Key Takeaways

  • Quality and Transparency Drive Success: The ad tech space is shifting its focus toward high-quality, clear performance metrics, and operational transparency. Publishers who embrace these principles are likely to thrive in the evolving ad tech landscape.
  • AI and Machine Learning Are Game-Changers: New technology is impacting everything from CPM pricing to real-time decision-making. It behooves most publishers to partner with specialized ad tech providers to leverage these advanced tools most effectively.
  • Accurate Signaling Is Crucial: Precise labeling of ad inventory, especially for video ads, has become critical. Mislabeling or misleading can lead to serious consequences, including financial penalties and loss of brand relationships.
  • Adaptation Is Key to Survival: As the industry consolidates and evolves, publishers must stay informed, be willing to adapt and focus on building trust within the ad tech ecosystem to remain competitive.

The ad tech landscape is evolving rapidly. And this has huge implications for publishers and advertisers alike. Jayson Dubin, CEO and Founder of Playwire predicts changes along three core axes: quality, performance, and transparency.

To explore this current shift with the ad tech ecosystem and the implications, Jayson sat down to discuss the topic on a Playwire Live episode with Playwire SVP of Yield, Scott Schroeder, and SVP of Product, Luke Schoenberger.

Some of the primary topics they covered include ad fraud, viewability, attribution, and the impact of AI. Dive into the recording below or keep scrolling to learn more!

 

A Shifting Ad Tech Landscape: Quality and Transparency

A major bright spot for all is that the industry is moving away from questionable practices, focusing considerably more on transparency and value proposition. Supply-Side Platforms (SSPs) and Demand-Side Platforms (DSPs) are prioritizing inventory quality, which is reshaping their relationships with publishers.

There's a growing trend toward exposing previously hidden, shady online practices, such as questionable traffic sources, MFA (Made-For-Advertising), and excessive ad density.

As Scott points out, "If a publisher has questionable traffic, means of getting traffic, or if their ad density is out of whack, those things are starting to be pulled into the light." Further, this type of transparency enables buyers to make more informed decisions.

These trends have also changed the conversation around Made for Advertising (MFA) sites. These types of publishers probably won’t meet tomorrow’s quality standards. As Luke notes, "Even if marketers are currently seeing conversions from those [MFA] sites, I don't know if there's necessarily a reason for them to care."

Why? Because as the ad tech landscape continues to evolve and more industry players embrace this emergence of a healthier ecosystem for all, we believe that transparency and accountability will reign supreme.

AI and Machine Learning Are Revolutionizing Ad Tech 

Artificial Intelligence (AI) and Machine Learning (ML) are not new terms but they are fundamentally changing how publishers and ad tech companies optimize their operations.

"We do a lot internally with machine learning,” Luke says, “and we're continuing to grow what we want to do from a machine learning perspective." 

Okay, but what does this mean in practice?

Here’s a prime example: machine learning algorithms are making more intelligent, science-based decisions about price flooring. This is a crucial factor in optimizing ad inventory for SSPs, DSPs, and advertisers. 

Some systems, such as Playwire’s Price Floor Controller, are even processing an astounding 1.2 million price floors per site per day, showcasing the scale at which these technologies operate. That’s a far stretch from anything a human could manually input.

But that’s not all it does. "Machine learning can help install new workflows to get us revenue faster," Scott says. This efficiency allows for rapid scaling of successful strategies, a critical advantage in the fast-paced world of ad tech.

Real-time decision-making is another area where these technologies shine. From dynamic timeout optimizations in pre-bid functions to intelligent bidder selection based on factors like country, device, and browser, machine learning algorithms enable a level of responsiveness and precision that was previously impossible.

When pressed on whether this is essentially just traffic shaping, Luke elaborates: "A lot of what we're talking about are ways that we can use machine learning to optimize what happens on the page...essentially anything that feeds into the OpenRTB request."

However, it's important to note that leveraging these technologies isn't easy for individual publishers. As Luke points out, “I don't think there's really an easy way for publishers to be able to do this on their own right now; integrating [this type of technology] within their systems with the flip of a switch.”

This technological divide underscores a growing reality in ad tech: as AI and machine learning become more integral to optimizing ad operations, to remain competitive, publishers may have to rely on the advanced solutions and technical expertise that only specialized ad tech providers, otherwise known as major sales houses, like Playwire offer.

One thing is clear: artificial intelligence and machine learning are no longer simply buzzwords in ad tech. They're powerful tools reshaping the landscape, offering those who can harness them significant advantages in efficiency, responsiveness, and ultimately, ad revenue generation.

Programmatic Signals Still Play A Critical Role

In digital advertising, programmatic signals are the unsung heroes that drive efficiency and revenue. These data points, transmitted in bid requests, can make or break a publisher's success in the programmatic ecosystem.

"It is more and more critical," says Scott. "There are table stake signals these days; if you're not passing certain things in the bid request, then you are damaging your revenue opportunity."

The impact of accurate signals can be staggering. Deep audits have revealed that updating just a couple of signals can double an SSP's revenue overnight. This dramatic effect stems from the signals' role in enabling DSPs to bid effectively on inventory.

However, managing these signals is no small feat. Publishers face a constant challenge in keeping their signals up-to-date and accurate. As Luke puts it, "The amount of times that you change one signal and then revenue radically changes for an SSP is almost uncountable."

Recent changes in the industry have highlighted the importance of precise signaling, especially as it relates to video advertising. Publishers must accurately label their video inventory when sending signals to ad buyers. Mislabeling, even unintentionally, can lead to serious long-term revenue consequences. 

