What is Ad Tech Industry – And How it Makes Media Trading Easy

What is Ad Tech Industry – And How it Makes Media Trading Easy

The ad tech industry has changed significantly from a decade ago. Long gone are the days of negotiating ad placements between publishers and advertisers. Ad tech makes it possible for giants like Google and Facebook to make billions in revenue, and online publishers and developers generate income from their digital properties. But what is exactly ad tech and how it is shaping media trading?

Ad Tech brief definition

Is an umbrella term that stands for advertising technology. It refers to the stack of software and tools advertisers, agencies, publishers, and other industry actors use to plan and manage their advertising and monetization strategies. 

Evolution of the Ad Tech Industry

Evolution of the Ad Tech Industry

Before the advent of ad tech, media buying and advertising was a manual, complex process that required a lot of time and effort. Then, in the ’90s, e-commerce exploded, and advertising agencies found themselves helping to select websites for their client’s ads. This involved researching, checking metrics, and choosing which website would bring the maximum ROI for advertisers.

The first significant change came with the creation of the first ad server. A software that would automatically serve ads, ended manual ad placement and started the automated advertising revolution. This first ad server would later become the Google Ad Manager.

From then, the ball rolled quickly, and soon other technologies appeared driven by the market needs. Google AdWords, ad exchanges, and real-time bidding are only some of them.

There was a need to improve ad targeting and choosing the most relevant real estate for the ads, thus demand-side platforms were born. On the other side, publishers needed to gain some measure of control over their impressions prices while ensuring their ad space reached the coveted higher-paying advertisers, giving way to supply-side platforms. Other solutions that provide the user data for all this ecosystem to work properly appeared, as Data Management platforms, data analysis solutions, etc.

The state of Ad Tech in 2021 in numbers: 

  • Ad Tech market value (eMarketer): $134 billion. 
  • Market share distribution:

Market share distribution

While the biggest single player is Google, there are other companies that are looking to join the marketplace, whether with proprietary technology—like Apple—or other strategies.

  • U.S companies have increased the spending on programmatic advertising since 2020

In 2019, e-marketer forecasted that by 2020 the % of digital display ad spending will reach 83.9%. The reality surpassed the expectations, and as of May 2021, the percentage had reached 86%.

Digital Display Ad Spending

This change may happen because of the increase in the number of companies adopting automated solutions and undergoing digital transformation derived from the 2020 crisis. The market will continue growing and they expected companies to spend 91% of their advertising budget on digital display ads and programmatic advertising.

  • Companies spent $129 billion in programmatic advertising in 2020.

This figure is expected to reach $155 billion in 2021. (Statista)

So, what is Ad Tech, and why do we need it?

The Ad Tech industry includes all tools, resources, and software platforms that demand and supply sides use to interact, buy and sell ads and optimize advertising efforts.

  • Publishers use ad tech platforms to optimize their monetization activities through advertising.
  • Organizations use ad tech to plan and execute media buying and advertising optimization.
  • Advertisers use ad tech to deliver their ads to potential customers.

Without adtech, programmatic advertising wouldn’t exist. Ad Tech enables the delivery of highly targeted ads, implementing omnichannel marketing strategies among other techniques.

To understand why we need adtech let’s think about the way advertising was done years ago before the ad tech industry was born. Adverts were published with the goal to reach as large an audience as possible without almost no personalization.

While a massive reach can be useful to create brand awareness, this type of ad is less relevant for individual viewers. Adtech makes it possible to deliver advertisements to the most relevant audiences, at the right time and in the right context. Marketers then save time, money, and effort. Publishers, on the other side, can monetize their digital assets while giving end-users the most relevant offer for their queries.

The Ad Tech Solutions of CodeFuel

CodeFuel is an adtech company dedicated to providing monetization solutions for publishers and app developers. Our solutions include:

Search Mediation

CodeFuel offers optimized landing pages that maximize revenue for publishers. Regardless of the platform, you buy your media, our solution can help you increase your revenue. The monetization page is fully tailored for your business needs and the buying platform you use.

Media traders then can monetize search and achieve higher revenue by leveraging the mediation platform.

Website monetization

CodeFuel monetization solutions are designed to transform intent into revenue.

The user-intent-based search enables you to monetize your website with contextual ads. By matching the audience’s intent to the right ad, you enhance the user experience and earn higher revenue.

Search queries

Search queries give a customized search results page (SERP), hosted on your website,  with paid text ads, optimized by search technology.

Shopping ads

When you sign up for your website with CodeFuel, your users are served shopping fuel ads related to their intent. For example, when a user clicks on an ad for a new cell phone, the system directs them to a results page with relevant ads for this specific cellphone model.

