The news­pa­per in­dus­try’s pro­gram­matic mon­ster

Newspapers & Technology Magazine - - News - Gene Piz­zo­lat o Spe­cial to News & Tech

The rise of pro­gram­matic advertising tech­nol­ogy has ex­posed news­pa­per pub­lish­ers to both mon­ster-sized op­por­tu­ni­ties and mon­strous chal­lenges when it comes to dig­i­tal in­ven­tory. The need to evolve sales pro­cesses is op­posed by the news­pa­per in­dus­try’s legacy busi­ness.

With deep tra­di­tions and long-stand­ing prac­tices, adap­ta­tion to change can be slow. But pro­gram­matic’s abil­ity to sig­nif­i­cantly im­pact rev­enue gives the news­pa­per busi­ness a new hori­zon in a time when con­sump­tion of dig­i­tal and mo­bile con­tent are on the rise.

The news­pa­per in­dus­try’s tran­si­tion to the au­to­ma­tion of media buy­ing and selling has been dif­fi­cult. Many print pub­lish­ers fear that an open ex­change and real-time bid­ding (RTB) plat­form will un­der­cut their di­rect sales ef­forts and drive down the value of their pre­mium im­pres­sions. For this rea­son, they re­main hes­i­tant to sell dig­i­tal in­ven­tory through pro­gram­matic chan­nels. As a re­sult, lim­ited re­sources are al­lo­cated to de­vel­op­ing a pro­gram­matic strat­egy. With no one re­spon­si­ble for de­vel­op­ing tac­tics to meet buy­ers in an arena they are in­creas­ingly us­ing, pro­gram­matic is of­ten sig­nif­i­cantly un­der­uti­lized.

More than RTB

De­spite the as­so­ci­a­tion of pro­gram­matic ex­clu­sively with RTB plat­forms, pro­gram­matic en­com­passes much more. The tech­nol­ogy of­fers dif­fer­ent chan­nels, such as pri­vate mar­ket­place, pre­ferred deals and pro­gram­matic di­rect. While dif­fer­ent, these chan­nels are all con­nected by pro­gram­matic’s main theme: the au­to­ma­tion of the tra­di­tional IO process. For those who re­main hes­i­tant to open RTB, there re­mains a sig­nif­i­cant op­por­tu­nity in these pre­mium pro­gram­matic chan­nels that should not be over­looked.

The mon­ster op­por­tu­nity of­fered by pro­gram­matic tech­nol­ogy more than off­sets the chal­lenge of adapt­ing to this mod­ern process. On the one hand, the au­to­ma­tion of the tra­di­tional trans­ac­tion has al­lowed pub­lish­ers to cap­i­tal­ize on new streams of rev­enue. Per­haps most no­table is the abil­ity to sell dig­i­tal in­ven­tory that had pre­vi­ously been left un­sold. Many pub­lish­ers that have em­braced pro­gram­matic as more than just a rem­nant sales chan­nel have seen great suc­cess. It of­fers the chance to im­ple­ment a strat­egy that max­i­mizes over­all yield, while at the same time com­ple­ment­ing di­rect-sales chan­nels.

Pro­gram­matic’s op­por­tu­nity also lies in the pool of new cus­tomers it of­fers. By mak­ing in­ven­tory avail­able where ad­ver­tis­ers are pur­chas­ing it at a grow­ing rate, pub­lish­ers are open­ing the door to a broader au­di­ence of po­ten­tial buy­ers. The tech­nol­ogy also in­creases ef­fi­ciency. Whereas the tra­di­tional IO process in­cor­po­rates time-con­sum­ing, back-and-forth com­mu­ni­ca­tion, pro­gram­matic tech­nol­ogy en­ables an ef­fi­cient self-ser­vice model. This frees up time for staff to fo­cus on other tasks, such as iden­ti­fy­ing and court­ing prospec­tive buy­ers.

Pro­gram­matic tech­nol­ogy is here to stay, fu­eled by the dra­matic im­pact it has had on the way busi­ness is con­ducted. For news­pa­pers, which are al­ready deal­ing with the tran­si­tion from print to dig­i­tal, the chal­lenge to im­ple­ment pro­gram­matic strate­gies is out­weighed by the mas­sive im­pact it can have on over­all rev­enue streams, staff ef­fi­ciency and re­sources. To suc­ceed in this in­creas­ingly dig­i­tal world, the news­pa­per busi­ness must con­quer pro­gram­matic as a mon­ster and welcome it for the mon­ster op­por­tu­nity it presents. Gene Piz­zo­lato is pres­i­dent and gen­eral man­ager of Gamut, a dig­i­tal media ser­vices com­pany owned by Cox Media Group. Con­tact Gamut at 212.588.2800.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.