As we begin 2013, we have already seen activity that points towards a shakeout in the advertising technology industry.
In the space of one week, we saw MediaMath buy Akamai’s Advertising Decision Solutions unit, AppNexus secure $75m funding, part of which will be used for acquisitions, and ad exchange business adBrite shut down its operations.
And we are likely to see greater industry consolidation as we continue through the year. So what's important when it comes to technologies in today's ad tech environment?
The display space has been the subject of numerous exciting innovations over the course of 2012, resulting in some fantastic growth in the industry.
Europe’s online display ad spend for 2012 will reach £3.8bn, and grow at a rate of 13% to be £6.2bn by 2016 – all extremely healthy signs that the sector is on the up.
Real-time bidding (RTB) is a small, but rapidly growing part of the overall display advertising market, which is billed as a way of giving agencies and advertisers better control of their ad buys and costs.
Last year eMarketer predicted that RTB spend in the US will reach $7.1bn by 2016 - nearly a third of the display ad market - up from $1.9bn in 2012.
However RTB also receives criticism for being too complicated, overly expensive and offering poor quality inventory.
With this in mind, AdMonsters and PubMatic have published a new report that examines publisher attitudes towards RTB.
AdMonsters distributed an online survey to its European publisher contacts and carried out several in-depth interviews with experienced RTB users in both the US and Europe.
Amazon may be the world's online consumer retail giant, but don't let that fool you: the company isn't content with being the Walmart of the web.
Already, Amazon has become a leading player in the cloud computing space, and in 2013, it's coming to Madison Avenue, perhaps in a big way.
Despite its many critics, television advertising is a $100bn-plus a year market. So it's not entirely surprising that the market for online video ads has evolved to look a lot like its offline counterpart.
There's the desire, now being realized, for digital up-fronts. There is a growing focus on channels. There are Hollywood-like deal structures. And, of course, the pre-roll is the dominant ad unit.
There has been no bigger news this year in the world of digital advertising than the launch of Facebook Exchange (FBX). The implications are many. It opened up a gigantic pool of inventory in the hottest sector of ad tech: programmatic buying or, more specifically, retargeting. Furthermore, it brought together Facebook API buyers and DSPs in a way that companies are still trying to figure out, and overnight, it created competition, in terms of attention and dollars, for Google’s advertising juggernaut, DoubleClick Ad Exchange.
Now that it’s been almost five months since AdRoll and a handful of other tech companies have joined the FBX alpha, we thought we’d share the key things that we’ve learned about this exciting new channel.
Real-time bidding (RTB) may be a source of concern and confusion for both media buyers and sellers, but that isn't stopping adoption of RTBs.
According to a report published this week by sell-side platform Index Platform, the number of RTB impressions sold via its platform jumped nearly 30% in the first and second quarters of the year. What's more: growth was driven by both major advertisers, which accounted for 57% of all spend in Q2, and local advertisers, which increased their spend by nearly 50% quarter-over-quarter.
Any time I mention the word ‘programmatic’ in a meeting or on a call, people immediately assume that we’re talking about RTB, and the focus of the discussion will centre around remnant inventory.
For some reason, ‘programmatic’ has become shorthand for ‘RTB’. But this is definitely not the case, as ‘programmatic’ should be, and is in fact, equally as applicable to the premium tier as it is to low-value inventory.
We have passed the point of questioning the value and capabilities of Big Data on business success. In progressive organizations it now holds a seat at the table as a crucial resource to business. Companies have realized that there are major opportunities to use the data they already have and apply new insights across their business for incredible results.
Cloud technologies, and the advancements in data analysis give foundation to accelerating the trend. Advanced technologies like active analytics (“decisioning”), advanced algorithms, etc. are proving to be extremely effective at fueling the Big Data engine. In the new world we live in, data isn’t something to be stored and ignored, but analyzed and utilized for its valuable insights.
Big Data analysis has proven to be invaluable at helping driving decisions across organizations—from pricing and distribution decisions, to product and marketing insight—spreading a trend of ROI from end to end. There is no doubt, Big Data is now mainstream.
Recent research from Google put some solid figures behind a notion that has been common knowledge in our industry for some time - consumers are using a mix of phones, tablets, computer and TVs to consume digital content.
However, a point to consider beyond this isn’t just the number of devices that are commonly used to digest content, but the sheer amount of content consumed in total.