Newsfeed

You can also add a news feed to your website. Powered by MSN, it includes over a thousand premium news publishers. This increases your user’s engagement, by encouraging users to have a longer dwell time on your site. Ultimately, this translates into more conversions.

App Monetization

CodeFuel uses intent-based search to monetize your mobile app or browser extension. Add search capabilities to your application, which returns a customized SERP with relevant text and shopping ads.

Key features of CodeFuel solutions

  • Simple integration: easy installation and integration with search engines and ad networks.
  • HUB Analytics: get the information you need to improve your performance with the analytics hub.
  • End to End Support: complete account management with strong business intelligence.

Ad Tech Basics

Advertising technology analyzes, manages, and delivers advertisements according to the requirements of the advertiser and target audience. Campaigns look to maximize the effect of ads, ultimately increasing ad revenue.

Who are the actors in AdTech?

The ad tech ecosystem consists of Advertisers, demand-side platforms, ad exchanges, ad networks, supply-side platforms, and publishers.

Publishers make their impressions and ad space available through supply-side platforms and ad networks at ad exchanges. Demand-side platforms bid on those ads through real-time bidding, selecting the most relevant ad types and placements for the target audience. Thanks to adtech, this supply-demand loop takes place in seconds, in the time that takes a page to load.

The role of user data

This loop of supply and demand generates revenue thanks to a key component: user data.

Understanding the user behavior and activity on a particular platform is the core of the effectiveness of programmatic advertising. User data is what makes it possible, via sophisticated software algorithms, to deliver the right ad to the right person at the right time.

You can buy user data or you can gather it on your own. But, the goal is to gather actual data from actual people (behaviors, interests, attitudes, and attributes) to be accurate in your targeting. The more you can refine ad targeting to the user, the better your bottom line will look. Why? Because the more the user relates to the ad, the more inclined they will be to click on it. That’s simple.

For publishers, the more your website, application, or extension marketing efforts apply to your target audience, the higher the value of your digital real estate for advertisers.

Advertising Technology for advertisers

Advertisers conform to the demand side of ad technology. Solutions geared for them aim to reach the target audience in the most efficient way and for the lowest possible price. These solutions help advertisers to run and optimize personalized programmatic campaigns, targeting and retargeting potential customers.

The advertiser’s ad tech stack may comprise some or all these types of tools:

  • A remarketing/ retargeting tool 

The fast pace of digital communications and the short attention span of customers means that sometimes a consumer will have interest in an ad but not follow through. Later, the consumer cannot find the ad or recall the name of the company (didn’t happen to us all?). Therefore, retargeting is essential for marketers to push consumers down the funnel.

  • Prospecting tools 

Expanding their customer base is a priority for most companies. Thus, machine-learning-powered prospecting tools help companies find their target audience in ad networks and ad exchanges. The more marketers use the tool, the more the system learns and refine the prospecting process.

  • Data management platforms

As we mentioned above, leveraging user data is a basic concept of programmatic advertising. Gathering, processing, and analyzing consumer behavior and transactional information makes it possible for companies to pinpoint the ads to the users to the dot.

  • Demand-side platforms

This is the technology that facilitates finding, bidding, and placing the ads at the right placement automatically. The system works automatically, serving the ads according to relevance for the end-user, the budget, and the criteria specified by the advertiser. Some of the top demand-side platforms are:

  • Facebook
  • Rocket Fuel
  • Amazon
  • AppNexus

Advertising Technology for publishers

Ad tech for publishers aims to achieve the highest price for the ad placement or impression from the most relevant buyers.

The right supply-side platform, like CodeFuel, can maximize the revenue of your digital property, whether is a website, an application, or an extension by delivering the most relevant ads to high intent users. It uses contextualization and intent-based technology to ensure the right ad gets to the user most likely to click on it.

This enhances the user experience, increasing the value of the website or app for advertisers, thus ensuring higher bids.

Elements of the Ad technology Ecosystem

Elements of the Ad technology Ecosystem

Image credit: Nagle

Ad exchange

This solution works as an intermediary in the real-time bidding process. Ad tech providers use ad exchanges to connect DSP to SSP. Publishers and advertisers don’t usually have access to the information shared in the ad exchange. However, their traffic and inventory pass through the ad exchange on the way to the advertiser or publisher, respectively.

Ad networks often buy both traffic and inventory from ad exchanges to sell on their own.

Ad Exchange

Ad network

Content delivery network

Ad network

Image source  

A CDN is a distributed network of servers deployed in multiple data centers. The goal of a content delivery network is to serve content to end-users with minimal latency and load times. CDNS are used in adtech to host ads so they are served to users from the closest server, minimizing the time to load the ads.

