Ongoing signal loss is driving marketers, agencies, and platforms to turn to supply-side advertising. By using first-party data from publishers and platforms, supply-side advertising has the potential to deliver high-quality audience and context for more effective ad targeting.
The supply-side refers to the publishers and platforms that sell advertising inventory. These companies have access to first-party data about their users, which can be used to target ads more effectively. By tapping into supply-side advertising, you can overcome the challenges of signal loss and target ads more effectively.
To shed light on this topic, we hosted a panel discussion at Cannes, featuring industry leaders from Audigent, Captify, Newsweek, Pubmatic, Truthset, and Experian.
In this blog post, we’ll explore how partnerships between supply-side channels and publishers are working to enhance advertising opportunities while balancing the need for transparency and control in programmatic ad buying.
Shift toward supply-side advertising
Traditionally, the demand-side dominated the programmatic media buying chain due to an abundance of supply. However, with the emergence of finite data and its interpretation, collaboration between supply-side technology companies and publishers is required to redefine these economics.
It’s no longer sufficient for the demand-side to blindly negotiate prices based on limited knowledge. Marketers can still define their target audience, but effective communication is key. This presents an opportunity for premium journalistic outlets to guide the industry’s understanding of how data from the supply-side impacts media buying economics in the future.
“Supply-side technology partnerships with publishers are now in a position to shape the economics of programmatic media buying as there is a finite amount of data. It’s crucial for supply-side technology companies to collaborate with publishers to shape these new economics. This presents an opportunity for premium journalistic outlets to provide guidance on how data from the supply-side can affect the future of media buying.”
matthew papa, svp, business & corporate development, captify
Democratizing data from the supply-side
Cookies haven’t brought significant benefits to premium publishers. They mainly serve to retarget users from sites like The Wall Street Journal to advertising sites. This approach primarily serves the purpose of generating revenue.
The elimination of third-party cookies presents an opportunity for premium publishers to shift this dynamic. By using their knowledge of first-party audiences, and using identifiers like Experian’s LUID, publishers can own and understand their audience data, which can then be modeled.
Here’s how publishers can win
Establishing a connection with consumers and emphasizing the value exchange is essential to building trust. Determining what incentives and benefits consumers find meaningful will be crucial in gaining their opt-in.
With consumers
The Apple tracking transparency initiative, specifically the deprecation of IDFA signals, had significant implications for mobile app developers. Overnight, opt-in rates plummeted, causing a drastic decline in iOS ad monetization. To combat this, developers focused on demonstrating the value exchange to consumers—better ad experiences and personalized content.
By articulating the benefits over a couple of years, opt-in rates increased from 10-15% to 30-40%. The key takeaway is the need to effectively communicate the value exchange to consumers.
With partners
Trust plays a crucial role in planning your first-party data strategy. Publishers, advertisers, and data partners highly value their proprietary data. However, there are concerns about how it’s used, mishandled, or leaked in the ecosystem. Building trust between partners is essential. It’s important to work with trustworthy partners who are agnostic, committed to innovative solutions, and globally oriented. These partners can help navigate the complexities of laws and regulations. Choosing the right partners is crucial in a world where first-party data is a key asset.
“Power is shifting toward brands that have strong relationships with customers and possess first-party data. As the ownership of customer data becomes more important, it is crucial to establish a first-party data strategy to better serve customers and adapt to changing market dynamics.”
chip russo, president, truthset
Balance probabilistic and deterministic data
Focus on building trust with consumers and collaborating with reliable companies to share data. However, it’s important to remember that achieving a 100% opt-in rate is unlikely.
The cookie, which has become omnipresent, requires us to shift our strategic thinking. We need to consider both deterministic and probabilistic approaches instead of viewing them as mutually exclusive. The landscape will be fragmented, with some consumers opting in and others not.
“Probabilistic and predictive audience data holds immense potential. With the power of AI, we can expect enhanced performance and efficacy in media campaigns. At Audigent, we firmly believe that this data will outperform deterministic data, making it an integral part of our strategy.”
drew stein, ceo, audigent
Premium content
Trust plays a crucial role in leading to premium content. By placing trust in the best media brands, data, and technology partners, we can expect to see improvements in media, journalism, and advertising. This shift may have a direct impact on the long tail of free natural resources, making it more challenging for them to thrive. However, this change is ultimately beneficial since it promotes higher-quality media experiences overall.
