Further need for publishers to capitalise on their own user data
Publishers need a 1st party data strategy. Driving relevant content towards specific users is an effective way of increasing inventory and thus boosting revenues. Most publishers already have a strategy for such in place and are aware of the benefits. In the below article, I will focus on where publishers can make further gains by selling this data to their advertisers.
In a previous Improve Digital blog, Timo de Geus remarked on how most data used in display advertising comes from either 1st party advertiser data or third parties. In short, data use is dominated by the buy-side.
It’s time publishers reacted
On the sell side, 1st party data use is forecast to grow, but publishers are currently a long way behind their advertising partners in terms of how they are benefiting financially from their own user data. It’s time publishers reacted, as their data has huge potential and can be a differentiating factor in influencing where the buy-side spend their budgets. Oscar Wilde could have spoken on behalf of the world’s advertisers when he remarked “I have the simplest tastes, I am always satisfied with the best.”
Publishers who offer unique data segments for their partners to target will stand out from the crowd, and the combination of 1st party advertiser and publisher data will create better ROI for advertisers and in turn more revenue for publishers. Marketers may have a lot of information on how current customers behave, but have zero data on their potential customers. This is where the publishers can create added value, allowing advertisers to target user segments that match their customer profiles.
However, instead of just launching into the building of data segments, publishers need to communicate with their buy-side partners in order to discover what information may actually be of use to them.
- What sort of segments are of value to you?
- Why are they of value?
- What positive impact can I expect on your rates?
- How will this increase the share of your budget spent on my properties?
This knowledge is key, and can aid publishers in building a profitable commercial strategy around the use of their 1st party data.
In the programmatic world, such transactions can be packaged and sold via PMPs or Deal IDs. Publishers can feed their first party data segments through their SSP partner’s technology, which can then in turn be sold to the major RTB buyers.
The phrase ‘Programmatic Premium’ is thrown around quite flippantly at the moment but this concept is only actually attainable if publishers act and start creating and including premium offerings into their programmatic strategy.
A product built around 1st party data would be a good starting point.