Ad server

These were among the first ad tech developments, used to host and store ads, then serving them on the publisher’s website. Nowadays, ad servers are full ad tech platforms for launching and managing ad campaigns, connecting publishers and advertisers.

Ad servers also collect data on ad performance to optimize campaigns. This technology is what makes it possible for media buying automation.

Agency Trading Desk (ATD)

Is a set of tools used by media agencies to plan, buy and manage to advertise. Organizations that are not yet ready to install a DSP or justify an in-house team use ATD services. The downside of using an agency trading desk is that advertisers don’t have direct access to the inventory.

Demand-side Platform (DSP)

Is a platform that allows users to buy inventory from various ad exchanges and supply-side platforms (SSP). Unlike an ad server, with DSP advertisers don’t need to negotiate prices with publishers. They set their CPM (Cost per Mille), target preferences, and can launch the campaign. A DSP also lets you set bidding rules and optimization tools that help run your media buying without having to be on top of it.

Supply-side Platform (SSP)

Is the publisher’s side of a DSP. This ad software enables publishers to make available, manage, sell and optimize inventory on their websites and applications. SSP also works based on real-time bidding. That means you don’t need to negotiate rates with advertisers. You only need to embed an ad tag and or a header to the website, which will allow the browser to request an ad for that place in the website. The tag is forwarded to the SSP, which automatically selects a suitable ad from the DSP according to the publisher’s data.

Data Management Platform (DMP)

A data management platform enables advertisers to understand in-depth their audience’s behavior. The DMP collects data from different sources, hashtags, mobile apps, cookies, APIs, etc. The platform uses third-party cookies to define the user profile and develop behavioral targeting in a DSP or ad server.

Customer Data Platform (CDP)

Customer Data Platforms go a bit further than DMP. Not only collects third-party data but also personally identifiable information (PII). Thus a CDP can create a complete profile with a name, company email, and other data, gathered under consent, from analytics tools, Customer Relation Management tools, subscriptions, newsletter signups, transactional systems, etc. This technology will probably be very popular once third-party cookies are phased out by Google in 2022.

Inventory and Ad Quality Scanning Tools

Inventory and Ad Quality Scanning Tools

Image source

These tools are critical to prevent ad fraud, which affects around 37% of ads. Inventory and ad quality scanning tools help prevent traffic bots, malvertising, and ad fraud by scanning the ads before being served on the website.

How Ad Tech simplifies media trading

Without ad tech, programmatic advertising wouldn’t exist. By automating the media trading process it takes the negotiation out of the hands of publishers and buyers, simplifying the process. Ad tech enables advertisers to bid on the most relevant ad placements for their campaign without having to check site by site. Simply input the requirements and budget and the platform will find, bid, and acquire the best ad placements at the best possible price, then serving the ads immediately.

On the supply side, ad tech helps publishers to sell ad space without having to find and negotiate with advertisers. It also makes it possible to sell impressions and inventory in seconds. Thus, ad tech is taking the hassle out of media trading.

The current trends in the Ad Tech Industry

Where is Ad Tech going in the next few years? The industry has grown by leaps and bounds over the last 20 years and is not willing to stop evolving. Here are the top trends that are shaping the ad tech industry:

Artificial Intelligence and Machine Learning

These two technologies help advertisers analyze massive amounts of user data, incorporating behavior analysis to predict the actions of a user online. This data is processed and correlated to serve the right ad according to the user intent at this moment.

Post cookies optimization

Google’s phasing out third-party cookies by 2022 is causing major upheaval in the programmatic industry. Some markets report significant drops in buyer’s bid rates as a consequence. In Germany, buyer’s bid rates decreased by 40%.

Companies are trying to find a viable user identity alternative that doesn’t affect them so much. Some alternatives may include storing data without using cookies by opt-in forms, universal ids, data pools, among others.

Programmatic everything

When Netflix and Amazon Prime changed the way we consume multimedia content from cable to digital, advertisers needed to transition with them. Now, programmatic advertising is making its way to television, audio, and podcasts to take advantage of the power of data for this segment of the market.

Ad Tech or MarTech?

While often confused, adtech and martech are two different industries. Is true, they intersect in some features and functions but each one has a different approach. Putting it simply is the same difference between marketing and advertising.

Advertising implies using paid media and content for promoting products and services. Marketing is a more broad approach to promotion, and inside the marketing mix of activities is advertising.

