The Guardian shifts ad strategy towards curated private marketplaces

Programmatic advertising is shifting its focus from open auctions to curated private marketplaces (PMPs), creating new opportunities for publishers, particularly those with dedicated audiences and strong first-party data. This was highlighted by Dave Strauss, The Guardian’s new vice president of revenue operations and strategy for North America, who shared insights into the publisher’s evolving revenue strategies in an interview with AdExchanger.

Strauss, who assumed his role in October 2023 after leading revenue operations at Dotdash Meredith and Hearst, explained that PMPs are becoming increasingly attractive due to their ability to provide clearer inventory buying options. “You know exactly what inventory you’re buying, and the publisher can apply targeting on their side with first-party data,” he said. With the digital landscape shifting as cookie deprecation continues, Strauss noted that advertisers are keen to forge direct partnerships with publishers, thereby driving demand for PMPs.

The Guardian’s revenue model indicates a roughly equal split between programmatic and direct ad revenue, with growing interest in PMPs. Strauss emphasised that the company is investing in training for its direct sales team to ensure all members are proficient in programmatic offerings: “We don’t want just one programmatic specialist; we want everyone to be an expert.” This approach reflects a comprehensive strategy where the same team handles various aspects of the advertising sales process, rather than separating video, display or programmatic sales.

Strauss shed light on how The Guardian plans to leverage PMPs more effectively. The company is actively reviewing its relationships with supply-side platforms (SSPs), looking to streamline its partnerships in favour of those that offer unique demand. This strategy comes in the wake of reported challenges, including a slight year-over-year revenue decline for 2024, attributed to decreased demand in the advertising market.

Despite recent trends, Strauss conveyed a sense of optimism about the publisher’s programmatic performance, citing a 30% increase in open auction yield since October. The Guardian continues to adapt to changing market conditions, with a particular focus on brand safety. “Brand safety is not the bad guy. I want us to see them not as something that makes us less money, but the opposite,” he said, highlighting the importance of collaborating with brand safety vendors to improve sales strategies.

When discussing dependency on Google as a monetisation partner, Strauss acknowledged its significance in The Guardian’s advertising ecosystem. However, he noted a decline in demand flowing through Google’s ad technologies, suggesting increased competition and improvements from other SSPs. As for the ongoing antitrust trial involving Google, he maintained a focus on achieving fair bidding scenarios for advertisers, stating, “I just want whoever bids the most money to win the impression.”

Regarding the publisher’s approach to direct ad sales, Strauss affirmed that The Guardian is primarily reliant on first-party data, minimising dependency on third-party cookies. He also mentioned a strategic shift towards contextual targeting, which involves utilising content-based methodologies to enhance advertising effectiveness.

While currently not utilising a paywall, The Guardian encourages reader contributions, which have yielded significant revenue growth. Strauss reported that in the past year, the publisher generated approximately $111.8 million from more than 100 million contributors, exemplifying the engagement and commitment of its audience.

In light of the evolving media landscape, The Guardian is exploring alternative identifiers for tracking users, with a cautious approach that accounts for international regulations like GDPR. Additionally, Strauss highlighted the recent launch of The Filter in the UK, a revamped initiative focusing on commerce and affiliate marketing, indicating the potential for new revenue streams through partnerships with retail media networks.

This ongoing transformation reflects The Guardian’s proactive stance in adapting to digital platforms, diversifying content distribution avenues and exploring innovative monetisation strategies in an increasingly competitive publishing environment. As the media landscape continues to evolve, The Guardian is keen on capitalising on these opportunities while ensuring a valuable and accessible experience for its users.

Source: Noah Wire Services