While we are in the early stages of cookie obsolescence, media buyers are still not fully convinced by the premium some publishers are charging for their audience data and contextual targeting solutions.
One publisher, who spoke on condition of anonymity, said they typically charge at least $2 on top of the standard CPM for first-party data and contextual targeting features. This is slightly higher than the $1.50 premium about a year ago. Certain categories, such as entertainment and luxury goods, command even higher premiums.
But selling that to media buyers is difficult.
“We are not seeing an increase as cookies continue to be phased out. [in the premiums for publishers’ first-party data or contextual targeting]. There has always been a premium of 0-10% and that remains the case today,” said an agency buyer who requested anonymity.
“You don’t want to spend more money on data than you spend on physical media,” says Holly Dunn, vice president of digital investments and biddable media lead at Havas. Before purchasing a publisher’s first-party data, he reviews how the data is edited to ensure that the data is privacy compliant and that the publisher has the appropriate rights to sell the data. He said that he is conducting a strict investigation into whether this was done.
Dunn added that starting with a $2 premium on CPM can get very expensive depending on the category and the advertiser’s budget. Internally, her team sets standards for how much they are willing to pay for their data.
The first publisher said it was moving away from the CPM narrative with its data products and reimagining these capabilities as tools for high-impact campaigns.
“If an advertiser simply [direct-response] Goal… Applying doesn’t always make sense [first-party audience data] …you can identify the audience that will take that action, but there is a cost to identifying it…and that will be offset. [an advertisers’ goal of finding the lowest CPM]” said the first publisher.
The publisher went on to say that while custom audience segments are expensive to create, they are “highly accurate” and value-added, as they are rolling out new data tools with minimum spends reaching six figures. .
According to Brian Wilson, vice president of media acquisitions at Epsilon, moving away from a CPM-first pricing model makes sense. “Publishers are more concerned about how much money they can make and how much inventory they can monetize without compromising the viewer experience, rather than just CPM numbers,” she says.
But Dunn needs to test the product in a smaller capacity before tackling a large-scale campaign that relies on a publisher’s data set, so her team uses a publisher’s first-party data product to minimize He said he would not consider it if spending was required.
Not all boats rise
However, not all publishers experience how deprecating cookies results in increased CPMs for their data. Another publisher, who spoke on condition of anonymity, said the company has relied primarily on direct sales ads based on first-party data for about two years and hasn’t seen a significant increase in CPMs over the past year. Year.
Another publisher, who spoke on condition of anonymity, said that while their company does not increase premium costs for first-party data or contextual targeting on a CPM basis, it does increase the natural He stated that the number is increasing due to trends. campaigns), the latter service incorporates more data, which increases costs for advertisers.
What’s changed recently in conversations with clients, they say, is that in addition to audience size and demographics, advertisers are also asking about first-party data and contextual targeting capabilities much earlier in the sales process. That’s what happened.
“This is a very valuable position. I think in the past there were a lot of ad tech companies that would put all the logos of all the publishers they worked with and talk about access to inventory; I think that’s what you found.” They don’t really have the data points that agents and buyers are looking for. [anymore]” said a third publisher.
“Where I struggle is when data starts to become more than 50% of your actual total media spend. Or you’re paying extra but you’re not seeing much added value in terms of performance. “If you’re paying a 20% premium for data and you’re not seeing a 20% improvement in viewer quality, it’s not worth it,” Dunn said.
When asked if he often experiences scenarios where premiums outweigh performance increases, Dunn said, “Yes.” “A premium audience is only good if that audience is responsive and responsive to advertisers’ campaigns.”
When does the buyer pay the premium?
As cookies become increasingly deprecated, some predict that prices will eventually tilt in favor of publisher audience data and contextual targeting. However, it depends on what risks the purchaser of the alternative cookie is willing to take.
For example, first-time media buyers are unlikely to bet on publisher data as a primary replacement for third-party cookies. “We do not expect an increase.” [in CPMs for publisher data] That’s because there are additional cookie-less solutions across all media buying compared to first-party data solutions that are only available for publishers’ first-party inventory. ”
And given the fact that the vast majority of advertisers and buyers continue to rely on cookies wherever possible, only time will tell how publishers’ first-party data and contextual targeting capabilities change CPMs. You’ll see, Dunn said.
“Data will become a key element for many companies. [publishers] The companies that will win will be those that have high-quality data and make that data portable and accessible without restrictions.Companies trying to [set] minimal advertising costs [their data] They won’t be the ones who win. ”
