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Asia media giants unite for ad share, Opinion News & Top Stories | The Straits Times

On the other hand, some publishers are concerned that collaboration among traditional competitors brings its own complications.

In many ways, selling ad impressions is like operating an airline.

Like air carriers, publishers deal in a product (online impressions) that is limited, perishable and variable in price. These characteristics make it possible to control inventory availability in a way that affects prices and maximises revenue.

But this complexity may also make some publishers uncomfortable with the loss of control associated with delegating the responsibilities around programmatic sales externally. Some publishers may need assurance that they have adequate oversight over pricing strategy or yield.

One circumstance in which publisher control over their inventory sales strategy is crucial is when websites receive an inordinate amount of traffic – during a major unexpected news event, for example.

Publishers need to take into account traffic spikes and valleys, and have put into place a programmatic advertising strategy, alongside any direct deals they may have, which allows them to sell advertising space based on real-time market demand, or they risk being ill-prepared to adapt to major flows of traffic and maximise their revenue in these situations.

Naturally, there may also be differences of opinion among publishers around the value of their advertising inventory, as well as variations on how pages and ad placements are laid out.

One way to combat this is to offer a tiered pricing structure that more transparently reflects the value of the impression, size of ad unit and placement on the page, and be priced accordingly.

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Asia media giants unite for ad share, Opinion News & Top Stories – The Straits Times.

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