While programmatic advertising may offer publishers the opportunity for increased revenue and faster growth, not all publishers are maximizing ROI according to the Boston Consulting Group (BCG) report titled “The Programmatic Path to Profit for Publishers.” Their research may be used to evaluate why working with a programmatic consultant can help publishers strengthen their positions in the marketplace, focus on value-creating activities and improve the value of their online assets.
Spending Time Effectively
According to BCG research, publishers often do not spend time on the right activities. Rather than spending time driving revenue or serving customers, they found that typical publishers spent around 80% of their time on administrative tasks. To improve ROI, programmatic consulting strategies could focus on:
- Inventory segments actively attracting bidding.
- Active bidders and their target inventory.
- Floor prices & timeout settings.
- Forecasting inventory availability.
Translating Data Into Action
A programmatic consultant can enhance a publisher’s analytical data with insights and knowledge to build a clear understanding of how to improve a Bidders performance. In depth data analysis may be able to predict which audience segments will drive the best financial results. It can also provide valuable insights by showing how viewers are interacting with ads and what their next actions may be. Testing changes and understanding the differences in the viewer reactions, and the points in time when they take action, can also drive better results.
Using Technology to the Fullest
Since programmatic spending is typically automated spending, understanding the technology behind the spending patterns can mean getting a better return on those dollars. A programmatic consultant may understand ad technology at a deeper level than an in-house ad operations team. By manipulating the technologies, the consultant may be able to deliver better results for automated header bidding, forecasting inventory availability and inventory management. Consultants may also be able to better determine why some demand sources are working for certain inventory, but not for others.
Focusing on the Right Activities
With a consultant steering programmatic advertising efforts, publisher team members can be freed up to spend more time working with clients and potential clients, driving sales and creating more value for the company. Programmatic consultants may help publishers find efficiencies in the following ways:
- Setting the right number of demand partners. When publishers work with too many sources, it can result in inefficiencies from administering the high number of contracts. By using a single source, publishers may spend up to 30% less time on managing processes.
- Adding quality assurance reviews and measurements. Implementing procedures to review and block unwanted ads early in the process, for example, can save time in the long run.
- Standardizing and automating reporting and billing functions. Adding efficiency by using technology to perform functions when possible can help redirect staff to higher value activities.
As the sophistication of programmatic advertising continues to improve, the value added by working with a programmatic consultant may continue to increase as well. Publishers who use the full range of knowledge and tools available may benefit with better financial results driven by a greater number of satisfied customers.