Changing the conversation with brands about digital advertising
While digital publishers may want to move to a model that relies on subscription content and direct consumer revenue, realistically, advertising remains a critical piece of the media revenue equation because it supports consumer access to freely available content, – a critical lifeline to information. The last few years have been particularly difficult for digital publishers reliant on advertising, between media budgets getting cut at the start of the pandemic to brands pulling back their spend during our nation’s recent political tumult. According to Pew, digital ad revenue declined 32% in 2020.
User privacy laws serve a huge benefit to consumers, but they represent another significant challenge for digital publishers because brands have become accustomed to buying cookied audiences with increasingly detailed targeting. As users opt-out of cookies on publisher sites, prices for their inventory have plummeted and brands have moved spend to User Generated Content (UGC) platforms such as Facebook, where user privacy is not a constraint due to the scale of users who have opted in to allow unbridled tracking in exchange for access to their core personal network.
For buyers, these placements don’t come cheap. One study estimates that you’ll pay a $3.12 CPM for Google Display Ads vs. $8.60 for Facebook Ads.
Feasibility of maintaining addressability
Digital publishers have been trying to find ways to recapture user identities and extrapolate audiences based on the remaining addressable audience through technologies such as Universal ID, Google Floc and by capturing and passing first-party data. However, many of these tactics run the risk of degrading user trust, and the users who can still be targeted with cookies are expected to be of diminishing value. At best, these efforts stave off the inevitable for a time. But if digital publishers are going to survive, they will have to find new ways to make their inventory attractive to brands.
Capitalize on publisher’s audience insights
Digital publishers who have invested in building a deep and long term understanding of their audience should be able to capitalize on what they do best: creating relevant content with integrity for a trusting audience. They can use their expertise to help brands connect based on what an audience cares about rather than using the false precision of demographic targeting as a proxy for buying intent. Private marketplace deals are a great way to reframe a conversation with a brand in terms of what differentiates the audience of a particular publisher which is why PMPs have surpassed open RTB spend because they enable publishers to make specific inventory available to specific buyers based on content/brand alignment.
Leverage data science to target conversions and the right content
To demonstrate the value of their inventory, publishers will need industry-level data science to show connections between product interests and content affinity. They will also need technology that allows the publisher to guarantee brand outcomes on non-addressable campaigns.
Yieldmo currently uses data science models to target campaigns at impressions most likely to meet an advertiser objective (i.e., click-through, video completion, etc.), and the IAB Tech Lab’s Audience Taxonomy has space to capture and pass purchase intent (i.e. is a car intended for the person watching car videos). If a publisher has access to scaled research to show how consumption of specific content relates to product interest and conversion, they can tell the full story.
Earning audience trust
When a user trusts a publisher’s content, they will view their in-context ad experience as trustworthy and relevant, which should be exciting to brands. If brands seek out publishers and content that align with the brand’s values, their message is amplified.
Publishers will need to produce new metrics around their creators and content. Today brands evaluate UGC based on reach (i.e. social follows and unique impressions). Instead, publishers should bring forward how the audience feels about the content/creator as it will impact how the brand’s message is received.
What brands can you amplify
Brands waste a lot of cycles on brand safety strategies to avoid content that could lead to a negative association with their brand when they should be seeking out opportunities for adjacency to content that will create a positive association with their brand or product. Audiences who feel their privacy has been respected are more open, and audiences consuming content that engages them will be more engaged with adjacent messaging.
Asking the right questions
Certainly, cookies and granularly-targeted social ads have an appeal to buyers because it seems easy to understand, but the impression is arguably less valuable because users encounter the ad in a busy environment that kind of stresses them out. that can’t be denied. But like so many things on social, once you dig beneath the superficial surface, the reality leaves much to be desired. If this means brands must now weigh the “influence” of a social following against the influence of a trusted context, they would probably make a different buying decision. So for media companies to continue to deliver value to readers tomorrow, they must evolve by making their content more attractive to brands within the trusted environments they’ve curated.
To effectively present their inventory and get the best price, here are some things to try:
- Identify and build relationships with brands who will get the greatest benefit from with your content
- Package your content into PMPs that will support specific brand objectives and make it clear in your pitch
- Sell based on the strength of your audience
- Share page analytics and social listening metrics with your buyers
- Use data science to find relationships between the content you publish and other user interests
- Partner with Yieldmo to target desired behaviors and advertiser KPIs
Realistically, publishers can’t compete with the social juggernauts on low level targeting, so they will need to win on the basis of their unique audience insights and user trust. At Yieldmo, we are excited to see publishers creating new strategies and leveraging data science for better publisher and brand outcomes.