The Tide is Shifting to a Post-Ad Tech Era

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Former Chairman of the IAB and CEO of Forbes.com, Jim Spanfeller, took a somewhat unpopular view in a room full of ad tech companies at the Digiday Publishing Summit in West Palm Beach, Fla. yesterday. In essence, he said that the dizzying acronym explosion that is now the ad technology landscape (DSPs, SSPs, DMPs) has created an ecosystem of tariffs and false sense of scale that have done nothing more than satisfy demand fulfillment, not what we’d all hoped for, which is demand and margin creation. Frankly, we couldn’t agree more. We’ve been swimming upstream with this message for years.

Yes, ad technology and the evolution of available targeting tools are pivotal toacronyms capitalizing on a digital spend that is forecasted to eclipse television in the next four years. However, many of these platforms that promise scale fall short on effective targeting. DMPs for example, have created a wave of audience commodization that is depressing CPMs overall and ignoring the value proprietary data and contextual placement have on ad performance.

That’s why we continue to emphasize the criticality of using your primary and proprietary data to differentiate your audience so that you can translate that differentiation into value:

  • Boost CPMs 20-30%
  • Enable cross-platform targeting
  • Reduce 3rd party pay outs
  • Maintain high sell-through rates and more inventory control
  • Increased content consumption will open up more valuable inventory

So while the insane proliferation of tools and platforms available today might provide digital publishers with some important capabilities, none of them can provide a comprehensive enough solution to fully meets their needs. Rather, each offers a piece, or some of the pieces, of a comprehensive solution. In an ideal state, publishers would have access to a solution that harnesses the power of their data and creates a rich and robust segmentation that is tied to their business needs. We think a more holistic solution that allows you to own the data and the solution gives you greater control over inventory management and performance, regardless of what the future holds.

Republished with author's permission from original post.

Julie Baker
Executive VP of Digital Media Solutions at Quaero, Julie is a seasoned digital media executive with experience leading the development of platforms, solutions, and professional services teams required to serve the complex and dynamic media industry. Julie earned her master's degree in advertising and business administration from the University of Texas and her bachelor's degree in journalism and business from Indiana University.

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