Comments on: Is A Demand-Side Platform The Future Of The Ad Network? http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/ Digital media optimization news and discussion website. Fri, 10 Feb 2012 23:33:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: What is a DSP? « Brand.net http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4829 What is a DSP? « Brand.net Fri, 12 Feb 2010 17:02:22 +0000 http://www.adexchanger.com/?p=15380#comment-4829 [...] a quick post to go “on the record” in the context of the recent AdExchanger threads (1 and 2) defining/discussing “Demand Side Platforms” [...] [...] a quick post to go “on the record” in the context of the recent AdExchanger threads (1 and 2) defining/discussing “Demand Side Platforms” [...]

]]> By: Ross Bradley http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4817 Ross Bradley Thu, 11 Feb 2010 18:22:05 +0000 http://www.adexchanger.com/?p=15380#comment-4817 All segments of the industry may well be unknowingly waiting for some clear and decisive direction to be handed out on a good number of issues. This will only come (I feel), following the approval (by the DOJ) of the Microsoft - Yahoo search and advertising deal. Progress can then be made at a greater pace. There is a need for much stronger leadership to be shown. Many will be dragged into line by the scruff of their necks or, will be doomed to fail as scale will ultimately be the answer for many. It should be pretty obvious as to where that will be coming from and with it, a case of 'shape up or, ship out'. All segments of the industry may well be unknowingly waiting for some clear and decisive direction to be handed out on a good number of issues. This will only come (I feel), following the approval (by the DOJ) of the Microsoft - Yahoo search and advertising deal. Progress can then be made at a greater pace.

There is a need for much stronger leadership to be shown. Many will be dragged into line by the scruff of their necks or, will be doomed to fail as scale will ultimately be the answer for many. It should be pretty obvious as to where that will be coming from and with it, a case of 'shape up or, ship out'.

]]> By: Jonathan Mendez http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4804 Jonathan Mendez Wed, 10 Feb 2010 23:37:34 +0000 http://www.adexchanger.com/?p=15380#comment-4804 As DSPs inevitably become agencies so too will their valuations become agency like. As DSPs inevitably become agencies so too will their valuations become agency like.

]]> By: Zach Coelius http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4801 Zach Coelius Wed, 10 Feb 2010 21:09:59 +0000 http://www.adexchanger.com/?p=15380#comment-4801 Great post Ajay, I think you are right on quite a few levels. It is going to be a fun year for all of us as this all shakes out. And btw, I for one am not stung at all by everyone copying us. This is awesome to see so much excitement around our space. Great post Ajay, I think you are right on quite a few levels. It is going to be a fun year for all of us as this all shakes out. And btw, I for one am not stung at all by everyone copying us. This is awesome to see so much excitement around our space.

]]> By: A. Poster http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4795 A. Poster Wed, 10 Feb 2010 19:36:53 +0000 http://www.adexchanger.com/?p=15380#comment-4795 Karin's on to something. Here's a checklist. You're a DSP if you: - get I/Os from clients at fixed CPMs but with CPA goals - turn around and get access to inventory and try to make it perform - get paid for your efforts via arbitrage or a % of spend-based fee Oh wait. That makes you an agency. Er... or a network. Wait... this all seems vaguely familiar. Karin's on to something. Here's a checklist. You're a DSP if you:

- get I/Os from clients at fixed CPMs but with CPA goals
- turn around and get access to inventory and try to make it perform
- get paid for your efforts via arbitrage or a % of spend-based fee

Oh wait. That makes you an agency. Er... or a network. Wait... this all seems vaguely familiar.

]]> By: Taking the Dis out of Display http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4794 Taking the Dis out of Display Wed, 10 Feb 2010 19:28:36 +0000 http://www.adexchanger.com/?p=15380#comment-4794 Great post. I would take Ajay's point one step further and suggest that the agencies will always rely on a robust services model from their technology partners--some might develop more expertise in-house off of their trading desks, but they will never be technologists themselves. Their core value is in using technology and then pulling the intelligence out of the data to share back to their clients. They can then help them make informed decisions on future marketing spend (spend more!). But back to the question of marketers by-passing the agencies. Depending on where you sit, you are either a beneficiary or a victim of the way most businesses approach marketing. Leaving aside the obvious exceptions, most companies don't consider marketing the highest priority. Marketing departments are usually the first to get cut when things go bad. The agencies will always have a formidable place in the advertising world b/c companies for the most part can't and don't want to handle it themselves--it's just not why they are in business. While some companies, like the credit card companies, already have the marketing sophistication and technology skills that far surpass their agency partners, they still have their agency relationships to help in either execution or getting at other goals. It's really the 99% of the advertisers who aren't in that category and will never be capable of bringing it in house, however simple the self-service platform becomes (and I'm not sure it will ever be that simple). They key the agencies hold is the view across all marketing channels, the decades of experience in communicating with audiences, the creative element (yes, some of the magic). The advertiser will need their agency partner to speak to them in the language of marketing and advertising. The agency will in turn need their technology partner to speak to them in the language of optimization, targeting, real-time bidding, etc.. The agency will be the bridge between the advertiser and the new technology platforms. Even in a world where the "advertising vending machine" sucks in a dollar and spits out the optimal campaign--right ad, right channel, right time, someone will have to explain to the advertiser why that dollar was well spent and what it actually means to their business and marketing objectives. Having a service component adds to the value of these platforms at this early stage, but will be a necessary long-term piece as well. In advertising, the platforms will take the inefficiencies out of the processes that need it, but that won't be everything. Great post. I would take Ajay's point one step further and suggest that the agencies will always rely on a robust services model from their technology partners--some might develop more expertise in-house off of their trading desks, but they will never be technologists themselves. Their core value is in using technology and then pulling the intelligence out of the data to share back to their clients. They can then help them make informed decisions on future marketing spend (spend more!).

