Ad Tech

Preferred Deals

Preferred Deals: What are they, pros, cons, and differences with other Programmatic Direct deals

Programmatic Direct provides publishers with an automated way to directly sell and/or negotiate their inventory. There are three types of deals within this category: Preferred Deals, Programmatic Guaranteed, and Private Auction. They each have their specifics and are used to meet various seller and/or buyer needs. In this article, we will take a closer look at Preferred Deals, their advantages, and disadvantages, as well as their differences from Programmatic Guaranteed and Private Auctions.  What is a Preferred Deal? Preferred Deals are direct deals within which the publisher agrees to provide exclusive first-look to specific inventory in exchange for a predetermined CPM rate. The terms are negotiated via Google Ad Manager and the price is fixed, no auction takes place. The advertiser is not obligated to buy the impressions, hence the alternative name of this type of deal: “programmatic non-guaranteed”. If the advertiser decides he is not interested in the inventory, it goes to an open or a private auction. The publisher can initiate the negotiations with a single advertiser via single or multiple buyers. He can decide to seal the final deal with one or more of those buyers.    Advantages of Preferred Deals Predictability: Publishers get to select the buyers they negotiate with and set a price for the deal they are comfortable with. In this way, they can make much more precise revenue expectations and plan accordingly.   Security: Having the option to choose the advertisers for this type of deal creates a transparent and secure environment where the risk…

AMP Ads

AMP ads: The basics

Back in 2015, Google launched the open-source Accelerated Mobile Pages (AMP) Project for a faster, open mobile web. In 2018 the project moved to an open governance model and then in 2019, it joined the OpenJS Foundation Incubation Program. Today you can use AMP to build a number of things, including websites, web stories, ads, and email. This article will focus on AMP ads – what they are, their advantages and disadvantages, as well as a few best practices if you decide to give AMP ads a shot.  What are AMP ads? AMPHTML ads, also known as AMP ads, combine the technology of the standard HTML ads with that of AMP. This results in very flexible, fast, light, and safe ads that can be delivered on both AMP and non-AMP pages. AMPHTML ads are created only with predefined HTML, CSS, and JavaScript libraries from the AMP Open Source Project, eliminating the possibility for running obscure JavaScript codes and improving security through auto-verification. Three of the more popular AMP ad formats are carousel (ad with more than one image in a carousel, auto-plays when in view), video parallax (a video displayed on top of a banner, the ad plays only on user click), and lightbox (ad expands only on click, uninterested users get more of the website content in view). Publishers interested in video advertising can serve both in-stream and out-stream video ads in AMP.  Advantages  AMP ads come with multiple advantages. Let’s see what they are, starting with the most…

Programmatic Guaranteed: What is it and how to make use of it

Programmatic Guaranteed: What is it and how to make use of it

With programmatic digital advertising on the rise in the last few years, the opportunities for publishers and advertisers alike are getting more and more robust. There are several types of deals that fall under the “Programmatic Direct” deal type: programmatic guaranteed, preferred deals, and private auctions. In this article, we will be unfolding the ins and outs of Programmatic Guaranteed. What is Programmatic Guaranteed? Programmatic Guaranteed is an attractive type of campaign to both publishers and advertisers. The sellers get a guaranteed revenue stream, whereas the buyers lock in the exact audience they want to reach. Both sides get predictable results from the deal and mitigate uncertainty. Programmatic Guaranteed allows publishers to negotiate with a buyer the price and terms for specific inventory that would be reserved only for that buyer at a fixed price. Audience targeting happens through device ID or cookies and advertisers get a very precise match to what they are looking for. The deal includes impression volumes and price, frequency capping, what ad sizes and formats will be used, as well as the campaign timeframe. All of this is coded into the Deal ID and handled fully automatically (this is why Programmatic Guaranteed is often confused with Automated Guaranteed, which, however, does not use Deal ID, but rather displays the ads via an ad server API). For Programmatic Guaranteed to work, publisher and buyer Data Management Platforms (DMPs) need to first sync. This allows advertisers to find the right audience and then offer a guaranteed price…

