What is Dynamic Allocation?
Dynamic Allocation is a seemless integration of Google DoubleClick for Publishers (DFP) and Google’s display networks, AdX, AdSense and AdMob, in order for publishers to maximize their yield from all their inventory. Dynamic allocation gives publishers real-time competition for their impressions between AdX and all of the other demand partners connected inside their DFP. This competition will not only help a publisher’s ROI, but it will also mean that publishers are always striving to raise their prices inside the Ad Exchange and cultivate the value of the inventory.
How Does Dynamic Allocation Work?
When DFP delivers a network-level line item (including anything that is set to priority 12 in the system, i.e., network, bulk and price priority), it chooses the most relevant network partner from demand sources a publisher has set in their DFP and in parallel sends the request to the exchange as well. DFP then takes the eCPM (effective CPM) that is in the line item and sets that as the floor price for the bids coming back for that impression in AdX. If AdX can match or beat that CPM, then AdX will win and serve. If neither occurs, then the network line will deliver as normal.
How Can Publishers Maximize Dynamic Allocation in DFP?
Once publishers have taken on dynamic allocation as a strategy, sophisticated publishers will check to see if their demand sources can provide an API that will provide updated reports and deliver data back into DFP. When the data, mainly CPM prices, is delivered back into DFP in real-time, dynamic allocation will work much more effectively at maximizing revenue.
Publishers should manage their networks/DSP’s independently and ensure that whichever traffic the network can’t monetize can be handled by a pass back into their DFP. It is essential that this flow is as efficient as possible in order to minimize wastage. We believe that publishers who work with demand partners that maintain a good to moderate fill-rate on a website is a great strategy to adhere to. Publishers should strive to work with at least one demand partner with close to 100% fill as possible to be the safety-net at the bottom of their waterfall.
This strategy entails putting demand sources at the relevant level (network, bulk or price priority), depending on the demand partner agreement. Publishers should update the eCPM and the value CPM in normalized periods so that the newest CPM price goes over to the Ad Exchange with the most recent impression information.
What’s the Future of Dynamic Allocation for Publishers?
The dynamic allocation has already started to evolve with the arrival of “Enhanced Dynamic Allocation” in DFP. Enhanced dynamic allocation breaks through the previous mold to enable dynamic allocation with AdX and DFP to be open for standard-level and CPM based direct sales inventory. In other words, publishers’ guaranteed campaigns will also be competing with AdX in dynamic allocation in order to drive the publisher’s direct campaign prices even higher.
Publishers can enable this strategy in full confidence and in an automatic way without making major changes or worrying that guaranteed campaigns won’t deliver. Publishers do not have to set CPM prices for standard inventory if they do not currently do so because DFP will still calculate a CPM price based on an evaluation of what the inventory is worth.
How Does Total Media Assist Publishers with Dynamic Allocation?
Total Media’s experienced team of programmatic specialists assists publishers with setting up DFP and trafficking additional demand sources, including AdX while validating that all sources are functioning in the most optimal manner to properly manage and control the chain in DFP. Additionally, Total Media also offers services for managing publisher’s AdX on a day-to-day basis and to maximize the yield from the Exchange in the most optimal manner earning the highest ROI possible for every impression served.
If you are considering taking on DoubleClick DFP or DoubleClick AdX onto your website, our trained experts at Total Media are available to consult with your team in order to build the most optimal mix of programmatic optimization and monetization for your website’s ad units to increase your monthly revenue earned from web traffic. Please feel free to contact us here.
Special thanks to Ben Erdos, Total Media’s VP of Publisher Technologies & Services, for his valuable assistance in the preparation of this post.