Ad Tech
Use cases
Paid ad campaigns
Channels
Display ads, video ads, PPC, social media ads, CTV
Purpose
Simplify media trading, optimize monetization revenue
Users
Media buyers, ad agencies, website owners, app developers, networks
MarTech
Use cases
Paid and unpaid promotion methods
Channels
Social media, email, direct sales, content marketing, video marketing, conversational marketing
Purpose
Facilitate and automate marketing strategy implementation
Users
Marketing teams, freelance marketers, sales teams

Make the most of your media trading with CodeFuel

CodeFuel ML and AI capabilities facilitate media buying while improving the revenue for publishers. Getting the right monetization solution is critical for success. Leverage user intent in your digital property by using search, shopping, and news to engage users and improve their experience, serving them ads matched precisely with their queries.

What Is Media Trading and Tips For Increasing Revenue

What Is Media Trading and Tips For Increasing Revenue

What is Programmatic Media Trading?

Definition: Programmatic media buying is an automated method of buying and selling digital advertising according to the decisions on a per-impression basis by supply and demand parties and in accordance with the rules of the exchange platform.

Put it simply, programmatic media trading is the buying of digital advertising space in real-time via an automated auction (real-time bidding). Sites that want to sell advertising space through this type of auction typically offer the inventory through a marketplace or ad exchange.

This method allows advertisers to reach the audiences they want, based on the value of the impression. On the supply side, it allows publishers to get higher-paying advertisers, since the higher the demand for your site audience, the higher the price for the impression.

Programmatic Media Trading

Source: Google

Programmatic mechanics 101

Programmatic media trading uses automated platforms to simplify the buying/selling process according to a predefined budget. Advertisers connect to an ad exchange placing offers using their set budget. The ad exchange connects to ad networks which then choose ad spaces that meet the target market, size, and budget of the advertiser.

Programmatic trading offers advertisers better targeting for their campaigns. It also improves the quality of advertisers publishers may get on their sites. The automated technology uses data management and algorithms to select the right ad to serve the right user at the right time and price.

To understand programmatic media buying, you first need to know key concepts related to this process.

There are three categories of programmatic media buying:

Real-time bidding (RTB)

In this method, inventory prices are decided through a real-time auction. Any advertiser or publisher can access it. Ad exchanges and supply-side platforms often provide the framework for this auction.

How does it work? Ad exchanges collect information about the page and the user viewing it every time an ad impression appears in a user’s web browser. The ad exchange auctions the impression off to the advertiser that is willing to pay the highest price for it.

Private marketplace (PMP)

These auctions have restrictions on who can participate. Often they select advertisers on an invite-only basis. In other cases, publishers may have an interview and selection process so advertisers can apply to enter the PMP.

Programmatic direct

In this case, a publisher sells media inventory directly at a fixed cost per mille (CPM – cost per impression) to advertisers.

Programmatic advertisements have three components: the supplier side, the demand side, and the exchange platform (more about this below)

What is the role of a programmatic media trader?

A media trader is the professional that spends the assigned digital budget within the RTB environments. A media trader needs to know where is best to buy inventory for an advertiser, meeting the campaign goals and ROI.

Media traders maximize the advertiser’s digital budgets aligning them with the business goals. They create real-time bidding and paid search strategies, implementing this in digital media buying platforms, to ensure the advertiser’s goals are met.

A media trader has four key responsibilities when executing an RTB campaign:

  • Know the market: media traders need to understand the market in which the impressions are happening. They define the strategy they will use, retargeting, prospecting, contextual targeting, and more.
  • Oversee ad operations: this is the technical side of launching ads, including the restrictions on the placement of the ads and managing attribution.
  • Trading: this involves managing a campaign, purchasing the ads, checking the reports, and making changes to the targeting. Is the responsibility of the trader to ensure the best possible outcome, achieving the highest possible ROI from the ad campaign.
  • Reporting: the media trader pulls all the reporting from the platform analytics and provides insights on the key drivers of that performance.

How does a media trading desk work?

A media trading desk can be a service provided by an agency or a software solution. The service or solution provides planning, management, and optimization of programmatic advertising campaigns. 

Advertisers benefit from an agency trading desk (ATD) that enables them to buy media for less than managing a campaign in-house. At first, you may think that ATD is similar to a demand-side platform (DSP). However, an agency trading desk offers the added value of programmatic advertising professionals on top.

ATDs provide the expertise of software developers, account managers, and data analysts that optimize the media buying for the agency’s campaign. ATDs work between the advertiser and the supply and demand platforms, and networks to purchase media. In this sense, they work similarly to AdTech platforms. They provide added services that regular demand or supply platforms don’t give to their clients like:

  • Planning
  • Campaign launching and optimization
  • Reporting and analytics

The State of Programmatic Advertising in 2021 ( Statistics)

Digital advertising has been changing in the last years driven by automation and innovative solutions that benefit both publishers and advertisers. Here are top statistics you need to know about the state of programmatic advertising in 2021:

Global programmatic ad spend will reach 155 billion in 2021

Global Programmatic Ad Spend

Global ad spending 2017 to 2021 (Statista)

Programmatic ad spending is projected to grow 20% in 2021. 

