Sovrn, a publisher technology platform that helps content creators earn and keep more of their revenue, announced that testing with more than 100 publishers proved that its bundled offer of Ad Management and Exchange products together, which offer a zero take-rate and direct-to-demand path, boosted revenue for publishers while increasing efficiency for buyers. Test results showed an average increase of 16% in the publisher’s share of advertising spend, driven by an average 35% increase in publisher revenue earned through the Sovrn Exchange — the direct supply path.
First announced in March, the bundled solution delivers higher net revenue to publishers, while also unlocking greater demand from buyers.
“Programmatic marketplace is unnecessarily complex,” said Walter Knapp, CEO, Sovrn. “By eliminating the take rate through Sovrn’s Ad Management + Exchange bundle, publishers make and keep more money. It’s more efficient for buyers, incentivizing them to spend more through the Sovrn channel. The result is a simple, uncomplicated way to make sure publishers get more of what they deserve.”
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The latest analysis covers 105 Ad Management publishers, including ClassicCars.com, JamieOliver.com, Ask Media Group, Salary.com, and others, and proved there is demonstrated value in coupling a zero take-rate with direct demand by improving efficiency for buyers and increasing yield for publishers. The testing confirmed that doing so creates a more competitive auction environment, leading to a higher allocation of advertising spend and higher bids transacted through the Sovrn Exchange. This resulted in Sovrn ranking as the second-highest performing exchange for publishers, behind only Google’s AdX, when measured across the entire network of publishers.
“Moving to a SaaS model for programmatic transactions not only removes revenue share fees from the auction but delivers much-needed transparency to both the sell side and buy side,” said Sam Youn, VP of Programmatic at Chegg and member of Sovrn’s Ad Management Steering Committee. “Variable rev shares may benefit a particular supply-side platform in an individual auction, but ultimately obfuscates the true value of inventory for buyers and publishers. In a SaaS model, buyers know 100% of their budget goes to working media, and publishers understand the true market value of their inventory.”
With proof that bundling Sovrn Ad Management and Exchange together delivers clear revenue benefits for publishers, while improving efficiency for buyers, Sovrn is now making this bundling option widely available.
SOURCE: PRNewswire