Advertising has always been a struggle for digital publishers, with the vast majority of ad spend going to either Facebook or Google. Over the last several months, even though the consumption of digital content has gone up, the pandemic has accelerated this decline of advertising revenues, bringing even more uncertainty to publishers.
Many advertisers have paused campaigns, while others opted not to be associated with any coronavirus content.
Furthermore, industry transformation events including the removal of cookies from browsers; ever more ad-blocking; and governments around the world introducing legislation to limit the usage of consumer data for advertising, add to the complexities confronting both advertisers and publishers.
The slow-down in the advertising market and industry transformation challenges are prompting publishers to review their strategies, initiate and test new monetization models, explore enhanced technologies, and develop new sources of revenue.
Generally, publishing is a content business supported by advertising revenues. Hence publishers need to cater to two often conflicting audiences: advertisers and members/visitors/users.
The programmatic advertising model is significantly different to more traditional channels (TV, Radio or Print) where the publisher actively participates in the direct buyer-seller negotiations. With the programmatic model over 8,000 companies disintermediate the advertiser and the publisher whose role and influence is extremely limited. Further, the programmatic model is effectively controlled by shadow intermediaries (demand-side platforms and ad exchanges). So, both advertisers and publishers are reliant upon a complex network of opaque digital intermediaries each taking their transaction fees.
Publishers, who produce and publish compelling targeted content, attract and retain large and loyal audiences. They are capable of capturing valuable first-party data and are well placed to regain pricing control of their advertising inventory and significantly improve their yield. To achieve this they need to think and act more like demand-side platforms (DSPs) and not simply providers of inventory. In the programmatic model, DSPs provide advertisers with self-serve solutions that satisfy their three key needs: substantial aggregated reach, audience targeting, and measurement of audience engagement.
It is worthy of note that many telcos are indeed publishers with compelling content assets and large authenticated audiences (subscribers) and related first-party data.
While both large publishers and telcos have huge known audiences, in most cases they lack the capabilities to offer DSP capabilities necessary to satisfy the needs of direct advertisers. To win the mindshare and trust of advertisers publishers must meet, match, and enhance the capabilities provided by programmatic DSPs. To achieve this they must be able to offer advertisers powerful audience targeting capabilities based upon their reliable and current first-party data.
Telcos have traditionally aggregated subscriber data for billing and subscriber management. In more recent times the number and volume of data types aggregated have exploded for a variety of reasons. Today, data is generated from each customer touchpoint – calls, text messages, roaming, video downloads, mobile commerce, custom relationship management systems, service calls and so on. managing, analysing, and utilising this data is now fundamental to telcos business processes.
Similarly, publishers can aggregate visitors behavioural data (most visited sections, frequency of content consumption, response to various types of ads, genres of special interest, etc.), demographic data (name, gender, age, etc.), device data (browser, OS, device, network, etc.) and much more.
By combining the ability to collect this valuable first-party data in conjunction with a Data Management Platform to store and analyse this data, publishers can now offer advertisers unique campaign targeting capabilities as a viable alternative to programmatic DSP’s. As the access to second-party data and third-party data is reduced, this first-party data will become the key currency in the digital marketing world.
Armed with this invaluable first-party data, publishers can readily re-engineer their digital marketing capabilities by directly offering advertisers enhanced demand-side platform (DSP+) services thus optimizing their digital marketing supply chain and eliminating multiple programmatic intermediaries and thus increase revenues.
What is DSP+?
Advertisers are interested in three key parameters: Audience Reach, Targeting, and Measurement. Legacy DSPs satisfy these needs by offering advertisers self-serve portals to build, schedule, and activate their campaigns.
As publishers evolve from being simple suppliers of inventory to legacy DSP’s, over which they have limited control, to become more sophisticated providers of enhanced demand-side services direct to advertisers, they will be able to offer a more compelling alternative to advertisers over that offered by legacy programmatic DSP’s.
Infomo R3 provides publishers with enhanced DSP capabilities (DSP+) that:
- Provide advertisers with sophisticated self-serve front-end portals.
- Monitor and manage their audience traffic and hence accumulate invaluable high-quality first-party data
- Offer advertisers pre-segmented and known audience clusters.
- Move beyond opaque and costly auction-driven methods that dictate standardized options to offer direct advertisers custom campaigns.
- Remove brand image and ad-fraud issues which plague programmatic processes.
- Offer advertisers 360o end-to-end campaign management services.
- Unlike opaque legacy programmatic processes, provide advertisers with a transparent real-time offering.
- Allow publishers to initiate pro-active user engagements via smart notifications.
- Significantly improves yield by countering ad-blocking.
The Infomo R3 Direct Digital Marketing platform provides publishers with a compelling alternative to legacy programmatic DSP techniques. It allows publishers to offer advertisers direct digital marketing services with access to their known and authenticated audience ensuring:
- Guaranteed reach to a known audience;
- Precise targeting of a known audience; and
- Measurable engagement and interactions.
Infomo and KPMG have joined to offer Infomo R3 partners a comprehensive range of managed services to ensure speed and effectiveness of publisher transition.