Operative Blog

At the back of every publisher’s mind is a question: “Does my revenue reflect the true value of my inventory?” In far too many cases the answer is either “no” or “I wish I knew!” So how can publishers feel confident that they’re selling the right inventory to the right buyer at the right price? The answer: productization. To learn more, Amy Inlow, our blog editor, asked product manager Andrew Sullivan to explain what productization is all about.

AI: Let’s start with the basics. What is productization, and why is it important for publishers?

AS: Simply put, productization is deciding exactly what you plan to sell and being consistent about it. Consistency is helpful for your sales teams, your buyers, your inventory managers, your pricing team and your traffickers. If everyone is working with a commonly accepted product catalog with predictable pricing rules then it takes the guesswork out of everyday tasks.

In the end a good productization practice will result in a toolset that the entire organization refers to constantly. It should be a searchable catalog that the sales team uses to build proposals for buyers, the foundation for a comprehensive rate card, an implementation guide for campaign managers and a reference for analytics teams.

The goal is to strike a balance that gives buyers access to the audience they’re looking for on safe, well-defined content, while maintaining a level of structure and control for operations teams to traffic and manage campaigns. But most important, I think, productization lets publishers confidently break out of the constraints imposed on them by their ad servers so they can create products and packages that really reflect buyer demand.

AI: How does productization actually occur?

AS: There are a few fundamental aspects to the process. The first is simply segmenting all of the ad slots a publisher has access to so that they can actually be sold. In practice this means starting with ad server tags to make sure they’re following a consistent structure, and documenting clearly how to target any given site, channel, section, page, etc.

On top of that the publisher should take stock of all demo, geo, behavioral and other targeting that is feasible based on their technology stack, and make decisions about which they’re ready to expose to buyers. Are you unable to DMA target in some areas because your mobile ad server doesn’t support it? Does it really pay to allow age targeting on the home page, or is it better to limit that inventory to exclusive sponsorships? Determine the combinations of targeting that make sense for your business on each of your properties, and document those as well.

With those things in place, ongoing productization means maintaining an internally published list of buyer friendly products with documented controls around pricing, targeting, creative specs, buyer limitations – and then as much META information as possible to help sell the inventory.

AI: What are some of the business issues productization helps publishers address?

AS: A big issue is simply knowing all of the ad slots publishers have available to sell. After all, you can’t sell ad slots that you don’t know about. This may seem easy but it can be challenging when new tags are being generated every day, or if the inventory was acquired through partnerships with other publishers or networks, for example.

Another issue is delivering on customer expectations. Sales teams are often too quick to sell products that are driven by the unique requirements of the buyer. For instance, the buyer may ask for audience segmentation, frequency capping, or special creative that aren’t standard offerings. The operations team is left to figure out how to match what’s been sold with what can be delivered, and turn it around in a few weeks or days. This disconnect causes delays, discrepancies, and unhappy buyers. Productization can help eliminate that disconnect by clearly identifying what is available to a sales team. This doesn’t mean that your organization shouldn’t offer the new and bleeding-edge experience buyers want, but when a request comes in that doesn’t match up to existing products, clear product definitions should provide the time and context the publisher needs to really capitalize on the opportunity.

Inventory management also gets a boost from productization. Not only does the structure and consistency of the catalog make inventory management possible, it’s also a way to prevent campaigns with combinations of targets and ad slots that have no chance of delivering in full. Is it worth it to deal with the booking calculations for users of a certain age in a specific DMA on your travel section? If not, don’t sell it.

AI: How will a publisher benefit from productization?

AS: A huge benefit is the sustainable boost in revenue that comes from implementing enterprise-wide sales guidelines. There may be inventory that performs best when sold to particular industries, or through specific sales teams, or when offered through an exchange. Implementing controls that ensure inventory is sold with the whole yield curve in mind is the only way to raise the effective CPM across the board.

Rate card management tools also help publishers boost revenue because they set standard rates for all products by channel, including price goals and minimum floors. They also let publishers ensure that products are sold using the cost method (CPM, CPC, etc.) that delivers the best results.

