Three Things Publishers Should Know About Programmatic

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“72% of publishers are now using programmatic ad technologies,” according to a recent AdAge survey. Publishers have been slow to join the digital media movement, but the industry is seeing a transition. Publishers are realizing the opportunities that are available with programmatic and how it can help their end customers. Publishers should view three components of programmatic with a lens of opportunity: data, audience extension, and market share.

Data: In the world of programmatic, data is everything. Publishers play a key role because they can provide valuable data to their end customer. Data on their own website visitors allows publishers to make a case of why their own inventory is valuable. For example, an online newspaper could have insight into a segment of their readers, finding that they are composed of 18 to 20-year-old males. This information can then be sold to advertisers, allowing them to serve ads on the section of the publisher’s site that corresponds with their target audience. 

Audience Extension: Publishers are going to need to use a DSP (demand side platform) to execute RTB (real-time bidding). By using a DSP, publishers can extend their reach through the use of audience extension.  Audience Extension is a technology that allows digital publishers to generate revenue from their web traffic by allowing advertisers to reach their audience far beyond their website. Through audience extension, publishers can track their website visitors, and then advertisers can serve ads to that audience on different sites as they continue browsing the web.

Market Share: Originally, publishers feared that programmatic advertising would drive down prices, when in fact, the opposite has happened. Programmatic is a battle for market share. “Publishers have a rare opportunity to gain a large portion of that market share, which is projected to sit at 20B in the US alone in 2016,” shares eMarketer. Publishers can now offer all media buying and marketing services for their customers. Essentially publishers can provide their customers with a shopping cart of digital media strategies for them to choose from.

As programmatic buying continues to grow at an astonishing rate, media buyers are finding ways to integrate programmatic into their digital media strategies. Just as marketers are leveraging programmatic to drive more efficient media buying and higher conversions, publishers are using programmatic to scale their ad revenues by ensuring that they are getting the highest possible price for each and every impression. Because of this transition into the age of programmatic, publishers can view data, audience extension, and market share as opportunities to enhance their business and reasons why they should make the jump.