Seth Dallaire is Yahoo! Vice President of Sales. He discussed the latest news regarding demand-side platforms and Yahoo!’s decision to require Right Media Exchange seats for advertisers who wish to purchase Yahoo! non-guaranteed, remnant display inventory through the exchange. News broke last week that Yahoo! would make this a requirement going forward – but today, the company is announcing a grace period. More info on Yahoo!’s advertising blog here.
First, Dallaire offers the following:
“We strongly believe in a premium content ecosystem that matches publishers, agencies and advertisers with premium ad solutions that drive better results in a fair, efficient manner. We also believe that the past few years have seen a significant shift in how digital inventory is bought and sold, which has complicated the valuation and management of digital media.
Yahoo! is making some bold moves, like changing access to Yahoo! Network Plus inventory, that are designed to put value back into the premium content ecosystem.”
AdExchanger.com: What are the options for ad networks and DSPs who want to buy Yahoo! owned and operated display ad inventory today?
SD: DSPs can buy Yahoo!’s non-reserved inventory in a couple of ways. They can create a direct relationship with the Yahoo! sales team, which will execute the buy on their client’s behalf or they can create a buying relationship on the exchange through their client’s seat.
What does this move to requiring seats for advertisers who want to buy Yahoo! owned and operated remnant display say overall about digital media and the publisher today?
Publishers have always had direct relationships with advertisers. However, the fast growing trend of “resellers” and intermediaries in the digital marketing landscape has created some serious challenges between publishers and advertisers. This initiative is part of Yahoo!’s ongoing effort to ultimately ensure a better experience for our users and advertisers. Users will experience fewer duplicative ads across our network, and advertisers will reap the benefits of working more directly with Yahoo! to maximize the value they receive out of their media buys.
Why was the timing so abrupt?
We’ve been saying for some time that we strongly believe in a premium content ecosystem that matches publishers, agencies and advertisers with premium ad solutions that drive better results in a fair, efficient manner. We have been meeting with various parties for some time to explain our position and outline the benefits to advertisers and agencies.
Will there be extensions? If so, any criteria you can share?
Previously we had set the date as December 2 but we have extended the deadline to accommodate our clients and the subsequent demand for seats on the Right Media Exchange. We now plan to implement by January 11, 2012.
What measures are being put into place to help advertisers get their own seats and DSPs access to those seats?
Right Media is a leading global display ad exchange with limitless seats, serving many clients. They are always ready to have new members join the exchange.
How will agency trading desks (ATDs) and agency buyers in general be treated in comparison to DSPs? Will ATDs need to have their advertisers get their own seats?
Yahoo! has always been committed to partnering closely with advertisers and their agency partners. ATDs that are fully owned by agencies will continue have the opportunity to buy directly from Yahoo! on a managed basis or via a seat on RMX.
What will Yahoo! do about its unsold impressions? CPA deals, house ads?
As a result of this move and communications from advertisers, we are confident that advertisers will continue to seek brand safe inventory that performs at scale and that Yahoo! inventory will continue to be in high demand.
What about advertisers who don’t want to buy or manage their own RMX seat but prefer buying through a DSP due to a smaller budget or just preference? Any plans for them?
We encourage all advertisers who are interested in accessing Yahoo! inventory to discuss the options around setting up a seat on RMX with their Right Media and Yahoo! contacts. Not all advertisers are the right candidates for seats on RMX but we can offer alternatives for these advertisers to accommodate their needs.
Can you talk about how this move is a part of holistic yield management strategy – both guaranteed and non-guaranteed (custom, integrated and remnant)?
This decision to assert greater control over Yahoo! Network Plus inventory is part of our ongoing campaign to improve the overall process of buying and selling premium online display inventory and put more value into the premium content ecosystem.
All publishers need to consider inventory yield management along both guaranteed and non guaranteed much in the way that advertisers need to consider the impacts of campaigns running across all inventory (guaranteed, non guaranteed, audience, sponsorship). We want to partner more closely with an advertiser by programming specific audiences for that advertiser but cannot do so if we have limited insight into their demand.
By John Ebbert
