An Exclusive Interview with Alphabird President Alex Rowland

Table of Contents

1. Introduction
2. Changes in the Marketplace for Publishers
3. Impact of Mobile on Digital Publishers
4. The Importance of Data for Publishers
5. The Emergence of Native Advertising
6. Lessons for Brands and Media Companies

Introduction

Changes in the Marketplace for Publishers

• The Revenue Shift from Analog to Digital
• Challenges Faced by Publishers
• Adapting to Programmatic Buying
• Mobile Traffic and its Impact

Impact of Mobile on Digital Publishers

• The Significance of Mobile Traffic
• Monetization Challenges on Mobile Platforms
• The Need to Become Mobile-First Publishers

The Importance of Data for Publishers

• Decline in Display Ad Yields
• Leveraging Data for Segmentation and Pricing
• Utilizing Data to Optimize Content and Increase Engagement

The Emergence of Native Advertising

• The Rise of Native Advertising
• Native Advertising as an Old Model with New Potential
• Scale and Liquidity Challenges for Native Advertising

Lessons for Brands and Media Companies

• Brands Becoming Media Companies
• Media Companies Learning from Brands
• The Blurring of Lines between Brands and Media Companies
• The Role of Content in Engaging Audiences on On-Demand Platforms

Conclusion

Article

Changes in the Marketplace for Publishers

The marketplace for publishers has undergone significant changes in recent years. Traditional publishers with substantial analog businesses, such as print or Broadcast, have faced challenges in adapting to the digital age. The revenue picture has shifted, with publishers losing thirteen dollars in analog revenue for every digital dollar they gain. This exchange of analog dollars for digital pennies has forced publishers to reassess their cost structures and revenue strategies.

One significant trend affecting publishers is the rise of programmatic buying in television. This data-driven approach to media buying is unfamiliar territory for most publishers, who are used to selling large blocks of inventory in advance. Adapting to programmatic buying and optimizing in this new environment pose challenges for publishers.

Another challenge is the rapid growth of mobile traffic. With a significant portion of audience traffic now coming from mobile devices, publishers face difficulties in monetizing this platform effectively. Display advertising on mobile is less compelling, and new formats like native advertising are emerging as the future of mobile advertising. However, publishers struggle to integrate mobile seamlessly into their existing revenue models and monitor mobile traffic effectively.

The Importance of Data for Publishers

In the increasingly competitive market, data plays a crucial role in the success of publishers. With declining yields on display ads, publishers need to leverage data to inform segmentation and pricing decisions. Unlike the traditional model of selling large blocks of inventory Based on limited segmentation, publishers must now use data to optimize their impressions and maximize revenue.

Moreover, data is not limited to ad optimization but extends to content optimization as well. Publishers need to utilize data to understand their audience better and serve them Relevant content. This includes recommending related content within their site or other properties to increase audience engagement and generate additional revenue sources. By analyzing data, publishers can make informed decisions about the content they produce and the strategies they employ to monetize their audience effectively.

The Emergence of Native Advertising

Native advertising has gained significant Attention as a potential solution for publishers in the changing marketplace. While native advertising is not a new concept, Current platforms present opportunities for scale and engagement. Native ads have shown promising performance, particularly on social media platforms like Facebook and Twitter. Publishers like Forbes and The Atlantic are also experimenting with native ad platforms and experiencing relative success.

There are concerns about the sustainability of native advertising's performance over time. As with display ads, there is a risk of diminishing returns as consumers become more immune to native ads. Additionally, the lack of liquidity in the native advertising market poses challenges. However, innovative platforms are emerging, integrating with different content management systems to achieve scale. As liquidity increases, publishers can expect to use data to optimize native ads effectively.

Lessons for Brands and Media Companies

Brands and media companies can learn valuable lessons from each other in this evolving landscape. Brands are adopting strategies reminiscent of media companies, focusing on engaging consumers through original content. Red Bull and DC Shoes are examples of brands successfully producing compelling content and aggregating vast audiences. On the other HAND, media companies can benefit from the data-driven approach of brands. Understanding consumers and using data to inform content recommendations and decision-making is crucial for media companies to thrive.

As technology and consumer behavior shift, there is a blurring of lines between brands and media companies. Brands are realizing the importance of content in engaging on-demand platforms, prompting them to become more like media companies. In turn, media companies need to adopt the data-driven strategies that brands employ to optimize content and enhance audience interactions.

With the rise of over-the-top content platforms and changes in how audiences Consume content, the ability to deliver compelling content tailored to individual preferences becomes vital. Media companies can learn from brands like Amazon in creating immersive experiences that increase engagement and drive revenue. As brands and media companies Continue to converge, the industry will witness further innovation and collaborations in the years to come.

Highlights

• The marketplace for publishers has undergone significant changes, with a shift in revenue from analog to digital.
• Adapting to programmatic buying and the rise of mobile traffic pose challenges for publishers.
• Publishers need to leverage data to optimize segmentation, pricing, and content recommendations.
• Native advertising shows promise but faces challenges in scale and liquidity.
• Brands are adopting strategies reminiscent of media companies, focusing on engaging consumers through original content.
• Media companies can benefit from adopting data-driven strategies employed by brands.
• The lines between brands and media companies are blurring, leading to collaborations and innovations in the industry.