RTB as a game changer; Ad networks threatened; Smart publishers will sell their data
Martin Kelly, managing partner of Infectious Media, and former media director at Agency Republic, has published a series of predictions for the European buy-side market in 2011 that will chime with some and concern others.
Kelly sees RTB (real time bidding) developing further in 2011 – currently it has “facilitated little more than the cheap purchase of media and access to retargeting technology for most media buyers giving them the chance to operate like an ad network. This model is broken and in 2011 this will change.”
He sees real value being driven by a further layer of technology added on top of DSP (demand side platform) infrastructure, “customised to an advertiser and their sector.”
Kelly believes there is a positive way forward for premium publishers who are “agonising about RTB,” and feeling let down by “low CPMs and poor quality ads.”
“In 2011 premium publishers will take control of their data and start to monetise it properly helped by some new companies that focus on this.”
But not everyone will enjoy new opportunities. Kelly suggests that ad networks will “have to become more transparent” to survive.
“In this era of transparency, those that do have something unique will continue to grow, some more of those that don’t will be bought or shut their doors…..The ad network model is not out of date but their black box approach is. Ad networks are threatened by this space and they are going to have to justify why they should be on media plans rather than a trading specialist, holding group offering or otherwise.”