Social Media Advertising
Article | July 14, 2022
When print publishers transitioned to online publishing, they were keen to find a way to generate revenue. Their revenue model in the print world was advertising, so they needed to monetize their content online. Display ads were a great start for them. They sold their advertising space to interested advertisers directly. Even then, there would always be some ad inventory that remained unsold. The need of the hour was a platform that could help them sell this inventory. That is when ad networks for publishers and advertisers came into the picture. Let us take a deeper look into how ad networks are helping both publishers and advertisers optimize their selling and buying processes.
Ad Networks: Simplifying Ad Buying and Selling
An ad network is a technology-backed platform that acts as an intermediary between a group of publishers who want to sell their ads and advertisers interested in buying them.
Ad networks for publishers and advertisers first appeared in the mid-nineties as the earliest advertising technology to support online advertising. They helped advertisers buy ad space across multiple publishing platforms.
The primary purpose of an ad network was to collect unsold ads from different publishers and put them up for offer to advertisers at a lower price than what a direct sale would cost. This kind of ad inventory was mostly referred to as remnant, non-premium ads that publishers struggled to sell directly.
Today, ad networks for publishers focus on offering advertisers exclusive ad deals at premium prices. They pre-buy inventory from different publishers and then resell it to advertisers at premium prices to help advertisers get the impressions they expect.
Types of Ad Networks
Based on your audience, industry, topics, and formats, you have four main types of ad networks to choose from:
Inventory-specific networks: Such networks have ads of a specific type, such as mobile or video.
Vertical advertising networks: These are ad networks that focus on a specific topic, such as fashion, automobiles, or business.
Premium networks: These are the networks that offer premium inventory, mostly from popular publishers.
Targeted networks: These networks offer specific targeting capabilities through a built-in ad server.
How do Ad Networks Work?
Ad networks for publishers and advertisers keep on evolving with technological advancements. To understand how the best ads network works, here are the dynamic steps they follow to benefit publishers and advertisers:
Ad networks compile multiple publishers with available ad inventory.
Advertisers create campaigns using the ad network’s campaign panel, keeping in mind their budget, target audience, and any other special attributes.
The publishers install relevant ad network tags on their websites.
When there is a match between an ad campaign set by an advertiser and the publisher’s ad inventory, ad information is sent to the publisher. The ad network provider gets a share of the ad revenue generated from the campaign or by selling the inventory at a higher price than the publisher.
Using the ad network’s campaign panel, the advertiser tracks and manages the ad’s performance.
Ad Networks in Programmatic Advertising
Ad networks for publishers and advertisers are a part of programmatic advertising, which is the process of automatically buying and selling digital advertising space. In this space, demand-side platforms (which help advertisers) and supply-side platforms (which help publishers) streamline the buying and selling process through real-time bidding (RTB).
Businesses and enterprises rely on programmatic advertising for their digital advertising needs because publishers are adopting native ads on their websites. Thanks to native ads, ad blockers don’t affect advertising, and marketers can optimize and improve their ads with programmatic techniques for campaign success. It's no surprise that programmatic digital display ad spending is expected to increase by 25.8% this year (Source: Brand Equity).
In conjugation with ad networks, an ad exchange connects DSPs and SSPs autonomously. An ad exchange came into the picture in 2005 when ad networks were not enough to solve the cumbersome problem publishers were facing ─ selling unsold ad space. Automation in the open marketplace for buying and selling digital ads was the solution. An ad exchange offers a streamlined platform for advertisers, publishers, ad networks, and other parties to connect their ad serving technologies for efficiency.
Ad Network and Ad Exchange: What is the Difference?
In the programmatic advertising ecosystem, the ad network and the ad exchange are two important components that are often mistaken to be the same because of their role in media buying. Let us take a look at the factors that separate the two.
Attribute
Ad Network
Ad Exchange
Function
Intermediary between publishers and advertisers
Open marketplace for everyone
Identity
Company
Technology
Key Users
Publishers, advertisers and agencies
Publishers, advertisers, agencies, ad networks, DSPs, SSPs and ATDs
Important Characteristic
Pre-segmented ads for particular audience. Promotes bulk buying and selling.
