DPS: Hypebusters with Jim Spanfeller: The Post Ad Tech Era

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Does ad tech really make publishers' lives easier, or has it made everything more complicated? Jim Spanfeller explains why it's not the silver bullet it was promised to be.

Presenter: Jim Spanfeller, CEO, The Spanfeller Media Group @JimSpanfeller

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DPS: Hypebusters with Jim Spanfeller: The Post Ad Tech Era

  1. 1. HYPEBUSTERS: THE POST AD TECH ERA It was supposed to make the industry more efficient…1 Proprietary and Confidential – Do not reproduce or distribute without approval
  2. 2. We Had A Very Good Problem  In 2006 / 2007 online advertising was exploding!  In part, the very thing that made online advertising so revolutionary, true one-to-one interactions, also made it incredibly complex.  Complexity is another word for EXPENSIVE.  With a big shift in spending to digital, media buying agencies had a problem  How to buy digital at scale and profit 2 Proprietary and Confidential – Do not reproduce or distribute without approval
  3. 3. Which We Answered Poorly  Enter the modern Ad Network model  Which in turn began the Exchange and the Trading Desk  Sure, you can buy heaps of impressions in a single interface  But is that a value achieved on behalf of the practitioners of the art, or is it significant to the entire process?  And is there actually an ROI?  If you’re looking for clicks, yes, because you can optimize for clickers  If you’re looking for more engagement, or actual sales, then not so much VS 3 Proprietary and Confidential – Do not reproduce or distribute without approval
  4. 4. There Was A Platform Solution Opportunity  Successful platforms can net huge profits for the winning ecosystem  The race was on!  How to make the complexity of digital ad buying simpler…  How to buy at scale  How to take a tariff from a high percentage of digital advertising transactions 4 Proprietary and Confidential – Do not reproduce or distribute without approval
  5. 5. The Race Was On  Venture funding flooded the ecosystem  New companies with new ways of targeting came on stream seemingly every day  Every specific part of the stack had multiple players  SSPs  DSPs  Exchanges  Data Providers  But we did not see TV ad dollars come online…in fact TV just got bigger 5 Proprietary and Confidential – Do not reproduce or distribute without approval
  6. 6. Behavioral vs. Contextual  Targeting by individual site is hard and expensive  Targeting by some definition of behavior is much easier although not nearly as effective  This brought on the notion of targeting by demography  Which required… 6 Proprietary and Confidential – Do not reproduce or distribute without approval
  7. 7. Big Data Much of the “big” opportunity came down to targeting specific audiences  In the past, editorial had been used as a proxy for demography  The idea was to avoid the environment and go right to the audience, no matter where they were Targeting by definition demands data Data has two big issues  Privacy  Reliability 7 Proprietary and Confidential – Do not reproduce or distribute without approval
  8. 8. 25 Million vs. 10 Million New Cars  Take a look at the automotive industry…  Auto advertisers can buy upwards of 25 million individual cookies for new car intenders, yet only 9.5* million or so new cars are bought or leased in America each year.  So was there any value in those cookies?Source: www.motorintelligence.com 8 Proprietary and Confidential – Do not reproduce or distribute without approval
  9. 9. Viewability  They say an industry gets the media it deserves  As we pushed more and more on the data and the technology fronts we saw less and less accountability for the actual ad.  Was the creative of impactful?  Was the environment helpful?  Was the ad even viewable?  The ecosystem became even less transparent  Where, when and how were ads being displayed? 9 Proprietary and Confidential – Do not reproduce or distribute without approval
  10. 10. The Future…  Will data improve?  Sure  Will programmatic ad buying and selling endure?  Sure  Will innovation continue?  I hope so  Will VCs continue to fund new and existing ad tech companies at past levels?  Highly unlikely  Will ad buying and selling be part art as well as science?  Definitely… 10 Proprietary and Confidential – Do not reproduce or distribute without approval

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