Introducing the Biddable IO: The Newest Programmatic Trend for 2017

By Johanna Bauman, Sr. Director of Marketing Communications, PubMatic

If 2016 was the year of the header bidding wrapper for the publisher, it follows that 2017 may very well be the year of the Biddable IO for the marketer. Since programmatic emerged as a key buying channel for marketers, an inherent trade-off has persisted between the efficiency and data-driven decisioning of automation and the transparency and guaranteed nature of the direct buy. That compromise is about to disappear.

In a new white paper, “Automating Brand Spend: The Emergence of the Biddable IO,” we examine the trends that have led to the need for this new tactic. Leveraging data from a survey of over 400 publishers and buyers as well as insights gleaned from our conversations with key industry players, the report provides context for the evolving programmatic direct landscape, and introduces the new tactic that will revolutionize the marketplace: the Biddable IO.

The Rise of Programmatic Direct

Brands are beginning to realize the value of RTB-based auctions in increasing numbers, with many touting the benefits of efficiency and audience targeting as the main drivers of the shift. As technology and quality standards for programmatic inventory improve, more brands are moving in this direction, and premium publishers are chomping at the bit to funnel this spend towards their inventory.  According to our recent survey, 83% of publishers considered programmatic direct to be an important strategy for their business in 2017.

We identified three trends driving brand spend to programmatic:

  1. The Proliferation of Header Bidding
  2. The Explosive Growth of Data Availability
  3. The Increasing Relevance of Attribution

In addition to providing an entre into automated buying for brands who had previously channeled their spend towards direct IOs, programmatic direct is also gaining popularity with the experienced programmatic buyers, as the digital advertising industry pivots back towards a focus on brand safety and inventory quality.

The Compromises of Automated Buying Channels

While providing increased inventory transparency and workflow efficiencies, existing programmatic direct channels require buyers to make compromises:

  • Private Marketplaces (PMPs) provide greater visibility and access to inventory, but do not ensure priority placement within a publisher’s ad server;
  • Private Marketplace Preferred (PMP-P) deals give buyers higher priority access to inventory, but do not contain the guarantee of inventory volume that the brands need for their forecasting;
  • Private Marketplace Guaranteed (PMP-G) deals allow that guaranteed volume buy but does ensure the guaranteed placement access of the direct buy.
  • Automated Guaranteed (AG), alternatively, provides buyers with all the benefits of the direct IO, but does not leverage the data-driven decisioning of programmatic.

The Biddable IO: The Solution to Close The Gap

Innovative buyers are starting to understand the potential that can be unlocked if they are to move their direct IOs to RTB with what we call the Biddable IO. Our survey found that 57% of buyers globally have either completed the transition of direct IOs to programmatic channels, or are in the process of moving them. The rapid adoption of header bidding has provided the foundation for greater brand access to programmatic inventory, and many are looking to take advantage of the opportunity. We believe that the emergence of the Biddable IO will signal a new era of digital media.

Download the full report by clicking here. Please feel free to reach out to discuss the report with your PubMatic account manager or contact PubMatic here and someone will follow up.

 

March Madness: The Number One Seed in Ad Spend

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As March Madness tips off this week, the first round teams lace up to step on the court, and employees in offices across the country prepare their brackets, we are reminded of the marketing power behind mega sporting events and why it’s important to begin thinking about them as immense marketing opportunities.

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3 Topics We’re Excited to Discuss at Mobile World Congress Next Week

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We are thrilled to return to Barcelona next week for Mobile World Congress, where PubMatic’s global mobile experts will be eager to discuss the top-of-mind issues for leaders in publishing, media and advertising today.

As we prepare for the conference, we wanted to share a brief preview of the top three focus areas we’re looking forward to discussing with attendees: effective monetization strategies for publishers, inspiring media buyer confidence and global mobile growth opportunities. Read more about these trends below, and we look forward to meeting with you at the conference to talk further.

To schedule a meeting with someone on our team, click here or visit our booth at Hall 8.1 – App Planet Stand 8.1E61.

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How Analytics Can Increase PMP Revenue for Publishers

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By: Jim Tarr, Director of Product Marketing Big Data & Analytics 
Alaric Thomas, Director Product Management Big Data & Analytics

Private marketplace (PMP) adoption continued to increase in 2015, and there are no signs of it slowing down. eMarketer estimates that PMP spending will reach $3.65 billion this year and grow 35% to a projected $4.93 billion by 2017. These gains are driven, in part, by the premium prices that PMP inventory garner. PubMatic’s Q3 2015 Quarterly Mobile Index Report found that PMP CPMs are higher than non-PMP CPMs, by a factor of 5-6x for mobile PMP and 3-4x for desktop PMP.

Publishers are embracing PMPs as a means to gain more control over which advertisers run on their premium inventory in the programmatic space. Buyers are interested in PMP as it allows them to better reach their target audience through a publisher they trust, with the benefit of access to premium inventory that might not otherwise be available in the open market.

While PMPs will likely continue to be an effective programmatic solution in 2016 for publishers and buyers alike, they present some challenges. For publishers, issues like finding the right buyers, setting pricing and troubleshooting can create barriers to successful PMP implementation. However, with the right data and actionable information, these challenges can be overcome. The following are a few suggested strategies for publishers to address these issues by leveraging analytics.

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Three Reasons Why Private Marketplaces Are So Popular With Buyers & Publishers

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By John Stoneman, VP EMEA

As programmatic advertising continues to grow globally, its growth in many markets is partially fueled by the rise of private marketplaces. In its early years, the word “programmatic” solely meant the buying and selling of advertising inventory in a real-time open auction. Recently, however, we have witnessed the rise of invitation-only programmatic marketplaces called private marketplaces. These private marketplaces (PMPs) provide publishers with the ability to designate certain parts of their advertising inventory to a select buyer or group of buyers, which differs from the open auction where the advertising inventory is open to all bidders.

In the U.S., the market where programmatic got its start, private marketplaces have grown massively in popularity. PMP is projected to account for 28% of an $11.8 billion programmatic market by 2016 up from just 2.0% in 2013, according to eMarketer.

Here are three reasons why PMPs have become a favorite of so many buyers and premium publishers.

Control

PMPs allow publishers to determine the buyers or advertisers that will be allowed to bid on certain parts of their inventory. This control often means that publishers feel more comfortable about selling their premium inventory programmatically, since they have selected the advertisers that they are offering it to. It’s the type of control that buyers and publishers have always had during the traditional direct sales process and PMP can bring it to programmatic.

PMPs provide buyers with added inventory transparency as being part of a PMP means they will have already identified a publisher they are comfortable buying from. PMPs also provide buyers with access to some types of premium inventory that may not be available in open auction. Finally, PMPs provide premium publishers with an extra level of confidence about the creative that will appear on their digital properties, helping to address any concerns they have around brand safety.

Workflow Automation

PMPs offer the superior workflow automation that is the hallmark of programmatic advertising when compared with traditional direct sales. Both publishers and buyers benefit by significantly reducing the traditionally time-consuming process required to execute traditional direct sales.

Relationships

PMPs allow publishers and buyers to extend an existing direct relationship into programmatic. As more inventory is bought programmatically, PMP is an easy way for both buyers and sellers to maintain the rewards of an existing direct sales relationship whilst at the same time benefiting from the efficiency and effectiveness of programmatic execution.

Programmatic is exploding globally, estimated to reach 48% of all global digital display spending this year. As that growth continues, PMPs will play a significant role as buyers and publishers seek to take advantage of its benefits as we move further into the age of programmatic.

Click the hyperlinks to learn more about PubMatic’s PMP and programmatic direct offerings for publishers and buyers.