to build trust among the buyers to purchase your inventory
There are many things to learn about Sellers and Buyers as well.
Finally, in programmatic, Advertisers reach their audience with a cost-effective budget, Publisher can get the higher yield for their ad inventory, Audience sees the as per their interests, machines does most of the work and make efficient
In case if you are completely new to this subject, don’t worry, we will be covering every topic in future videos. Stay connected to Learn Programmatic advertising in detail and keep updated in the industry.
Thank you so much for your time
If you have any queries and would like to share your valuable feedback, feel free to write to firstname.lastname@example.org or comment section under this post.
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