OpenX Blog

Mobile Revenue to Hit $7 Billion in Next 4 Years

shutterstock_163420277Here’s important news for any publisher or advertiser that has yet to adopt a mobile-first strategy: according to a new report by Digi-Capital, mobile Internet revenue is set to increase 300% in the next four years, reaching $700 billion in revenue by 2017.

Mobile ecommerce will account $516 billion, which will attract advertisers seeking to engage consumers on their mobile devices. As a result, mobile advertising will reach an impressive $42 billion.

Mobile acceleration is driven by numerous trends that have increased the number of opportunities for publishers, advertisers and consumers alike. For instance, new and higher-performing ad units command strong CPMs for publishers, and high engagement rates for advertisers. Any mobile-first strategy on the publisher side should explore native, rich media and video ad units. And buyers should plan on launching campaigns that incorporate them.

Common wisdom says that mobile lacks the rich data and targeting capabilities that’s available via display advertising, but that’s changing quickly. Publishers and advertisers can target users based on location, device ID, and services such as Google’s Advertising ID. And companies such as Flurry – which was recently acquired by Yahoo! – embed software into popular mobile apps which glean insight on usage. Continue reading

Now Available: A Joint Report by Econsultancy and OpenX on the Mobile Display Ecosystem

As traffic to the mobile web continues to soar, publishers are scrambling to understand how best to monetize their properties, while ensuring a positive brand experience for their readers and advertisers.

The new Econsultancy and OpenX Mobile Display Ecosystem report is designed to help digital publishers understand the opportunities of the mobile landscape, the advertising technology that drives innovation, and how smart content owners are successfully monetizing their mobile properties.

Based on in-depth interviews with mobile thought leaders, and senior-level executives from digital media and ad-tech companies, the report explores the following key questions:

  • What is the state of mobile advertising?
  • What are the most innovating companies doing to monetize mobile content?
  • What are the best monetization approaches?
  • What does the programmatic landscape look like in mobile?
  • What are the barriers to a successful mobile monetization strategy?

Click here to download the full report here.

Is Programmatic Primed for Global Domination?

shutterstock_176112578 copyProgrammatic is widely adopted in the U.S. and a few other big markets but what about the rest of the world?  A recent whitepaper from IAB and Winterberry Group entitled, “Going Global: Programmatic Audience Development Around the World,” finds that there are plenty of opportunities for programmatic to expand into new regions – as long as those regions are prime for it.

For programmatic to be truly global, some key challenges must be addressed, chief among them: worldwide adoption of data-driven audience development. Here in the U.S., the industry is quite experienced in collecting, analyzing and acting on audience data. The practice is less developed outside of the U.S., a concern expressed by survey respondents.

Additionally privacy laws can damper programmatic’s growth. That said; the study finds that “While government regulation can serve to inhibit audience development strategies, its presence has generally not served to curtail the practice as much as some may fear.”

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Fun in the Sun- OpenX Annual Summer Picnic

Sunday, July 20th marked the Annual OpenX Summer Picnic at Calamigos Ranch in Malibu, California. Team members gathered with family and friends for an afternoon chock-full of activities that didn’t involve RTB, PMP or SSP! Rounds of tug-of-war, sack racing, and egg tossing brought colleagues together at their best (dry) and at their worst (covered in yoke). Fortunately, there were plenty of water balloons on hand to splash away debris.

Our summer picnic was a wonderful opportunity for OpenXers to get to know the person behind the @openx.com email in laid-back and fun atmosphere. True to OpenX’s culture and values, our picnic reminded us that how we do things as a team often matters as much as what we do.

On that note, time to get back to work and make sure our up-coming holiday shenanigans take it up another notch!

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How Much Will Digital Advertising and Programmatic Spend Continue to Grow?

By Dan Sheehy, Vice President Business Development, OpenX

The first half of 2014 has been an exciting time for programmatic. According to the IAB, spending for Q1 2014 is 19% higher than Q1 2013, and reached an astounding $11.6 billion in a single quarter.

Why the sustained growth? According to Sherrill Mane, SVP of Research, Analytics & Measurement at IAB, it’s a direct result of increasingly sophisticated audience targeting, which justifies continued spending:

“These Q1 revenue levels speak to digital’s unique ability to identify the most relevant audience segments and deliver powerful results.”

