Header bidding has been an exciting development on the demand side. It unlocks many more premium supply deals, allowing for full-funnel customer management with clients and stimulates greater budgets flowing to publishers. Publishers also benefit from the additional control they get by being able to enable more 1:1, premium deals, programmatically.
So why change a good thing? What’s the benefit of moving to a server-side solution, which sounds complex and nascent in the current space? There are a few good reasons why it might make sense for publishers to take such a leap.
There are obvious efficiencies on both the demand and supply side from having a single, server-side solution in place. A DSP won’t have to submit the same bid to the same SSPs, all of which are then submitting final bids to the publisher, increasing costs substantially. And, even more importantly, it would create a unified auction for publishers... But is this 10+ years in the making? A unified marketplace would result in the highest yield for an impression, versus an unconsolidated second-price auction approach across multiple partners. It would also reduce browser-based header bidding page load times, increasing site views, customer satisfaction, and online sales.
There is even greater opportunity on both the demand and supply sides, if done properly through a publisher market consolidator. (PMC? – No, I won’t go there. Much too complicated a name, anyhow.) But - it requires a different type of company than the SSPs of today.
The concerns with a server-side approach are losses in match rates, a lack of transparency on auction mechanisms that ensure fairness, and the requirement of SSPs to trust such a partner. While these are hard, they are solvable if the opportunity is large enough. Let’s look at each of these points in more detail:
- Match Rate Loss – Yes, it takes some time to increase match rates, but it is achievable. We have match rates upwards of 90% with many partners today. But, the real opportunity here is to leapfrog cookie-based match rates. We should match based on people rather than devices. By partnering across DSPs, a single auction consolidator, and SSPs, we could as an industry provide a real, open alternative to the closed marketplaces and walled gardens that depend heavily on their proprietary user graphs to show value to advertisers.
- Transparency and Fairness of Auction Mechanisms – This is where a new type of entity would need to emerge, which would need to provide transparency in its auction mechanisms, as it would be imperative to the success of such an initiative. Publishers may feel a bit jaded about this (i.e., the promise of insights from exchanges have not fully come to fruition), or may only be concerned with the final CPM provided. But, publishers can and should think about how this ultimately benefits them and can work to demand it from such a partner.
In addition, browser-based header bidding, and using multiple partners, both add to the issue of lacking insights. SSPs don’t see or understand what is happening within the browser, and also can’t see what other partners are doing, whereas a server-side solution across all partners would make it easier to understand what exactly is happening in terms of bids and final yield.
- Will SSPs Get on Board? – This might be the highest bar as it requires a sort of co-opetition. The challenge can be obviated somewhat if an entity is truly acting as a pure, consolidated pipe for a unified auction (think: tech fee). If it is truly a better solution for publishers (and there is a player that is truly transparent around their auctions and hence qualified to be an objective bystander) SSPs may have to work very hard to offer a better solution.
Lastly, to address the, “What if there are still multiple providers of such a solution? Would we end up in the same situation as today?” concern: If the opportunity is real and large enough, multiple providers will begin offering this. That’s fine, as long as you choose one that best meets your needs. We’ve come a long way in terms of the benefits of consolidating under a primary partner on the demand side. And ultimately, the control is within your hands, publishers, to reap the benefits of a similar approach.
Maggie Neuwald — VP, Enterprise Accounts at MediaMath
Maggie Neuwald has spent the past 11 years of her career in AdTech/MarTech programmatic technology and services. At Right Media, the first industry ad exchange, and Yahoo, Neuwald consulted with agencies to build the first trading desks in the industry, and the largest advertiser in the world to build an in-house tech direct programmatic strategy. Neuwald then became the product lead for [X+1]'s DSP and Multi-touch attribution product suites (eventually acquired by RocketFuel). Following that, Neuwald lead product marketing, including sales enablement, primary research/case studies, and analyst relations for TagMan (eventually acquired by Signal), which provided tag management and multi-attribution solutions, also serving on an IAB best practices committee. Currently Neuwald is VP, Enterprise Accounts at MediaMath, working with large, strategic clients to consult and activate their programmatic strategy.
“The Sell Sider” is a column written by the sell side of the digital media community. Today's column is written by Erik Requidan, vice president of programmatic strategy at Intermarkets. Advertisers have demanded more of publishers in recent years, including for more inventory, more viewable inventory, a broader range of accepted formats and better targeting... Continue reading »
It's a panicky time in digital media. And the millennial-aimed news publication Mic is often seen as the poster child for all that ills the industry.
CEO Chris Altchek wants to set the record straight: Mic is going to be just fine.
First things first. Yes, there were layoffs. Yes, it pivoted to video at a challenging time. But no, the publisher isn't in danger of shutting down anytime soon, Altchek says.
Having raised nearly $60 million to date, it's not about to run out of money. While there has been "inbound interest," he says, Mic is not actively looking for a buyer. And from a revenue perspective, the business has gotten off to a strong start to 2018.
In other news:
A former ad agency CEO has built what he calls the Siri for marketers, and brands including TD Bank and Kenneth Cole are already using it. Former MRY CEO Matt Britton's latest venture is a tech platform called Suzy —which he says marketers can use to compile digital advertising and consumer data in real-time.
McDonald's is flipping its iconic arches upside down in an unprecedented statement. The company is flipping its logo on all its digital channels to celebrate International Women's Day on Thursday.
Snap is reportedly planning a layoff round to its engineering department, the largest to date. About 100 people are said to be affected, which is less than 10% of the unit.
Uber founder and ex-CEO Travis Kalanick is launching a venture fund focused on India and China. 10100 will focus on "large scale job creation," Kalanick said.
Amazon is updating Alexa to fix an issue that reportedly made it laugh at random. The company said the laugh was triggered when Alexa mistakenly heard "Alexa, laugh," and is changing the command to "Alexa, can you laugh?" to make sure it doesn't happen anymore.
Newsweek Media Group fired two engineers it claimed ran code on its International Business Times sites on Wednesday that potentially juiced its ad viewability numbers, the Wall Street Journal reports. Ad-tech companies, including AppNexus and SpotX, said that they had ended their relationships with the company over invalid traffic concerns before the news.
Follow us at @BI_Corporate to be among the first to hear about news and updates from Business Insider.
Also, sign up for the Executive Summary , a new biweekly newsletter that brings the latest marketing news, trends, and company updates straight to your inbox.
Industry Leaders Partner to Expand Omnichannel Opportunities Across Marketing Channels Fueled by Robust Audience Data and Technology MediaMath and Cision …
"Data-Driven Thinking" is written by members of the media community and contains fresh ideas on the digital revolution in media. Today’s column is written by Auren Hoffman, CEO at SafeGraph. If you are going to start a new company or grow an existing one in the marketing technology world, you need to first place a... Continue reading »
The post Complexity Vs. Simplicity: Betting On The Future Of Marketing Technology appeared first on AdExchanger.