Why Publishers Are Losing Control in the Curation Craze of Programmatic Advertising

The Rise of Sell-Side Curation

The sell-side curation craze is currently at its peak, with SSPs rapidly forming partnerships with DMPs to enhance curation in programmatic advertising. For instance, Permutive recently announced a partnership with Index Exchange during the Programmatic Summit in NYC.

Publishers Left in the Dark

While tech companies are embracing curation, publishers find themselves navigating a challenging landscape where they often lack control. As skepticism towards curation grows, many publishers are voicing their concerns about being added to curated private marketplaces (PMPs) without their knowledge.

Amanda Gomez, SVP of revenue operations at The New York Post, highlighted the issue during a recent discussion, stating that partners are opting them into deals automatically. This makes it difficult for publishers to understand how their data is being utilized and affects their revenue shares.

Demanding Transparency

Gomez emphasized the need for transparent reporting from SSPs regarding the data used in these curation deals and the audience segments involved. Understanding which advertisers are purchasing curated deals is crucial to avoid conflicts with their direct sales efforts.

The Pricing Dilemma

Pricing transparency is another pressing concern, especially since some curation vendors fail to establish effective pricing floors. Gomez warned that while publishers might see short-term revenue benefits, these deals could ultimately undermine their bottom line.

Jeffrey Goldstein, global head of programmatic at Future, expressed fears that publishers might face renegotiations of terms once they become reliant on curated revenue streams. He highlighted a potential risk of programmatic bidding driving down CPMs compared to direct deals.

Operational Challenges with Pricing Controls

Stephanie Layser from Amazon Web Services shared her concerns regarding pricing controls in curation. The complexity of setting individual pricing floors for different data pieces complicates the process, especially within systems like Google Ad Manager that limit pricing floor settings.

As the landscape of sell-side curation evolves, publishers remain wary of a new programmatic revolution that promises control and profitability but may deliver the opposite.