Self-Service Platform Bypasses Ad Networks
- by Laurie Sullivan @lauriesullivan, November 3, 2009
FatTail plans to unveil a self-service feature Tuesday called PageGage Direct that gives advertisers a direct connection with publishers to book orders for online display ad formats, from banners and rich media to video and mobile.
PageGage Direct aims to reduce costs for publishers by cutting out the paperwork and interaction with sales teams required to process media buys. If allows online publishers to set up and install the service to offer a direct sales channel, increase CPMs and revenue, and service customers more efficiently.
For small advertisers, PageGage Direct provides a method to connect directly with publishers when buying media space through an ad network isn't an option -- basically, because budgets are too low.
Advertisers create targeted ad choices based on context, age, gender and geography, place orders and execute repeat buys. Through a Web browser, advertisers gain access to a dashboard that provides step-by-step directions to access a publisher's available online inventory.
More publisher inventory sold direct to advertisers can produce higher returns on the ad space and few remnants because it doesn't go to an exchange or an ad network, according to Steve Pelletier, FatTail CEO. "Think of it as an automated sales channel," he says.
Similar to an ATM or at a bank or an online travel site, PageGage Direct allows advertisers to book the ads direct with the publisher. The advertisers can log on and peruse through online ad space to create an insertion order. For most publishers, the impressions are guaranteed, which prevents another advertiser from booking them. PageGage Direct launches with about five publishers, but as more sign up for the service, smaller advertisers will have additional site options to purchase and run ads.
PageGage Direct also creates a forecast from data pulled from the ad server. It consists of online advertising inventory, and provides a dashboard that publishers use to configure and manage media inventory and pricing through a series of toolsets that allow publishers to communicate inventory and pricing.
PageGage Direct integrates with PageGage AutoBuild, FatTail's sales optimization software for a publisher's direct sales force. The service automates easy transactions, which enable sales teams to focus on customers who require extensive customization.
PageGage Direct is not the only self-service, do-it-yourself ad platform -- AdReady has a similar platform. For agencies, AdReady offers a hosted, private-label display advertising platform. For publishers, the platform manages ad operations, trafficking and billing.
How is this different than what publishers can do through an ad exchange or the Google Network Builder tool? More analysis rather than reiterating press releases, please.
Kathryn,
Good question and a common one. There are two very strong reasons to go with a service like this. One is the current necessary evil publishers run into with exchanges and networks rely on a system of carpet bombing your content, with very little focus/control on where and when. The idea is to take control of your inventory, and essentially the buys for the advertisers, by building the strategy from the ground up opposed to repeating the same thing over and over. Everyone gets so worked up about targeting the ad to the audience, but never the inventory to the audience. That's a big hole that many don't try or know to address. Secondly a lot of firms have had to cut sales force so this is a way to earn revenue without putting much effort into it yet retaining a smarter inventory model.
I may be giving them a ton of credit here and PageGage doesn't solve every challenge in this space, but it's a good start in the right direction.
More proof positive that the intermediaries are wrecking the joint.
Great article.
Self service ad managers are here to stay.
As publishers get larger, they seek more control of revenue and ad quality. Facebook and Myspace led the way, followed by TechCrunch, Reddit, PlentyOfFish etc.
The good thing is that one doesn't need to have Facebook's R&D budget to roll it out. An off-the-shelf solution will do just fine.