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Google Move to First Price Auction. Part 4 of 4: Best Practices on The Migration Preparation

Google Move to First Price Auction. Market Effects and Best Practices For Publishers.

(Part 4 of a 4 part series on Best Practices for First Price Auctions) – Go to Part 3

By the end of the 2019 Google will run a unique first-price auction at the GAM level. All ad-tech players are wondering what the effects of this move will be. So we decided to publish a blog series of four articles that will explore this Google move: market effects and some best practices for publishers.

In the first two blog posts of the series, we went through the Google move possible market effects on
buyers
and publishers. In the third article, we addressed the best practices for Publishers concerning floor pricing in a first-price world.

Instead, in this fourth and last article, we will discuss the best practices for Publishers to follow during the migration:

  • What are the immediate risks for Publishers
  • How should Publishers mitigate those risks
  • How should Publishers monitor the migration

What Are The Immediate Risks For Publishers When Ad Manager Migrates From 2nd to 1st Price Auctions

When the change occurs, as we explained in the previous blog posts, the whole dynamics of the Publisher stack will be affected. We consider that Publishers should be wary of 3 main issues:

When buyers bid in 1st price auctions, they have to decrease the value of their bids to protect their margin.

  • The new “unified auction” will affect the overall revenue distribution between Google Ad Manager, Exchange Bidding, and Header Bidding

The move to 1st price, the end of the « last look » for Google, the implementation of new pricing features by Google…all of that will redistribute buyer budgets within the stack of Publishers. More than that, it is likely to redistribute budgets between Publishers depending on what SSPs they are relying on… and how they have implemented them.

  • Buyers will likely revisit their SPO (Supply-Path Optimization) tactics after the migration

Buyers are relying more and more on SPO tactics. The idea for them is to cut routes that are the least efficient for them. It means that when the same Publisher is offering its inventory through multiple SSPs (routes), buyers are able to evaluate each of these routes against their campaign KPIs. Routes that are performing bad (typically low margin, low volume…) will be cut off.

When the move to 1st price occurs, the “buyer campaign” efficiency of all routes to supply will be modified… and buyers could decide to review the routes they keep and block.

For Publishers that could translate into 3 risks:

  1. Risk of decreased CPM and revenue
  2. Risk of losing programmatic campaign budgets
  3. Risk of getting “routes” cut out by demand

How Should Publishers Mitigate Those Risks

We recommend Publishers to cautiously monitor their programmatic activity right after the migration – for immediate effects –  and during the six weeks after – since buyers can adapt their behavior based on “manual” analyses when they have enough data.

From an organization standpoint, it might make sense to dedicate the monitoring to a person / one team that is familiar with the “Publisher” risk that we have described above. Data will be easier to analyze. But whatever the choice, here is the list of points that should be monitored:

  • Revenue shifts and CPM drops within the stack (between Header Bidding, Exchange Bidding, GAM – direct and programmatic)
  • Demand partners that are negatively impacted (stopped campaigns, drops in revenue, sudden increases in CPM) by the migration
  • Evolution of PMP performance to ensure that they deliver as expected

In case there is an issue, reach out to your demand partners to discuss the situation.

How Should Publishers Monitor The Migration

Moving to first-price auction in GAM is not trivial, even more so with a complex and unified stack.

Adomik REPORT and SELL provide you with the right unique toolset to monitor your stack and detect issues during the migration.

REPORT allows you to access consolidated and accurate data for all your digital advertising activity and identify revenue shifts and CPM drops at the most granular level as they happen.

Once you identify, for example, a buyer who stopped buying, is it an issue that is specific to you or just a campaign ending across all Publishers?

…With SELL, our exclusive advertising market index, you can compare other publishers’ programmatic business to your own and understand if the revenue shifts and CPM drops are happening across the market or specific to your stack. This way you can make sure that you are growing at the same pace as the market.

Here again, in case there is an issue, reach out to your demand partners to discuss the situation.

You can also rely on PRICE to protect against the bid shading tactics of buyers and make sure your CPMs do not decrease. Adomik will release a new version of Price shortly! It will provide you with the fair value of your assets (content category, position…) for a given demand (bidder, brand industry…) and sales channel (open auction, preferred deal, programmatic guaranteed…).

 

(Part 4 of a 4 part series on Best Practices for First Price Auctions) – Go to Part 3

Google Move to First Price Auction. Part 3 of 4: Focus on Floor Pricing

 

Google Move to First Price Auction. Market Effects and Best Practices For Publishers.

(Part 3 of a 4 part series on Best Practices for First Price Auctions) – Go to Part 2 or Part 4

By the end of the 2019 Google will run a unique first-price auction at the GAM level. All ad-tech players are wondering what the effects of this move will be. So we decided to publish a blog series of four articles that will explore this Google move: market effects and some best practices for publishers.

In the first two articles, we went through the possible market effects of the Google move on buyers and publishers.

