Those 5 Big Ad Tech Stories You Might Have Missed This Week
M&A activity was pretty brisk this week. First ValueClick shelled out $300 million for Dotomi. Mostly because it has some very strong client direct relationships – and ValueClick sees the wisdom in owning a direct line to the advertiser as it can sell in additional services, including its-soon-to-launched DSP. Then comScore bought Adxpose for $22 million to, more than likely, bundle ad verification into its anlaytics suite of products. The price paid was about the same amount as Adxpose raised. I do hope some of the good people at Adxpose made some cash – and it didn’t all just go to the VCs. We are now in full M&A mode. Who’s next? Will Adobe move for an ad verification provider? Will DoubleVerify or AdSafe be on the top of the M&A shopping lists of the big players? My big bet this week is that there is going to be a feeding frenzy around Facebook-buying platforms. I’ll never be Terry Kawaja (just don’t have the brass neck or the deal-making skills), but I think the likes of London-based Glow and Xa.net must be in the sights of big ad nets and ad tech players looking to broaden their product offering into the Facebook channel. Cha-ching.
2. New European Cookie Law Is Leaning Towards Handwritten Opt-In Delivered By EU-Approved Carrier Pigeon
The European cookie directive has to be one the most IDIOTIC pieces of legislation ever passed by any pseudo-legislator in the history of unelected law-making. It really is right up there. The law was passed in May, and some EU memeber states have already enacted it to its fullest extent. I’ve been informed that carrier pigeon trade in Belgium has increased 10,000% as the written opt-in has been deemed by the Belgian government as the preferred means for “explicit consent”. The UK digital industry has kindly been given a whole 12 months by the ICO to “bed in”. Ahh, thanks for the leeway, faceless government bureaucrat-type. Much appreciated. But this is not the “time for hubris”, as Doug Conely, puts it on the TribalFusion blog last week. Conely argues that that the industry must get “100% behind the IAB UK Good Practice Principles and the EU Framework” or face an uncertain future where a confusing directive issued by no-nothing Brussels politicians effectively ruins the European digital media industry. In a good overview post he runs through a number of key points what we as an industry should be doing more of, particularly around educating the general public and responsible reporting in the trade press. I think this industry should be proactive in highlighting the fact that advertising is subsidising quality content. Behavioural targeting brings in much needed revenue for publishers. Without it digital media is going to suffer badly financially. And I think Doug Conely’s post once again highlights that very fact. Keep content free!
3. The Agency Trader Desk Conflict Of Interest Fiasco Rumbles On
Ever since Mac Delaney decided to use the word “bullshit” as a counter argument during the infamous Zach & Mac bust over the conflict of interest of agency trading desks, we’ve had lots of industry talking heads and “thinkers” debating the issue. Zach Coelius did a follow-up post this week about this very subject on the ever-sensationalist DigiDayDaily. In the piece, Coelius outlined his argument in full on why agencies had a conflict of interest when operating an ATD – but in fairness it was more about countering some questionable points made about him and Triggit. Here’s why this whole row is, in the words of Mac Delaney, bullshit:
– Agencies are businesses, and should be allowed to generate revenue. If it is being transparent with clients then there should be no problem. A non-transparent margin made on media is ultimately going to backfire. After a while the smart clients are going to ask: why am I paying an agency, a service fee, server fees, and an undisclosed margin on media bought to an agency trading desk.
– Most clients don’t really care. Fact. As long as the brand is in a contextually safe environment, KPIs are being met and the boss is happy, marketers don’t really care. ATD? RTB? DMP? As long as you are delivering, most don’t give a damn. That’s the reality – and probably the main reason why something like Xaxis will succeed.
– As long as agencies hold the client direct relationship, third party buyers are going to lose budget. This is more of an extension of the point above. The ATD might be very well be conflicted in some cases. But, heh, if the agency is delivering, clients will continue to use them. Either work with them or go head-to-head.
For a more rational and measured overview on the ATD and what it means for advertisers, I suggest you listen the TraderTalk interview with Marco Bertozzi, MD of Vivaki Nerve Centre EMEA.
4. More Yield Optimisation Action In Germany
It would seem the German data-driven display market is hotting up. Yet another Yield Optimiser is about to enter the fray. YieldLab, a Hamburg-based ad tech company, is now offering dynamic inventory to ad traders across the market. How it will work with Germany’s four hundred and fifty sales house is still unknown? These guys are the backbone of the display business in Germany – and if you want to succeed you must find a way to integrate them. Europe’s biggest market is now getting into RTB. Should get interesting. There are now a number of RTB-enabled sell-side platforms in Germany. But where is the demand going to come from – given the agencies have been so SLOW to move in this space. Surely Sociomantic can’t buy everything – or maybe they can. Who knows?
5. Is The Majority Of Inventory On The Exchanges Really Rubbish?
There’s been so many pieces of late questioning the brand safety of inventory on exchanges. I’m not linking to any of the stories because it’s effectively sensationalist pap from industry talking heads. Look, we are in the early stages of automated trading. Private exchanges are coming. The Microsoft ad exchange has not even cranked up yet – which will bring a lot of quality inventory into the European marketplace. And isn’t this what we have ad verification and semantic providers for? To sift through the crap, find those nuggets – and keep advertisers brand safe. Enough said on that matter.
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