Should publishers go beyond the boundaries of their own inventory to sell “reach extension” packages to their clients? Publishers have long struggled with the problem of how to deliver a $100,000 campaign when they only have $90,000 of inventory. Without a strong partner network, the natural answer to that question used to be click arbitrage, an expensive and risky method of campaign fulfillment that often came with less than desirable site visitors.
These days there are several major factors that make reach extension a great opportunity for publishers, rather than a sales mechanism that strays outside their sore realm of expertise.
Publishers with premium inventory sell in three principle ways: Their best inventory is sold in large, customized “tent pole” sales; their standardized premium IAB units are sold through the transactional RFP process; and the rest is sold programmatically, through their remnant daisy chain. They do the first thing really well, especially for big branded advertisers, where they act like a mini creative/media agency to build custom programs. Publishers are also getting much better at the transactional business by leveraging great tools to bring efficiency to RFP response and enabling better demand-side access to their premium inventory (AdSlot, iSocket). The third thing (“remnant”) is the ball publishers continue to fumble, even though enabling an “owned” programmatic channel is getting easier for publishers every day.
Data management is the obvious solution. With the right tools, publishers no longer have to rely on third parties to understand the composition of their audience. The combination of a publisher’s CRM data and site tag data, ingested into one of a dozen amazing DMPs can enable them to segment and target their audience on the fly. Want “auto enthusiasts” on my site? Not only can I sell you a highly creative, customized program and back it up with a large share-of-voice in standard IAB banners within the site section—but now I can find your own customers right on my site…and on Facebook as well.
The last part of that equation (leveraging the client’s first-party CRM data) is where today’s reach extension differs from sending your excess buy to ContextWeb or AudienceScience, as you would in the old days. Now, publishers can find advertisers’ customers within their own site or publisher network and retarget them. Better yet, pubs can help advertisers put that same first-party data to work on exchanges, including FBX, where match rates (and performance) are high. Really advanced publishers will leverage their DMP to model the audience advertisers are trying to reach, and build a custom lookalike model which can find “alike” audiences within the publisher network itself, or across the exchanges.
Publishers are acting more and more like agencies when it comes to the big premium sales that take multidisciplinary talent to pull off (sales, media, creative, development). Why shouldn’t they act like an agency (or, more specifically, an agency trading desk) when it comes to helping their clients with reach extension goals? If I am a publisher, and my client comes to me looking for the audience I specialize in, I should be able to tell the advertiser how to reach that audience—starting on my own site, but also across the Web in general. The right data management strategy and tools enable publishers to cover all three legs of the buy: sponsorship, transactional, and programmatic.
[This appeared as part of AdMonsters invaluable Audience Extension Playbook, available here.]