Latest / The Yield Doctor with James Deaker / 4 things publishers get wrong about Programmatic Advertising

Transcript

4 things publishers get wrong about Programmatic Advertising · The Yield Doctor with James Deaker

• 0:00
  my guest today is sha quick sha is the
• 0:03
  former head of pricing and yield at
• 0:06
  Yahoo he has deep experience around
• 0:09
  programmatic migrations today we're
• 0:11
  going to try something a little bit
• 0:12
  different we're going to try a fast hit
• 0:15
  format on the question of things that
• 0:18
  I've heard from Publishers about going
• 0:20
  programmatic that may or may not be
• 0:22
  correct so I'm going to ask a question
• 0:24
  and Shan is going to respond in a minute
• 0:26
  or so as to whether that is a truth or
• 0:29
  whether it is a fallacy Sean welcome are
• 0:32
  you
• 0:33
  ready nope you know I don't like videos
• 0:36
  but let's do it James thanks for having
• 0:37
  me pleasure my friend uh all right first
• 0:41
  fallacy and I have well I'm calling it a
• 0:44
  fallacy but here's something I have
• 0:45
  heard from from Publishers many times
• 0:48
  which is when I go programmatic
• 0:51
  everything is going to be easier because
• 0:53
  it is automated programmatic means less
• 0:56
  people less oversight and therefore less
• 1:00
  need for internal functions is that your
• 1:04
  experience programmatic is anything but
• 1:07
  simple I would call it highly complex
• 1:09
  with a lot of challenges in just getting
• 1:12
  there I've seen both directions of
• 1:14
  somebody trying to go from programmatic
• 1:15
  to premium or premium back to
• 1:17
  programmatic and there's a lot of
• 1:18
  decisions and things that have to be put
• 1:20
  in place there is no Silver Bullet their
• 1:23
  true answer is somewhere in between but
• 1:25
  when you go towards a more programmatic
• 1:27
  offering you have to think about your
• 1:29
  Market AR Marketplace architecture what
• 1:32
  demand you lit in what do you give them
• 1:33
  access to what inventory do you want to
• 1:35
  expose what's your pricing and priority
• 1:37
  head or bitter Solutions other vendors
• 1:39
  you need to work with there's a lot that
• 1:41
  needs to be put in place on just setting
• 1:43
  up your Marketplace then you have a lot
• 1:46
  of packaging and maintenance so how are
• 1:48
  you going to put your supply together in
• 1:50
  a way that's attractive to buyers and
• 1:52
  performs for your different set of
• 1:54
  buyers and how do you bring your
• 1:55
  audience to the table for that who you
• 1:56
  give it access to how do you apply it to
• 1:58
  your media the Third Party media and
• 2:01
  that requires an ongoing maintenance you
• 2:02
  need to revisit that strategy at least
• 2:05
  quarterly if not on a higher schedule
• 2:07
  with the big tle type events that happen
• 2:09
  like the Olympics um and there's a lot
• 2:12
  of things that can go wrong technically
• 2:14
  like pipes break you know inbound
• 2:17
  requests drop outbound requests drop
• 2:19
  signals disappear new signals come in
• 2:21
  Mal formed and you need pretty
• 2:23
  significant map or net to capture simple
• 2:27
  things that can break that can hurt your
• 2:28
  bottom line so not simple by any means
• 2:31
  and you still need people you just need
• 2:33
  different people I've seen that mistake
• 2:36
  too where you just get rid of all
• 2:37
  traditional salespeople and expect the
• 2:40
  machine to do it that doesn't work you
• 2:42
  need to sell in your pmps you need to
• 2:44
  figure out your pgd strategy you need
• 2:46
  people to do that that are experts that
• 2:47
  know how to speak that language I I
• 2:50
  think that's an important point I was
• 2:52
  having this conversation with a company
• 2:53
  the other day and I was basically saying
• 2:55
  look when you go programmatic it's not
• 2:58
  that you need less people you still need
• 3:00
  probably the same number of people maybe
• 3:02
  even more senior and definitely with
• 3:05
  with different skills and so I think
• 3:06
  that that's a great call out um let let
• 3:09
  me get to the next one on my list uh and
• 3:12
  this is a fallacy I used to hear all the
• 3:15
  time I still hear it from time to time