Another benefit is improved reporting. Productization is instrumental for any critical revenue analytics. The holistic view lets publishers compare how their inventory performs across sales teams and channels. Since all sales teams, including performance and marketing teams, will be working with comparable products, publishers can actually compare apples to apples.

AI:  How does a publisher go about productizing inventory? What are the first steps?

AS: Any publisher doing direct sales today has been doing productization since their first IO was trafficked. Even if they haven’t been thinking about it as productization, all the placement lists, trafficking instructions, rate cards, creative specs and other materials that sit in Excel, Outlook, Powerpoint and people’s heads are the building blocks of a product catalog. The first step is to focus as an organization on the right strategy for the business and get buy-in from stakeholders to participate. From there it’s a matter of deciding on the technical infrastructure for managing the catalog and going through the process.

To really manage a robust enterprise level catalog requires an Advertising Business Management platform that can really bring everything together. It should provide the tools to generate and manage a product catalog, and ideally it will embed that catalog in the sales, trafficking and reconciliation process with hooks into business intelligence and inventory management.

Operative hosted a webinar on this topic Thursday, November 17.  Our guest speaker and presenter was Joanna Bloor, VP of Sales Operations for Pandora.  To obtain a copy of the webinar recording, please send an email to info@operative.com and we will email you the link once it becomes available.

About Andrew Sullivan

Andrew is the mastermind of Operative’s unique, multi-dimensional inventory management solution, as well as the company’s Ad Master Model and Campaign 360, solutions that enable publishers to better manage and optimize their product offerings and solutions set.  In his role as Product Manager, Andrew manages and oversees development for the software; acts as a liaison between sales, account management and development; and is continually designing solutions to meet ongoing publisher challenges.

Andrew began his career at Operative as a Campaign Manager, trafficking, managing and optimizing campaigns for both publisher and agency clients.  Within a year of joining the company, he was leading the systems integration team, working with some of Operative’s largest clients on software implementations.  Andrew also served as Senior Manager for Strategic Development, where he focused on new product innovation. 

Prior to joining Operative, Andrew worked as an Art Director at Agora Studios.  He holds a Bachelor of Science in Electronic Media, Arts and Communication from Rensselaer Polytechnic Institute.  

At most agencies, Ad Operations teams are typically brought in only right before a campaign’s launch date.  The media team works with the client and publishers for months to build and finalize a plan, the design team develops the creative, and only AFTER this does the Ad Operations team step in to traffic.  By bringing Ad Operations into the media planning process much earlier, you can create more robust media plans, ensure that launch dates are met, and determine a process that reduces back and forth communication.

1. Most media planning teams are focused on one or only a few clients, but Ad Ops teams typically work with a dozen or more advertisers and execute a variety of types of campaigns.  Ad Ops sees it all—different vendors, types of targeting, audience segmentation, etc.  As a planner, if you explain what kind of campaign you are looking to run and what kind of targeting you want to do, Ad Ops may be able to inform you of better ways to achieve your goals within your ad server. Leverage the experience your Ad Ops team or partner has gained from working on past clients and campaigns…it may help you build a more targeted, customized media plan.

2. Before promising your client the swift implementation of a creative or technology you haven’t worked with before, give your Ad Ops team a call.  For instance, if you are gearing up for a campaign and your client wants to use a new rich media vendor, loop in your operations team.  If Ad Ops has worked with the technology solution before, they may be able to provide feedback based on past experience; like complexity of ad trafficking, how long the implementation process might take, etc.  Working closely with your ad operations team can help you set realistic time lines that meet your needs as well as your advertiser’s.

3. Your Ad Ops team can also be a great resource for building process.  Launch dates can be delayed if information is missing or creative isn’t built correctly.  Ad Ops can help media planners develop tools like trafficking sheets, timelines, specification grids or checklists.  Sometimes simply listing what Ops will need from you (site contacts, URLs, specific trafficking instructions) beforehand will limit the back and forth communication that often delays implementation. 

