In the eleven years I have worked in and covered the display advertising market, I have never seen such a frenzy as I do today. In the past week, I learned of three more DSP's, two data companies and an attribution vendor. Agencies are also in the game this time around. So what is causing this pile-on of new ad technologies to the market? There are a few things:
- Leveled playing field on the exchanges: The ad exchanges allow for innovation in ad optimization and bidding. Additionally, small companies can suddently compete for inventory that used to be locked up by ad network contracts.
- Better technologies: Cookieless tracking, container tags, real time bidding, data targeting and dynamic ad generation are all innovations that are hitting the hockey stick curve right about...now.
- Opening purse strings: We know that display advertising spending was essentially flat from 2008 to 2009. It appears that 2010 will show improvement. Marketers are getting budgets back and are ready to spend them.
- Desperate publishers: Publishers are grasping to find ways to make more money on their sites, so they are handing over the reigns to sell side platforms to help them optimize.
Of course, agencies, ad networks and portals are clamoring to keep up, claiming to have all of what the data providers, DSP's and SSP's have and more. Some do, most don't (there is also strong evidence that much of the vendor space is still vapor-ware.) All of these changes are exciting, but there are a few things that MUST happen for marketers and publishers to come out winners in the midst of so much change.
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