A Journey Through the Programmatic Supply Chain: Why You Should Focus on Trust & Value
Do you know exactly how a programmatic ad impression gets from the publisher to the buyer? ExchangeWire speak with Daniel Spears (pictured below), programmatic director, Guardian News & Media, who explains the importance for publishers to have an understanding of the programmatic ecosystem and imparts advice for buyers and sellers.
When the Guardian first began experimenting with the programmatic sales channel in 2009, the technology promised automation, improved efficiencies, and a means to work more intelligently. It was meant to be clear, straightforward, and easy.
Fast-forward seven years and the programmatic market looks extremely busy – there are lots of actors, each who claim to have their own ‘special sauce’, who each contribute to the complexity, and who, together, leave the ecosystem looking rather fragmented.
In any marketplace, buyer trust and confidence is of fundamental importance – they promote liquidity, encourage advertisers and publishers alike to invest, and create a context within which supply and demand can be matched most efficiently. But, with such complexity in the programmatic market, how can we be sure we know exactly what is happening?
As a publisher, we want to understand all the inner-workings of the programmatic ecosystem and recently conducted our own research. We were especially keen to understand how our product reaches our customer, to plot the path that each of our ad impressions takes, and to identify all parties who touch that ad impression along the way. Whilst the programmatic supply chain is longer than that attached to an old-fashioned direct-buy, we should remind also ourselves that programmatic is a system that is designed to give advertisers greater control and selectivity over the delivery of their ad spend.
So, what did we learn? We found an increasingly complicated web comprised of daisy chains and spoof domains muddying our view of well-known publishers, reputable exchanges, and trusted inventory. So, how can we navigate a clear path through this and ensure that the money we put into programmatic is going where we want it to?
I have three key pieces of advice for buyers and sellers:
- Take time to map your supply-chain: How does the product get from one end to the other, and who handles it along the way? Whilst the open marketplace provides easy access to inventory, going straight to source will remove unnecessary links in the chain (and margins). It will also deliver assurance that you are getting what you have paid for, and not a fraudulent ad impression dressed up as premium inventory.
- Choose your partners wisely: Most premium publishers work with a small selection of SSPs, meaning that their legitimate inventory is most readily available in certain exchanges. The practice of reselling confuses this situation – we’ve identified some exchanges ‘selling’ non-existent Guardian product, suggesting that reselling can also obscure underlying fraud.
- Engage in the pursuit of value over price: Invest in quality and viewability as fundamentals. In addition to the obvious contribution to ROI (your ads being seen by real humans in a safe context), this will reduce the opportunity for individuals to profit from fraud and help the industry drive towards a healthier programmatic ecosystem.
By following these simple steps both buyers and sellers can regain the trust and effectiveness that programmatic initially promised. As a premium publisher, we challenge the market to pursue quality and trust as prerequisites for the delivery of ROI. For some buyers, this will require a change in approach, from that focused on price, to that which considers value. It’s up to us all to beat a path towards a healthy programmatic ecosystem, around which we can all operate with confidence and be sure delivers the promised results.
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