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Beyond the Google and Facebook Duopoly


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The duopoly of Google & Facebook is an existing reality for every digital business. Any company who’s part of today’s digital ecosystem is not immune to the challenges of this duopoly. From how you bid on your programmatic spends to how you distribute your social budget these two giants clearly dictate it for you end to end. The opportunity to explore beyond these two has been very limited due to their staggering presence on your strategy board. Such huge dependence, may maim your internal talent and innovations in long term.

This constraint on growth under the giants has highlighted the strength of Audience Data which is harnessed brilliantly by both Google & Facebook, however within their walled gardens. Therefore, building your own Audience Data is the new growth path for Digital Businesses - media companies, agencies, marketers and new age AdTech-MarTech companies.

In this deck we discuss and illustrate the roadmap to Digital Business growth via Audience Data. Please feel free to reach us for more details on

Published in: Data & Analytics
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Beyond the Google and Facebook Duopoly

  1. 1. Presented by: Raghavendra Agarwala CTO TorcAI Digital Prashant Dixit Director Sales TorcAI Digital
  2. 2. Agenda • The Digital Ad Tech Timeline: What is changing around you • Duopoly : The Good, the Bad and the Ugly! • Duopoly long-term side effects • Where to start: Building your Audience • Building a sustainable Growth 2
  3. 3. The Digital AdTech Timeline 3 → Destinations → Ad Placements → Display → Content → Performance → Interactivity → Video → CPC → User/Device ID → Behaviour → Programmatic → PMP → Native → Actions → AI → ML → Predictive Analytics → Programmable Bidder → Blockchain 2008 2012 2018 2022
  4. 4. Characteristics of a Duopoly 4 Characteristic Doesn’t want Advertiser & Publisher to own Audience data Doesn’t give access to Audience and Bid details Can’t use custom algorithm for optimisation of buy or sell Black box (No Transparency)
  5. 5. The Google Perspective 5
  6. 6. The Google Value Chain 6 User SSP Exchange DFP, AdSense & AdX DSP Agency DBM /DV 360 Deals Publisher Advertiser
  7. 7. Google: The Audience Powerhouse 7 Global DNS GA Tag Search Peer Links
  8. 8. The Publisher Maze • For Google Publisher’s are merely content creators • Neither AdSense nor DFP require Publisher side audience data • The new age DMPs that connect Publishers and Advertisers have their respective biz models around Google • Note: – just a tap on the wrist. Setting up the floor price to give competition. 8
  9. 9. The Advertiser Maze • Google advertiser can’t really use any analytics and/or custom bid optimisation • Google does not share event level data • DBM gives one of the highest pass back to agencies • No visibility in media buy • No visibility with 3rd party audience 9
  10. 10. The Facebook Perspective 10
  11. 11. Facebook’s Core Value Preposition • Facebook has over 2.2 billion active users • It has a host of apps that drive huge traction across user segments • It’s one of the biggest demand hubs • Facebook is able to use its profile over 3rd party inventory and execute campaign with high accuracy 11
  12. 12. Facebook: Audience Power 12 Social Graphs Single Sign-on Demography Chats
  13. 13. The Facebook Conundrum • In Facebook world Publishers & Content aggregators don’t exist • Facebook needs neither Publisher inventory nor Advertiser data hence it would always play with its own rules • Facebook picks top 5% inventory at 10x price still creating a loss of 50% for any Publisher 13
  14. 14. Why build Audience • The user you can find on Open RTB for $0.20 CPM will be available in DBM at $0.80-$1.00 CPM • One algo change by Facebook can reduce your traffic by over 35% and can spike up your Ad cost • Pay more for Traffic; Pay more for ads • Misuse of your data by competition: e.g. Insurance clients pay ₹1500 for a click 14
  15. 15. Why build Audience • In short run audience focus is not on paying Publishers in terms of subscription or ad revenue. Such prolonged behaviour will reduce publisher to content curator/aggregator. • Advertisers can’t find supply combined with audience other than Google & Facebook. This over dependence will eat into organic growth and create unsustainable brand equity & acquisition costs. • ‘Search’ for most of the biz can’t give any performance related ROI. For impact ‘Search’ is really not required. • Google-FB based attribution does allow Open RTB ecosystem to report unbiasedly. This is a good way to kill competition. 15
  16. 16. Publishers: The Audience Solution • Enhance audience data by doing data deals • Focus on deep segmentations • Get DSPs that would like to use your audience • Get private exchange and/or SSHB and pass audience data in EXT • Go beyond RFM (Recency, Frequency and Monetary) into engagement, LTV, CLC, etc. 16
  17. 17. Advertisers: The Open RTB Way • Audience based buy will always beat contextual based buy hands-down • Focused collaborative approach for an industry cum vertical can break social plus audience extension paradigm • Explore Open system, it will always pay in long run. • Key result area in terms of impact, performance etc. • Analytics driven operations 17
  18. 18. What Next !! • Look for Open RTB ecosystem • Look for audience based value adds – Deep Segmentations – Ext • Create core design for data privacy in the e2e value chain • Create hybrid between Open RTB & direct sale/direct buy 18
  19. 19. Key Takeaways • Your Audience is your strategic strength • Look at audience buildup as a long term investment • Be open to challenge duopoly • Open RTB ecosystem is “the” alternative to DBM • Open RTB adoption will require CMO & CTO to work together • Use the compliance disruption to gain the field 19
  20. 20. Many Thanks! 20 Please feel free to reach us for more details: Casey Newton, Silicon Valley Editor – The Verge