For example, if an outstream ad is incorrectly labeled as an in-stream ad unit, DSPs might demand refunds or even block the publisher. This emphasis on correct labeling highlights the industry's push for greater transparency and trust in direct and programmatic ad transactions.

A multi-pronged approach can be helpful for publishers looking to optimize their signals. Studying OpenRTB documentation, examining requests sent to different SSPs, and looking at the pre-bid adapter settings are all valuable strategies. 

But technical knowledge isn’t the only thing that matters. Understanding the nuances and unique requirements of different SSPs is equally important.

"You have to be aware of the nuance," Scott warns. "For example, if you want to pass your price floors in the bid request, that's going to be a different signal depending on which SSP you are signaling."

This challenge is particularly important to note for smaller publishers who may lack the resources to dedicate to signal optimization. For smaller players, there are really two options. 

The first is studying the practices of larger, well-optimized sites, which can provide valuable insights, but still leave a laundry list of tasks to be handled by your team. Or, you can partner with a knowledgeable ad tech platform that can handle the technology allowing you to remain focused on creating unique, high-quality content for your website or app.

As the ad tech landscape continues to evolve, the importance of accurate signaling is only set to increase. For publishers looking to maximize their revenue and maintain strong relationships with demand partners, which should include…well…everyone reading this article, mastering the art of signal management should be at the top of your to-do list.

SSP Consolidation and Changing Dynamics

If it’s not yet clear, Supply-Side Platforms (SSPs) are at the center of the significant transformation that the ad space is undergoing with industry experts noting a dramatic shift in the quantity of SSPs most publishers work with from nearly 30 to just a dozen or so.

Remember, quality over quantity is the name of the game.

"I think it just comes down to how much unique demand that SSP is offering," says Luke. "If [an SSP is] just sending other people to get demand, there's no reason for you to work with them."

This consolidation trend is driven by a focus on value and efficiency, says Scott. “If you're a smaller SSP, you don't have a unique value proposition and you're not materially adding value to a publisher, I'm concerned for you."

Top-performing SSPs are distinguishing themselves through curated Private Marketplace deals (PMPs) and unique ad formats. However, the long-term trajectory suggests an even more streamlined future. 

As Luke points out, "Realistically, what does the SSP do that the DSP just couldn't do on their own if resources weren't a factor?"

This question is one that many across the industry are posing and it is reshaping the relationships between publishers, SSPs, and DSPs. Further, there's a growing trend towards more direct connections between DSPs and publishers, potentially reducing the need for intermediaries.

Quality and Transparency in Ad Tech

The industry is rallying around a clarion call for quality, performance, and transparency. Jayson Dubin, a staunch advocate for this approach and driver of Playwire’s QPT initiative, believes it will transform the industry for the better.

"I honestly think it's going to transform the industry in a good way," Jayson says. "The better the quality, the better the results. It's going to clean up the inventory, which is going to force people toward the quality sources of inventory, thus increasing CPMs."

Let’s be clear. Playwire’s focus and the industry-wide focus on quality, performance, and transparency isn’t just a long-shot or a dream. It’s already proving to be a reality.

In a world driven by tangible results, Jayson and the team are already seeing the results they hoped for. After spending a year or so cleaning up their ecosystem and decluttering ad layouts across the board by focusing on improved viewability, "the CPMs and viewability have gone up astronomically."

However, there remains a perceived imbalance in responsibility between the supply and demand sides. While publishers are being pushed to clean up their act, there's less apparent pressure on the buy-side to address issues like bad ads or mobile redirects.

Despite this, there are signs of progress. Scott says that "the disconnect is shrinking between buyers and publishers. You have DSPs approaching publishers more directly now and consulting in a way that I haven't really seen before."

Strategies for Success: Key Takeaways for Publishers

For publishers navigating this changing landscape, industry experts offer several key strategies:

  1. Focus on signal quality: "Look at your signals," advises Luke. "Make sure that you're sending the correct signals to SSPs because that can make a world of difference."
  2. Leverage new technologies: Luke also recommends exploring new solutions and not limiting yourself to only those that you’ve utilized in the past. Times are very much changing, don’t be afraid to test the waters, challenge your existing providers, and question everything you hear and see happening across the industry.
  3. Negotiate fees: "Try to renegotiate your fees with the SSPs," Luke suggests, noting that for publishers of a certain size in our current climate, SSPs might be willing to adjust terms without much pushback.
  4. Ensure adequate partnerships and support: Scott emphasizes the importance of having sufficient support to navigate industry changes and growing technological complexity.
  5. Maintain a quality tech stack: "Is my tech in a good spot?" Scott suggests asking of your current provider or platform. "Am I passing the right signals? Is my inventory looked at favorably?" Seriously, question everything.

Each of these strategies underlines the critical factor here, which is trust. As Jayson puts it, "That word trust, in any business relationship, that's what the foundation is built upon."

For publishers, the path forward is this: focus on quality, stay informed about industry changes, and build and rely on trusted partnerships. In an industry as dynamic as ad technology, these principles can serve as a north star, guiding publishers toward success in an increasingly complex ecosystem.

Whatever your role, if you want to succeed in tomorrow’s advertising landscape, an ad tech partner can make all the difference, helping you navigate every twist and turn. Playwire offers the perfect balance of technical expertise, advanced technology, and actionable analytics and insights to boost your brand’s visibility online and deliver the revenue results you need.

Contact us today to start future-proofing your advertising strategy.

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