Home AdExchanger Talks Is Programmatic a Bubble? With Tim Hwang, Author Of ‘Subprime Attention Crisis’

Is Programmatic a Bubble? With Tim Hwang, Author Of ‘Subprime Attention Crisis’

SHARE:

Subscribe to AdExchanger Talks on iTunes, Google Play, Spotify, Stitcher, SoundCloud or wherever you listen to podcasts.

Tim Hwang’s 2020 book “Subprime Attention Crisis” argues that targeted advertising is a bubble set to burst. He contends that the intricacies of ad tech and the perverse incentives of agencies and ad tech platforms to maintain a steady flow of ad dollars have created a persistent opacity in programmatic markets. From his point of view, it’s only a matter of time before the bubble bursts and advertisers pick up their toys and go home. The result will be an implosion of programmatic ad spending and a partial collapse of the free internet.

The metaphor at the heart of the book is the 2007-2008 financial crisis, when the system failed to detect a huge vulnerability in the massive mortgage-backed securities market.

In the case of the 2008 implosion, he says in this lively and slightly combative podcast interview, “You had a global market that was considered rock solid and growing at incredible speed and in many ways dwarfed the programmatic ecosystem in economic importance, and yet there was a time bomb at the heart of it. One reason to use the metaphor is that it calls attention to the idea that sometimes $80 billion can be wrong.”

Must Read

Betrayal, business, deal, greeting, competition concept. Lie deception and corporate dishonesty illustration. Businessmen leaders entrepreneurs making agreement holding concealing knives behind backs.

How PubMatic Countered A Big DSP’s Spending Dip In Q3 (And Our Theory On Who It Was)

In July, PubMatic saw a temporary drop in ad spend from a “large” unnamed DSP partner, which contributed to Q3 revenue of $68 million, a 5% YOY decline.

Paramount Skydance Merged Its Business – Now It’s Ready To Merge Its Tech Stack

Paramount Skydance, which officially turns 100 days old this week, released its first post-merger quarterly earnings report on Monday.

The Arena Group's Stephanie Mazzamaro (left) chats with ad tech consultant Addy Atienza at AdMonsters' Sell Side Summit Austin.

For Publishers, AI Gives Monetizable Data Insight But Takes Away Traffic

Traffic-starved publishers are hopeful that their long-undervalued audience data will fuel advertising’s automated future – if only they can finally wrest control of the industry narrative away from ad tech middlemen.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Q3: The Trade Desk Delivers On Financials, But Is Its Vision Fact Or Fantasy?

The Trade Desk posted solid Q3 results on Thursday, with $739 million in revenue, up 18% year over year. But the main narrative for TTD this year is less about the numbers and more about optics and competitive dynamics.

Comic: He Sees You When You're Streaming

IP Address Match Rates Are a Joke – And It’s No Laughing Matter

According to a new report, IP-to-email matches are accurate just 16% of the time on average, while IP-to-postal matches are accurate only 13% of the time. (Oof.)

Comic: Gamechanger (Google lost the DOJ's search antitrust case)

The DOJ And Google Sharpen Their Remedy Proposals As The Two Sides Prepare For Closing Arguments

The phrase “caution is key” has become a totem of the new age in US antitrust regulation. It was cited this week by both the DOJ and Google in support of opposing views on a possible divestiture of Google’s sell-side ad exchange.