Programmatic Native: The new solution for publishers
We live in an age where technology is ubiquitous and businesses can now find their connected audience everywhere; over 75 per cent of the UK’s population are expected to have a mobile device by the end of the year, many a tablet, and almost everyone has access to the internet.
The result is increased efficiency in every aspect of our day-to-day lives and a revolution across industries. For example, take ridesharing service Uber which automated the process of booking a taxi resulting in a simple cashless service with lower fares and happier consumers. The Internet has long been changing the way we live and will continue to improve experiences for consumers and processes for businesses.
The advertising sector is no different and is being changed by the Internet to the benefit of consumers and companies alike. The impact of advertising is now becoming truly measurable and, more importantly, the way it targets consumers has transformed. Advertising has come to a point where it is now automated by programmatic technology.
Programmatic advertising has rapidly established itself in the media and marketing industry. It is essentially the automated purchase of advertising inventory, resulting in more accurate targeting and a more efficient media spend.
A good example of programmatic advertising is Ball Street’s use of RadiumOne’s programmatic technology to run a campaign for Papa John’s. The campaign guided fans through the end of the last Premier League season with a weekly 451 digital football show.
It needed to hit their target market with very little waste. To do so, Ball Street developed video content, sponsored by Papa John’s, and pushed it out in three bursts around matches with a deciding role in the race for the Premier League title. This content was distributed using RadiumOne’s programmatic MPU Flite unit, which allows publishers to place branded content within an editorial context. This enabled Ball Street to beat its engagement benchmark for their video by 71 per cent, with 61 per cent of viewers watching the videos all the way through.
However, still in its early stages, programmatic has endured its teething problems and suffered criticisms. Ironically, these were borne of programmatic advertising’s inherently efficient nature; it distributes advertising so effectively that the price of the inventory drops in value, lowering cost per mille (CPM).
The main victims of this hyper-efficiency are often large publishers with huge amounts of advertising inventory across their digital titles. While lowered CPMs benefit advertisers, there needs to be a balance in the system for it to exist. After all, without publishers there would not be any advertising inventory and, consequently, no advertising.
So, rather than reverting to the inefficient method of manual ad-buying and giving advertisers less value than they now demand, how can publishers continue to offer targeted, relevant advertising at scale? And how can they continue to ensure the CPM is mutually beneficial? The solution is programmatic advertising - but with a twist.
Native advertising was the industry buzzword of 2013. It enables companies to serve their advertising in the same format as regular content, ensuring consumers have undisturbed browsing experience. The implementation can be as complicated as creating editorial content by a publisher for its partners (something that Buzzfeed has mastered, but requires large resource) or as simple as inconspicuous advertising units that sit alongside relevant content. It is the latter we are interested in.
By combining programmatic and native advertising technologies, we provide both advertisers and publishers with the solution they’ve needed. We can create inconspicuous advertising units that sit alongside regular content, ensuring consumers see them.
And by using our programmatic technology to serve these ad units, advertisers can be sure that their message is being seen by a relevant audience. Moreover, publishers can now set maximum and minimum values for these native advertising units, ensuring that they’re not underselling their inventory. We have developed a number of these bespoke platforms for clients including publishers such as Factory Media, Conde Nast and IPC Media to name a few.
The result is an advertising platform that ensures publishers can actually survive and profit in an increasingly competitive media market. These publishers learn even more about consumers’ tastes to build a content and advertising strategy that keeps every user engaged and offers commercial partners real value.
Ultimately, savvy publishers are beginning to really understand the significance of controlling their own inventory and now also have the ability to advertise its inherent worth to brands. Programmatic native is now the solution of choice for leading publishers moving forward.
Rupert Staines, European MD, RadiumOne
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