Pool of various types of ad inventory. Based on an impression-per-impression trade
Ad Quality
Top-tier ad inventory, often sold for the first time
All available inventory on sale including remnant ad slots
Optimization
Time consuming
Optimization possible on-the-go
Cost
Stable and determined by the ad network
Dynamic pricing based on real-time bidding by advertisers
Impact on Advertiser
Ad prices are higher
Advertisers can define the pricing
Impact on Publisher
Low control over inventory pricing and optimization
More control over value per impression
Buyer/Seller Information
Advertisers are unaware of the placement of their ads
Publishers don’t know who the advertisers are
Both advertisers and publishers have each other’s information
Why Advertisers and Publishers Rely on Ad Networks?
A Wider Range of Options
With the help of top ad networks, advertisers and publishers can buy or sell more ad space. As a part of monetization strategies for publishers, they can rapidly increase their revenue through premium or remnant inventory because ad networks bring them the highest paying bids. Advertisers, on the other hand, can easily find any type of ad inventory that matches their budget for ad publishing.
Higher Return on Investment
Top ad networks bring in more revenue from advertising. The better the quality of ads, the higher the revenue for advertisers because they get precisely matched with their targeting needs and they can choose the most profitable deals.
Increased Efficiency
Automation in matching publishers and advertisers is the biggest advantage of advertising networks. It saves the time of manually looking for suitable deals or favorable pricing. The best publishers that bring the best impressions on ads can easily be approached. Publishers can get their inventory sold for the best price thanks to digital advertising networks.
Features of an Ideal Ad Network for Publishers & Advertisers
Here is a list of features you can refer to while choosing an ad network that caters to your needs:
Size: The size of the advertising network matters because it facilitates a steady traffic. The more traffic it can deliver, the higher your ROI will be.
Quality: Identify the quality of the inventory that an ad network offers. It should match the kind of inventory you need.
Audience Targeting: Your ad network should support different audience targeting options so that ad campaigns work perfectly well.
Format Support: Your ad network should support different formats like responsive, call-only, animated GIF or simple banners so you can diversify into different formats without any hassles.
Reliability: Depending on your requirements, ensure that the network doesn’t go down and provides consistent service so your business remains unaffected. The interface should also be easy to use, clean, and rich with data to help your marketing team optimize their personalization efforts.
CTV Streaming Platform Used PubMatic to Bump its Revenue by 400%
Future Today, a premium CTV streaming platform, used PubMatic’s platform to drive its ad revenue. PubMatic helped Future Today partner with a leading CTV DSP and achieve a lucrative private marketplace (PMP) agreement to create incremental demand through direct integration and optimized engagement.
“PubMatic has been one of Future Today's fastest growing demand partners in the last 6 months. The entire team has been a pleasure to work with and they genuinely understand the value of CTV in the market.” – Katya Shkolnik, Head of Partnerships, Future Today Inc.
Key Takeaways
Display, native, and banner advertising campaigns are critical for marketers like you to scale your business, so understanding how and what an ad network for publishers and advertisers does is important to creating the best, most effective advertising campaigns that bear results.
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Advertiser Platforms
Article | August 2, 2022
Everyone can be a creator, critic, performer and an audience member— all at the same time — thanks to the internet. However, when it comes to advertising and the internet, the biggest opportunity that you have is customer experience (CX). And yet, new technologies and the desire to decrease ad spend put customer experience on the back-burner.
Why CX Should be a Priority While Making Ads?
Customer experience takes a nosedive when you automate marketing decisions, drive down advertising costs, extract data, and increase intrusiveness to reach more customers. These factors negatively impact your brand’s reputation and cause customers to leave your side. As a result, your revenue might take a hit by implementing modern technology.
Customer experience should always be at the top of your priority list if you want to retain your customers and give them exactly what they want. Here are some things you should remember while creating ads:
Context is Key
Your messaging and creatives should align with the context of your ad placement. Native ads and contextual targeting can help you safely place your ads without disrupting your UX.