The percentage of growth is also seeing a rising trend. Companies are expected to spend 20% more on programmatic advertising in 2021 than in 2020.

And the rising trend will grow well into 2023, according to a study by an e-marketer.

In fact, programmatic display ad spending is growing more than non-programmatic display ads. 

Programmatic Display Ad Spending

Source

More statistics

  • The average cost per action (CPA) is $49 for paid search and $75 for display ads.
  • The US social media ad spends reached $43 billion in 2020. This was a 20% increase from 2019. (Source: eMarketer)
  • Marketers use ineffective strategies: Only 61% of marketers believe their marketing strategy is effective.
  • 40% of marketers consider that proving the ROI of the marketing efforts is a challenge.

Programmatic Advertising Trends

The pandemic affected programmatic advertising, but as was reported by MediaRadar in September, the numbers were bouncing back. There was a 36% growth in July 2021 from 2020 levels, which puts the market at pre-pandemic levels.

What’s next for programmatic advertising? Here are some trends to look for:

  • Avoiding “heavy ads” 

In August 2020, Google implemented a feature on Chrome that blocks “heavy ads” to improve the user experience. Any ad that Google considers as heavy is removed and replaced with a label that says: “ad removed”

What’s a heavy ad?

  • It has more than 4MB of network data usage
  • Uses the main thread for 60 seconds in total
  • Uses 15 seconds of CPU in a 30 seconds window

This means companies will need to optimize video ads to prevent being labeled as heavy ads.

  • Planning for Post Third Party Cookies (P3PC)

Third-party cookies are being phased out on Chrome by 2022 and are going to change the way companies carry programmatic advertising. Organizations need to prepare for 2022 when they can no longer use 3PC. That means they need to take a multi-layered approach to advertise.

  • Programmatic advertising spending will continue rising

The 2020 IAB Europe reports that companies will keep raising their budgets for programmatic advertising. Here are some of the reasons:

  • The number of companies investing more than 41% of their display budget into programmatic advertising grew to 70% in 2020.
  • 54% of advertising agencies buy almost half of their video ads programmatically.
  • Publishers report they are selling 81% of their inventory.
  • Adoption of emerging formats

New formats like connected TV (CTV) and Digital out-of-home media are slowly taking off. CTV in particular offers an opportunity for programmatic advertising. It allows advertisers to reach two different audience types at the same time. The people that want to watch TV on their timeframe and people that avoid linear TV.

What about Digital Media Trading Platforms? How do they work?

Technology is changing the way companies buy and sell digital advertising space. What once was done by human buyers, and advertising salespeople now is done through technology trading platforms.

How do they work? The media trading ecosystem consists of three key actors: demand-side platforms, supply-side platforms, and the ad exchange where they interact. Let’s explore how each one works:

Demand Side Platforms (DSP)

Demand-side platforms enable advertisers to buy impressions from publisher sites, targeted to their audience.  Publishers put their ad impressions for sale on ad exchanges. The DSP selects the right impressions for the advertiser in a real-time auction through real-time bidding.

How does this work?

The advertiser inputs the target audience preference and budget into the DSP. Then, the platform places programmatic bids using artificial intelligence (AI). The auctions take place in seconds and the highest bid ad is the one that appears on the page. The entire process happens automatically, without human intervention.

Best demand-side platforms

Some of the most popular demand-side platforms are well-known digital giants, others act independently of the media channel they run.

  • Facebook Ads Manager: they provide the buying platform and the biddable ad space. The ads manager enables advertisers to create, edit, manage, track and analyze campaigns from one place.
  • Rocket Fuel: is a self-service DSP, allowing companies to bring programmatic marketing in-house. The platform uses predictive AI to serve real-time ads relevant to the customer profile.
  • Amazon: Amazon Advertising Platform (AAP) uses the amazon algorithm to serve ads in real-time, leveraging precisely targeted campaigns for relevant customers. The downside is that users (advertisers/publishers) don’t get much information about conversion rates or click-through rates.
  • MediaMath: is an independent programmatic company for advertisers. One of its advantages, MediaMath can have full access to their data.

Supply-side platforms

A supply-side platform is a software solution geared to help online publishers sell their display, video, or mobile ad impressions. It works as the publisher-side of a demand-side platform. SSPs are designed to maximize the prices of impressions for publishers.