But back to the question of marketers by-passing the agencies. Depending on where you sit, you are either a beneficiary or a victim of the way most businesses approach marketing. Leaving aside the obvious exceptions, most companies don't consider marketing the highest priority. Marketing departments are usually the first to get cut when things go bad. The agencies will always have a formidable place in the advertising world b/c companies for the most part can't and don't want to handle it themselves--it's just not why they are in business.

While some companies, like the credit card companies, already have the marketing sophistication and technology skills that far surpass their agency partners, they still have their agency relationships to help in either execution or getting at other goals. It's really the 99% of the advertisers who aren't in that category and will never be capable of bringing it in house, however simple the self-service platform becomes (and I'm not sure it will ever be that simple).

They key the agencies hold is the view across all marketing channels, the decades of experience in communicating with audiences, the creative element (yes, some of the magic).

The advertiser will need their agency partner to speak to them in the language of marketing and advertising. The agency will in turn need their technology partner to speak to them in the language of optimization, targeting, real-time bidding, etc..

The agency will be the bridge between the advertiser and the new technology platforms. Even in a world where the "advertising vending machine" sucks in a dollar and spits out the optimal campaign--right ad, right channel, right time, someone will have to explain to the advertiser why that dollar was well spent and what it actually means to their business and marketing objectives.

Having a service component adds to the value of these platforms at this early stage, but will be a necessary long-term piece as well. In advertising, the platforms will take the inefficiencies out of the processes that need it, but that won't be everything.

]]> By: togilvie http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4793 togilvie Wed, 10 Feb 2010 19:18:51 +0000 http://www.adexchanger.com/?p=15380#comment-4793 THIS is a much more interesting question! THIS is a much more interesting question!

]]> By: Karin Blake http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4792 Karin Blake Wed, 10 Feb 2010 18:14:01 +0000 http://www.adexchanger.com/?p=15380#comment-4792 If agencies outsource all the hard (and even the mundane) parts of this new way of media buying, what's to prevent advertisers from just outsourcing it directly themselves, even in the short term? You would think that with the increasing pressure on agency margins, creating new ways to justify the value to clients would be the priority, rather than decreasing the in-house skill set even further. Agreed, there is a lot of work to be done by agencies, but to suggest that most want to/should take an easier way out seems a little short-sighted. If agencies outsource all the hard (and even the mundane) parts of this new way of media buying, what's to prevent advertisers from just outsourcing it directly themselves, even in the short term? You would think that with the increasing pressure on agency margins, creating new ways to justify the value to clients would be the priority, rather than decreasing the in-house skill set even further. Agreed, there is a lot of work to be done by agencies, but to suggest that most want to/should take an easier way out seems a little short-sighted.

]]> By: Ajay Sravanapudi http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4791 Ajay Sravanapudi Wed, 10 Feb 2010 17:40:36 +0000 http://www.adexchanger.com/?p=15380#comment-4791 Hence the "heretic" qualification on the prediction :-) Hence the "heretic" qualification on the prediction :-)

]]> By: Joanna O'Connell http://www.adexchanger.com/data-driven-thinking/is-a-demand-side-platform-the-future-of-the-ad-network/#comment-4789 Joanna O'Connell Wed, 10 Feb 2010 17:18:17 +0000 http://www.adexchanger.com/?p=15380#comment-4789 It's a 'modes of thinking' question here. While it may be the case that some agencies don't have - or choose not to have - in their DNA both the desire and the ability to own the process every step of the way, there are others who absolutely do. Those agencies recognize that there is value (to both the agency's business and to their clients) in owning - not just understanding at a high level - every step in the valuation, purchase and reporting against their clients' ad spend. Vehemently agree that things will continue to evolve. Not sure though that your prediction for where they'll go is truly the best outcome for our clients. It's a 'modes of thinking' question here. While it may be the case that some agencies don't have - or choose not to have - in their DNA both the desire and the ability to own the process every step of the way, there are others who absolutely do. Those agencies recognize that there is value (to both the agency's business and to their clients) in owning - not just understanding at a high level - every step in the valuation, purchase and reporting against their clients' ad spend. Vehemently agree that things will continue to evolve. Not sure though that your prediction for where they'll go is truly the best outcome for our clients.

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