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Best Practices for Unified Pricing Rules. Part 3 of 3: How to Translate your Pricing Rules Into UPR

(Part 3 of a 3 part series on Best Practices for Unified Pricing Rules) – Go to Part 1 or Part 2 

As part of its transition to unified first price auctions, Google is deprecating its Pricing Rules, that Publishers used to use to manage their floors in Google AdX, and replacing them with Unified Pricing Rules – “UPR”.
This change actually has much deeper effects on Publisher yield management and monetization than any other feature change Google has introduced in the recent past.

This blog series aims to guide you through the migration from Pricing to Unified Pricing Rules, and also help you keep control of your revenue after the transition. You can also download the complete white paper with the three articles by clicking below:

 

 

 

 

How to Translate your Pricing Rules Into UPR

Unified Pricing Rules Translation Policy

Adomik has worked on dedicated processes & tools to translate your Pricing Rules into Unified Pricing Rules. These take into account the following best practices. Feel free to apply them for your own translation.

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best-practices-for-migration-to-unified-pricing-rules-2

best-practices-for-migration-to-unified-pricing-rules-3

These are basic best practices, but there are also situations that are more complex to manage. These are listed in the following section.

Complex Situations

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What to Do After The Migration to First Price Auctions?

After the migration to 1st price, when Unified Pricing Rules start to apply to your whole traffic, our 3 recommendations are: analyze, analyze and… analyze 🙂 .

And more specifically, in the short term:

  • Use the new (to be released in August, 2019) Google tools to analyze Bid data in order to understand where buyers are bidding and start to adapt.
    Try specifically to understand if buyers are decreasing their bids and CPM over time based on the value of your floors, if some of their campaigns stop buying on your inventory, if SPO is generating visible impacts…
  • When you get a clear picture… start to adjust your floors:
    Test floor increases where you see that bids are going down. Decrease floors where you see significant campaigns are cut off.
    Additionally, it might be useful to increase floors if they are too low compared to bids… to avoid “future” bid shading.
    You can also decrease your floors when you see high volumes of bids below the floor value… but beware of bid shading. Buyers might decrease their bids and your CPM will drop….

Note that Adomik has developed a methodology and tools to analyse and simulate the behavior of buyers, to predict the impact of a change of floor and compare your results to other Publishers on the market. Those tools are integrated into the Price product to help you optimize your UPR.

(Part 3 of a 3 part series on Best Practices for Unified Pricing Rules) – Go to Part 1 or Part 2 

Best Practices for Unified Pricing Rules. Part 2 of 3: General Recommendations

(Part 2 of a 3 part series on Best Practices for Unified Pricing Rules) – Go to Part 1 or Part 3

As part of its transition to unified first price auctions, Google is deprecating its Pricing Rules, that Publishers used to use to manage their floors in Google AdX, and replacing them with Unified Pricing Rules – “UPR”.

This change actually has much deeper effects on Publisher yield management and monetization than any other feature change Google has introduced in the recent past. This blog series aims to guide you through the migration from Pricing to Unified Pricing Rules, and also help you keep control of your revenue after the transition. 

We will publish the third article of the blog series soon. Meantime, you can directly download the complete white paper with the three articles by clicking below:

 

 

 

 

Adomik General Recommendations on Unified Pricing Rules Management

Generally speaking, UPR, as formerly with Pricing Rules, are the main tool to rely on in order to manage your yield. UPR thus have to be managed with a “floor philosophy” that does not really change.

Floor Management Philosophy

As a Publisher, you should use Unified Pricing Rules for 2 purposes:

  1. Adapt the pricing of your inventory based on its value (= leverage your strengths)
    If you have an audience/ inventory that is highly attractive to some demand, make sure to reflect that in your prices. As an example, if your inventory delivers high value to “Automotive advertisers”, increase your prices specifically for them. This is really important in 1st Price Auction (1PA) because buyers will activate bid shading algorithms… or buyers will take advantage of low prices.
    Still, always keep in mind that Open Auction is just one channel among others (PMPs, PGs, Direct IOs), so make sure to keep differentiated prices between OA (i.e. UPR) and other channels depending on the value / service that you offer to demand on each of these channels (as an example: do not increase your UPR prices above your preferred deals prices…).
  2. Optimize yield: after the move to UPR, you should continue to optimize and fluctuate floors in UPR in order to generate the best revenue in OA, based on seasons, days of the week, active OA campaigns, bid shading, etc. In short, “traditional” yield management remains useful… but also more complicated because in 1PA the effect that floors have on revenue is less direct. Please refer to our 1PA white paper.

