Part 2 of 3: Exploring the technical approaches to self-serve advertising

In the first part of this series I addressed the problem and opportunity that online publishers face in servicing smaller ad orders. In summary, a self-serve advertising platform is a very effective solution for processing ad orders under $5000. In part 2 of this 3 part series, I will identify to the two primary types of solutions available to publishers today.

Self-serve via JavaScript

This type of solution is integrated into the publisher’s ad server via JavaScript and will require a bit more human involvement. Publisher’s ad ops team will have to set up a campaign for the self-serve solution similar to how they set up an ad network in the ad server. Therefore a specific amount of inventory must be allocated and will need to be monitored on an on-going basis.

Self-serve via API

This type of solution is integrated directly into the publisher’s ad server via an API. With this type of solution no specific inventory needs to be allocated since inventory availability is determined when the advertiser is ready to buy.

The automation factor of a self-serve advertising platform is key to maximizing publisher’s revenue from advertisers with smaller ad orders. An API based solution is fully automated with one exception; each campaign requires approval from ad ops before going live (for quality control purposes). All other aspects happen without human involvement including sales, campaign trafficking, reporting and payment. Whereas a JavaScript based solution, as mentioned above, requires ad ops team members to create a campaign, allocate inventory and monitor.

The API based solution also offers advertisers full targeting capabilities, which is a great incentive for advertisers with smaller budgets; most value for their dollar spent. This is not the case with a JavaScript based solution, which unfortunately does not have the same targeting functions. For example, it lacks ability to use key value pairs to target ads.

Why the different technical approaches?

Vendors using the JavaScript approach are typically an ad network offering self-serve as a value-add solution or come from an ad network background, they will also cross-sell other sites using their solution. The API based solutions, on the other hand, are pure-play advertising technology companies focused on solving a pain point for publishers while giving them maximum control and flexibility.

I hope you found this information valuable and would love to hear your thoughts on self-serve advertising. Feel free to comment below – let’s get the conversation started.

Also published on the AdMonsters Blog

Part 1 of 3: Importance of targeting smaller advertisers

A majority of online publishers primarily focus their ad sales efforts on agencies and large brand advertisers via their direct sales force. The cost of operation for this sales channel often requires them to set a minimum ad buy per campaign. In conversations I’ve had with multiple online publishers in North America we have heard that the cost of running an online campaign ranges from $2,500 to $4,000 per campaign. This includes the sales, operations and finance costs. As such you will find that minimum ad buys are set between $2,500 and $10,000 per buy.

With that said, advertisers seeking to purchase smaller ad orders are unable to work directly with online publishers because of these minimums. In most cases, smaller advertisers will spend their advertising budget on solutions like Google AdSense. The limited amount of options for smaller advertisers has a direct effect on online publishers; either they will only generate a small amount of revenue from ad networks or it will all go to companies like Google.

Although their ad orders are of a smaller dollar value, the number of potential advertisers in this segment of the market far exceeds those of large brands; according to Borrel, SMBs make up for 95 percent of all local advertising online. Therefore, it is illogical for publishers to not seek a more effective solution to serve the smaller advertiser market. The potential to generate a higher eCPM than you would from an ad network or exchange is there; it just needs to be considered.

In my 15 years of experience in the digital media world, I have explored this topic in depth and feel there is one option that is simple enough for advertisers (without experience) to work with and provides publishers with a decent return: self-serve advertising platforms. With a self-serve solution, publishers can automate the sales, operations and finance components of running a campaign thereby making the process of servicing smaller advertisers less costly and more profitable. There is no human involvement from the perspective of an online publisher, which can be the most costly component.

Obviously a solution like this will not work if it is not properly promoted, but if done well, can make a big impact on publisher’s ad revenues. But don’t take my word for it; try it out for yourself! Most solutions work on a revenue sharing model so it’s free to get started.

Anyone out there try a self-serve solution yet? If so, I’d love to hear about your experience. Feel free to comment and let’s get the conversation started!

Also published on the AdMonsters blog.