Publisher

Publishers and advertisers are both equally important in the digital advertising ecosystem but have distinctly different roles. As we’ve mentioned, publishers own platforms where they create and distribute content. Their role is to provide ad space and to create a substantial audience to give it value. Advertisers, on the other hand, are those who buy that ad space. They pay for the right to display advertisements on publishers’ platforms so that they can promote their products and services to the publishers’ audiences.

There are many different kinds of publishers, each with its own niche and ad inventory. The following are some of the main types of publishers:

Web publishers: Web publishers own sites that provide some form of media content. This could include websites like news sites, video hosting sites, or even personal blogs. They typically display banner ads, display ads on sidebars or footers, or native ads incorporated into content.
App publishers: App publishers are those who create and maintain software applications. Common examples are mobile app and game developers. They commonly display in-ap banner ads, video ads, and interstitial ads.
Social media publishers: Social media publishers own popular social media platforms. They regularly incorporate conventional banner and display ads, as well as allow advertisers to use sponsored posts and stories to reach their audiences.
Video publishers: Video publishers own video-sharing platforms and streaming services. They typically incorporate pre-roll, mid-roll, and post-roll advertisements, which are displayed before, during, and after video content, as well as overlay ads.

The most common method for selling ad space today is programmatic advertising. This is when publishers sell ad space through automated auctions using supply-side platforms. With this method, algorithms are used to automatically auction off ad inventory in real time when users visit the publisher’s platform, leveraging user data and predefined settings to optimize ad selection and placement to maximize revenue.

Another strategy publishers employ is header bidding, which allows them to solicit bids from multiple demand sources simultaneously. This method drives competition for inventory and often results in higher eCPM compared to traditional waterfall methods.

However, publishers can also sell ads to individual advertisers, either directly or via ad networks. In these cases, publishers and advertisers must negotiate rates for ad inventory, and how they do this will vary depending on the type of platform they own, their business model, and the nature of the advertiser in question.

The following are some common pricing models for ad inventory:

• Cost Per Mille (CPM): Publishers set prices for ad inventory based on the impressions generated. Advertisers pay a rate per 1,000 impressions.
• Cost Per View (CPV): Publishers charge for ad inventory based on the number of times a video ad is actively viewed. A certain portion of the ad must be viewed.
• Cost Per Click (CPC): Publishers charge advertisers based on how many clicks their ads generate, with advertisers only paying when users click on their ad.
• Cost Per Acquisition (CPA): The advertiser pays the publisher for each time a user completes a desired action. This could include downloads, purchases, newsletter sign-ups, or other actions determined by the advertiser.
• Dynamic CPM (dCPM): Publishers adjust pricing in real time based on demand and performance. This ensures inventory achieves the best possible price for the advertiser while optimizing revenue for the publisher.