Current inefficiencies in programmatic auctions are manifold: bid duplication, misguided traffic shaping and volume bias among DSPs.
Header bidding turned one bid request into a dozen, as more SSPs sold identical copies of publisher inventory. But instead of locating the duplicate impressions, DSPs and SSPs use traffic shaping, a mix of manual and automated ways they remove traffic from the ecosystem.
Traffic shaping is a medicine that doesn’t treat the underlying condition of bid duplication. Together, they form an issue everyone in ad tech should be paying attention to, especially programmatic marketers.
VideoAmp’s resizing
In 2021, alternate currencies seemed close to usurping Nielsen. VideoAmp raised $275 million at a $1.4 billion valuation. After a tough 2023, however, VideoAmp laid off nearly 20% of its staff, and CEO Ross McCray (a former guest on AdExchanger Talks) stepped down.
VideoAmp could still be one of the top TV measurement companies. But those with an inside view into its operations cite a number of missteps the company will need to address to move forward.
On the business side, VideoAmp still earns too much revenue from activation, a lucrative business that jeopardizes the future of its other main business: a neutral measurement alternative to Nielsen. Weaning the company off the activation business will be a tough job for the leaders taking the reins.
VideoAmp’s culture and leadership is also under critique. Insiders describe a purposely exclusive culture that favored “tech bros” who partied hard and chased their hangovers with CrossFit. The company also overhired and lavishly entertained clients with its venture capital dollars, but the entertaining didn’t grow its business as much as it anticipated, leading to the layoffs and a change in leadership.