Interstitial Ads: Pros and Cons

Interstitial Ads: Pros and Cons

Interstitial ads have become quite popular in the last few years, despite the penalties set by Google back in 2015. They are most popular on mobile and in gaming apps, however, in 2020 Google also launched interstitials for the web (check out this article for more information on them). Since then, the format has gained more traction and has its fans and critics. Let’s see what exactly are interstitial ads, what are their pros and cons and some best practices for their implementation. What are interstitial ads? Interstitials are essentially full-screen ads that can be displayed on desktop or mobile web, or in-app. Normally, they appear at transitions points (such as navigating away from a page or after pausing a game) to minimize intrusiveness. Interstitials can be a variety of types, including, but not limited to images, video, rich media, and text. They are characterized by high click-through and CPM rates. However, publishers need to use them in compliance with the Better Ads Standards, Google’s Search Standards, Google’s recommended implementations, and best practices in order to stay away from penalties.  A compulsory element of interstitial ads is having a clear exit/close button. Web interstitials also have a fixed frequency cap of one ad being shown to a user per hour per subdomain. Ads should be preloaded in order to avoid latency when being displayed to the user and to ensure a positive user experience.   Advantages Let’s take a look at why this ad format is so popular among publishers. High…

Google’s retirement of SPM postponed

Google’s retirement of SPM postponed to January 2022

In June this year, Google revealed that they will be discontinuing the Scaled Partner Management (SPM) feature by the end of September 2021, which would mark the end of the transition to the brand new Multiple Customer Management (MCM) model.  In an update from yesterday (14 September 2021) Google announced that they’re going to be pushing the deadline back to 31 January 2022. The change is due to multiple partners having challenges migrating to MCM in time, while future plans also include providing more details around Google’s plans on the retirement of SPM. The previous deadline of 30 September 2021 is now going to be the last available date for child publishers to be added to SPM. After that, all new entries will need to be added directly to the MCM feature.  Source: Google New MCM transition timeline Google is also breaking down its MCM migration schedule into five separate steps to maintain a balanced pace across the network. Managing partners will be required to transfer a minimum of 15% to 30% of their managed revenue, varying between the different stages.  Failing to meet these new benchmarks will result in a certain portion of SPM traffic being blocked from accessing Ad Exchange demand, with the percentage being larger as we approach the final deadline. Other demand sources will not be impacted by the penalty. Source: Google Our progress so far We’re happy to say that we’re currently near 100% completion in migrating all of our child publishers to Multiple Customer…

Amazon TAM vs Amazon UAM

Amazon TAM vs Amazon UAM

According to Kevel’s header bidding tracker in 2021 Amazon has become the top header bidding adapter, with 78% market penetration, among the 10K US publishers who do header bidding. Amazon’s server-to-server wrappers, TAM and UAM, are bringing Amazon’s unique demand and their highly valuable first-party data to the table, an opportunity for revenue growth that few would pass. Let’s take a look at both to find out when each is used and what are their advantages and disadvantages.  What is Amazon UAM? Unified Ad Marketplace (UAM) is a server-side header bidding solution, created by Amazon for small and medium-sized website publishers. Typically, these publishers will already be using Google Ad Manager as their ad server, running prebid, and won’t have any direct SSP relationships yet. Instead, Amazon would handle the partnerships on behalf of the publisher, for which it charges a 10% fee from the bid rates. UAM aggregates demand from Amazon plus most of the large SSPs and provides a transparent and fair platform for a first-price auction. The bidding happens on Amazon’s servers, as you would expect from an S2S header bidder. Publishers can use the platform for desktop and mobile display ads, but not for video or native yet. To protect your inventory from low-quality ads, you can block advertiser domains, IAB categories, as well as specific creatives.  Pros & Cons of UAM Why use UAM? Increase demand: plug in unique demand from Amazon and reach buyers that are not typically accessible by small publishers; Simple ‘plug-and-play’…