• 3:17
  from Chief Revenue officers and heads of
• 3:19
  sale uh they say something along the
• 3:21
  lines of don't go programmatic because
• 3:24
  it means lower prices life is better
• 3:27
  when you have premium handhold inventory
• 3:30
  by going programmatic you're going to
• 3:32
  get more demand but it will be lower
• 3:34
  quality ads at lower prices so true
• 3:38
  false where do you come out on this
• 3:39
  topic of you know does your ad mix and
• 3:42
  your price change as you go
• 3:44
  programmatic um it's not binary you're
• 3:46
  not guaranteed to be better or worse if
• 3:48
  you go in that direction first not going
• 3:50
  that direction and not every publisher
• 3:52
  is the same so Publishers have to be
• 3:54
  honest with themselves of what inventory
• 3:55
  do they have and what audience do they
• 3:58
  have um and how do they want to
• 4:00
  construct all the s dimensionals we
• 4:02
  talked about on the previous question a
• 4:04
  publisher with 1,000 small units at the
• 4:06
  bottom of the
• 4:08
  page may not be good in premium and a
• 4:10
  publisher with
• 4:12
  video experiences where nobody wants to
• 4:14
  come to your site to watch video no
• 4:15
  engagement may not be good at being able
• 4:17
  to sell that video programmatically so
• 4:19
  you have to consider what do you have as
• 4:21
  inventory from your audience and your
• 4:24
  your your your
• 4:26
  media and then and then connect your
• 4:29
  progam programmatic strategy to that if
• 4:30
  you have a th if you have a very small
• 4:32
  audience that comes to your page all day
• 4:35
  and just sits there you're not going to
• 4:36
  be successful in programmatic that's not
• 4:38
  you're going to run out frequency
• 4:39
  couches quickly tell me uh let's talk
• 4:42
  about Dynamic flaws you know as people
• 4:45
  move programmatic they tend to do it
• 4:48
  because they want to get access to a
• 4:52
  wider sense of potential demand they
• 4:54
  like the efficiencies of an auction and
• 4:57
  then at some stage they confronted with
• 4:59
  this IDE of should I be getting more
• 5:01
  sophisticated and using Dynamic flaws
• 5:04
  particularly in the auction so I guess
• 5:06
  the the question or the statement is our
• 5:09
  Dynamic flaws for
• 5:11
  everybody um more AI driven or
• 5:15
  algorithmic Solutions is just the state
• 5:18
  of the industry right now moving towards
• 5:19
  Dynamic
• 5:21
  floors create some ethical challenges
• 5:24
  and questions for how you want to
• 5:25
  operate in a business and how you want
• 5:26
  to communicate with your partners so any
• 5:28
  type of flowing mechanism these days
• 5:30
  needs to be transparent on what you're
• 5:32
  doing and you should be calculating
• 5:34
  these pre- bid so you don't want to take
• 5:36
  in all your bids then magically decide
• 5:38
  what makes the most money for you as a
• 5:39
  publisher it's more of identifying what
• 5:41
  the opportunity value is to you as a
• 5:43
  publisher declaring that at bid request
• 5:45
  time and then letting the demand then
• 5:47
  choose there um stay ethical be
• 5:51
  transparent of what you're doing but B
• 5:54
  shading on the demand side has caused
• 5:57
  some challenges on the supply side it
• 5:59
  was where kind of damic flooring needed
• 6:02
  to come into place and they're kind of
• 6:03
  one of the main drivers to why we moved
• 6:05
  from first second price auction to First
• 6:07
  price auction in many businesses in the
• 6:09
  industry is that that you that battle
• 6:11
  between who's going to do what on their
• 6:13
  side of of the bid
• 6:15
  handshake and and just playing that back
• 6:17
  you used a term that I think you know or
• 6:19
  or one thing that not everybody who'll
• 6:21
  be seeing this is familiar with is the
• 6:23
  idea of whether the floors are
• 6:25
  transparent in an auction a publisher
• 6:27
  could choose to make their flaw
• 6:29
  transparent meaning broadcasted at the
• 6:32
  time of the auction and let people know
• 6:34
  the price that they need to clear I
• 6:36
  think you and I both seen examples
• 6:39
  historically where that floor price was
• 6:41
  not broadcast and some pretty shady
• 6:43
  stuff was going on but you'll