“The homepage surface is making a comeback in the publishing industry, proving its value in establishing a direct connection with readers. While we acknowledge the importance of technology partnerships for addressability and identity, our core competency as a publisher remains outstanding journalism that captures and engages great audiences.”
kevin gentzel, cco, newsweek
Watch our Cannes panel for more on supply-side advertising
We hosted a panel in Cannes that covered supply-side advertising. Check out the full recording below to hear what leaders from Audigent, Captify, Newsweek, Pubmatic, Truthset, and Experian had to say.
Check out more Cannes content:
- Our key takeaways from Cannes Lions 2023
- Insights from a first-time attendee
- Four new marketing strategies for 2023
- Exploring the opportunities in streaming TV advertising
- The future of identity in cookieless advertising
Follow us on LinkedIn or sign up for our email newsletter for more informative content on the latest industry insights and data-driven marketing.
Latest posts
According to Epsilon Targeting’s latest Consumer Channel Preference Study of 5,000 consumers in North America, 60% of consumers report an "emotional boost" from receiving direct mail, agreeing that they enjoying checking their mailbox. This report showed that across all categories, direct mail continues to be a trusted source of information. It's always good to reach out to consumers via email, but the disadvantage to this is that the consumer has the ability to receive emails from you on their own terms, which may be infrequent or not at all. The use of direct mail has shown to be a pleasing emotional hook. Even with the ever growing digital world, consumers are still responding to your direct mail pieces. Don't let your businesses address contact data fall to the wayside – this is still just as important as ever to have. To ensure as timely delivery, make sure you're using address validation tools to make sure you're saving money and getting the most out of your direct mail campaigns.
The NCAA basketball tournament tipped off this week much to the delight of fans across the United States. Supporters who have truly caught March Madness often follow more than one game at a time, especially during the first week of the tournament play. Thanks to simulcast streaming of games online and via mobile apps, die-hards are better equipped to keep track of multiple games at once. Those who stream games online live in every corner of the country, but some locales are more likely to log on for their March Madness fix than others. According to Experian Simmons, you are most likely to be streaming the game online if you live in one of these markets:
The social media space continues to evolve. Pinterest, a site launched in March 2010 that describes itself as an online pinboard to organize and share things you love, recently emerged as one of the top 10 websites within the Hitwise Social Networking & Forums category. The invitation only site received nearly 11 million total visits during the week ending December 17, 2011, almost 40 times the number of total visits versus just six months ago (week ending June 18, 2011). Pinterest content has something for everyone, but the site is dominated by images featuring home décor, crafts, fashion, and food. Not surprisingly, visitors to the site in the 12 rolling weeks ending December 17th skewed female (58%) and between the ages of 25 and 44 (59%). Pinterest and the Social Networking & Forums category both receive their highest share of visits from California and Texas. However, the Social Networking category as a whole over-indexes on share of visits from Northeastern states while Pinterest over-indexes on visits from the states in the Northwest and Southeast. This data indicates that Pinterest visitors have a different profile versus their counterparts visiting other social networking sites such as Facebook and YouTube. In fact, nine of the top ten over-indexed states for Pinterest visitors also over-index for the Hobbies and Crafts category (versus the online population) which is expected given the abundance of crafts content on the website. When comparing the Mosaic USA 2011 types that visit both Pinterest.com and Hobbies and Crafts websites during the 12 weeks ending December 17, 2011, the data shows that Boomers and Boomerangs are the group most likely to visit, particularly the Pinterest website (comprising over 10% of visits). This group of consumers is characterized as baby boomers and young adults who are heavy web users who spend time on house and garden, sports and fitness, and family-oriented websites. This information is useful to companies who wish to target their content to be “pinned” by Pinterest users. Thanks to Lauren Rice, an Analyst with the Strategic Services team at Experian Hitwise for today's analysis.