Target CPM vs Price Floors

Target CPM vs Price Floors

Back in December 2018 Google released Target CPM out of beta and made it available to all Google Ad Manager (then called Google Ad Exchange) users. The tool is an adjustable alternative to the traditional (fixed) price floor and comes in handy for boosting publishers’ fill rates. In this article we’ll take a closer look at both the good old price floors and Target CPM, focusing on the latter as the newer yield management option.  What is a Price Floor? Going straight to definitions, a price floor is a fixed CPM price that serves as a set minimum to the bids that can participate in an auction. It allows publishers to define a price threshold for their inventory, below which they are not willing to sell. Most publishers will already be familiar with the concept, as it has been a key tool in yield management for quite a while. Price floors were especially useful in second-price auctions, back when this was the standard. Today, in a first-price auction world, the pricing strategies have changed as there is no longer a need to minimize the difference between the two highest bids.  However, bid shading has imposed the need for a tool to preserve publishers’ ad inventory value, and price floors play a key role here. Another important use for price floors is to keep low-quality ads away in order to preserve the user experience unharmed.  What is Target CPM? Target CPM, or tCPM, is another way to set price floors that…

Post bidding explained

Post Bidding: Explained

The ever-evolving ad tech industry constantly offers new opportunities for growth and revenue optimization. At the same time, in a space full of buzzwords, definitions often start to blur in one’s mind. Today, we are tackling Post-Bid: find out what it is, how it works, what are the technology’s pros and cons and does it make sense to use it. If you are unsure of your understanding of header bidding and prebid, you might want to check our latest article about header bidding wrappers first.   So, What is Post Bidding? Post-bid, post-bidding, or post-bidding are all terms used to describe the technology that lets the auction for an impression happen after the ad server has rejected all direct and exchange-based line items. The ad server has to first select the post-bid line item, in which case the winning line item’s creative is in fact a Prebid.js tag. Only after this does the actual auction among the demand sources take place. In contrast, with header bidding the opposite happens – the auction runs before the ad server has seen the impression.  How Does It Work? First, the ad server receives an impression from the webpage. Then, it chooses the highest bid among direct-sold ads/sponsorships, exchanges, and post-bid line items. If a post-bid line item wins, then its creative content is served to the page. At the same time, this creative run a competition among the demand partners using prebid.js. The creative from the highest bidder is then displayed on that ad…

Ad tech - everything you need to know

Ad Tech: Everything you need to know

What is Ad Tech? Advertising Technology (Ad Tech) is the term that describes the systems of analyzing and managing tools for programmatic advertising campaigns.  It includes the full ad delivery process, from picking an ad’s subject and place to selecting its target. Ad Tech solutions enable you to view the overall picture of your campaign and exploit it to its full potential. The direct benefits of this tight knot of diverse processes include increased operational efficiency, which means increased brand recognition, which leads to increased earnings. This indirectly leads to an increase in interest. Ad Tech, on the other hand, can be tough. Digital advertising is expensive, and you must ensure that every cent is working towards your goal. From a technological and logistical standpoint, the whole operation is quite demanding. It requires a massive amount of data and therefore massive computational power. As a result, you require the services of Ad Tech businesses that understand it inside and out and can turn it upside down to get through. AdTech firms are, in this sense, cavalry. The key advantage of using it is that it reduces budget spending and makes the entire process considerably more cost-effective. The company requires a properly customized system for its needs to get the most out of the Ad Tech modified campaign. The procedures for processing and categorizing incoming data must be precisely defined. It should fit exactly to make the process of organizing, delivering, and targeting advertisements as efficient as possible. It assists you…

Bid Shading - All you need to know

Bid shading explained

Bid shading is a method used by buyers in first-price auctions to avoid overspending, and its importance has grown as every major exchange has transitioned to a first-price auction.  Simply explained, it is a campaign feature that can help advertisers save money. Here’s an explanation of what it means and how it works. Bid shading defined There are two types of auctions in programmatic advertising: first-price and second-price. The highest bidder determines how much an impression is sold for in a first-price auction. The sale price of an impression is determined by the second-highest bidder in a second-price auction. Bid shading has emerged as a middle ground between the two. So, based on an estimate performed by the ad tech partner, the buyer will pay somewhere between the second-price and first-price value. How it works Because of the shift toward first-price auctions, the technology is mostly accessible as a free service on supply-side platforms and is becoming a feature increasingly used in DSPs. The vendor will study bid-history data, such as what bid rates normally win on a specific website or in a specific ad location, or at what price bids are lost, to determine what a bid should be that is midway between the first and second offers. Bid shading was created as a way to please buyers who were unhappy with having to pay far higher prices than they were used to when first-price auctions became popular. However, it is not particularly transparent, so buyers must rely on…