In a red brick building in New York’s Chinatown filled with startups, a company uses custom computer programs to scout for opportunities, making millions of trades each day that generate tens of thousands of dollars in revenue. This company is not buying and selling stocks, bonds, or commodities: Its specialty is online ads. High-frequency traders(…)
There’s a new C-level job on the horizon — the chief programmatic officer. Here are three key skills the CPO will need to influence the board room. The New York Times, AOL, Meredith and The Washington Post — what do each of these media companies have in common? Within the past year, all have hired top executives as(…)
Nanigans CEO Ric Calvillo talks to a lot of ad-tech analysts. Every time he asks them what the biggest disruption in the advertising technology space is, they say RTB, or real-time bidding.
But that’s actually much smaller than another, much bigger phenomenon, one that potentially threatens the entire ad industry.
“RTB is only $4-5 billion,” says Calvillo, referring to the exchanges that sell millions of ads per minute in hyper-efficient automated bidding mini-wars for real-time ad delivery via the web or mobile apps. “The online global ad market is about $100 billion … and between Google, Doubleclick, YouTube, and Facebook, direct-to-client ad sales via self-serve total about $20 billion.”
“So 20 percent of the market has been sucked out of the ecosystem.”
The ecosystem Calvillo is talking about, of course, is the ad-reselling ecosystem, which is increasingly occupied by a sometimes-bewildering mix of third parties that are middle-men between advertisers and publishers: supply-side networks, demand-side networks, ad resellers, real-time exchanges, and hundreds of specialist companies occupying dozens of niches in the big market of creating demand and selling stuff.
Real-time bidding is a new and dynamic way to buy online media. Through an automated process, media buyers can evaluate, bid on and purchase ad inventory on an impression-by-impression basis. With real-time bidding, media buyers can drive meaningful one-to-one connections to consumers with greater scale and efficiency. Every time an impression is available, the advertising(…)