The transition to digital has proved to be a rocky road for premium publishers, who’ve been forced to evolve at breakneck speed by making massive shifts in the ways content is getting consumed—and by whom. Throw in the extra hurdle of the leading tech giants devouring hefty portions of digital ad dollars, and significant impact for the “other” 98% appears closer than ever before.

It goes without saying—but we’ll say it anyway!—that a digital media landscape effectively controlled by a handful of companies has widespread repercussions for the digital advertising ecosystem. With the competition for ad dollars on a steep increase, the only way publishers can compete in the current environment is by figuring out how to adjust their operations in ways that will maximize value.

The new battleground

For agencies, private marketplaces are vital buying channels. And as the demand for automation increases, direct sales will shift heavily into programmatic guaranteed because it offers higher levels of transparency and certainty.

Programmatic spending on display advertising is currently a $22-billion market and is enjoying a whopping 40% surge since last year alone. Growth in programmatic revenue among all types of publishers is outpacing traditional direct sales of desktop and mobile advertising across display and video, and market forecasts point to programmatic’s overtaking of direct sales globally from 2017 to 2019.

As the marketplace evolves, more and more publishers are agreeing that programmatic advertising is vital for bolstering their bottom lines. However, deciding on and setting up the right technology and then aligning operations with programmatic efforts have presented major hurdles for many publishers as they struggle to navigate this complex space. Therefore, tired of losing out to competitors that assume greater and greater shares of ad dollars every year, premium publishers are hard at work trying to find the sweet spot that will align their revenue-generating strengths with current market demand.

Finding the sweet spot

Premium publishers won’t significantly outperform the tech giants in any areas of data usage. Instead, they should shift their focus to better use of data for premium content and audience insights.

The competitive pressure from those tech giants is forcing premium publishers to get more personal with their advertising. Knowing how to take advantage of technology and how to most effectively use data to understand their audiences and deliver targeted ads are the keys to publishers’ retaining a growing advantage over their competitors.

It’s a no-brainer to say that content is publishers’ heartland. With higher scores of audience insights for content creation and ad creation development through premium content and proprietary data that optimizes campaign performance, publishers have the opportunity to significantly increase the value they deliver to buyers by matching advertisers with the audiences advertisers want to reach. By building out the right data proposition, publishers can maximize their audience data to generate revenue or use the data to grow traffic and sell products and services.

Theorem Future Perspectives

  • Programmatic is much more than a tool for selling inventory. With a firmer grasp of programmatic technology, publishers can enhance scale—and revenue—to remain agile in a fragmented digital marketplace.
  • Even though data-driven marketing appears to be locked up by the tech giants, there are increasing opportunities for publishers to create targeted, higher-quality audience segments that publishers can use to boost their advertising packages by offering premium content with audience insights.
  • Publishers can analyze data to manage and optimize their inventories for maximum revenue generation.
Share this article:Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedIn

Posted by Franz Etten

Franz is a digital media enthusiast with a knack for keeping pulse on vital market dynamics and trends across the industry. A key component to Theorem’s UK consulting team, Franzs’ knowledge is continually relied upon by media owner clients, ranging from international news corporations to large digital audio networks. Through regular contact with Theorem’s Media Agency Panel, Franz is the ultimate resource for the latest trends and changes of a rapidly evolving digital landscape.

Leave a reply

Your email address will not be published. Required fields are marked *