Having said that, it might be complicated for you to transition from existing Pricing Rules to UPR. Our simple recommendation is to start with a “translation” of those Pricing Rules into UPR.

Best Practices to Apply When Generating the 1st Set of Unified Pricing Rules

The obvious starting point for designing your 1st set of UPR is your existing Pricing Rules.

When Google migrates to 1PA, buyers will move from 2nd price to paying their bid value and Google will activate its own bid shading mechanism. The first weeks after the migration will probably be complicated for the buy side as a result. Buyers will probably “suffer” changes of CPM and margin, modifications of campaign allocation between SSPs, impacts on their SPO strategy… If on your side you decide to change all your floors, things will get even more complicated for them: changing the number of impressions they win, the performance of campaigns (CTR, conversions, etc.). This will create additional risks of “uncontrolled” reaction from buyers plus making it even more difficult for you to understand what is happening.

In short, our policy recommendation is to remain cautious & conservative at the start. The key recommendation is: try to stay close to your existing Pricing Rules floors.

So that when setting up your first UPR set, the question to consider is:

 

“How to translate my existing Pricing Rules into UPR”?

 

(Part 2 of a 3 part series on Best Practices for Unified Pricing Rules) – Go to Part 1 or Part 3

Best Practices for Unified Pricing Rules. Part 1 of 3: Differences Between Pricing Rules & UPR

(Part 1 of a 3 part series on Best Practices for Unified Pricing Rules) – Go to Part 2 or Part 3

As part of its transition to unified first price auctions, Google is deprecating its Pricing Rules, that Publishers used to use to manage their floors in Google AdX, and replacing them with Unified Pricing Rules – “UPR”.

This change actually has much deeper effects on Publisher yield management and monetization than any other feature change Google has introduced in the recent past. This blog series aims to guide you through the migration from Pricing to Unified Pricing Rules, and also help you keep control of your revenue after the transition. 

We will publish the second article of the blog series soon. Meantime, you can directly download the complete white paper with the three articles by clicking below:

 

 

 

Reminder – Main Differences Between Pricing Rules & UPR and Risks for Publishers

main-differences-between-pricing-rules-and-unified-pricing-rules

Main Differences Between Pricing Rules & UPR

Before we get started, here is a quick review of the main differences between old Pricing Rules and new Unified Pricing Rules:

  • UPR apply to AdX (“Authorized buyers”) and EB demand… plus Remnant “DFP”(DoubleClick for Publishers)line items… :
    • which means they apply to Header Bidding as a result plus mediation & backfill line items… while Pricing Rules only apply to “Authorized buyers”.
    • Still, if you include brand and/or size targeting into a UPR, please note that it will not apply to Remnant line items, which means it will not apply to Header, because GAM “does not know” what Brand and/or size is activated on the line item.
  • No buyer targeting
  • No “Anonymous” pricing – Branded & Semi-transparent only
  • Limit set at 200 UPR max vs. soft limit for Pricing Rules
  • No buyer/brand blocking option
  • No priority management – when multiple rules overlap the highest floor applies

 

Application scope of UPR compared to Pricing Rules

Application-scope-of-unified-pricing-rules-compared-to-Pricing-Rules
Source: Adomik Team of Monetization Experts

For Advanced readers: note that the floor of UPR will be shared with AdX “Authorized buyers” and EB SSPs within bid requests… but not with Header SSP partners who will then bid “blind” as a result.
Adomik recommends Publishers to use UPR rather than “Floor line items” in GAM to define their floor policy, so that floor values are properly shared with buyers (which is key for them to take it into account in their buying algorithm). For SSPs in the header, it might make sense to replicate some UPR floors into their console:

  • to inform them of the floors that are being applied.
  • to avoid creating “SPO” situation that are destroying value for the Publisher.

Risks for Publishers

Based on these differences, Unified Pricing Rules present 2 main risks for Publishers:

  • A risk of drop in revenue if they are not properly implemented: UPR could induce
    • a loss of programmatic revenue due to a “certain” loss of control in optimization ( typically anonymous revenue could take a hit, some optimization against dedicated buyers will not be possible, new floors could cut off revenue generated from low bids, etc.)
    • and a loss in remnant revenue (UPR can prevent Header line items from delivering).
  • A risk of “Bid shading”: Optimization is now on first price auction, no longer on 2nd price, so it requires dedicated optimization schemes to protect revenue from buyers dropping the value of the bids.

