The concept of programmatic monetization is an emerging trend in the digital advertising industry. With this type of monetization, publishers are able to sell their ad inventory through automated real-time bidding (RTB), where the advertiser is purchasing the inventory on a per-impression basis. This type of monetization is becoming more popular with publishers, because the process involves less manual work than other forms of monetization.
Programmatic monetization allows publishers to increase their ad revenue by increasing the number of ads that are sold. When advertising space is sold manually, the publisher is limiting the number of ads that can be sold. Due to this limitation, advertisers are not able to maximize their advertising efforts.
It allows for a higher volume of ad impressions due to its automated real-time bidding process. Automating this process also helps decrease the amount of time spent selling inventory on part of the publisher.
With programmatic ad buying, publishers are able to sell their advertising space for higher prices; the higher the price of the ad impression, the better it is for both parties involved. To help improve their income earnings, publishers should consider using this type of monetization.
Benefits of Programmatic Monetization
With programmatic monetization, publishers are able to maintain their direct relationships with advertisers while also enjoying the benefits of automation. Automation is both time-saving and cost-effective, allowing publishers to focus on other tasks within their business.
How it Works
Benefits of programmatic monetization lie in how it works. This technology streamlines the process of selling advertising, freeing publishers to focus on developing their audience and content while retaining control over which ads are shown on their site. And because programmatic ad buying increases efficiency for both publisher and advertiser, costs are lower than with traditional methods.
Automation of this process allows for publishers to reap the benefits of programmatic monetization. Automated real-time bidding (RTB) is very effective at clearing inventory for clients, giving consumers a rich experience with relevant ads while publishers enjoy higher revenue per page view.
This increase in revenue comes from increased competition among interested advertisers. Automated systems, able to quickly analyze a site’s inventory and make instant decisions on whether or not to bid on placement, lead to greater competition among interested advertisers. While this does mean lower CPMs compared with direct sales teams who can negotiate pricing on a per-impression, increased volume and increased competition still bring more money into the publisher’s coffers than direct sales.