Some websites are actually reaching back through your browser to inspect your surfing history without your knowledge or consent. At Krux we maintain a list of nefarious web data collection practices that need to be extinguished, and this one has been at the top for some time. At least one DSP has been using the technique under the cover of ‘data quality testing.’
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There was a big shakeup in the online advertising world last weekend: Google cut off AppNexus from its ad exchange, forcing the startup to direct its clients to purchase ad inventory directly from Google. The move comes only a few weeks after AppNexus raised a huge $50 million round, which included a big chunk from Microsoft.
With some reports of DSPs making up over 50% of the overall $8 billion in US display advertising, Google could end up consolidating many of the players in the supply chain.
Because Google is offering white-label technology to agencies that plug into the DoubleClick Ad Exchange (as well as others), he makes a lot of accusations about illegal kickbacks and rebates without showing the smallest shred of evidence. Google’s display business is drawing more revenue because they’ve resold their technology and partnered up with agencies to streamline media buying through various intermediaries — including across the AdSense network.
The agencies will start playing chess. One of them will bite the bullet and buy a demand side platform if for no other reason than that they are afraid someone else will do it first. This will lead to an aggressive fight between the VCs who want to build big companies and the agencies who want to protect their turf. I was totally wrong on this one. I continue to be surprised at the level of denial in agencies about the value of owning technology as their core businesses are increasingly becoming automated.
In contrast, the world of real time bidding has evolved beyond predetermined channels, producing a new set of insights that make it possible to create an advertiser’s own unique « Brand Genome. » Using impression-level decisioning across multiple targeting parameters, an advertiser can for the first time build a data model that defines exactly how consumers behave in relation to a specific campaign. Deciding who, what, where, and when — ads are placed based on where they are proven to drive performance; enabling advertisers to discover new prospects they didn’t know existed.
We see the whole ecosystem as being display whether its mobile, video or traditional display. The growth in spend is in these areas, the interest from agencies and clients is in this space so for us will come the need to be able to deliver an efficient and targeting solution in the form of exchanges across these different channels. We will want to have data that crosses channels and helps us discover out audience regardless of screen and this partnership will help us get there in the quickest time but at scale.
SearchIgnite has been quietly developing demand side platform (DSP) technology that lets brands get a clear view of multiple types of campaigns. On Tuesday the company plans to launch the platform that lets advertisers buy media on real-time bidding and auction-based networks like Google’s and Yahoo Right Media’s ad exchanges. The platform supports a variety of display ad formats such as segment targeting and retargeting.
At a basic level, marketers use DSPs to solve four fundamental problems:
One of the leading US demand-side platform companies, Turn, has opened its first European office, joining a growing number of DSPs now available in the UK.
The agencies have built up very strong media planning and buying teams to buy content, sponsorships and site integrations, etc… But they haven’t developed a lot of expertise in buying audiences. That’s what we’ve done well and we recognized quickly that as we’ve started expanding how we access inventory from the sell side, we’ve added RTB as part of our capabilities. We started real-time buying across a high quality system of publishers. But it’s just new technology, ways to acquire audiences that our advertisers want.
Brandscreen is Australia’s first Demand Side Platform, the unwieldly name given to the technology companies that are setting up stock exchange-style ad trading platforms in developed ad markets. Ad buyers set a maximum bid price to reach their target audience and, in the split second that someone already identified as a potential buyer of a product or service opens a page, a relevant ad is served to them.
Using a DSP’s factual annual spend and assumed market share, Cahill calculated that there is about $850 million going through DSPs right now. The overall display market is $8 billion, so that means DSPs account for roughly 10 percent of the display market.
Spending on general, broad-based ad networks — which currently are the dominant source among advertisers and agencies that buy online advertising inventory though networks — will decline over the next 12 months as Madison Avenue shifts its focus toward more targeted options based on user behavior or social networks.
While audience buying is obviously a smart solution for direct response advertisers, it can also be smart for brand marketers if applied with constraint. Savvy marketers will layer dual strategies to make the most of both fine grained audience targeting and the associative power of environment and visibility — to not only capitalize on consumers in the perfect buy-state, but build the connection and association required to get them there.
A slew of companies have lately begun supporting new formats, in particular mobile and pre-roll ads. Among them are Microsoft, Adap.tv, BrightRoll, demand-side platform DataXu, and Research in Motion. As with display, ads are auctioned on a real-time basis through ad exchanges and other « sell-side aggregators, » with assets provided by ad networks and demand-side platforms.
The company transforms standard banner ads into dynamic flash ads with rich-media functionality. « It is possible to get the same excitement and engagement with consumers from standard units that can scale and don’t frustrate users, » he says. « Our ads can run anywhere including exchanges, through DSPs, ad networks and of course directly on sites – they are also not hamstrung by requirements to drop code in a publisher’s page. »
With impression-level and audience-based buying on the rise, non-guaranteed ad inventory is all the rage these days for many advertisers. Unfortunately, most of those campaigns have been limited by technology and lack of inventory visibility to primarily non-expandable ads, diminishing their creativity and ability to engage consumers with rich, interactive experiences in an expandable ad unit. Until now.
Key take-aways: * For campaigns with few targeting parameters on the media plan, action volume was 47 percent above goal, and CPAs were 55 percent above goal. * For campaigns with many targeting parameters, action volume was 50 percent below goal, and CPAs were 40 percent below goal.
A recurring theme during New York’s Advertising Week last month was real-time, data-driven media buying, made possible through emerging technologies such as ad exchanges and demand-side platforms (DSPs.)
Now, as new buy-side platforms surge in popularity, the role of the network is being challenged. In fact, some buyers believe demand-side platforms (DSPs) and other emerging technologies will replace them altogether. While this is a bit far-fetched, many still wonder what role, if any, networks will play. It is a complex question that can only be answered by evaluating what value they must offer in order to compete in the market. In my opinion, there are five areas where networks can differentiate and add value.
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