Premium Advertising: Shrinking to the Center

I have been observing the progress of premium advertising for a few years now. After waking the programmatic channel for Netbook Media, I can clearly say the future of premium advertising lies in elimination of the extremes:

1. It is getting harder and harder to convince the brands to pay $20K for reserving the home page masthead of a premium publisher for 24 hours.

2. As is letting brands dominate your inventory with dirt cheap (eCPM wise) CPC deals, when you can monetize those same impressions via programmatic at a much better eCPM.

3. Result seems to be a more uniform distribution starting with premium and premium programmatic and ending with open auction RTB.

4. The degree of data implementation will be closely related to the overall eCPM you are selling your inventory.

Publishers should implement this kind of mindset throughout all their sales channels and start realizing that losing those customers who pay the highest does not necessarily mean they have to lose money. They can make up for (or even surpass) their loss via programmatic by selling those impressions programmatically:

Scenario A: 2000CPM*$10 = $20000, 8000CPM*$1= $8000. Total of $28000

Scenario B: 4000CPM*$4 = $16000, 6000CPM*$1.5=$9000. Total of $25000

This should be the type of transition for a publisher switching from pre programmatic to post programmatic.

Private deals are an important part of programmatic and this scenario is much more plausible with the contribution of private deals that provide valuable data to the trade desks.