The Secrets Behind Transparency: Cracking the Code of Full Disclosure in Online Advertising
There are some technology solutions that assist but yet don’t solve the problem. I once knew of a publisher who built an ad server to display ads on their unacceptable sites at random times in the early mornings before the network account managers would notice. There were several networks hunting to catch the source for several weeks. When there is ill intent, everyone suffers.
As advertisers will continue to demand complete transparency, networks will need to redefine their true asset. Blind networks are becoming dinosaurs and many networks are redefining their value to remain in the game. It’s a defining challenge to be in a business where you outline your main assets, wave rights to exclusivity, define performance behavior and provide flexible cancellation clauses on net 90 terms. However, various networks are finding a way to stay valuable.
Various networks over the last year have demanded complete site transparency and contractual responsibility from their publishers, this has typically been driven by demand and also a new ownership to a larger more public company. The changing policy has left many publishers out in the cold, but there are always a few remaining troublemakers and will continue to be.
To remain relevant, networks have also put in place much stronger optimization methods to achieve high levels of performance. While the advertiser may know the publisher name, it’s unlikely they will know exactly the optimization combination to achieve highly efficient response. Most important, networks understand that a healthy relationship with both the advertiser and the publisher ensures that they will remain the gateway.
No advertiser wants to manage thousands of publishers, so maintaining a strong relationship with networks that do the account management and optimization for a modest margin is a smarter way to go. Publishers generally do not want to build big ad sales forces and history has proven that it typically fails because content oriented businesses are rarely successful ad sales focused businesses, so they rely on networks.
As we progress from a completely blind to fully-transparent industry, toes will be stepped on and advertisers will be burned by inappropriate publishers–as will networks when advertisers try to go direct to publishers. This process has been in the works for years, but should be completed shortly by providing value in a transparent way.
Reader Comments.
Spot on Bob, it does take constant communications with your advertisers and managing expectation with them, which will lead to deeper understanding.
A few companies out there, spoke to one today, who is trying to build an open exchange where bidding will be as mechanical as trading stocks. It will take some times before networks feel comfortable revealing more on their back end optimization process, if it ever happens at all. Transparency will force evolve publisher to commoditize their inventory which will lead a pricing revolution, which no publisher is keen to see.
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