Value Addition Works
Your consumers want to see something that is unique and adds value to their lives. Use creative, relatable, and authentic messaging to appeal to your audience.
Use Technology Wisely
If you don’t leverage ad tech as a part of a sound strategy and intelligent design, you might lose out on effectively representing your brand in front of your target audience.
Rules to Remember While Making Ad Creatives
Do not treat your audience as a set of data points
Platforms are dynamic so you need to adapt to the changes in time
Use technology to meet the expectations of your audience but don’t abuse it
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Advertiser Campaign Management
Article | August 12, 2022
Video content is more important than ever from a marketing perspective, but the high profile status it has attained also brings challenges with it.
The main hurdle to overcome is that of creating compelling clips that outshine the competition in a marketplace that is already overflowing with attention-grabbing content.
With all that in mind, here are just a handful of strategies that will empower you when making promotional video content for your business or brand.
Use the right software tools
The video editing tools you choose will form the foundation of your content creation strategy, so it pays to give this plenty of thought and not to just stick with the same old package you have been using for years.
For example, leveraging collaborative video editing software could take your projects to the next level, not only in terms of creativity but also when it comes to compressing cycles of work.
If you can have multiple team members collaborating on the same project in unison, you can hit deadlines and capture the zeitgeist with your content, rather than seeing viral trends pass you by.
Choose types of content that serve your advertising aims
The extent to which your video content is able to engage and connect with your target audience will partly be determined by the format it takes. As such you have to choose wisely and avoid producing clips that don’t gel with your marketing goals.
For example, if your business makes a product that has practical applications, you could gain views and shares by making tutorial content that explains how best to use it.
On the other hand, if your business offers services within a particular industry, then you may earn more traction with videos that explain a particular aspect of the niche you occupy.
Both of these types of content provide value to viewers as well as being promotional, and can also remain relevant for long periods. The more evergreen your video content, the bigger the potential ROI.
Extrapolate ideas from your existing content
Working out what video content will hit home with your ideal demographic can feel like it involves a lot of guesswork, and a lot of risk-taking as a result.
However, you don’t have to go all-in on a concept for a video without knowing if it will hold water, because it is more than likely that you already have tried-and-tested ideas that have proven themselves and are ripe for video adaptation.
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Social Media Advertising
Article | May 11, 2022
Netflix Takes an Unexpected Route
Popular streaming giant Netflix’s subscriber count plummeted for the first time in a decade. After it announced the loss of 200K subscribers in Q1 of 2022, its stocks dipped more than 35%. In addition, a shareholder recently sued the platform for violating securities law after its subscriber growth reached an all-time low and the stock value crashed, making the picture bleaker.
It’s not surprising that the platform had a change of heart about bringing advertising to its platform. The decision puts the platform in the same category as its competitors, HBO Max, Amazon’s Freevee, and Disney+, who want to offer cheaper, ad-enabled content to consumers. It also addresses the company’s issue of slow revenue growth.
“Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription, But as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
co-CEO Reed Hastings
What Do Advertisers Think?
The advertising community had mixed reactions to the announcement. Long commercials are not an option on streaming platforms like Netflix. The ads run only for a few minutes every hour to retain the viewer experience. Despite this, advertisers are excited to target Netflix’s rich audience of over 200 million.
There is no clarity on who will sell the ads and how the campaigns will be managed. Only time will tell how Netflix’s move will affect its subscribers and the advertising market.
The company will keep ad-free tiers for subscribers who wish to enjoy high-quality ad-free content. It may change its subscription plans to offer low-cost plans with ads and minimize password sharing. There is no set timeline or regions decided for implementing these plans.
The company hopes that this “consumer choice” to choose a cheaper plan will revive its subscriber growth graph.
What Comes Next?
Though Netflix has done the unexpected, it is giving well-established ad-funded broadcasters and streaming platforms a reason to worry. As of now, the potential for a low-cost VOD service equipped with ads is huge for advertisers. Once the plans are introduced, new audience profiles will emerge. Advertisers will want to understand and target them. As an ad platform, Netflix’s performance will only be understood through testing and learning.
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