Properly setting-up and managing their Unified Pricing Rules is thus a key activity for Publishers.

(Part 1 of a 3 part series on Best Practices for Unified Pricing Rules) – Go to Part 2 or Part 3

Learn How Team Media Use Reconciliation Of Data Flows To Better Control Its Advertising Activity

French publishers joined our Paris breakfast in December 2018 to discuss challenges about data flow reconciliation during a panel with some of our French clients, including Team Media.

We interviewed Emilie Proyart, Head of Digital at TeamMedia, to understand more about how they use reconciliation of data flows to better control its advertising activity. Below you can find the video and the full interview.

For the occasion, Jean-François Bernard, CPO at Adomik, presented an analysis of the state of the French programmatic market that we wanted to share with you. Click below to download the full presentation.

 

 

Video

Emilie Proyart, Head of Digital at TeamMedia, 7th 2018, Paris, France

Interview

Adomik: How is the reconciliation of data flows used by your different teams to better control advertising activity?

EMILY PROYART: “We have a data mart project, which will be live in January, it will allow us to industrialize our data flows within a dashboard tool. This will be used primarily by our digital revenue teams to help us understand in an operational sense how our partnerships and our programmatic deals are working, how are our direct sales doing? what is our revenue per page? This will help us better respond to the needs of our publishers who are constantly seeking to have more data. And to better understand how their site is made by making better decisions on inventory data, since this data mart includes inventory data.

 

Adomik: What is the next step for you to go further and what advice would you give to those who wish to move in the same direction?

EMILY PROYART: ” The biggest step will be to optimize this data mart, to make sure that we’re satisfied with all of our partners and income streams. Sometimes a partner does not have an API yet, or some do not give full transparency on their data. Then beyond what we put in the data mart, more precisely, there are programmatic projects. We launched Header Bidding with Le Parisien in September, and we will need to have a deeper understanding how Open Auction Deals, First Look and all these SSP we will integrate fit together. That’s the first step. Then in the future, to go further in our understanding, I will need some market data, as with Sell for example from Adomik, and other tools in the Adomik Platform, such as Manage which may be very important to help us understand the programmatic business.”

 


The Adomik Breakfasts

Adomik breakfast is a meeting place for publishers who want to understand more about their stack. At our breakfasts we dive into the challenges about monetization management.

 

Adomik_breakfast

Adomik Breakfast Panel, December 7th 2018, Paris

Learn How MEDIA.figaro Built A Data Reconciliation System And How They Use Adomik Sell

French publishers joined our Paris breakfast in December 2018 to discuss challenges about data flow reconciliation during a panel with some of our French clients, including MEDIA.figaro.  For the occasion, Jean-François Bernard, CPO at Adomik, presented an analysis of the state of the French programmatic market which you can download here.

We interviewed Edouard Brunet, Programmatic and Revenue Manager at MEDIA.figaro, to understand more about how they built a data reconciliation system and how they use Adomik Sell. Sell is our revamped exclusive advertising market index and benchmarking tool, that includes some new features such as Market Alerts, tailored to your success.

 

 

Below you can find the video and the full interview.

Video

Edouard Brunet, Programmatic and Revenue Manager at MEDIA.figaro, 7th 2018, Paris, France

Interview

Adomik: What were the main challenges and difficulties in building and maintaining a data reconciliation system?

EDOUARD BRUNET: “The main challenge to build our reconciliation was obviously the multiplicity of sources. How to make sense of things that come from different systems, both with programmatic, and with direct sales. This is our main challenge. And maintaining mapping with new advertisers who show up every day. The basis of mapping which requires constant maintenance is huge and very difficult.”

 

Adomik: How much time and resources did it actually take you to do?

EDOUARD BRUNET: ” We started this project, data lake and data reconciliation, about 2 years ago. For about a year now, four – five people have been working full-time to complete the final project, which allows us to reconcile all of our Direct sales with our Programmatic sales.”

 

Adomik: How do you use the Adomik Platform?

EDOUARD BRUNET: “With Adomik today we work with MarketWatch, which allows us to benchmark our market position with our competitors and to know for which buyers or formats we are behind the market and which we can hope to have incremental income.”

 


The Adomik Breakfasts

Adomik breakfast is a meeting place for publishers who want to understand more about their stack. At our breakfasts we dive into the challenges about monetization management.

