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The Remnant Inventory Advertising Equation

It looks complex, but actually it's really simple. Publishers have pages they want to monetize. Agencies have ads they want to place. Advertisers want their ads to be seen by the right audience. It's a trifecta of enablement!

Thus, the advertising ecosystem has developed itself into a technology driven real-time bidding environment to increase the value of remnant ad inventory. Remnant (non-premium) inventory is advertising inventory that is not sold by publisher's direct sales teams. Usually because it is less coveted by the very nature of it being buried deep in the pages of publisher's websites and/or below the "fold" of a webpage. So to help publishers monetize these pages, technology companies developed the following system, that uses data to help attract ads to the right audiences viewing these pages.

LUMA Partners Advertising Technology Ecosystem Infographic

That's a lot of layers, huh? The thing to understand is all of these players (we call them channel partners) in the middle are there to help on the supply and demand side. On the supply side, they're bidding off space real-time on publisher's pages - with technology - that are typically not monetized with advertising. On the demand side, the channel partners help the advertiser find audiences rather than location, so the ROI of the ad spend is better. When there's an audience, page and price match the ad is served. Everybody wins...

How can this help your digital marketing efforts, you ask? Even though there are more players in the value chain, the buying of remnant inventory is actually more efficient for the advertiser. Large advertisers enjoy more focused reach with fewer impressions, and smaller advertisers aren't excluded from finding the right audience due to smaller budgets and impression counts.

Audience + Ad Network - Huge CPM's = Strong ROI for Advertisers. Now that's a remnant advertising inventory equation that helps the entire value chain of the digital marketing landscape. 

Posted by Therran Oliphant, Product Strategist, Polk (03.03.2011)

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