Once you have a Firsty-Party Data Graph, the next logical question is, "How can I turn this valuable asset into revenue?" In this article, we'll explore several revenue-generating strategies that leverage your first-party data to address the evolving landscape of digital advertising.
Direct sales have been a cornerstone for publishers but come with challenges, especially for smaller players. You'll need a Data Management Platform (DMP)or similar data platform to create custom audience segments to succeed in this space. Additionally, licensing demographic data is often necessary to meet advertisers' specific targeting requirements. However, the rising costs of DMPs and the human resources needed for managing direct deals can pose challenges for smaller publishers. Licensing and managing a full-service DMP rarely pays for all but the largest publishers. Over the last two years, lighter-weight DMPs have emerged, and some DMP vendors have given away their technology for rights to data and media assets.
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Within direct sales, publishers can use emerging privacy-enhancing technologies like data clean rooms to match publisher first-party data with brand CRM data. These buys typically have less scale but deterministically target the exact user a buyer seeks - and they pay more to reach them. While a complicated process requiring overhead, it does empower publishers to create deep and sticky relationships with key buyers to curate exactly what these buyers need.
Bid Signal Enrichment is an innovative approach to leverage 1st-party data. Publishers share their first-party data with potential buyers in the bid request to make sure the buyer understands the impression better, thus enhancing the value of impressions. This strategy shifts the focus from third-party to first-party data sources, aligning with online privacy trends.
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Private Marketplaces (PMPs) offer premium ad inventory to select advertisers. Using 1st-party data for PMPs involves syncing your data with Supply-Side Platforms (SSPs) or Demand-Side Platforms (DSPs). This enables you to tap into traditional Real-Time Bidding (RTB) channels.
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Reach extension involves using your first-party data to target your existing audience and similar audiences across different platforms and websites. This expands your audience and boosts ad rates and the ability to service a client’s demand/reach requirements – ultimately increasing revenue.
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In the digital advertising landscape, data is invaluable. First-party data generated from direct user interactions provides a clear view of audience behaviors and preferences. Publishers can package and sell this data to advertisers seeking reliable information if appropriately consented.
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The future is coming faster than we might like:
In the dynamic world of digital advertising, possessing a first-party identity graph provides a bridge to the cookieless future and presents a myriad of revenue opportunities at your fingertips. Yet, it's essential to acknowledge that navigating these opportunities and successfully monetizing your first-party data requires a well-thought-out strategy. Sitting on your hands is no longer an option. Fortunately, these processes can be easily managed with the right partner by your side.
As we've explored various revenue-generating strategies, it's clear that each avenue presents its unique set of advantages and challenges.
The key takeaway is that while the revenue potential is vast, choosing the right path and effectively managing it is crucial. This is where a partnership with a trusted and transparent vendor becomes invaluable. Such a partner can help you navigate the intricate terrain of adtech, offering solutions that streamline operations, mitigate challenges, and maximize your returns.
Whether you're a seasoned online media veteran or a newcomer, the intersection of data, identity, and monetization is ever-evolving. Adapting to these changes and making the most of your first-party data asset requires a strategic mindset. By considering the expertise of the right vendor, you can confidently navigate this landscape, ensuring that your first-party identity graph becomes a powerful engine for revenue growth as you continue to build your community and quality content.