Programmatic spending is deep and wide

Programmatic spending is increasing across new formats and from new buyers, as shown and projected by recent industry reports. Here are some highlights from a collection of trend reports comparing Q1 2014 growth to Q1 2013:

  • Programmatic mobile spending surged 109%[1].
  • Programmatic video spending is up 65%[2].
  • Programmatic display and social spending is up 20%[3].
  • Local brands are beginning to purchase programmatic, accounting for 5% of total programmatic spend – up from 2% in Q1 2013[4]
  • Regional brands now account for 11% of total programmatic spending[5]

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Publishers are optimistic as digital advertising revenues continue to grow

Ever since the consumer hopped online, publishers have been fighting a steady loss of revenue from print ads and subscriptions, causing many of them to close their doors for good.

But over the past 5 years, publishers, agencies and digital ad-tech providers have worked together to perfect the art and science of digital advertising. Now, according to research reported by eMarketer, those efforts are starting to pay off. According to their recent report:

  • 88% publishers predict revenue will grow in the coming year
  • 62% credit a rise in digital ad sales for revenue growth
  • Less than 25% are counting on revenue from subscriptions

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What’s the Deal with Deal ID?

By Nishe Modoyan, Product Marketing Manager

Deal ID is a relatively new buzzword, and a topic OpenX gets asked about frequently. What is it exactly, and why is everybody talking about it?

To get the best possible answer, I asked Paul Sternhell, one of our go-to OpenXers for explaining the ins and outs of OpenX Programmatic Direct solutions.

Starting with the basics, what is a Deal ID?

According to Paul, “it’s a unique code that’s used to identify a pre-negotiated deal between a buyer and a publisher.” Deal IDs are used to facilitate Private Marketplace transactions, which typically come in two flavors: fixed-price Preferred Deals and variable-price Private Auctions.

Why are Deal IDs used?

There are lots of reasons why publishers and advertisers like Private Marketplaces, which combine a direct relationship between buyer and seller with programmatic execution, including significant efficiencies gained on both sides. The presence of a Deal ID in a bid request enables the buyer to recognize it as one originating from a publisher with which it has pre-negotiated arrangement, and treat it according to the agreed-upon terms.

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Get Native. Get Mobile. OpenX Native Exchange is Open for Business.

Summer’s here, which means consumers are spending more time away from their homes and offices, and relying on their mobile devices to keep in touch and access information.

It also means that advertisers want to reach them while they’re on the go. And for publishers and app developers, it means you have great opportunity to earn premium CPMs by monetizing your mobile apps and sites – today.

And the OpenX Native Ad Exchange (previously Native O|X)  – the first mobile native ad exchange – is ready to help both publishers and advertisers take advantage of this mobile opportunity. Continue reading

There’s Still Plenty of Waste in Programmatic — Let’s Work To Eliminate It

Recently, our colleague Ian Davidson, Sr. Director of Platform Demand for OpenX, explored a topic that many in our space find taboo: all the waste that plagues today’s programmatic ecosystem.

I know what you’re thinking: programmatic marketing is all about efficiency; how can it be wasteful?

His article, Evolution For Programmatic: Time To Cut Waste, takes a hard look at the causes behind the waste, including traffic quality (i.e. fraud, viewability, page clutter), the need for shared conversion data among buyers, as well as an updated model for attribution.

But rather than finger pointing, Ian lays out steps to combat it. Everyone has a role – publishers, advertisers and tech providers alike. Ian writes:

“If we want to eliminate waste, we have to ask ourselves some tough questions. What are the responsibilities of different programmatic participants? What steps can we take to create a deeply rewarding experience for all parties involved?”

Click here to read the full article, including Ian’s recommendations for tackling the troubling issues that are holding back programmatic’s potential to deliver a highly-efficient media buying solution for advertisers.

Q&A from the OpenX webinar on “Driving Higher Yield with the new OpenX SSP”

Recently, our team of experts hosted a webinar titled, ‘Driving Higher Yield with the new OpenX SSP.’ Speakers included Todd Rosenberg, VP, Revenue Operations, Miki Rapoport Sr. Product Manager, and special guest Jason White, VP, Programmatic Revenue for CBS Interactive.

If you missed it, or would like to view it again, just click here.

The 45-minute webinar covered a brief history of programmatic as well as an in-depth comparison of traditional SSPs and the new OpenX SSP. Unfortunately we didn’t have enough time to answer all of the questions we were asked during the webinar. Not to worry, we will address them now in this blog post.

If your question isn’t answered below, please feel free to contact us directly. We’ll respond as soon as possible. Continue reading