Trading Desks are in for the long haul, not the sale.

I cant decide where to start on this post, there has been so much going on in the hectic world of ad exchanges in the last few weeks. Top of the bill was an excitable debate between an Audience on Demand employee and a disgruntled DSP. The key issues raised around conflict of interest included agencies being forced to put spend through their trading desks, lack of impartiality etc etc.

Interwoven with this debate was the fact that so many companies are approaching us at the moment, DSPs, Data targeting companies etc all with interesting premises I suppose but all with one thing in common, they all need to make as much money as possible, as fast as possible. Lets talk about conflict of interest..I use the DSP marketplace including Triggit which was involved in the above debate. How many shall we say there are, that are currently aiming for Trading Desk revenues – 4? 5?. Everyone is coming to town, everyone wants a piece of the action, but when they get into town they realise that a couple of those 4/5 have been busy for a few months / years and pretty much wrapped up the business. Its not to say thatagency groups will not test and learn, we do in the US and there is definatley room for more than one or two but for some, the market’s not big enough. What happens then? They need to fight for revenues, they need to say why they are better than each other and especially better than Invite to try and find the big ticket, except I am not sure there is a big ticket at the moment. So then they resort to the last option which is to try and undermine the credibility of a trading desk to try and open up some cracks of opportunity.

The conflict of interest for those guys is they have to make money to keep the VCs happy. The agency group trading desk model is not in the same boat. Audience on Demand’s sole purpose in life is to navigate on behalf of its clients a very complex market place and deliver great results. They are in it for the long haul, they have much more to lose. AOD messes up on a client it can jeopardise the whole business. Yes there is pressure to deliver..but its to deliver results not revenue first and foremost. In a competitive marketplace as the agency landscape is, the more things you do well and right, the more chance you have of retaining the client.

So whats better then? An organisation like Audience on Demand that has a remit to make sure it is working with the best, understanding strengths and weaknesses – and believe me all these tech companies have them – or a heavily invested tech company struggling to make ends meet. Who is actually going to have the interests of the client? I can tell you, it’s us. Anyone who thinks that agencies and clients are naive enough to accept sub standard strategy and results just because its in house is a) clearly lacking in understanding of how an agency works and b) underestimating the clients and Account people. If a client asks about our impartiality we can show them the full vetting we do of all DSPs, I can show them the data compliance methods we have in detail for every supplier, I can show them the results in detail where an acceptable flat cpa or cpc is not acceptable as it encourages the supplier to focus on growing their margin rather than delivering the lowest metric. I will show you 100’s of people who live and breath this space and understand it better than any individual tech company thats trying to undermine it.

Conflict of interest is doing what you have to do to stay afloat in one of the most competitive eras of all digital times vs doing what’s best for our clients. Finally it is always worth analysing who is throwing the mud, its often one of those people who came in to town too late and cant find anywhere to hang their hat.

NMA piece I contributed to, small coverage for a big subject.

As the online display ad ecosystem continues to evolve, this map of the status quo highlights the essential cogs and major players

Comparing the UK online display ad marketplace of ten years ago with today’s shows how rapidly it has changed, from an exchange of media and money through an ad server to a technologically complex and multi-layered ecosystem. And it’s about to change again.

One of the most talked about developments of the last six months has been Google’s acquisition of Invite Media, a technology firm with a demand-side platform that lets advertisers buy from multiple ad exchanges through one interface, while providing people support services.

While automated buying through ad exchanges has been heralded as a way for advertisers to cherry-pick the most targeted impressions in real time, with publishers avoiding the wastage of bulk buys and getting the highest value for inventory, its success depends on an abundance of buyers and inventory, plus knowing how to define bids.

Infectious Media founder Andy Cocker, highlighting the complexity of what’s currently on offer, warns, “There are around ten companies to which agencies could go to license DSP technology. But unless they know how to bid in a safe and controlled way, and how to use data to buy, they won’t have a good experience.”

For these reasons, development of automated trading has been hesitant. But some media players expect Google’s acquisition to change this. They argue it’s an endorsement of how display trading will develop and that it will help pave the way for much-needed standardisation in an area of technology that’s hugely disparate.

“This space needs to develop as a marketplace. Google buying Invite will only bring sophistication,” says Marco Bertozzi, EMEA MD of Vivaki. “Because it’s so dominant in search, there are a lot of people who start wailing and pulling their hair out, but everyone’s still using DoubleClick. The natural reaction is that it’s a bad thing, but any investment in the space is a good thing.”

Google’s latest acquisition gives it end-to-end capability within the online display ecosystem. It now offers an ad server, ad network, ad exchange and DSP technology. The impact this will have is hotly debated by industry players.

“We’re investing significantly in technologies that are helping to grow the display advertising ecosystem for publishers, agencies and advertisers,” said a Google spokeswoman. “Like our partners, we see enormous potential in this space. Real-time display ad buying, in particular, is delivering significant benefits for all players.”

Yet Jay Stevens, international VP and general manager for The Rubicon Project, which works with publishers to optimise inventory yield, is worried. “Google’s acquisition of Invite represents the last link in that value chain,” he says. “It already controls a digital market through search. If it owns the display landscape as well, it’s monopolisation which will hurt agencies and publishers.”

Full article here http://www.nma.co.uk/features/online-display-map/3018213.article