I was recently prompted to think about the sales policies of publishers when Criteo approached us to buy their inventory through a Criteo network. On the face of it one could argue it would be a good buy for us, potentially unique inventory, sourced through publisher deals that by many peoples opinion is good quality and high up the adserving priorities of the publisher. Obviously after about 1.5 secs I decided I was unlikely to contribute to the clever business model of Criteo by filling their coffers so they can then go pitch direct to our clients and move the business. That is not what this post is about but it set in motion some ideas that I think publishers should consider.
Companies like Criteo, have created a good business and are doing well in their niche but they got there through persuading publishers that they should sell to them quality impressions, in some instances first look, even above direct and brand channels at a low cpm vs those direct channels but high vs the RTB market. They deliver good business for them and everyone is happy.
Problem is that they buy a lot of it and need to get rid of it and so they want other people to buy it from them ie trading desks and potentially Ad networks / Managed DSPs. The demand in the exchanges has increased significantly since many of those deals were done and so cpms for quality inventory like this will likely create a higher cpm than they bought from the publishers. So that means then that trading desks are buying good inventory from Criteo rather than direct from the publisher? Is that what the publisher had in mind when they sold or agreed to the positioning of the sale?
I think it raises questions that publishers yet again have to face, is it better to sell at a flat cpm or find other channels to monetise. A lot of big names are doing this and for me makes no sense, if you want your inventory to be monetised, come see us rather than put us, your direct buyers second to someone who is re selling it to us? It is time to ditch the flat cpm and embrace the auctions and private market places.
We can also offer transparency to the publishers as to how well their inventory is performing and we can partner to create improvements for them and us. The alternative is sell and see no insights. In my view that era has ended. Publishers, come talk to us we can help you with that.