[ad_1]
The open market for programmatic inventory, which is priced in real time through auctions, is in a volatile situation. Of course, it was like this for a while. That said, the place seems pretty grim these days.
It’s for a number of reasons, but it all comes down to: The number of publisher-initiated programmatic auctions is pushing through the shrinking pipe of ad tech. Publishers are running simultaneous auctions for the same impressions, while ad tech vendors are trying to reduce the number of auctions they have to listen to.
Clearly, this is not good for advertisers. Advertisers may unknowingly bid against themselves and subsequently drive up the price they pay as a result of this practice. But on the flip side, it makes a lot of money for publishers.
The longer this deadlock lasts, the worse the public market will get. please think about it. Auction duplication tends to be prevalent for certain types of publishers. Tip: Not necessarily a premium publisher. Sure, that’s what they do, but for the most part it’s a site made for advertising. In other words, a site that exists solely for the sole purpose of actively monetizing traffic without worrying about the cost of getting traffic in the first place. .
Simply put, the lowest quality supply is increasing the share of programmatic inventory in the market as a result of auction overlap.
Still, publishers aren’t exactly in a hurry to fix. If your ads.txt file (a document that lists all the programmatic partners you work with) is acceptable in size.
In January 2020, the top 10,000 sites, apps, and CTV apps based on ad spend from clients of programmatic consultancy Jounce Media ran programmatic auctions across 205 supply paths. By late 2022, they have approved 622 supply channels. It has practically tripled in that time.
Ryan Eusanio, Managing Director of Digital Activation, Omnicom Media Group, said: “Everybody in the market is somehow suppressing the amount of public market they manage, because it is not cost effective to listen to everything.”
This has been happening for some time. The dripping of advertising dollars from the public market to the private market proves this.
But there’s a reason it’s a slight current, not a tide. Regardless of how they dress up, one-to-one private programmatic deals are a heavy burden even for the largest media agencies. Not to mention expensive.
The public auction has all its drawbacks but none of the same hangups. On the contrary, there are many advertisers who covet the apparent ease and relatively low cost of purchasing from the open market, where ads are priced in real-time through auctions that anyone can participate in.
Rob Webster, global vice president of strategy at digital marketing consultancy CvE, said: “Unfortunately, many buyers are still attracted to the open web’s ease of use and apparent low cost, and have yet to receive the memo that there is a (much) better way.”
This better way revolves around curation, but on a much larger scale than ever before.
Rather than trying to curate a premium programmatic marketplace against the backdrop of many one-to-one deals with publishers, agencies (and odd advertisers) are looking to curate inventory against the backdrop of one-to-many deals. Trying to maintain our own supply pipeline. deal with publishers. Moreover, they use supply-side platforms to do it. Think of them like a safer market for buying ads, avoiding low-quality impressions and shady publishers.
The Big Picture: Ultimately, these kinds of curated marketplaces could become the equivalent of public agency auctions.
Or at least that’s the plan. Agencies are using curated marketplaces to pull money from public auctions. Doing this will help you tell your clients where your best audience is. It makes it easier to start spending money.It’s like a flywheel effect in that respect.
For now, advertising dollars continue to pour into the open market. Remember, it’s not a complete quagmire. There are checks and balances going on, with ad tech vendors ranging from imposing limits on the number of auctions each programmatic marketplace can issue to completely removing apparently low-quality inventory from their supply chains. , doing everything they can to constantly try to sort wheat out of the chaff. The problem is that these efforts are limited in what they can do.
In fact, private marketplaces still represent a small (albeit growing) share of online ad spend. For clients of media management company Ebiquity, it accounts for just over a third (36%) of the money their clients spend online, including the open programmatic marketplace. This is up from 27% in 2020.
Chris Kane, founder of programmatic consultancy Jounce Media, said: “However, the quality of public auctions continues to decline.”
Needless to say, the next few months will be interesting. More money could flow into the open market just as easily as it seeped through. While the economic slowdown has made the cheaper advertising prices found on the open market more acceptable, it may not be enough for many marketers who are under pressure to account for every dollar they spend. I’m too close to call you right away.
There are some early signs that more money could move out of the public markets. Initial focus. First of all, advertisers like Hershey’s are raising more money from public auctions to fund direct deals with publishers. There’s also the fact that agencies and demand-side platforms continue to develop more sophisticated ways to filter out low-quality impressions from auctions. Not to mention the rise of carbon-conscious media buyers. They were able to create the first real financial incentive for publishers to reduce auction duplication.
[ad_2]
Source link