As you prepare for a busy Q4, consider Ad Ops as a resource for MUCH more than just trafficking.  Don’t be afraid to get on the phone and pick your trafficker’s brain if you have an idea that you are not sure how to execute.  If you view your traffickers as partners, your campaigns and clients will benefit.

———————————————————————————————–

Caitlin O’Reilly, Operations Manager, Operative

Operative provides outsourced Ad Operations for both agencies and publishers across the globe. Caitlin O’Reilly is one of Operative’s technical and tactical experts for all things Agency, providing advice to agency clients on a variety of subject matters including campaign and creative performance, troubleshooting, click tracking, reporting and rich media guidance.

Ad Operations Training

Within the Ad Ops community, the turnover of people coming in and leaving can be nonstop.  It might seem like you are always training the newbie.  Training new traffickers can be a daunting task if you approach your employees with an overload of information.  The 5 steps below are guidelines we follow at Operative, that have proved to be incredibly beneficial to traffickers, as well as our customers.

1. Set the stage for what lies ahead

Learning to traffic is like learning a new language.  And with that learning, there can be a fair amount of initial frustration.  To combat this, communicate with your new trafficker throughout the entire training. Provide clear direction.  Take things one step at a time and don’t overwhelm them.  Always encourage questions!  If they don’t feel like they can ask you questions continuously, they will develop bad habits that could negatively affect your campaigns.

2. Reinforce the need for multi-tasking

Without the ability to manage several projects at the same time, your new trafficker will feel the weight of the pressure.  At first, start them off with simple projects like QA’ing creative or setting up a single Ad in the Ad Server.  After they grow comfortable with those tasks, and you are comfortable with their progress, add levels to their trafficking and so on.  Soon enough they will be trafficking a small campaign without even realizing how much they accomplished in a short amount of time.

3. Pay attention to detail

A main component of our day-to-day work as traffickers is spent on the details of a request.  Whether the details are simply the naming convention of a creative or the specific targeting that an entire campaign needs to achieve, the attention to detail is what sets apart traffickers.  When starting out with a new trafficker, reinforce the importance of details.  Slight pressure helps the traffickers learn faster because they are more sensitive to the task at hand.

4. Plan for errors           

Hmmm…errors.  While this is a touchy subject with all traffickers, errors are inevitable and unavoidable because our job function is very hands-on and extremely manual.  The challenge is to make sure to move on after an error is made and learn from your mistakes.  Much like a quarterback in football, throwing an interception is a momentary mistake but you have to get right back up, finish the game, and not dwell on it.

5. Prepare to be ‘last in line’

Lastly, it is critical to alert your trafficker that he or she is the last person on the assembly line of implementing an ad and ensuring it delivers on the web site properly.  What we do is considered the ‘finished product’ and with that, comes the need for increased visibility and accountability.  As traffickers, we need to communicate, juggle tasks, receive instruction, give feedback, and finish the project at hand on time and without error.

Once you complete these tasks, take a step back, see how your new trafficker is doing and then get ready for that next training because there is always someone else is waiting in the wings.

For more information, please click here.

————————————————————————————————————————

Patrick Bevilacqua, Operations Manager, Operative

Operative provides outsourced Ad Operations for both agencies and publishers across the globe. Patrick Bevilacqua one of Operative’s senior technical and tactical experts for all things Agency, providing advice to agency clients on a verity of subject matters including campaign and creative performance, troubleshooting, click tracking, reporting and rich media guidance.

The world of creative in online advertising is constantly evolving. It seems that every month we’re reading about new types of creative that can be implemented on a publisher’s web site. While many still use plain images to do their advertising (and there’s certainly nothing wrong with that!), we are beginning to see that advertiser’s want to directly engage the user…and when they do, it leads to quantifiable results.

While Flash® is still considered ‘Rich Media’ by many, it is quickly becoming ‘standard’ creative in this day and age. Flash® ads are now so common that even as a user myself, I do not feel that it captivates my attention like many of the newer brands of creative – ads such as push-downs, interstitials, and floating ads, while sometimes annoying to the user, also present a better opportunity to capture the user’s attention.

