Advertisers with limited stores of advertising are naturally interested in getting every cent of out their material. That’s why so many new technologies and advertising techniques have continued to roll out and evolve over the years.
One of the most popular strategies is defined as waterfalling. If you’re unfamiliar with this term, then you could be missing out on an opportunity that could significant boost your overall return.
The idea behind waterfalling is simple enough. In the advertising arena, you can think of impressions as a form of currency: Just as a frugal budgeter labors to make the most of every dollar spent, publishers want to get the most value out of every impression they serve.
Waterfalling is an algorithmic tactic aimed at earning as much value as possible for every impression. Through waterfalling (also known as daisy chaining), a publisher initially works with the network of record which offers the highest possible rate.
If that network is not available, the system moves on to the next-highest-valuable publisher, and thus it goes until all possible resources are exhausted.
Whilst there are many advantages to waterfalling, like anything in life, these advantages are balanced by cons:
The biggest challenge with waterfalling is managing to implement it in an effective way. So, why are there so many issues complicating this process?
The complicated process of waterfalling is likely to become far more easy to implement over time and no doubt, eventually, developers will find more intuitive, effective ways to tie complex systems together. Then, there will be semi-standard protocols for implementation (if the SSPs don’t jump ahead and complicate things even further).
The quintessential situation would be for some forward-thinking momentum to sweep the industry and the world becomes a witness to SSPs learning to work together and following similar protocols. In this kind of world, all buyers would see and bid on the same massive inventory at the same time, and developers’ jobs would get a whole lot easier. This may be a pipe dream, but it still exists as a possible path, paving our way to a day we see simpler waterfalling development.
(As published on The Drum)
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