Google Disses The Yield Optimizers; Liquidity Will Be A Key Differentiator

Optimizing The DissThis morning, Google released information on how publishers maximize revenues using the DoubleClick Ad Exchange as well as other Google products. The post by Neal Mohan, VP of Product Management, on the Google blog includes a one sheeter. View the post here. And, download the one-sheeter here.

There’s not much that’s new here except for an explanation on dynamic allocation. Interesting that the one-sheeter sticks it in the eye of “traditional ‘yield management.’” They put ‘yield management’ in quotes.

Google is clearly positioning DART For Publishers (DFP) as the yield optimization solution of the future as its “dynamic allocation” allows publishers to set minimum floors with exchange buyers when managing between direct sold inventory, ad networks or buyer relationships managed through DFP. So, if you’re a publisher, you get to test the market for your impression, compare it with your other relationships and then sell wherever you want.

In the near term, the one, big, differentiating component of the DFP solution versus other yield optimizers will ultimately be the anticipated liquidity of the DoubleClick Ad Exchange which should tell a story around higher CPMs.

A way around this for yield optimizers could be a new level of data management that offers more insights and moves way beyond just workflow savings. This would appeal to publishers as it could drive larger, more profitable strategic initiatives. Long tail publishers won’t care (they just want high CPMs) but the big guys could – and should. Yield optimizers could do more with managing scarcity, or spot versus futures, too.

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1 Comment

  1. The improved integration of a sell-side platform and a publisher’s ad server is a tipping point for RTB. Premium inventory is (almost) never put on exchanges, and until that changes Publishers achieve higher eCPMs from direct relationships with advertisers. However that can change if you can overlay data over your first, second and third impressions instead of just the 10th and beyond.

    The AdX integration (which they’ve been pitching for quite a awhile) is one way to do it- i also would not be surprised to see an acquisition (at this point I think it’s more likely that an SSP/Exchange will buy an adserver than the other way around).

    Any thoughts?