 

Adomik_breakfast

Adomik Breakfast Panel, December 7th 2018, Paris

New Data Connector Added: Criteo PMC

Report from your Criteo PMC data with the Adomik Data Connector. The Criteo Publisher Marketplace is a self-service platform that works with more than 7,000 publishers across the globe, monetizing 20%-40% of their traffic. Adomik’s Criteo PMC integration allows publishers to gain control over the entire stack and monitor the performance of their multiple connections with Criteo (in the header, from a direct connection or buying on multiple SSPs). Adomik is integrated to both Criteo Premium and Criteo PMC. Pairing Criteo to the Adomik Data Engine allows you to make sense of your data, monitor it, consolidate it, enrich it, and make it available in a single dashboard.

About Adomik Data Engine & Data Connectors

The Data Engine, the heart of the Adomik Platform. It has been designed for complex Ad stacks, to automatically collect, process, store and unify your monetization data from multiple sources. The Data Engine connects to your monetization partners via dedicated Data Connectors which use a specialized setup, put into place by Adomik, to collect data via APIs, query tools and FTP integrations. Data Connectors are constantly monitored by Adomik R&D teams.

Interested in seeing how the Adomik Data Engine connects to your monetization partners? Request a demo with our Team!

Or take a look at a selection of our data connectors here.

New Product Launch! Discover SELL, Adomik’s Programmatic market index and benchmarking tool!

We Are Very Excited To Announce The Launch Of Sell*!

Sell is our revamped exclusive advertising market index and benchmarking tool. It includes a new UI and some new features such as Market Alerts, tailored to your success.

It is ideal to:

  • Monitor programmatic demand activity
  • Compare your business to the market
  • Discover new opportunities to grow your advertising revenue
  • For more information, ask for a demo of Sell now!

 

 

 

With Sell, when you log into the Adomik Platform,

Source: Adomik Sell

  • You’ll read about Market figures, Top brands and Top buyers buying deals
  • You will react to hunt new demand & farm your successful relationship with buyers
  • Monitor how you leverage transaction types vs the market
  • Refine your pricing strategy
  • Understand how and where the market is growing compared to your own business
  • Detect how SSPs are connected to demand
  • Identify inventory scopes that are driving demand

*It is currently (June 25th, 2019) available in the USA, UK, France, Germany, Netherlands, Belgium, Australia and Spain

Below is an extract from Sell market data in the USA:

1. Market Figures for April**:

 

Market Revenue Trends

US Market Revenue Growth: -11.2%. The drop in revenue mainly caused by a decrease in both impressions (- 2.3%) and CPM (- 9.1%).

Zoom on deals

US Deals Market Revenue Growth: -21.8%

Deal Revenue Market Share: 17%

The drop in revenue from March to April comes as no surprise and is in line with historical data. The drop is more pronounced for the PMP market, with major brands such as Target, AT&T, Hyundai and State Farm reducing significantly their spend.

2. Top 5 Brands Spending on Deals in April**

Source: Adomik Sell

 

The top brands are pretty stable month-on-month, with Target as a new entry and Hyundai exiting the top 5.

3. Top 5 Buyers Spending on Deals in April**

Top-5-Buyers-Spending-on-Deals-in-April

Source: Adomik Sell

 

**Data extracted from Adomik Sell for the period between March 1st to 31st and April 1st to 30th.

You can subscribe to a newsletter called “Sell Newsletter” in order to receive the above data. It is a monthly newsletter, sending you the above programmatic market data and a short analysis for your country. It is available in the USA, UK, France, the Netherlands, Belgium, Australia and Spain. If you are interested in staying up to-date with the programmatic market, feel free to subscribe.

 

 

Learn how Header Bidding Has Impacted The Guardian and How Their Teams Use Adomik

UK publishers joined our London breakfast in December 2018 to discuss challenges about #reporting during a panel with some of our UK clients, including The Guardian.

We interviewed Andrew Hayward-Wright, Head of Programmatic Solutions at The Guardian, to understand more about how his teams manage programmatic advertising. Below you can find the video and the full interview.

If you want to learn more about how their teams use Report and Sell to have all their advertising business in one place and better target their sales efforts,

 

 

Continue reading “Learn how Header Bidding Has Impacted The Guardian and How Their Teams Use Adomik”

Learn How Auto Trader UK Addresses In-Housing and How Many SSPs They Work With

UK publishers joined our London breakfast in December 2018 to discuss challenges about #reporting during a panel with some of our UK clients, including Auto Trader UK.

Continue reading “Learn How Auto Trader UK Addresses In-Housing and How Many SSPs They Work With”