Reorganizing for a Digital Future: The Implications of Programmatic Advertising on Publishers’ Sales Models
In a comprehensive 2014 study, Michelle partnered with PricewaterhouseCoopers (PwC) to examine how programmatic advertising was reshaping the publishing industry's future. While this research was conducted nearly a decade ago, its predictions about digital transformation in publishing proved remarkably prescient.
Publishers faced a critical crossroads: adapt to programmatic advertising or risk falling behind. The study revealed that all surveyed publishers were already implementing programmatic solutions, recognizing both its challenges and opportunities. While many feared a "race to the bottom" in terms of pricing, the research suggested a more nuanced reality.
The study emphasized that success in programmatic advertising required new operating models and roles; revised compensation structures for ad execs, an investment in technology for new sales and billing models, performance measurement and revenue forecasting; a focus on efficiency and automation; and a shift from traditional sales to consultative solution selling.
While challenging, the shift to programmatic advertising offered publishers new opportunities for growth and innovation. The key to success? Embracing change while strategically reorganizing for a digital future.