• 6:45
  summarizing by saying yes Dynamic flaws
• 6:48
  have a place they may not be the Magic
• 6:49
  Bullet but if you're going to do them
• 6:51
  you need to be sort of ethical and
• 6:52
  transparent about how they're being used
• 6:54
  is that right correct and and like the
• 6:56
  other things we talked about you you
• 6:58
  need to monitor what's happening it's
• 7:00
  you know don't set and forget and just
• 7:01
  make sure you keep an eye on the
• 7:03
  behavior of your bids coming in and how
• 7:05
  the technolog is responding to it and
• 7:06
  work with your technical vendors if you
• 7:08
  see something that looks AR right but be
• 7:10
  ethical be transparent but use it it's
• 7:13
  better than
• 7:14
  humans okay uh another one where I don't
• 7:18
  I'm going to be less careful or a little
• 7:20
  more careful about saying whether this
• 7:21
  is a fallacy or not but one thing that I
• 7:24
  hear from people that I I think you
• 7:25
  might have a position on is a statement
• 7:28
  along the lines of the most efficient
• 7:30
  market is the one where it's an open
• 7:33
  auction with everybody bidding in on all
• 7:36
  of the inventory so I guess that the
• 7:38
  subtext here is are open auctions
• 7:41
  efficient and is there a role for deal
• 7:45
  IDs private marketplaces where either uh
• 7:49
  the the inventory is contracted or the
• 7:52
  number of people bidding on particular
• 7:54
  inventory is
• 7:55
  contracted I think open auction question
• 7:58
  is more of how much you want to transact
• 8:00
  your business through that so before we
• 8:02
  talk about are you premium or your
• 8:03
  programmatic and in your programmatic
• 8:04
  space how much do you want to be from
• 8:06
  your sales team at pgd and pmps or just
• 8:10
  just open so it's it's Unique per
• 8:13
  publisher and per business uh it can be
• 8:15
  healthy part of your Revenue stream
• 8:17
  could be your only Revenue stream create
• 8:20
  some upside challenges where you may max
• 8:22
  out on where you can go so you just need
• 8:24
  to Define how much your business you
• 8:25
  want to push through each of those
• 8:27
  channels and how much effort and time
• 8:29
  and resourcing you want to put behind
• 8:31
  those channels and then operate your
• 8:32
  business in that way um it definitely
• 8:35
  can add value and get gravy into your
• 8:37
  Revenue stream but stand alone is not a
• 8:39
  business model that you can live off of
• 8:41
  only being 100% open in my
• 8:44
  mind cool hey so tell me we've hit I
• 8:47
  think four major topics uh any last
• 8:50
  thoughts that Publishers need to be
• 8:51
  keeping in mind as they move
• 8:53
  programmatic from a prim primarily
• 8:56
  managed
• 8:57
  environment uh having a market Place
• 8:59
  lead or somebody who puts all these
• 9:02
  pieces together is super important to
• 9:04
  any business or publisher who's looking
• 9:06
  to monetize their inventory and their
• 9:08
  audiences uh with the the extreme growth
• 9:11
  in retail media networks and traditional
• 9:13
  Brands looking to get in space we're
• 9:15
  building ad networks again I remember a
• 9:17
  long time ago people said ad networks
• 9:18
  going to die next year they are stronger
• 9:20
  than ever you need that function in your
• 9:23
  business to to connect all these
• 9:24
  thoughts together yeah one one of my key
• 9:27
  themes right now is a lot of companies
• 9:29
  good at the demand side they have a head
• 9:32
  of sales or cro a lot of companies are
• 9:34
  good at the supply side they have a
• 9:36
  chief product officer or someone on the
• 9:38
  consumer side not a lot of companies are
• 9:41
  good at stitching the two together and
• 9:42
  managing that Marketplace that that sits
• 9:44
  in between I think that's where a lot of
• 9:46
  companies fall down just assuming that
• 9:48
  supply and demand are magically going to
• 9:50
  come together Sean thank you so much for
• 9:54
  the time for that anyone watching
• 9:55
  enjoying this type of content around how
• 9:57
  to get smarter about the digital
• 10:00
  advertising space Please Subscribe and
• 10:03
  Sean it's been an absolute pleasure
• 10:05
  thank you so much thanks James