Direct Mobile Ad Inventory Sales: Strategies and Success Stories

Mobile advertising has become a critical component of digital marketing strategies, driving significant revenue for publishers. For some, selling ad inventory directly provides a more lucrative and efficient path compared to relying on ad networks and exchanges. This article explores the strategies and success stories of companies that choose direct sales methods, providing valuable insights for those in the industry.

Strategies for Direct Ad Inventory Sales

When considering the direct sale of mobile ad inventory, publishers must focus on building their own sales force and developing the technology and infrastructure necessary to manage direct deals. A direct sales approach means retaining a larger portion of the revenue, but it also requires more investment upfront in terms of personnel and technology.

Publishers Selling Directly

There are several examples of publishers who have adopted the direct sales model:

Kingsoft Changyou, Mobogenie, and Mobo Market: These app launchers sell a portion of their traffic directly to advertisers without going through ad networks, retaining a larger share of the revenue. Yahoo: As a large media company, Yahoo's mobile inventory is sold directly without using ad networks, opting to manage the revenue share in-house. Mocean AdServer: Yahoo uses Mocean to efficiently sell top-tier client and agency ads directly while backfilling lower-tier inventories to ad networks. This system ensures global reach with a small team.

For smaller publishers, the direct sales approach may not be feasible due to the resource-intensive nature of building out a dedicated sales team and adserver. Larger publishers, such as ESPN, have the infrastructure and manpower to handle direct sales efficiently.

Advantages of Direct Sales

The main advantage of direct sales is the potential for higher margins. Since ad networks and exchanges take a portion of the revenue, selling directly to advertisers can yield a significant increase in profit. Additionally, direct sales allow for more control over ad placement and campaign management, which can lead to better fill rates and increased advertiser satisfaction.

Challenges and Considerations

While the direct sales approach offers benefits, it also comes with challenges. Building and maintaining a sales team and adserver requires significant financial investment. Furthermore, managing relationships with advertisers and handling campaign operations can be complex and time-consuming. Publishers must carefully evaluate whether the benefits outweigh the costs before making a decision.

For publishers looking to make the transition to direct sales, it is essential to start small and build as the business grows. By leveraging existing sales teams and slowly building out the necessary technology infrastructure, publishers can manage the transition more effectively.

Conclusion

Direct mobile ad inventory sales can be a powerful tool for publishers seeking to increase their revenue and gain more control over their advertising operations. While the approach requires a significant investment of resources, it can be highly profitable for those with the necessary infrastructure in place. As more publishers consider this model, we can expect to see a trend towards direct sales in the mobile advertising space.

Keywords

ad inventory direct sales ad networks mobile ads revenue sharing