The Current Podcast: Valnet’s Ji Heon Kim on Encouraging User Authentication

Release Date: June 19, 2025

In this insightful episode of The Current Podcast, hosts Damian Fowler and Ilyse Liffreing engage in a comprehensive conversation with Ji Heon Kim, Valnet’s Head of Monetization. The discussion delves into Valnet’s strategic initiatives to enhance monetization without compromising user experience, with a particular focus on supply path optimization (SPO), ad tech innovations, and fostering user authentication.

1. Introduction to Valnet

Damian Fowler kicks off the episode by introducing Valnet as a major digital publishing powerhouse behind popular sites like Screenrant, Gamer Collider, and MakeUseOf, collectively attracting hundreds of millions of sessions each month.

Damian Fowler [00:00]: "You are summarizing a podcast episode..."

2. Valnet's Evolution and Publishing Philosophy

Ji Heon Kim emphasizes Valnet’s growth trajectory while maintaining a “humble and hungry” mindset. Valnet started small but has expanded across various niches, including automotive, gaming, technology, entertainment, lifestyle, and sports, with entertainment remaining the flagship sector.

Ji Heon Kim [00:27]: "We like to think of us as a publishing powerhouse. We started very small. Our motto is humble and hungry."

3. Supply Path Optimization (SPO): Strategies and Challenges

The conversation shifts to SPO, a critical strategy for optimizing ad revenue by reducing reliance on resellers and increasing direct inventory sales. Ji explains the gradual and experimental approach Valnet took, highlighting both successes and setbacks.

Ji Heon Kim [01:57]: "It's an ongoing process... it's impossible to do an AB test, right, because you have one ads.txt file and you can't test one setup with the reseller lines, one setup without."

4. Impact of SPO on Revenue and Advertiser Relations

Ji discusses the complexities in measuring SPO’s direct impact on revenue, noting that changes don’t manifest overnight. He underscores the importance of enhancing inventory quality and effectively communicating these improvements to advertisers.

Ji Heon Kim [05:00]: "We know we have to go in that direction, but we know it's not going to happen overnight."

5. Balancing Ad Density, User Experience, and Monetization

A significant portion of the discussion revolves around optimizing ad density to balance monetization with user experience. Ji explains Valnet’s metrics-focused approach, adjusting ad injections based on content structure to maintain readability while maximizing ad performance.

Ji Heon Kim [07:17]: "Ad density is probably one of the biggest parts of advertiser value and performance and user experience."

6. Innovating in Ad Tech: Overcoming Challenges

Ji candidly shares the hurdles Valnet faces in ad tech innovation, particularly the rapid changes in the programmatic landscape. He highlights the difficulty in bridging the knowledge gap between ad operations and development teams, emphasizing the need for standardized processes to streamline innovation.

Ji Heon Kim [09:47]: "Our biggest challenge was bridging the gap between developers and ad ops."

7. Shift Towards Authentication and First-Party Data

The discussion transitions to the strategic shift towards user authentication in response to the deprecation of third-party cookies. Ji explains how Valnet has pivoted to creating exclusive, high-value content to incentivize user sign-ups, recognizing even a modest 10% conversion rate as impactful.

Ji Heon Kim [11:43]: "We can do a lot with that 10%. So we created more value to the users... to give users incentive to authenticate and sign up."

8. Acquisition of Polygon: Strategic Expansion

Ji elaborates on Valnet’s acquisition of Polygon from Vox Media, a move aimed at enhancing Valnet’s premium inventory. He highlights Polygon’s strong content foundation and the strategic advantage of owning high-quality inventory that isn’t predominantly sold on the open market.

Ji Heon Kim [19:08]: "Polygon was exciting because it's premium inventory that doesn't get seen in the open market."

9. Advice for Publishers on Monetization Strategies

Ji offers valuable advice to other publishers, stressing the importance of realistically assessing which opportunities to pursue based on available resources. He advocates for focused efforts and passionate accountability rather than attempting to capitalize on every potential avenue.

Ji Heon Kim [20:54]: "Understand which opportunities realistically are you able to get and have the right resources who are going to be passionate about that."

10. Hot Seat Questions

The episode concludes with a segment of rapid-fire questions:

• Obsessed With: Scaling direct sales sustainably without incurring excessive costs.

  Ji Heon Kim [22:27]: "I'm trying to find a way to scale it but without having massive costs."

• Missing in Ad Tech Stack: Greater standardization around reporting and creatives to streamline processes and improve page performance.

  Ji Heon Kim [24:06]: "There's so much standardization needed around what kind of creatives are acceptable."

• Advertiser Misunderstandings: Misconceptions around brand safety, advocating for a shift towards brand suitability that considers contextual relevance rather than broad keyword blocking.

  Ji Heon Kim [25:08]: "There needs to be more about understanding the context of certain articles."

• Unexpected Reader Behavior: Even minor changes, such as a 10% reduction in video ad size, can significantly impact click-through rates, underscoring the sensitivity of user engagement metrics.

  Ji Heon Kim [26:39]: "Users are really sensitive to these things and to me it’s not, maybe I'm looking at it too often, but that always catches me by surprise."

11. Conclusion

Damian wraps up the episode by reiterating Valnet’s commitment to maintaining a balance between monetization and user experience. Ji’s insights offer a transparent look into the strategies and challenges faced by modern digital publishers striving for sustainable growth and enhanced advertiser value.

Damian Fowler [28:22]: "I'm Damian and we'll see you next time."

Key Takeaways:

• Strategic SPO Implementation: Valnet’s methodical approach to supply path optimization highlights the complexities of balancing revenue and inventory quality.

• Ad Density Management: Optimizing ad injections based on content structure is crucial for maintaining user experience without sacrificing monetization.

• User Authentication: Transitioning to authentication models requires creating compelling value propositions to encourage user sign-ups.

• Ad Tech Innovation: Bridging the gap between ad operations and development is essential for effective innovation in a rapidly evolving landscape.

• Focused Monetization Strategies: Publishers should selectively pursue monetization opportunities aligned with their resources and strategic goals.

• Brand Suitability Over Safety: Advocating for nuanced, context-aware advertising strategies can enhance brand alignment and effectiveness.

This episode offers a deep dive into the intricate balance digital publishers must maintain to thrive in today’s competitive landscape, providing actionable insights for industry professionals.