How does it work?

It allows publishers to connect their inventory to several ad exchanges, DSPs, and ad networks. Thus expanding the range of potential buyers for ad space. Real-time bidding helps publishers to get the highest possible rates. The SSP inputs impressions into ad exchanges, where a DSP analyzes and purchases them. The process, although looking complicated, happens in real-time in the time a page takes to load.

Best supply-side platforms

  • MoPub: is a hosted ad serving solution built specifically for mobile publishers.
  • Google Ad Manager: formerly Double Click for Publishers, works as an ad revenue engine that connects with the Google Ad Exchange. The downside is that it is locked to Google products.
  • Sharethrough:  is an omnichannel supply-side platform for programmatic advertising, geared to publishers, content creators, and app developers.
  • AppNexus: this is an independent programmatic marketplace, with the advantage of accessing data and managing the advertising offerings.

What are Ad exchanges?

Is a digital marketplace that connects advertisers and publishers to buy and sell advertising space through real-time auctions. They are used to sell display, video, and mobile ad inventory.

Best ad exchanges

PubMatic: it offers an easy-to-use interface and advanced advertising features like open-source header bidding.

Verizon Media: the company offers a large range of advertisers, serving over 2 billion ad impressions daily. Provides header bidding, programmatic direct selling, and management tools.

Google Adx: uses both open-auction and private-auction bidding models. The downside is that it has a high barrier of entry

Ad exchange vs ad network

Ad network

What’s an ad network?: is an intermediary that collects inventory from publishers and sells it to advertisers.

How does it work? Ad networks are organizations that collect, curate and sell publisher’s ad inventories. They charge a commission for the intervention, and the inventories are sold in bulk.

Ad exchange

What’s an ad exchange?: is a digital marketplace where advertisers and publishers buy and sell ad inventory directly.

 How does it work?

An ad exchange is a platform that gives an environment for advertisers, agencies, DSP, publishers, and SSP, to buy and sell media in a transparent way, in real-time.

  Ad Network Ad Exchange
Type Company services Technological platform
Target Users Agencies, advertisers, and publishers Agencies, Advertisers, DSP, SSP, publishers
Optimization speed Takes time to change Changes in real-time
Transparency Advertisers don’t know where the ads are served. Publishers don’t have information about the buyer Both parties have information on the transaction
Inventory Offers a premium inventory to advertisers Offers remaining inventory.
Pricing Depends on negotiation According to the bids placed
Pros Publishers can sell at a premium price because they set the price. The price is set automatically according to the bidding process.
Cons There is little transparency about where the ad is served and who is the buyer. Publishers may not get a premium price for their inventory.

Tips to Increase your Ad Revenue

Publishers need to develop a programmatic ad strategy that aligns with the overall sales strategy. The most important point is ensuring the quality of the inventory so it doesn’t get categorized as remnant inventory.

Publishers can follow some tips to increase the advertising revenue of a website. Let’s review a couple of them:

CPM advertising

In Cost-Per-Mille advertising, you get paid per thousand impressions of an ad. Publishers can use this method to set the prices they want to get for their ad impressions. This method works best when you have high traffic and a targeted audience.

PPC Advertising

Another popular method is Pay-Per-Click. With PPC ads, you get paid every time a user clicks on an ad served on your site. You can increase your revenue as a publisher with PPC by using an ad network like CodeFuel. An ad network will give you the control and information to maximize the revenue for the ads on your website.

Join affiliate marketing

You can also advertise and promote products for third parties on your website. You get paid every time a customer clicks on the link or makes a purchase through your site. This method can be combined with other advertising methods.

If you want to know more about ad revenue, check Ad Revenue: What Is and How to Increase it?  

Maximize your ad revenue with CodeFuel

Codefuel is a complete monetization platform that enables publishers to maximize their ad revenue through intent-based ads.

CodeFuel ad network enables publishers to generate higher revenue with text, display, and search ads. Tap into the broad reach of. premium search vendors while enriching the user experience. The CodeFuel Hub enables publishers to manage and optimize traffic with real-time data enhancing the value of their impressions. Learn more about how to increase your ad revenue with CodeFuel by contacting us. 

What is The Future of Media Trading

In its beginnings, media trading was conducted almost entirely on a managed basis. Later, vendors implemented self-serving platforms. The issue with programmatic advertising tools is that in reality, the user needs to choose their target audience, the budget, and other aspects of ad campaign optimization. With marketers using over 30 tools regularly, this can be a hassle and lead to inefficiencies.

New media platforms need to address several challenges:

User experience is king: Enhancing the user experience is key for a successful interaction between publishers and advertisers.

