Programmatic Is Here to Stay — Learn How to Profit from it.

Blog   |   The Operative Team   |   January 4, 2017

Publishers have limited resources to put toward programmatic advertising, but the pressure is mounting as brands embrace automation. In a survey of nearly 350 advertisers and publishers, we found that advertiser expectations aren’t always in line with publisher assumptions or capabilities. Not only that, many publishers are limiting their profitability because they fear the disruption to their direct-sales driven organization.

Peter Petrizzio, Charter Communications’ VP of Technology and Architecture, states that the biggest problem he and other publishers experience is understanding all the facets that make up programmatic: “How do we serve regional, national and local customers? How do we get them to understand how video works, how targeting works? The ecosystem is complex.”

When It Comes to Programmatic: Publishers Are from Mars, Advertisers Are from Venus. Advertisers are projected to sell anywhere from one-half to three-quarters of their inventory through programmatic in 2017. It allows them to cut excess waste through direct audience targeting, efficiently buy at scale, and buy placements and context on demand.  Publishers, on the other hand, face issues that make their experience with programmatic expensive and complicated — causing most of them to make less than 10% of their revenue this way.

Low CPMs Signal Programmatic Pain

When we asked publishers what limited their success, it became clear that they didn’t have the support and resources needed to succeed. The reasons for low programmatic CPMs were numerous, from lack of sales expertise to the complexity of dealing with conditional metrics for advertisers. Programmatic operations teams are also often dealing with lower quality inventory and unruly data sets, making it hard to justify higher prices.

Empower Sellers to Transact the Way Buyers Want to Buy

Selling programmatic is put on the back burner because sellers simply don’t know enough about it. There are several tactics that help. Companies that compensate sellers on programmatic find that it becomes better integrated into their pitch. Training sellers on audience selling, private marketplace deals and even programmatic analytics also goes a long way to helping them feel empowered.

Create a Revenue Channel You Can Count On

Publishers can’t take full advantage of the programmatic channel because they don’t have access to reports that can lend to predictability and optimization. A substantial number of publishers couldn’t even accurately give a number of programmatic partners they work with. Publishers must find partners that can ease the burden, minimize complexity and help them focus on increasing yield.

Read the whitepaper to learn more about how to increase programmatic and overall company yield.