Curation continues to gain momentum in our industry, yet the current dialogue seems to be missing some important nuance.
On one side, the value argument for curation highlights its ability to refine audience targeting, increase efficiency and reduce waste, creating more meaningful connections between brands and consumers.
Meanwhile, the ad network argument emphasizes the role of curated marketplaces in expanding monetization opportunities and enabling smaller players to compete with scaled giants.
By examining both perspectives, we can uncover how curation might shape the next generation of ad networks while addressing challenges like transparency and scalability.
The value case for curation
Curation offers an easier way to make data and capabilities more accessible to more buyers without the constraint of a single platform or seat. This can be extremely valuable, particularly within retail, where a data owner does not need to go all in with a single platform and has a clear way to manage channel conflict, buyer rates, etc.
Curation also allows buyers to access unique advantages from service providers – whether an algorithm, a unique form of measurement or through beneficial commercial terms – that offer net-positive value otherwise not available in a DSP.
On the supply side, curators can tap additional data signals for improved match rates. And some curation providers have excelled in supply-path optimization by securing favorable commercial terms to deliver buyers even greater value.
The ad network case
However, we need to keep our eyes wide open when it comes to the potential pitfalls of curation. The barriers to becoming a “curator” continue to decrease – as a result, the next generation of ad networks is starting to rise.
Curation is not free, so the burden of proving value by adding another hop to the supply chain – especially when that intermediary collects an additional fee – falls on the curator.
Be extremely wary of video or audio bundlers or custom deals named “high-intent premium CTV” from a curator that does not have a clearly defined value proposition. If you are buying a deal named “premium CTV” at a CPM less than $10, it is not premium (with MFA and fraud likely mixed in). Even in cases where there is a unique partnership or value unlocked, there are still reasons to watch out.
Several buyers have also started to lean into curation for creative accounting to keep teams lean and gamify working media. Curation partners can be used to outsource buying, trading all inventory under a dynamic PMP deal. There are times this can make sense, but it also fuels unrealistic procurement expectations around the full-time employees required to properly service the business.
Buyers may assume they can always achieve maximum cost savings or performance without understanding the operational and strategic resources required to deliver these outcomes. This disconnect between procurement expectations and the true cost or effort involved in supporting clients can strain relationships and lead to undervaluing the expertise that curation partners bring to the table.
Though curators are not doing the work for free, they can avoid showing up in a scope as part of a PMP. There are no explicit fees for PMPs because the costs associated with curators’ services are typically baked into the commercial terms of the deal rather than being broken out as a separate line item in reporting. This allows them to avoid showing up explicitly in procurement scopes, creating the illusion of cost savings. In contrast, if you were writing a “service” contract, then the fees would explicitly be called out.
The lack of transparency also affects how working media – the portion of the budget spent directly on ad placements rather than fees – is calculated. There is a range of methodologies used to calculate working media, but some calculations incorrectly consider all PMP spend as working media. This has never been accurate and is even riskier when it comes to curators adding another level of fees.
A lot of buyers tend to focus primarily on buy-side fees (i.e., how much they are paying a DSP, data CPMs, measurement costs, ad verification, etc.). There is often far less scrutiny about what goes into a PMP. This is very reminiscent of the early days of ad networks.
Best practices for testing curation
Buyers may be tempted to hold curated deals under less scrutiny due to a different naming convention or because they’re buying from a trusted partner, but I encourage thorough consideration. Curated deals inherently can be extremely dynamic, which can be a benefit. But it also means the terms and the inventory included in deals changes often.
Approach ad curation with discernment by following these best practices.
Value: Make sure your partner can clearly articulate differentiated benefits with a strong reputation in-market. If the offering sounds overly complex, be skeptical. Ask pointed questions about what unique capabilities are provided and assess how they directly contribute to your campaign goals.
Validate: Each additional hop in the supply chain adds costs. A/B testing curated packages against comparable standard buys or off-the-shelf deals can establish a baseline. Inventory and buying signals are increasingly available in buying platforms, so consider the most efficient approach.
Verify: PMP deals don’t guarantee quality, and curated deals can add even more layers of risk. Fraud and low-quality sites can infiltrate even premium-sounding packages. Proactively monitor site lists, traffic quality and viewability metrics to avoid wasting budget on MFA inventory.
Verify again: Site composition and costs can fluctuate week by week and even hour by hour. Pull detailed reports regularly to catch any unexpected shifts in site composition or costs that may impact your ROI.
Looking ahead to 2025, I encourage cautious and deliberate testing when it comes to curation. Adoption will continue to rise. So let’s move forward as an industry with eyes wide open about the pros and cons.
“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.
Follow Goodway Group and AdExchanger on LinkedIn.