Mobile friendly: users need to manage the media platform across devices.

Transparency and clear information: buyers and suppliers need clear information about what is happening with the real-time bidding.  Buyers need to know where the ads will appear to optimize the campaign.

More Business Intelligence: new platforms use AI to target the audiences at the end-user level. The software will understand the target user’s intent, behavior, and preferences.

Final Thoughts

Publishers and advertisers cannot go blind when using media trading platforms. Programmatic platforms must provide a high-targeted user experience while maximizing revenue through transparency.

Media Buying The Ultimate Guide for 2021

Media Buying The Ultimate Guide for 2021

Paid advertising is a key part of every marketing strategy. As a marketer, you wonder how to get the most bang for your buck when buying ad space. In this post, we’ll explain how media buying works and give you tips to do it right.

What is Media Buying?

The term media buying refers to purchasing advertising space from a media channel. For instance, buying a time from a tv station, print space from a newspaper or magazine, or billboard signs.

Media buying in online marketing refers to purchasing advertising space in a blog or website, negotiating the price, and placement of ads.

So, What’s a Media Buyer in Marketing?

A media buyer is a person — usually a marketer—that is in charge of media buying for the company. Is someone whose job involves selecting and arranging payment to put advertisements on online channels at the most cost-effective rate.

Typically, media buying is done manually (direct) or with the help of technology tools (programmatic).

  • Direct buy: When media buyers negotiate ad inventory directly with publishers.
  • Programmatic buy: Media buyers use automated technology to buy ad placements.

According to eMarketer, 84.9% of digital ad spending belongs to programmatic buying today and is expected to rise to almost 90% by the end of 2021. So, direct media buying is in decline.

But which is best? There are advantages and disadvantages of both methods. While direct media buying is still used, the market is clearly going in the direction of programmatic advertising.

Programmatic advertising saves time and effort and allows for better targeting your audience. It offers real-time bidding, which gives advertisers the chance to get better deals for their ads.

Media Buyer in Marketing

Image source

The State of Media Buying Statistics

According to Statista, in 2020, global programmatic ad spends reached $129 billion, and spending is expected to pass the $150 billion mark by the end of 2021. Let’s check

How is worldwide media buying evolving? Let’s check some mind-blowing statistics.

Programmatic display advertising will reach $150 billion by the end of 2021. 

Programmatic Display Advertising

Source

  • 69.2% of all display advertising is bought through programmatic advertising
  • 18% of U.S companies surveyed moved the company’s programmatic buying completely in-house
  • 51% of U.S companies surveyed moved the company’s media buying partially to programmatic buying. 

The total digital ad spending  will reach $645.80 billion by 2024

Digital Ad Spending Worldwide

Source

How Digital Media Buying Works

Digital Media Buying

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Digital media buying or programmatic buying, buying ad impressions is automated. The negotiation step is conducted automatically in real-time through digital marketplaces. This automated buying structure has three main components:

Supply-side Platforms (SSP)

It is a software product designed to sell advertising space with the help of automation technology. Publishers use this software to sell their ad inventory to advertisers. The goal is to maximize the price of impressions for publishers. Examples of SSP include Google, Rubicon Project, AppNexus.

Demand-side Platforms (DSP)

Is the counter side of SSPs but from the advertiser side. Marketers use DSPs to bid on ad inventory and get ad impressions with the lowest price possible.

Examples of DSP:

  • Facebook Ads Manager
  • Rocket Fuel
  • Amazon
  • DoubleClick.

Ad Exchanges

In these marketplaces, advertisers and publishers buy or sell inventory via real-time bidding (RTB). The exchange works as a marketplace for advertisers and publishers to broker and auction ad space. Advertisers, marketers, and networks use the exchange to buy space for their ads. Publishers use the exchange to offer ad space for monetization.

Examples of ad exchanges:

  • DoubleClick
  • Microsoft Ad Exchange
  • Right Media Exchange
  • OpenX
  • App Nexus

Ad Networks

These marketplaces collect the ad inventory from publishers and sell it to advertisers. These intermediaries introduce the right publisher option to the right buyer. Usually matches suppliers and advertisers with the goal to maximize yield for both.

Ad networks work with real-time bidding but also are good options to sell remnant ad inventory.

Examples of ad networks:

Other options include private auctions, usually run by publishers which limit who can participate and selling ad inventory at a fixed rate per thousand impressions.

Learn more about the best ad networks of 2021.

Why Is Media Buying Important?

An effective media buying strategy can affect the bottom line of the company. It goes beyond the simple act of buying ad space. Selecting which channels will have the most impact on the audience while ensuring the advertiser pays the lowest possible costs is the ultimate goal of a good media buying strategy.

