AdExchanger Podcast Summary: "How Publishers Can Place Safe Bets In A Rigged Programmatic Game"

Release Date: February 25, 2025

In this insightful episode of AdExchanger Talks, hosted by Anthony Vargas, the conversation delves deep into the multifaceted challenges and evolving strategies within the programmatic advertising landscape for publishers. Joining Anthony is Justin Wall, VP of Strategy at Attitude and former CRO for Salon, Snopes, and TV Tropes. Together, they explore the intricacies of publisher monetization, the impact of emerging technologies, and the pressing need for collective action in the publishing industry.

1. Introduction and Guest Background

Anthony kicks off the episode by introducing Justin Wall, highlighting his extensive experience in publisher monetization and his recent transition to the Publisher Tech Platform, Attitude.

Quote:

"I did begin to feel the need for scale in what I was doing... my move to software is very much with the hopes that I can scale up the work that I had been doing at my Single Titles and bring it to a great many more publications for their future success."
— Justin Wall [02:50]

2. Top Monetization Challenges for Publishers in 2025

Justin and Anthony identify two primary pillars of publisher monetization: traffic and audience coupled with yield from advertising.

• Declining Readership: Factors such as content fatigue and the rise of generative AI search and chatbots have reduced the volume of traffic available for monetization.

• Advertising Yield: Challenges include maintaining ad quality, ensuring effective targeting, and negotiating fair compensation amidst middlemen extracting revenues.

Quote:

"Publishers in 2025 will really need to tackle both of these things, continuing to keep the audience they have and grow, find new readership, and then also monetize them as best they can."
— Justin Wall [05:36]

3. Navigating the Complexity of Programmatic Advertising

The discussion highlights the inherent complexity of programmatic advertising and its dual nature as both a challenge and an opportunity. Justin emphasizes the potential benefits of outsourcing ad monetization to specialized third-party publisher tech platforms to allow publishers to focus on core business functions.

Quote:

"I think there is not just one way to go about navigating this ecosystem... outsourcing to third party publisher tech for monetization could be a really good strategic move for a given organization."
— Justin Wall [07:38]

4. The Curation Craze: Opportunities and Concerns

Curation in programmatic advertising has surged, but it has also raised significant concerns among publishers regarding control and revenue distribution.

• Loss of Control: Publishers feel sidelined as middlemen curate inventory, often under their own brand names, diminishing publishers' ability to assert pricing and quality standards.

• Revenue Implications: The curation process has exposed gaps in revenue opportunities, especially as smaller media organizations struggle to monetize effectively.

Quote:

"The introduction of curation inside of the SSP is something that publishers were offered over the last few years... the publisher understanding was lagging behind the actual technical implementations that were happening."
— Justin Wall [12:25]

5. Regaining Control Over Data and Partner Compensation

Justin introduces the concept of publishers seeking compensation from partners who place code on their pages, thereby accessing and monetizing their first-party data more effectively.

• Data Transparency: Publishers often lack visibility into how their data is being used and monetized by third-party partners.

• Strategic Conversations: Emphasizing the need for publishers to engage in direct dialogues with partners to clarify data practices and explore compensation avenues.

Quote:

"The idea that when you put code on your page as a publisher, you are opening the door for that partner to know just about as much about your inventory as you could hope to."
— Justin Wall [20:01]

6. Impact of Google's Platform Changes and Third-Party Cookie Deprecation

A significant portion of the conversation revolves around the ongoing challenges posed by Google's delaying the deprecation of third-party cookies and its implications for publishers.

• Delayed Deprecation: Unlike the initial plan, the continued presence of third-party cookies hampers innovation and forces publishers to rely on outdated tracking methods.

• Universal Prompts: Google's shift to a one-time global prompt for cookie consent is viewed pessimistically, with expectations of lower tracking and reduced monetization opportunities.

Quote:

"I don't think that it's ultimately very good for publishers... this news this time around is really much more of a disappointment."
— Justin Wall [28:49]

7. The Rise of Generative AI and 'No Click' Searches

The advent of generative AI search and no-click search is dramatically reducing click-through rates (CTR) for publishers.

• Statistical Impact: Research by Seer Interactive shows that CTR for organic searches drops from 4% to 0.6% when AI overviews are present.

• Consumer Behavior: Users are increasingly relying on AI chatbots for quick answers, bypassing traditional content consumption pathways.

Quote:

"As chatbots and chat interfaces and generative search all continue to improve far more rapidly than publisher SEO operators are able to keep up with... people aren't clicking through to read more about it."
— Justin Wall [35:42]

8. Anti-MFA Push and the Stigma Around Paid Traffic

The industry backlash against MFA (Mobile Fraud Arbitrage) has led to skepticism towards publishers relying on paid traffic.

• Legitimate Use Cases: Publishers argue that paid traffic can support objectives like newsletter sign-ups and subscription growth, distinguishing it from arbitrage-driven paid traffic.

• Evolving Perceptions: While some advertiser uproar has diminished MFA operations, it has simultaneously raised awareness about data and performance metrics among publishers.

Quote:

"Publishers might wish to sponsor a search result that is more likely to bring click through rate to their newsletter signup page... this is indicative of the potential for a paid click paid search result."
— Justin Wall [40:54]

9. Brand Safety and Its Impact on Programmatic Advertising

Brand safety measures, while essential, have inadvertently limited publishers' opportunities by overly broad blocking based on certain content areas.

• Technology Lag: Current brand safety technologies fail to support nuanced, URL-level decision-making, resulting in lost advertising opportunities for sections of a publisher's site.

• Example: Justin cites Salon.com's experience where their food section was blocked by advertisers concerned about political content elsewhere on the site.

Quote:

"The idea that the brand safety brand suitability technology didn't evolve fast enough to support programmatic decisioning at the URL level is really the great harm."
— Justin Wall [47:31]

10. The Need for Collective Action Among Publishers

Despite recurring calls for a unified approach to demanding fair treatment and compensation, collective action among publishers remains elusive.

• Revenue Risks: Publishers operate on thin margins and cannot afford to take financial risks without guaranteed buy-side support.

• Behavioral Change: Calls for coalitions often lack the accompanying shifts in behavior necessary to drive meaningful industry-wide changes.

Quote:

"The publishing community is a recipient of dollars from the buy side... publishers get together, despite competition... they also are faced with a revenue risk because until the buy side says yes and starts to buy or spend in the way that the publishers are suggesting, they can't afford to change."
— Justin Wall [48:25]

11. Conclusion and Strategic Recommendations

Justin concludes by advising publishers to:

• Focus on Supply Quality: Prioritize enhancing viewability, click-through rates, and overall ad performance metrics to qualify for better curation opportunities.

• Leverage Low Revenue Periods: Use times of lower CPMs and RPMs, such as mid-Q1, to implement strategic changes with minimal financial risk.

Quote:

"Looking back at those fundamentals really of viewability, click through rate and performance of your supply, that's where I would start the year off for sure."
— Justin Wall [18:49]

Key Takeaways

• Adaptation is Crucial: Publishers must innovate and adapt to technological shifts like AI-driven search and evolving programmatic tools to sustain monetization.

• Transparency and Control: Gaining better control over data practices and ensuring transparent partnerships can enhance revenue streams and operational efficiency.

• Collaborative Efforts Needed: While challenging, fostering collaboration among publishers could lead to more equitable industry standards and compensatory mechanisms.

This episode underscores the dynamic and challenging environment publishers navigate in the programmatic advertising space, offering strategic insights and actionable advice to place safe bets amidst a seemingly rigged game.