Publishers need to take the lead when it comes to revenue generation

August 18, 2008

An article by Abby Klaassen in Advertising Age points to a IAB report that highlights a simmering conflict between publishers and networks. The article states that “On average, the cost-per-thousand rates for network-sold inventory are less than a 10th the CPMs publishers were able to charge when selling it themselves.” The report calls on publishers to get in place an appropriate overall pricing and inventory strategy.

As evinced by several Pubmatic studies, publishers (especially the larger ones) are not finding it easy to monetize ad inventory using CPM pricing models. Two areas that we are seeing publishers experiment with at Pontiflex are

a) Display advertising served on a CPL pricing model. Pontiflex’s AdUnit X banners allow users to submit information to advertisers without having to click-through to a landing page. The publisher benefits because the user continues to stay on their site. With the elimination of the click-through advertiser conversion rates increase drmatically. We have seen publishers ask for a fair sum for a lead and eCPMs go up dramatcially.

b) Monetizing the co-registration path. As explained in this white paper, by monetizing the co-registration path, publishers can achieve eCPMs of $75 or higher.

Especially in tough economic times, advertisers are placing a high emphasis on increased ROI. Publishers might just find that meeting this demand will amount to a rewarding experience in more ways than one.

Entry Filed under: Best Practices, Lead Generation, White Papers. .

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