Rethinking the Role of Programmatic in Your Ad Revenue Strategy
Understand the Programmatic Landscape
Programmatic is often misused as a synonym with the open exchange, or real-time bidding. Despite this misconception, programmatic actually encompasses a wide range of solutions for both advertisers and publishers. Today's most popular channel is the open exchange and private marketplace. The other is programmatic direct, a growing channel that offer buyers and sellers automation with guaranteed and non-guaranteed deals.
Understanding all of these options will better position a publisher to properly utilize the technology to their advantage. Oftentimes, the buyers engaging with one source or partner are not the same buyers engaging with another. Integrating programmatic into a sales strategy can expand the landscape of potential buyers for available inventory. Understanding each channel and the buyers it attracts gives publishers a better comprehension of the options available and how each can provide the most impact on yield.
Decide What Inventory Goes Where
Many publishers incorrectly view programmatic, particularly the open exchange, as a source for remnant inventory -- the channel that is used to sell the left-over inventory that wouldn't have been sold otherwise. But seeing programmatic through this narrow lens obstructs the view of its full capabilities.
To best optimize yield, programmatic should be looked at as a separate channel in the mix of an overall sales strategy. Paired with traditional channels like direct sales, selling inventory programmatically can have a huge impact on yield. But only if a publisher is correctly allocating inventory to these different channels. Despite longstanding practices, maximizing yield doesn't necessarily mean a publisher must give their entire inventory to one source. Having one source managing everything can become tricky. It's important to diversify. Programmatic, with its various channels, offers an important alternative to the one-source strategy.
To allocate strategically, publishers should be savvy and ask questions. Don't just look to the private marketplace, for example, and think it's the best fit. There is always more to the story, and these details are important factors to consider. What may work for one set of impressions may be grossly inadequate for another. When shopping for options, be sure to take into consideration current deals in the pipeline, experience, and success rate.