In my opinion, the digital real estate landscape desperately needs an overhaul. For too long, publishers have had to contend with what I like to call “brokers.” These businesses act as intermediaries, providing value while prioritizing their own profit. Brokers portray themselves as tech partners, but there is no assurance that the delivered value is in their client’s best interest. A broker will sell you fish, whereas a partner will teach you how to fish and make a higher profit by doing so.
True tech partners/vendors are rare. You should have a partner that puts you first and has as much on the line as you do—a partner who is willing to grow with you. There is a range of factors in deciding which tech partners may be the best fit for your business, especially when it comes to your video strategy. Publishers who, in recent years, have been suffering from all these changes tend to focus on the broker side: direct revenue-generating activities or traffic-generating, which turns into revenue.
The question is, what’s best for your digital property? That decision comes down to understanding these critical differences between a tech partner and a broker.
BROKERS
Ad tech brokers come in many shapes and forms. Many conversations with brokers have a dominant monetary component resulting in purely transactional relationships; money for real estate. As a publisher, I may be willing to sacrifice page areas, but in return, I want guaranteed dollars. I also understand that if the money the vendor promises me is high, it will come with constraints. A battle between sacrifice and bottom-line gains. In this scenario, the broker keeps all the tools, innovation, and unique knowledge about how to best monetize my website, and I get a check in return. In this case, not only was I not taught how to fish, but I don’t even know where to buy my fishing rod.
It’s easy to understand why publishers sometimes prefer brokers. It’s effortless and predictable. And in certain cases, working with a broker makes perfect sense. Making a bet where the money is not guaranteed is always a risk, and many publishers want the quick fix (a check) versus a solution that may be better for their business but comes with risk or effort. This is human nature, but publishers could gain more by considering the big picture.
TECHNOLOGY PARTNERS
A tech partner looks out for the publisher’s interests because the publisher’s success aligns with the tech partner’s success. Historically, publishers preferred to receive money as part of adopting technology rather than paying for it. With publishers’ needs growing, so is the need for real technological solutions to deal with today’s challenges. In my opinion, brokering real estate is not enough. At the end of the day, the right technology should generate more revenue than any broker. It might take more time and trust, but once you commit, you can gain full control, and it should become a springboard for other activities. You’ll also earn a partner you can work with on future endeavors.
When looking at video advertising, brokers have historically been the go-to option for many years because publishers were traumatized by big promises that were under-delivered. Additionally, brokers were often known to keep innovation in-house due to a “guaranteed revenue” process.
It is much easier to sell to publishers when you promise money, making publishers feel comfortable signing a quick agreement. While this line of thinking may have been normal a few years ago, that’s no longer the case because:
- Video is part of the main strategy. Publishers know more about video than before, and their commercial teams are smarter. Publishers understand the importance of maintaining control during the process. Pageviews and other metrics are manipulated, and UX is monitored. The modern publisher has a holistic view between editorial, product, and commercial.
- Supply path optimization, a strategy that streamlines access to the ad supply by removing inefficient or expensive intermediaries, is gaining popularity due to the associated transparency and revenue gains. The publishers’ programmatic connections are worth more than any mediator.
- Control of how your inventory is represented to the buy side is key for a long-term, healthy relationship with buyers.
Historically, publishers did not have the technology to optimize their platforms the way they deserved. But if they choose the right tech partner, they can.
SPOTTING THE DIFFERENCE
I’ve seen many brokers position themselves as technology partners. They claim they’re not just a vendor; they’re a real partner because they’ve invested in technology, believe in transparency, and work with hundreds of clients. But if someone has to reiterate their role multiple times, does anyone really believe it?
If you’re a publisher looking to differentiate between a partner and a broker, ask yourself: How is the technology getting into your hands? Are you receiving the tools needed to operate a successful business? Or are you simply getting a check at the end of the month? What shared knowledge are you gaining?
Keep in mind that when you decide to work with a tech partner, you’ll also be able to:
- Maintain control over your business with no constraints, allowing you to make every decision regarding your digital properties
- Work freely within the ecosystem and collaborate with anyone (brokers tend to limit a publisher’s ability to collaborate with vendors, even if the activity is not in direct competition with the broker’s activity)
- Improve the user experience by deciding on the layout and the ratio of ads versus content
- Gain transparency that lets you see what’s happening behind the scenes
- Optimize your long-term revenue growth vs. short-term gains (in ad tech, short-term views can be costly)
As you make the decision between a tech partner and a broker, consider how much control over your website you’re willing to give up and how much you’re willing to let a third-party vendor determine your current and future strategy. Then, take an honest look at your current digital real estate layout and think about which partnership aligns best with your future goals.
Tom is the Co-Founder and CEO of EX.CO.