Ad Technology (Excerpts from Raymond James & Forrester) Flashcards
(10 cards)
Raymond James analysis of public ad tech companies showed what related to those who aggressively spent in R&D?
Those companies who invested in R&D outperformed those who concentrated investment in a saleforce. This is b/c: i) obtaining rapid revenue growth early in the cycle is easy, but ii) sustaining growth requires establishing a durable competitive moat created through ongoing investment in organic R&D, tuck-in acquisitions and data centers.
Ad strategies are shifting reliance on cookie-driven targeting to what?
Data management platforms that leverage first party data. This increases relevancy of advertisements.
What was the genesis of the initial AdTech wave?
A means of connecting advertisers and publishers to make it easier to buy and sell inventory
How was the original process of connecting remnant ad space from publishers to advertisers?
Through ad networks which bout inventory from publishers and resold to advertisers, and ad rep firms, which worked w/ premium publishers to sell their inventory to advertisers.
What was ostensibly the beginning year of large ad networks and who were the major players?
Around 2000 ad networks began to achieve scale.
Largest players were: RightMedia, DoubleClick and aQuantive
When was the period of consolidation in AdTech and what players were acquired and by whom?
2007 started the year of consolidation
RightMedia acquired by Yahoo! for $850MM
DoubleClick acquired by Google for $3BN
aQuantive acquired by MSFT for $6BN
Who was considered the first to introduce a demand side platform and what is the benefit of DSPs?
MediaMath
The advantage is it provides advertisers with many of the capabilities of ad networks such as broad access to inventory, granular targeting, optimization tools and analytics – all through a single interface/platform
What are the differences b/w real time bidding (RTB) and programmatic?
RTB refers to buying and selling of ads in real-time and typically takes place through an ad exchange
Prgorammatic is simply automating through machines and is not a requisite for the process to occur in real time
What are the key differentiators between cookies and next-gen data assets that are attempting to link identity w/ behavior?
Cookies are probabilistic that estimate behavior but struggle in cross channel environments
The next-gen is more deterministic and offline identifiers that provide more visibility around the individual
What are four key trends taking place in ad technology?
- Mobile proliferation and the means to target (e.g., native ads, in-app ads, ad install ads, messaging)
- Video
- Simplified platform approach through consolidation (e.g., DSPs such as MediaMath acquiring across entire value chain to include data management platforms (DMPs) and ad networks)
- Consolidation is intensifying in general