Instead, in this third article, we will address the best practices for Publishers concerning floor pricing in a first-price world:

  • Why Publisher pricing still matters
  • How Publishers should manage floor pricing right

Continue reading “Google Move to First Price Auction. Part 3 of 4: Focus on Floor Pricing”

Google Move to First Price Auction. Part 2 of 4: Focus on CPM in Google Ad Manager & Publishers Revenue

 

Google Move to First Price Auction. Market Effects and Best Practices For Publishers.

(Part 2 Of a 4 Part Series on Best Practices for First Price Auctions) – Go to Part 1 or Part 3

By the end of the 2019 Google will run a unique first-price auction at the GAM level. All ad-tech players are wondering what the effects of this move will be. So we decided to publish a blog series of four articles that will explore this Google move: market effects and some best practices for publishers.

In the first article, we went through the possible market effects on buyers and specifically: 1) How to adapt to manage their margin 2) How bid shading works.

Instead, in this second part of the series we will focus on Publishers:

  • The impact on CPM in Google Ad Manager
  • The unified auctions and the programmatic revenue flow of Publishers

The Impact on CPM in Google Ad Manager

The move to 1st price auctions in Ad Manager will actually affect Publishers in two different ways. On the first hand, it will have a direct impact on CPMs generated from Google AdX by Publishers. On the other hand, it will modify the balance of revenue between AdX, header bidding and Exchange Bidding.

Continue reading “Google Move to First Price Auction. Part 2 of 4: Focus on CPM in Google Ad Manager & Publishers Revenue”

Google Move to First Price Auction: Market Effects and Best Practices For Publishers, Part 1 of 4

 

How Will Google Ad Manager Migration to 1st Price Auctions Affect The Market? Focus on buyers.

(Part 1 of a 4 part series on Best Practices for First Price Auctions) – Go to Part 2

By the end of the 2019 Google will run a unique first-price auction at the GAM level. In other terms, instead of being reduced to the second highest bidder (or the floor), buyers will start paying the exact amount they have bid to win the auction.

All ad-tech players are wondering what the consequences of this move will be. So we decided to publish a blog series of four articles that will explore this Google move: market effects and some best practices for publishers.

Continue reading “Google Move to First Price Auction: Market Effects and Best Practices For Publishers, Part 1 of 4”

The New Adomik Platform: Rising to the challenge of advertising complexity

Adomik was founded back in late 2012. At the time, many publishers were only just discovering programmatic advertising. Most of them were relying on one single platform to manage their nascent programmatic business and daisy chains were still king in the Ad Server.

Continue reading “The New Adomik Platform: Rising to the challenge of advertising complexity”

4th Golden Rule to Header Bidding Success: Managing prices in a HB setup

When a Header bidding set-up has been successfully implemented, and all things are going “well”, a Publisher will often start to wonder what they can do to improve their revenue to the next level. 

Continue reading “4th Golden Rule to Header Bidding Success: Managing prices in a HB setup”

Holistic Yield Management, Part 5: Unification of Data Operations


(Part 5 of a 5 part series on Holistic Yield Management) Introduction to Holistic Yield Management

 

The last post in the holistic management series is about your data.

Being able to collect, organize and leverage all the data that relates to your advertising business is critical to success in holistic yield management. As explained above, holistic yield management is about managing incremental revenue and opportunity costs across the advertising stack, sales channels and sales processes. While it requires the proper organisation, skills, and culture — the effort is useless if not properly fed by data. Your data is what your team, sales / operations / yield managers, will rely on to make informed choices, monitor the activity and measure the overall effect of all “localized” actions.

Continue reading “Holistic Yield Management, Part 5: Unification of Data Operations”

Holistic Yield Management, Part 4: Unification of Demand Management

 

(Part 4 of a 5 part series on Holistic Yield Management) Introduction to Holistic Yield Management

 

Demand management has become more complex with programmatic… and is still a very powerful activity to generate revenue. We have so many examples of companies doing a fantastic job of managing their impressions and stack but still under delivering vs. others that “play it right” with buyers.

Continue reading “Holistic Yield Management, Part 4: Unification of Demand Management”

Holistic Yield Management, Part 3: Unification of Sales Channels

 

(Part 3 of a 5 part series on Holistic Yield Management) Introduction to Holistic Yield Management

 

There are multiple sales channels that you can rely on today: programmatic open auctions, PMPs – some of these powered by your 1st party data with multiple flavors of Public, Private or Preferred, programmatic guaranteed, direct guaranteed, sponsorships and so on.

Continue reading “Holistic Yield Management, Part 3: Unification of Sales Channels”

Holistic Yield Management, Part 2: Unification of Impression Mechanics

 

(Part 2 of a 5 part series on Holistic Yield Management) Introduction to Holistic Yield Management Article

 

Unification of impression mechanics

On the programmatic side, implementing a stack that combines all available demand for each single impression and puts that demand into competition will create optimal revenue. Needless to say, the topic du jour, header bidding, is a great example of how to increase demand competition.

Continue reading “Holistic Yield Management, Part 2: Unification of Impression Mechanics”