Under the Yahoo Backstage program, Yahoo integrates large-scale premium publishers with its Yahoo DSP. So, Yahoo DSP advertisers can access these premium inventories without external competition. Under this program, Yahoo DSP is directly integrated with 100+ premium publishers. That means advertisers using other DSPs can’t show their ads on those publishers. This is one step above direct deal ad inventory purchase.
Here, we will discuss more about the Yahoo Backstage program and how it affects the role of SSP and advertisers in programmatic advertising.
What is the “Yahoo Backstage” program?
Yahoo recently announced a program called “Yahoo Backstage”. Under this program, Yahoo integrates large-scale premium publishers with its Yahoo DSP which means there is no role for the SSP. So, the advertisers under the Yahoo DSP can directly access these premium inventories. Advertisers can experience more transparent and MFA Sites-free inventory opportunities using this Yahoo Backstage program.
Usually, advertisers on demand-side platforms can access various publisher websites and apps through supply-side platforms. Advertisers from different DSPs participate in an open auction to show their advertisements. For premium sites, the competition is really high.
Here, Yahoo directly integrates a specific group of premium websites into its DSP under its Backstage program. So, advertisers under the Yahoo DSP can only participate in an ad auction. Here, there is no role for SSPs.
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How Many Premium Publishers Integrated Under Yahoo Backstage Program?
As per Yahoo’s information, around 100+ premium publishers are directly connected with Yahoo DSP. Below are a few example publishers included under the Yahoo Backstage program.
Newsweek
Ebay ads
Dotdash Meredith
ESPN
News Corp
A+E Networks
LG Ad Solutions
AMC Networks
Yahoo News
Yahoo Mail
Yahoo Finance
Yahoo Sports
Raptive
The Arena Group
Vizio
What are the Advantages Of the Backstage Program?
Backstage programs bring both advantages and disadvantages to the programmatic advertising industry. Here, we will see the advantages of backstage program.
- Publishers can sell their ad inventories without supply side platform participation. So, they do not need to share their ad revenue with the SSP.
- Along with inventories from exchanges, Yahoo Advertisers can access these premium websites without any external competition.
- Transparency and ad quality are very high in these backstage program inventories.
How Does The Yahoo Backstage Affect SSP’s Role In Programmatic Advertising?
In programmatic advertising, two elements are very important. One is the Supply Side Platform and the other is the Demand Side Platform. Through the supply side platform, the publishers or sellers are connected to the programmatic advertising ecosystem. Through the demand side platform, the buyers or advertisers are connected to the programmatic advertising ecosystem.
The SSP helps the publishers to sell their ad inventory at a good price. So, it always takes steps in the favor of publishers. Publishers need to share their ad revenue with the supply side platforms.
The DSP helps the advertisers to buy the suitable ad inventory at a good price. So, DSP always takes steps in the favor of advertisers. Advertisers need to pay a certain fee to the DSPs.
Under the Yahoo Backstage program, Yahoo directly contracted with the best-performing, large-scaling premium publishers. So, these publishers are directly connected to Yahoo DSP and eliminate the SSP role.
Before the Yahoo Backstage program, these publishers were selling their ad space by association with the SSP. So, they paid large sums of amount to the SSP. Now, these publishers are connected directly to the Yahoo DSP. So, they do not need to share their ad revenue with any SSP.
If many publishers joined with the DSPs directly like this program then the revenue for the SSPs will reduce drastically. So, SSPs may lose their importance in the programmatic advertising ecosystem.
How Does The Yahoo Backstage Affect The Advertisers?
Advertisers available in Yahoo DSP only show their advertisements on the publishers that are directly connected under the Yahoo Backstage Program. For example, advertisers available in Amobee DSP or Adform DSP can’t show their advertisements on these publisher websites.
Already many DSPs followed the same kind of backstage programs and created an opportunity for their advertisers to show their advertisements on better websites. Maybe this is an advantage for the advertisers who are available in the corresponding DSPs.
Think about the other DSP advertisers, they never get a chance to show their advertisements to those publishers. The core of the programmatic advertising concept is “Open RTB”. Many DSP advertisers can participate in an ad auction. Those who bid more will win the auction and they can show their ads.
A small portion of the publisher’s ad inventory is only directly sold to the advertisers through deal IDs. But, the publisher’s entire inventory is sold to the advertisers under one DSP under the backstage program.
Showing advertisements to an interested audience is very important for campaign success. Usually, online users use different websites to gather information online. So, the advertisers need to use many DSPs to run their programmatic advertising campaigns when all DSPs speed up the backstage program and acquire certain groups of inventories.
This is a headache for the advertisers.
Any Other DSPs Followed A Similar Backstage Program?
As I said before, the demand side platforms always take actions in favor of advertisers. So, they take action to get better inventories for their advertisers. Already, advertisers can use the direct deal IDs method to access certain ad inventories from premium publisher websites.
Under the backstage program, DSPs buy entire ad inventories from a certain group of premium publishers and make them available only to their advertisers. So, advertisers under the same DSP can participate in the ad auction and the winner can show their ads.
The Trade Desk DSP launched a backstage program called “OpenPath”. So, publishers can sell their ad inventory without using SSP.
PubMatic and Magnite are letting their buyers purchase premium video ad inventory without using Demand Side Platform.
Conclusion
DSPs launched this kind of backstage program to let their advertisers access premium ad inventories without any competition. By showing the direct publisher inventory capability, DSPs can attract more advertisers.
Advertisers are more likely to display their ads on premium websites to increase the brand value and acquire more leads. If the backstage program continues and a group of publisher’s inventory control goes to different DSPs then advertisers need to use many DSPs to spend their money more effectively.
Also, if many publishers connected with DSPs directly then the role of supply side platform will not be needed for the programmatic advertising ecosystem.
