Digital advertising started out as an direct-sold product, by publishers to advertisers, like other forms of advertising. As digital grew, it made sense to embed the responsibility for buying and selling advertising into existing media buying and selling teams (respectively) - and those teams grew as a result.
The advent of ad networks, and eventually ad exchanges, have greatly increased the share of buying and selling that does not depend on in-house teams. Programmatic is eating up direct-sold's share; as it becomes more transparent and efficient, it becomes a cost reduction play on the publisher side. As a publisher, as soon as I can sell my inventory programmatically - that is, at the risk of oversimplifying it, by a machine in an auction per impression, rather than by a human at the thousand, million or billion - in such a way that the cost reduction beats any hit to revenue, it becomes a positive-NPV decision.
So, programmatic is unstoppable. An interesting question comes up for publishers: can we use the same technology as we are using for programmatic to handle our very important direct relationships? So that programmatic technology is not just a remnant fill solution for us, but an overlay of value-adding technology on our whole business?
Hence the concept of the "Deal ID," or just the "Deal." In programmatic, a deal is a pre-arranged agreement between a buyer and a seller wherein the seller makes an agreed-upon type of inventory. available at a set prices, and the buyer buys it via a programmatic platform that also facilitates auctions in an open exchange.
Sound familiar? It's exactly like a direct-sold deal!* Look at recent comments from Hulu (link below). Here we have an ultra-premium publisher that won't enter into any technological arrangement where there is any ad quality risk whatsoever. They'll never send inventory to an open exchange. But they can use many of the same platforms they would use were they going to open exchange, provided those platforms have Deals functionality. If in the future Hulu has properties where ad quality is not such a high priority, or if exchange controls mature to the point where buyers can be classified accurately by ad quality risk profile and publishers therefore allow buyers with whom they don't have direct relationships to bid on their inventory, it becomes a great efficiency and buyer density opportunity for Hulu and publishers like it.
*At least, it can be exactly the same, depending on the publisher's waterfall / first-look priority assigned to the deal.
https://www.beet.tv/2018/02/peter-naylor-3.html
The advent of ad networks, and eventually ad exchanges, have greatly increased the share of buying and selling that does not depend on in-house teams. Programmatic is eating up direct-sold's share; as it becomes more transparent and efficient, it becomes a cost reduction play on the publisher side. As a publisher, as soon as I can sell my inventory programmatically - that is, at the risk of oversimplifying it, by a machine in an auction per impression, rather than by a human at the thousand, million or billion - in such a way that the cost reduction beats any hit to revenue, it becomes a positive-NPV decision.
So, programmatic is unstoppable. An interesting question comes up for publishers: can we use the same technology as we are using for programmatic to handle our very important direct relationships? So that programmatic technology is not just a remnant fill solution for us, but an overlay of value-adding technology on our whole business?
Hence the concept of the "Deal ID," or just the "Deal." In programmatic, a deal is a pre-arranged agreement between a buyer and a seller wherein the seller makes an agreed-upon type of inventory. available at a set prices, and the buyer buys it via a programmatic platform that also facilitates auctions in an open exchange.
Sound familiar? It's exactly like a direct-sold deal!* Look at recent comments from Hulu (link below). Here we have an ultra-premium publisher that won't enter into any technological arrangement where there is any ad quality risk whatsoever. They'll never send inventory to an open exchange. But they can use many of the same platforms they would use were they going to open exchange, provided those platforms have Deals functionality. If in the future Hulu has properties where ad quality is not such a high priority, or if exchange controls mature to the point where buyers can be classified accurately by ad quality risk profile and publishers therefore allow buyers with whom they don't have direct relationships to bid on their inventory, it becomes a great efficiency and buyer density opportunity for Hulu and publishers like it.
*At least, it can be exactly the same, depending on the publisher's waterfall / first-look priority assigned to the deal.
https://www.beet.tv/2018/02/peter-naylor-3.html
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