If imitation may be the highest type of flattery then publisher Minute Medias latest venture is really a paean to ad tech. To be clear, it built its. The sports publisher is currently the proud owner of its supply-side platform otherwise referred to as industry advertisers head to buy ads on its sites.
Normally, this ad tech is owned by way of a third-party. Few publishers have the technical nous or commercial stamina to erect and sustain their very own. You can find, however, exceptions that believe those costs are worthwhile. To these publishers, the short-term pain of bringing an SSP to advertise will probably be worth the long-term advantages it might yield. After hearing more concerning the plan, its safe to state Minute Media drinks from that same well.
Lets focus on the fundamentals: Minute Medias SSP is really a programmatic marketplace because of its own impressions (i.e. ads across its properties: The Players Tribune, 90min or DBLTAP) along with other publishers. On that latter point, Minute Media would like those publishers to view it being an upmarket version of the SSP. The more they do that, the more it could position itself as a marketplace for premium inventory. Minute Media is wanting to produce a premium publisher network via the SSP.
We created the SSP so those publishers [that] can utilize those direct budgets via Prebid directly and circumvent any inefficiencies that people were seeing previously on a tag basis, said Tom Webster, evp of global publisher platforms at Minute Media.
Theres a few things to unpack here: first, theres Prebid. In a nutshell, its an open source alternative publishers may use to market impressions in a manner that doesnt involve them on offer to 1 sales source at the same time, also referred to as the waterfall method. Thats what Webster meant when he said the video inventory was in love with a tag basis. Its inefficient as the bids happen in a daisy-chain sequence rather than simultaneously in real-time.
Confused? In the daisy-chain, the impression comes whenever the publishers set price is met, irrespective ofwhether there couldve been an increased bid later in the chain. Prebid avoids this problem by letting multiple advertisers bid on a single ad inventory nearly simultaneously. In this manner the publisher reaches sell its inventory to the best bidder within an impartial manner.
Its a significant segway because Prebid may be the backbone of how Minute Medias SSP works; a means for it to make sure publishers that no party is recommended a statement which can be audited within an open codebase if needed. In fairness, Prebid alone isnt an excellent differentiator not when most SSPs utilize it too. The true differentiator may be the kind of ad dollars that it creates accessible to publishers. As Webster explained: That is simply about giving publishers a method to utilize the direct demand our sales force get access to.
Put another way: Most SSPs can make impressions open to two types of advertisers: those that broker private deals to get impressions from publishers, or those that need it impressions in an exclusive auction thats available to multiple buyers. Minute Medias SSP gives publishers usage of ad dollars it secured via sales teams in the U.K., Singapore, LATAM and also over the U.S. in NY, Chicago, Detroit and LA. Those dollars are worth more to publishers, goes the thinking, as the sales teams have already been in a position to negotiate better rates and larger commitments.
We are able to trade against certain performance guarantees and things such as that, said Webster. Premium supply is whats being centered on as third-party addressability gets throttled. When you can provide that at scale, which we are able to, then youre in an excellent place.
Despite his upbeat outlook, Webster is all too alert to the long road ahead for an SSP thats barely five months old. Actually, its only emerge from stealth mode where its been exclusively open to a small number of companies.
Currently, you can find 65 publishers selling impressions via the SSP but you can find only somewhere within five to 10 publishers plugged in directly up to now. He really wants to aggressively grow that number prior to the end of the entire year, though didn’t say by how many.
Thats easier in theory given publishers desire to use fewer ad tech vendors no more. One method to get publishers to get in to the plan is giving them usage of more advertisers something Webster hopes to accomplish because they secure more support from the ad tech (demand-side platforms) advertisers use to put programmatic bids. For the present time, a lot of those companies are integrating with the SSP through the ad tech platform Bidswitch in an effort to see why is it so unique, whether through the info, tools or rates, without needing to commit significant dollars.
Its the programmatic exact carbon copy of a chicken and egg scenario if there is one.
But you can find reasons to be cheerful. Difficult since it has been a publisher at the very best of times, aside from during an economic depression, you can find worse places to be at this time than in sports. Its basically recession proof. Sufficient reason for the beginning of the NFL season, not forgetting the planet Cup soccer tournament in November, you can find likely to be plenty of ad dollars to contest. A lot more so for a small business like Minute Media which has form to make ventures as an SSP successful. Indeed, tech is now a bigger element of Minute Medias overall business. Over fifty percent of its revenue originated from licensing tech in 2020, for instance. Put simply, it is a proven business design for the business enterprise.
Having said that, you can find no plans to decrease the licensing route with the SSP at the very least not yet.
Were likely to concentrate on this project for the present time, said Webster. Maybe it happens somewhere across the line but there would definitely have to be a definite point of difference for other publishers to accomplish it.
The truth of running an SSP is that the juice just isnt worth the squeeze for most publishers. Look at Vox Media, for example. An SSP only really made sense compared to that business because its a method to sell its ad format along with the inventory for an area network of publishers located in the U.S. Most publishers dont share those same priorities.
Thats why I really believe that it could not function as right strategic choice for tier 1 publishers, which is far better off joining an area (i.e. representing the very best publishers in confirmed country) dedicated alliance like Ozone, TRUSTX, etc., where they have direct control over technology and usage of environment, and act accordingly, said Alessandro De Zanche, founder of media consultancy ADZ Strategies.