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Home Advertising

Five essential things publishers should know about programmatic advertising

by Paula Raubenheimer
May 25, 2016
in Advertising
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Five essential things publishers should know about programmatic advertising
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The level of efficiency and the growth of programmatic has been a very clear indicator of where the industry is going in South Africa. When you compare efficiency of programmatic advertising to that of traditional advertising, it’s easy to see why programmatic is the way of the future.

Here are some basic points that publishers need to bear in mind when they consider the option of selling their ads programmatically:

  1. It’s not just about the basic banner ad anymore: Globally a lot of brands have leapt behind programmatic wholeheartedly by moving all their display-ad budget into programmatic channels and this has opened up an opportunity for tech players to build functionality that allows brands to buy more than standard banner ads. Globally, more and more publishers are offering highly prized premium advertising within their programmatic inventory. Clearly showing that while it is ever evolving, programmatic advertising is here to stay.
  2. Programmatic takes a lot of the worry out of ad selling: There is no longer the challenge of remnant inventory because publishers can utilise real-time bidding (RTB) auctions or guaranteed premium placement exchanges to ensure the sale of unsold inventory. This means more sales, less stress and, effectively, higher profit margins.
  1. A lot of the guess work has been removed: When it comes to RTB there is no more guessing what buyers will pay or what they prefer to see in bulk packages. It has become a lot simpler for sellers, they are now told by the buyers what they want, how they want it and what they are willing to spend. This opens up massive opportunities for publishers to react to advertisers needs.
  1. Today data is a highly valuable commodity: When it comes to programmatic selling, the analytical capabilities and statistics that publishers have access to, through their programmatic tech (which captures who is viewing their site, when they are viewing it, where they are located and more) can be passed on to the sales teams to use as selling tools. So programmatic can benefit the entire selling cycle – in essence giving the sales teams access to the enormous power behind targeting.
  1. And finally, it is important to note that publishers can set their own price floors: In other words they can dictate the minimum they are willing to take for a specific ad spot. And through setting a reserve price for the unsold inventory via RTB, publishers can ultimately score bigger bids on ad spots that would normally have remained unsold.

Whether you believe that programmatic advertising is here to stay or not, there is no denying that right now there is enormous value in exploring the technology. The convenience, added control and greater return on investment makes it something publishers cannot afford to ignore.

Paula Raubenheimer is MD of SouthernX.

Tags: ad exchangePaula Raubenheimerprogrammaticreal time biddingRTBSouthernX

Paula Raubenheimer

Paula Raubenheimer is the Head of Programmatic at The SpaceStation and has over 10 years’ experience in the digital media landscape. Raubenheimer has a B Bus Science (Law) degree and completed Post-Graduate studies in Marketing and Advertising Communications. Before commencing with SouthernX in 2014, she was the Group Commercial Director of the Habari Group. On leaving the Group in 2013, Raubenheimer launched an e-commerce store, which she made profitable after only four months of operation. Her specialties include digital business development, media sales, general management and business strategy development and execution. In 2015, Raubenheimer was named as one of The Mint Top 40 Under 40 most influential people in media by The Media Online. She was also selected to be a speaker at the Integrated Marketing Communication Conference and the Best of Global Digital Marketing Conference in 2015.

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