Audience Curation: What It Is and What We Know So Far?
The rise of audience curation in ad tech represents a significant evolution in how digital advertising operates, particularly in the wake of increasing privacy regulations and the phasing out of third-party cookies. This trend is characterized by a shift towards more strategic, data-driven approaches to ad inventory management and audience targeting. Recent developments, especially from major players like Google, underscore the importance and potential of audience curation in enhancing the efficiency and effectiveness of digital advertising.
Understanding Audience Curation
Audience curation involves the process of optimizing online ad inventory by selecting high-quality placements and relevant audiences for programmatic deals. This method aims to improve the performance of advertising campaigns while ensuring brand safety and transparency.
For simplicity, curation can be reduced to sell-side targeting, a practice traditionally managed on the DSP side.
Although curation has been widely criticised as merely a rebranding of traditional ad networks in recent discussions, it represents a more sophisticated approach that leverages audience insights, contextual data, and supply chain signals to create tailored advertising experiences.
Source: Ad Tech Explained
History of Curation
Curation has traditionally been a concept associated with the buy side of advertising, but it has gained significant traction on the sell side this year, particularly among SSPs and DMPs. This shift even prompted calls for the IAB Tech Lab to establish formal standards for curation in the industry (which,as it turns out, it already has).
In his LinkedIn article, Anthony Katsur, CEO of the IAB Tech Lab, noted that while a curation framework has existed for several years, it has not seen widespread adoption among buyers. The framework includes 4 main products:
- Seller Defined Audiences (SDA): This specification allows publishers to package their inventory using first-party data, providing a programmatic signal for buyers to locate this inventory in open auctions. However, SDA has struggled to gain traction.
- Content and Audience Taxonomies: These offer a unified method for classifying media into SDAs.
- Data Transparency Standard: This standard enables publishers to disclose the data used to create SDAs.
- SupplyChain Object: This tool helps buyers identify the original seller of curated inventory while avoiding intermediaries.
However, some publisher advocates argue that curating inventory into deal IDs is more straightforward and transparent compared to using the existing tools from the Tech Lab. The debate over curation continues as the industry navigates these developments.
Challenges for Publishers
The initial curation boom was met with publishers crying foul.
Although curation could theoretically filter out low-quality inventory and raise prices for premium publishers, the vast scale of programmatic advertising means that any supply constraints are unlikely to significantly increase CPMs. As SSPs rapidly form partnerships with DMPs to enhance curation capabilities, many publishers find themselves automatically included in curated private marketplaces (PMPs) without their consent.
Publishers are particularly worried about pricing transparency, as some curation vendors fail to establish effective pricing floors, which can lead to lower overall revenue. Jeffrey Goldstein, global head of programmatic at Future, voiced fears that favorable terms in curation deals might be renegotiated later, potentially reducing earnings for publishers reliant on these new revenue streams. Additionally, SSPs are charging higher fees for curated deals, which may not translate into increased revenue for publishers.
“In their worst form, curators add another supply chain fee for simply loading a site list into an SSP. But in their best form, curators make run-time evaluations of audience, content and supply chain signals in novel ways that DSPs do not currently support,” said Chris Kane, president of programmatic consultancy Jounce Media.
To respond effectively to the rise of curation, publishers should focus on quality content, enhance direct sales efforts, optimize remnant inventory for curated packages, and engage with SSPs to ensure they access greater demand. They should also seek performance reporting, set minimum prices, and demand transparency around fees.
Overall, while curation is becoming a fixture in ad tech, its effectiveness for publishers remains questionable.
What’s In It For Publishers?
Nevertheless, the rise of sell-side curation also presents opportunities for publishers–although with some caveats. On one hand, it allows publishers to monetize their inventory more effectively by connecting with advertisers who are looking for high-quality placements.
On the other hand, there is skepticism regarding whether these changes primarily benefit ad tech companies at the expense of publishers. As agencies increasingly rely on curated packages to streamline their media buying processes, publishers must ensure they are not sidelined in negotiations over inventory pricing and value.
Still, a well-curated auction package presents an opportunity for publishers’ inventory to shine and capture new demand. These services usually do not resell impressions or require additional ads.txt entries, leading to a more secure and streamlined supply chain.
Source: Triplelift
Google’s Strategic Move into Curation
Google Ad Manager’s recent launch of new sell-side audience curation capabilities has been a pivotal moment in this trend. By enabling agencies to buy curated audiences and inventory packages, Google is positioning itself as a leader in the evolving ad tech landscape.
The initial rollout in North America includes partnerships with notable data providers such as Audigent, IAS, and Liveramp, among others. These collaborations enhance the platform’s ability to offer greater transparency, improved targeting, and better forecasting capabilities.
The Future of Curation in Ad Tech
The future of audience curation appears promising as more advertisers recognize its potential to deliver efficient reach and enhanced campaign performance. Reports indicate that revenue from curated publisher audiences has grown significantly, with companies like Magnite experiencing over 100% growth year-over-year in this area. This trend highlights the increasing investment from advertisers seeking responsible and effective ways to engage audiences across the open web.
Industry Implications
As audience curation continues to gain traction, it may disrupt traditional DSP by shifting some targeting responsibilities to SSP. This transition could redefine roles within the ad tech ecosystem, emphasizing the need for deeper collaboration between publishers and technology providers. Furthermore, without standardized definitions from organizations like the IAB, the term “curation” may lead to varied interpretations across different companies.
Nevertheless, let’s summarize some key insights about curation across the board:
Another middleman
Curation resembles traditional ad networks, in other words, an intermediary lacking transparency and having high margins. However, an ad tech veteran Ari Paparo argues the opposite. Curated deals can be more transparent than reselling through DSPs and that publishers are aware of pricing strategies involved in curated deals.
“Death of DSP?”
While curation poses a threat to DSPs, it does not eliminate their value completely. DSPs still provide essential tools for campaign performance that curated deals alone cannot address.
Call for Acceptance
Curation is likely not going anywhere. So, rather than resisting it, stakeholders should recognize its potential benefits and adapt accordingly. Ad tech is an ever-evolving industry and requires embracing new models to enhance efficiency and effectiveness.
Evolving Roles
As SSPs adopt curation strategies, they gain more control over audience targeting and inventory management, creating opportunities for collaboration between DSPs and SSPs. By working together on curated deals, both parties can enhance their value propositions while ensuring advertisers receive high-quality inventory without unnecessary intermediaries.
Need for Transparency
The emphasis on transparency in curated deals is crucial for building trust among all stakeholders. As the industry moves towards more data-driven approaches, ensuring clarity around pricing and inventory sources will be vital for fostering healthy relationships between publishers, advertisers, and technology providers.
In conclusion
In conclusion, audience curation is reshaping digital advertising. As this trend evolves, it will be essential for all stakeholders—publishers, agencies, and ad tech vendors—to adapt their strategies to leverage these new opportunities while addressing potential challenges. The ongoing dialogue around curation will likely influence how digital advertising is conducted in the coming years, making it imperative for industry participants to stay informed and engaged with these developments.
