The ins and outs of content recommendation
BizReport, October 29, 2021 – We’ve known for years that content is king and content recommendation enables marketers to effectively distribute their content across the Internet. Market leaders Taboola and Outbrain recently went public and #3 Revcontent was recently acquired, so Wall Street clearly believes in content recommendation no less than Madison Avenue. That said, the content recommendation market operates differently than other advertising segments like video or display.
BizReport: How is Content Recommendation different for marketers from other digital ad segments?
Pamela Becker, CMO, WhizzCo: Over the last decade, marketers have become accustomed to buying media via real-time bids on open programmatic markets. Programmatic technology has made online advertising more transparent and fair for advertisers, publishers, and platforms alike.
Content recommendation works differently. Here, many publishers sign exclusive contracts with a single content recommendation. Though advertisers do bid through auctions to serve ads, the bidding is among the content recommendation vendor’s advertisers, and even the winning bidder won’t know what their effective CPC needs to be to win the auction nor how much ad inventory is available – all things which are known in traditional programmatic auctions.
Therefore, advertisers are unable to optimize their bidding in content recommendation like they can in traditional programmatic bidding.
BizReport: What strategies can marketers implement to achieve their marketing goals with this method?
Pamela: Most content recommendation vendors, particularly the market leaders, provide advertisers with sophisticated contextual and interest-based targeting options. However, since many publishers have exclusive agreements with one vendor, in order to achieve broad reach, advertisers should work with several content recommendation vendors.