So if you are a publisher and want to get involved in the freshest types of rich media, here are 3 things to know so that you aren’t caught off-guard by the newest creative types.

1. Rich Media Vendors are the way to go.

If you’ve yet to take a dive into the world of rich media, know that there are specialists out there whose core competency is building and serving high-end rich media. Providers such as Pointroll, Media Mind(formerly Eyeblaster) and Eyewonder specialize in this type of work, and can handle any questions you may have about rich media as well as assist you and your advertiser in the creation of your product. Operative has developed partnerships with several of these vendors as well- reach out to us if you would like an introduction!

2. Rich Media creative is served differently than standard creative.

Standard ads are served through an ad tag on your website. These ad tags contain a specific size and directly correlate to a specific position on your page. There is very little complexity here. When delving into a high-end rich media creative, the equation changes. Take a “pushdown” for instance:  This ad is meant to load as a standard ad, but when you mouse over it, it “pushes” the content of your page down as the ad expands to a greater size. To create this type of movement, the code within the ad interacts with the code on your web page, creating this action. Obviously this can be a complicated process, which leads us to…

3. There will be some frustrations!

Most publishers can attest to the struggles obtaining creative in time for an on-time campaign launch. When using rich media, the struggle may increase. As a publisher, if you know you are going to be using rich media, it is best to plan for it! Rich media creative often require extensive testing in a custom set-up test environment (make sure you have one!) before setting the creative live to your actual web page. These ads often do not work the way you expect them to on the first try, so it’s imperative to test them before launch. This, of course, means you’ll need the creative in your hands well before the launch- so make sure you plan ahead for this when scheduling campaigns and working with a creative developer!

Diving head-first into the world of rich media is an exciting step for every publisher…and can lead to increased revenue. But know that a lot of work, and often times, a lot of patience is a part of the package! All in all however, employing rich media on your site can be a tremendous benefit to both you (higher CPMs), and your advertisers (more customers)!

For more information, please click here.

—————————

Blogged by Christopher Lane, Operations Manager

Operative provides outsourced Ad Operations for both agencies and publishers across the globe. Chris Lane is one of Operative’s senior technical and tactical experts for all things Publisher, providing advice to publisher clients on a variety of subject matters including campaign performance to troubleshooting and product optimization.

Did you miss DPAC on June 24 at the Millennium Hotel? Are you interested in some of the results of the Operative and DM2PRO State of the Industry survey? Do you want a sneak peak into Operative.One?

No problem.

Download the Operative presentation by clicking on the below link. 

Operative at DPAC Conference_6-24-10

Also, for access to our white paper, State of the Industry: Digital Operations, CLICK HERE. Read more…

Operative Survey: The State of the Industry- Digital Operations

For the last 2 weeks, we’ve been working with the team at DM2PRO to survey the digital advertising community about the current state of affairs:

- Growing need for data integration among all players in the ecosystem

- Blurring lines between publisher, agency, brand and network roles and responsibilities

- As we continue to innovate, our inability to adopt those innovations is holding us back!

- Fragmentation is NOT going away….and agencies, publishers, brands, advertisers and networks alike need to stop losing money and bring our systems together to compete effectively. Read more…

Operative partnered with the team from DM2PRO to survey digital publishers and agencies about the people, processes and tools required to run a profitable advertising business.  At DPAC today, we’ve released the findings.  Take a look at some of analysis we’ve gathered.

More than 339 self-identified publishers weighed in during a one-week period, ample enough indication that we’d struck a nerve with our subject matter. While many of them without doubt juggle “cross-media” campaigns with their traditional content channels and the Web, we went a step farther, asking, “What percent of all your current campaigns includes three or more media (e.g. a mobile, video and display component in a single order)?”

For a slight majority of respondents, such campaigns are still a rarity. But, for the other half, they range from 10%-25% for a little more than a fifth of respondents, to greater than half all campaigns for the top 10% of publishers.

To read more survey results, check out the below PDF.

DPAC_Presentation_Sample survey findings

For more information, please click here.