Ultimately, this enables companies to control the ad spending budget, and at the same time maximize conversions. By using programmatic advertising, the software takes all the hassle of negotiating with publishers, and automatically chooses the best ads for a publisher and the best space for advertisers.

What’s the Role of a Media Buyer?

Even with programmatic advertising, media buyers play an important role. A media buyer takes into account the target audience and marketing goals to find the ad type, channel, and site that maximizes the impact.

  1. Media buyers plan a media buying strategy according to the advertising strategy for the campaign.
  2. They select and buy the ad space at the best rates, keeping the budget under control.
  3. A media buyer’s job doesn’t end with buying the advertising space. They constantly analyze the data on the performance of the ads to optimize the ad-buying strategy.

Stages of the Media Buyer Process

Stages of the Media Buyer Process

Media buying consists of several steps that can be categorized into three key stages: Preparation, Execution, Optimization.

Stage #1: Preparation

This stage involves in-depth research and planning of the advertising strategy. The media buyer will take into account the target audience, the advertising budget, and the campaign goals to select the best channel where to buy the ad space.

Steps at this stage include:

  • Look at your target audience and decide how to reach it. 

Who are your ads intended for? What’s the demographics of your target audience? (age, gender, etc.). Where do they live? (geolocation), What interests them?.

Once you have your audience profile, try to find your target group for the specific campaign. Identify where to reach them. Are they active in social media? Which sites they likely frequent? Do they buy online? Where? Know what platforms and devices your target uses.

  • Look at your competitors

Where do they advertise? Which ad networks are they using? Check whom your direct competitors are targeting. Learning from the successes and failures of others save time and allows the advertiser to have an edge on their campaigns.

  • Define your media buying strategy

The media buyer should align the advertising to the campaign goals. If the target is on their mobiles when they search or use the product, mobile advertising can be the solution.

This involves choosing where to advertise and how. Should the buyer use one ad network or several? This will depend on the campaign strategy.

  • Plan the campaign execution

Allocate the budget according to the main goal (clicks, conversions, sign-ups, etc). Estimate how much is going to cost according to the pricing model you choose (Cost Per Mille, Cost Per Click, Cost Per Action). Plan all the marketing budget and account for unexpected expenses.

Stage #2: Campaign Execution

Here the media buyer should ensure the ads are appearing where they should, at the frequency they should, in front of the target audience, and in the right context.

Monitoring and tracking the progress is key to understand how the ads are performing. Look for metrics like customer engagement, number of conversions, or actions.

Stage #3: Optimization

Collect as much data as possible to analyze the effectiveness of the advertising space. Check if it generates as much revenue as expected. Analyze how the users reacted to the campaign and don’t be afraid to make changes.

Optimization should be an ongoing process, so monitor, analyze, test and repeat.

Optimization

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6 Tips to Do Media Buying Right to Get Results

Succeding in media buying is as much a matter of strategy as buying right. Here are some tips on media buying to get results.

1. Do your research

Analyze the factors that impact the success of the campaign. Check what are the ad rates in your industry, how much it cost ad placements in different sites for the size and type of the ads you plan to run.

2. Check the media where the ads will appear for relevance and context

3. Align the bidding to customer journey stages

4. Invest in highly targeted inventory

5. Stay on budget

Be careful when calculating the budget, calculate the overall budget according to the pricing models you chose. Keep in mind how to make the most of that budget while keeping the impact of the campaign. Allocate budget for premium locations where you can get more ROI for your ads.

6. Prepare for unforeseen purchases

Maybe you decided to run with one or two ad networks. Have an extra budget to account for unforeseen purchases. While you are working with these networks you may need to make changes to the campaign with requires more budget. Be prepared.

Media Buying Vs Media Planning

Media buying and planning are two different stages of processes. A media buyer focuses on getting the most impressions for the lowest cost. Media planning determines what channel is best for reaching the target audience. The media planner is the one behind the campaign strategy.

In larger corporations, media buyers’ and media planners’ jobs are carried on by different people. In smaller organizations, it is usually carried on by the same person.

How CodeFuel Can Help You as a Media Buyer?

Media buyers can optimize the revenue per each click and visit. Sometimes big names ad platforms are too generic in reach and offer a low ROI. Regardless of the platform you use, you can maximize the ad ROI with optimized landing pages that boost revenue across platforms and verticals.

CodeFuel search mediation partners with main search providers, you can deploy monetization pages on your own domain if you’re a publisher, or used the ready-to-go pages designed for different buying platforms. Start monetizing smart today with CodeFuel.