We notice there are often too many parties involved between the advertiser and the publisher. Due to this inefficient process a large part of the margins disappear. Meanwhile in the Netherlands both the buying and selling sides of the market are almost completely dominated by Google-platforms.
Although Google takes a share for their services as well, the payments and results are more transparent, as well as lower in costs. Since the arrival of GDPR this has become even more noticeable, and we see at various publishing agencies that the simplest platform leads to the fundamentally highest revenue.
For publishers it is important to consider the relationship to their own clients. Most client conversation starts online nowadays. If you miss a direct contact and online relationship here, you risk losing other opportunities to sell.
Structure of digital platforms in tiers
Digital sales are typically regarded in tiers. These are rated from valuable (1) to infrastructural (5). Each tier has its own dynamics.
- Direct sales. Typically the highest eCPM. The most valuable advertising formats, branded content, native and sponsored articles. Usually an eCPM between €10 and €20.
- Sales from premium with partners. Think about an external saleshouse that offers clusters (target groups, titles) as long as these do not compete with their own sales. These include so called optimizing/yield/publisher trading desks. We advise you on which parties to choose. Net revenue lies around eCPM €5-€10.
- PMP, Private Market Places. These contracts replace the more old-fashioned purchase orders. The publisher sends a code to the client, who can instantly buy from the publisher using their DSP (demand platform). This is bound to certain conditions, such as volume, price, minimum purchase and specific discounts. This has an average revenue of €4-€5 eCPM.
- ADEX. This is a stream of automatic purchases that enter through Google. Here you can have advertisers pay a minimum price that you set yourself, block advertisers, and actively search for advertisers. The eCPM lies around €1.50 to 2.25, but varies per title and content, and needs to be optimized frequently.
- DFP. The infrastructure preferrably owned by the publisher. Can be DFP Small Business / Premium – with any relevant extensions
When transferring to a structure as described above we see ample opportunity for improving net sales, simply by implementing the following changes at the earliest convenience:
- Connecting the titles to Google ADEX. In some cases this resulted in the reservation of approximately four million advertising positions.
- Developing knowledge of PMP, such as the agreements, pricing strategies and prospect lists. Current relations of publishers will be asked to make a set purchase through the PMP on the ADEX of the publisher itself.
After these two steps we will discuss other opportunities for constant improvement, further development of advertising positions and the option of using “filler” parties.
Tips for signing contracts with optimisation parties;
a) Never sign an exclusive contract with any party. Always agree on a ‘zero’ inventory guarantee
b) Make your own contracts: sign with google, adex, or any other party
c) Get your hands on a dsp platform, so you can identify opportunities and average pricing with competition
d) Build your own list of relevant PMP parties and contacts
e) Keep your infrastructure in your own hands. Do not give away ‘first look’ options
f) Maintain a list of advertisers, and agencies that run on your network. These can be approached for additional sales.