According to the Bain Study “Building Brands Online”, in the next 3 years, brand marketers will spend close to 40% of their budget on cross-platform campaigns (up from roughly 25%).  That’s about $52,000,000,000 being spent on cross platform campaigns in the near future.  Unless you start making changes in your organization to satisfy this new rise in demand, you won’t get a dime of it.

Let’s explore why.

What do these new demands look like for marketers?                            

A marketer looking for ‘cross-platform’ means they want to use multiple advertising platforms or vehicles to convey an advertising message.  For example, a brand like Nike may want to reach women at home, on the move, during recreation and at work.  To do that, Nike needs a number of options to distribute the advertising message: display media, online video, mobile, social media, TV, outdoor, newspaper and magazines.  And, the list continues to get longer.  For example, in the last 2 months, hundreds of publishers scrambled to build their iPad app, knowing that a decent percent of their audience will flee to the digital magazine version of their product. 

Marketers are starting to require multiple touch points in their campaigns, increasingly digital.  The people who spend the money are aware that digital is an accountable, efficient way to build brand equity and are putting pressure on their marketing departments to become more cross-platform as a result.  They are looking to get a single message to a consumer across different digital and non-digital advertising channels.  In fact, according to the Marketing and Media Ecosystem 2010 Booz & Company analysis, 89% of all marketers are developing ideas that cross media platforms, including digital.        

What can media owners and publishers do to keep up with these demands?

Let’s take a break from the macro-level talk and get into the day to day reality of the situation.  The media buyer that you met at a cocktail party nine months ago calls you up. 

“Hey – long time, how are you?… Great, great…Listen, we are doing this thing for my client and they are trying to reach men between the ages of 18-49 that are interested in buying a car.  And um…they are really trying to do this across multiple outlets…something that covers all the standard online ad units, but something that’s custom too.  So, if you could put together something that’s standard, custom, across video, mobile, online, social, that’s targeted to male car buyers between the age of 18 and 49 that live in the north east, that’d be great.  Oh, wait, I need it by this Friday OK?  Thanks, you’re the best.”

Only 1 type of publisher will get this order- the one who CAN execute.  If you can’t scale, you’ll spend all of your time reacting to these requests and looking for data.  This leaves very little time to sell, brainstorm and get creative. 

Translation – you likely won’t get this deal. 

So, what’s holding publishers back from executing cross-platform campaigns?

1.    Technology and data fragmentation is still a huge problem.  A typical publisher uses 30+ systems to run their business.  The data is fragmented, yet absolutely necessary to access to stay competitive in this new market place.  There’s one ad server for video, one for mobile, and one for display.  If you want to include a TV component or a print component, there’s a whole different set of systems to access to see if the inventory even available, and at what price.  If you plan to offer ad space on an iPad app, well you have that to deal with now too. 

2.    Business resources necessary to complete the RFP or contract oftentimes don’t even sit on the same floor- let alone same office. You may have other sales teams within your company that you may need to consult with to get them on board with your client’s ideas.  They are usually removed from your digital business goals, have not been vested in the process of selling to this client, and have their own agendas in mind. 

3.     Ad operations teams are typecast and segmented by the media they implement.  For many publishers, one team traffics standard and display rich media.  Another team traffics mobile or uses an outsourced mobile ad network.  TV and print production teams don’t even sit in the same office as you.  These are not ideal conditions for selling a cross-platform deal.

What can publishers do about it?

1.    Take a leadership role by getting all of your data in one place for Sales.  Plan for the future.  According to the Ecosystem study mentioned above, 67% of media owners said they need to upgrade their supply chain capabilities in 2010.  Part of this investment translates into having one screen to access your inventory, products and rate cards available for video, mobile, display, social and even TV, radio and newspaper.  This needs to happen, regardless of the number of ad servers or execution systems you may use.  Integrate it all into one central place so at the time of proposal, Sales has all the information they need when they get the call from that media buyer. 

