The coronavirus crisis has accelerated the pace of launching new ad products and made it necessary for advertisers and publishers to become even more agile. Now publishers compete for much slimmer budgets, while advertisers cut under-performing channels in a flash.
Driven by changes in advertisers’ demand, the profits from standard advertising formats and editorial programs also undergo significant fluctuations. For example, video ads, one of the most engaging formats which had driven sizable returns before coronavirus, has also taken a bigger hit in the recent spending squeeze.
Over the last six months, branded content programs and premium ad spaces have been hit the hardest, forcing publishers to launch new products to deliver revenue and bring sizable results for advertisers. For example, Trusted Media Brands stopped working on elaborate branded content productions that required weeks of production and offered quicker integrations of advertisers’ content into existing editorial pages.
However, simply adding new advertising formats or content programs won’t necessarily be enough to secure a steady flow of revenue. Publishers have to be able to continuously identify and select the ad types that will drive the highest revenues and smoothly switch between these formats.
At MGID, we developed the dedicated tool: Native Yield Optimisation; this solution will aid publishers in serving multiple formats in a single placement and increase both their advertising capacity and ability to meet a varied range of campaign needs and objectives.
Enable multiple formats in one placement with MGID
Native Yield Optimisation makes it possible to choose the ad type for placement on the go, enabling publishers to boost the value of their inventory and enhance user experience on the website. The AI-based algorithm incorporates both direct and programmatic demand and optimizes the placement’s efficiency for the publisher and for its audience.
Types of demand within MGID’s yield optimization ecosystem:
- native ad campaigns from direct advertisers
- native programmatic demand from both premium exchanges and PMP deals with advertisers and agencies
- programmatic display demand from direct partnerships with top local and global DSPs
- direct and programmatic video ads
The yield optimization ecosystem functions as follows: at the moment of the ad request, MGID’s AI-based algorithm analyzes a website, the page content, and a particular user based on first-party data from MGID, the publisher and other vendors. Simultaneously, the solution sends requests to all programmatic partners that include MGID DMP data and checks the potential revenues from these types of demand.
Once the algorithm receives all necessary inputs, an auction takes place based on the calculated CPMs and user’s conversion probability. The optimization suite selects the ad format from native, display, and video demand within one placement and therefore guarantees the highest CPM for the publisher and the best user experience for its audience. All done with users’ personal data protected.
Today, ad tech players need to be able to adapt to the world of change around them and overcome competition from the triopoly of Google, Facebook, and Amazon. While advertisers are pushed to prove the budgets they spend on each channel are driving results, publishers look to adding more formats and aim to unlock the full potential of their inventory.
In this fast-paced environment, publishers need a smart strategy to power ongoing success. At MGID, we developed a solution to aid their struggles — Native Yield Optimisation, which adjusts the ad format on the go, taking into account potential revenues and the probability of a particular user to convert.