Are publishers are going to enable true premium inventory to be purchased in a way that lessens their control?
As the bloated Display LUMAscape shifts, more and more companies focused on real-time bidding are turning their venture-funded ships in the direction of "programmatic premium" and trying to pivot toward an area where nearly 80 percent of display media budgets are spent. This has been called the "Sutton Pivot," referring to the notion of robbing banks, because "that's where the money is."
The fact that that 80 percent - over $6 billion - is largely transacted using email, Microsoft Excel, and fax machines is staggering in a world in which Facebook is becoming passé. The larger question is whether or not publishers are going to enable true premium inventory to be purchased in a way that lessens their control. At a recent industry conference, publishers including Gannett and Turner completely rejected RTB and "programmatic" notions. In a world of ever-growing inventory, the premium stuff is shrinking as a percentage - and that means scarcity, which is the publisher's best friend. Selling less of a higher margin product is business 101.
As I wrote recently, at the same conference, Forbes' Meredith Levien laid out the three principle chunks of inventory a super-premium publisher controls. I want to examine the programmatic premium notion against each of these:
"The middle layer - deals that are currently being done via the RFP process - is where "programmatic premium" is going to take place. In this type of buy, a demand-side platform will create efficiencies that eliminate the cutting and pasting of Excel and faxing and emailing of document-based orders, and a supply-side platform will help publishers expose their premium inventory to buyers with pricing and availability details. That sort of system sounds more like a "systematic guaranteed" platform for premium inventory.
So, is programmatic premium? Not the type of programmatic buying happening today.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!
Chris O'Hara is an ad technology executive, and the author of "Best Practices in Digital Display Media," a contributor to ClickZ, and the author of the new whitepaper "Best Practices in Data Management." He can be reached through his blog at www.chrisohara.com
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
June 10, 2015
12:00pm ET/9:00am PT