2.    Centralize ad operations teams and production resources.  Fragmented ad operations teams are unable to help sales drive revenue that comes from cross-platform.  While it would be difficult (today) to have the same ad ops team that implements TV also traffic digital, there are steps you can take to move in the right direction.  Get everyone communicating with each other through one platform.  The carrot is integrating their specific ad system into the platform that everyone uses.  This will make them want to be on that platform.  By merging several departments onto one system, new proposals, orders, demands and alerts from a cross-media sales teams would be visible to everyone. 

How do these steps help publishers deliver cross-media campaigns?

By implementing these steps, Sales will be able react quickly to client demands.  They will also have more data to educate buyers and move upstream in the buying process, getting closer to the people holding the budget.  Executives can get a larger share of wallet from existing and new customers.  Ad operations and production resources can become a strategic partner to ad sales teams and help provide a competitive advantage over other publishers competing for the same dollars.

Of course, this is not easily done.  Someone with influence in your company needs to step in and be the VP of Change.  Someone who has power.  Someone that cares about revenue.  That cares about your brand.  Someone that is forward thinking enough to adapt before it’s too late.  If you can get the right people behind you, integration of data becomes easier, centralization of operations starts to fall into place and the company will start to rally towards a common cause- $52,000,000,000.

For more information, please click here.

The day of ‘seller defined media buys’ will decrease as publishers understand the who, how and where in the context of a media buy.  Sellers need to not only understand the revenue picture but also the value of the audience.  

The question is not WHO owns the data, but WHAT can we use the data for? 

Advertisers and publishers hire vendors to solve their business problems.  The two sources of real data are from advertisers and publishers.  All of data is incomplete. 

Does data equal revenue? 

Are we managing data to get a stronger revenue stream? 

Data ownership is a false paradigm.  It is all about how we USE the data.  We must be respectful of the consumer and prevent legislation at the same time.  If we eliminate data and data usage, it will cause everyone more problems.  Controls are important for both publishers and advertisers.

Advertisers want to buy on frequency and modeling for maximum reach of a targeted audience.  We need a combination of trust and responsibility.  The holding companies want to be transparent and open.  

Big publishers and holding companies are afraid of start-ups who are doing non-ethical things that effect the revenue model for everyone.  But the truth is that big players need to take a lead in the marketplace.  There is a big disagreement between agencies and publishers as far as who can do what with data.   This is a fundamental issue that might not be solved for years.  Right now data is all over the place, no one trusts each other, and advertisers want to buy on an audience basis. 

So, what the value of targeting without context?  

What can publishers do to protect themselves moving forward?  

Don’t work with ad networks. 

Create a business policy on any 3rd party tags. 

Consider search and the influence of site indexing. 

One great way to think about inventory and data, is that we need to evaluate opportunity cost for each partnership.  The first step for everyone has to be transparent throughout the buying and selling process.

For more information, please click here.

Gordon McLeod, President, The Wall Street Journal Digital Network

The Evolution of Content

1. Paid content should be free. Once free, always free is a myth.

The hybrid model is the ultimate access with a paid and free model in the same market.  Drive traffic with free but keep the audience with paid.  Try to also think of different levels of pricing to create a lot of value but let the client decide how much they want to pay.  The highest level is also a great driver for the overall brand. 

2.  Platform agnostic

Print, mobile, web, e-reader, etc.  All of these can work with content.  The key is to make sure you understand the consumers on each platform. 

3.  Forget free, build a pay wall (2010)

Don’t literally build a brick wall.  Low traffic, no inventory is terrible.  Transparency and allowing customers to see the value helps attract higher value.  Make it easy for consumers to use your product.  Constant improvement and showing value is critical here.  Hybrid models could be a good fail safe.   Find a way to get new people  to the site to see the value. 

4.  Paid content is easy, charging is hard.

One view of the customer, the value of that customer is tremendous.  Take control of your business so you can set price.  Add in products that are complimentary but maybe not obvious.  Could industry bundles work as a solution? Bundling is the secret to paid content success.  Also, paid content actually adds value to the business.   With paid content, you get a higher premium.   

Book entitled Information Rules.  Best quote, “Technology changes but economic laws do not.”

For more information, please click here.