Programmatic direct will go from 8% to 42% of all programmatic spending by 2016, according to eMarketer research.
BuySellAds, founded in 2008 and which has 18 employees, followed a different path from iSocket and Shiny Ads, both of which were recently acquired by Rubicon Project. It focused on connecting smaller publishers with large brands like American Apparel, Getty Images and LG.
“It’s a lot of public companies, a good number of agencies, and a lot of in-house marketing teams that only have $50,000 a month,” said founder and CEO Todd Garland. “But they’re able to get access to a publisher where they believe their audience exists, so they’re buying their ads through us.”
Garland added that BuySellAds had from very early on focused on the SMB space, where it saw the most traction. “The larger enterprise publishers weren’t ready for this automation yet,” he said.
AdExchanger spoke to Garland.
ADEXCHANGER: How has programmatic direct evolved in recent years?
TODD GARLAND: As a media planner, there are more tools you need to be using to execute a buy efficiently. The time they used to be spending buying direct is crunched. People are more willing to let software do things for them than they were five, six, seven years ago.
Why haven’t you raised any money yet?
The reason why we’re the only unfunded player in this space is because we haven’t felt like we’re ready to pounce yet. Now with the [Rubicon Project] acquisitions, and assuming Google will enter space in next six to nine months, we’re starting to look at some other options.
Is your business profitable now? What are your goals for the business?
This year, $12 million will go through our platform. Last month, over 1,200 unique publishers transacted on the platform. We charge them between 10-25% of each sale to transact through our platform. We’re profitable.
Right now, it’s the land grab. We feel like we have one of the best products in the space. We’re in the process of signing up enterprise-level publishers. Once we start announcing those deals, they’re going to be surprised. (more…)