As Advert Tech Consolidates, Publishers Want To Tread Rigorously

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The Promote Sider” is a column written by the promote aspect of the digital media group.

At this time’s column is written by Jayson Dubin, CEO at Playwire. After this unique first search for subscribers, the story will likely be revealed in full on AdExchanger.com tomorrow.

Bear in mind advert exchanges? They was a daily function of the advert tech panorama. Now? You may hardly discover a stand-alone advert alternate. That’s as a result of different advert tech gamers, together with supply-side platforms (SSPs), and advert servers purchased all the advert exchanges and rolled them into their suite of providers.

Consolidation is occurring at record-breaking velocity in advert tech. That leaves the business with an issue. At finest, this consolidation is complicated for publishers. At worst, it’s inflicting them to companion with instruments and firms that merely can’t ship on the guarantees they’re making.

Publishers beware

As consolidation continues, it’s doubtless the large firms are going to maintain getting larger, and the small firms are going to maintain getting smaller.

There’s a easy cause for that: momentum. As soon as an advert tech firm acquires or merges with one other, it has that rather more weight to throw round for the subsequent merger or acquisition. In the meantime, the smaller firms lose income to the bigger firms till they’re acquired or just shut up store.

It’s a system wherein the perfect firm doesn’t all the time win. And once you’re making an attempt to compete in net or app publishing, you could work with the perfect – not the largest.

However there’s a cause this sample happens. Advert tech has a comparatively low barrier to entry. Companions can break into the market by constructing header-bidding stacks with restricted capabilities. These companions could not have a very efficient product, however their egos bolster them sufficient to persuade them they’re going to make some huge cash on this area.

The consequence? They get by on false guarantees. They shroud what they actually can do for publishers and, in time, they fail to ship, leaving the writer to bear the implications.

Sorting reality from fiction 

Publishers can shield themselves within the midst of disruption by taking a number of simple steps: 

1. Examine claims

Numerous advert tech firms make large claims about their capabilities. Examine them. If a possible companion says they’ve a direct gross sales group, don’t simply take their phrase for it. As an alternative, head over to LinkedIn and take a look at their workers. What number of salespeople have they got? Is it only one?

If the corporate says they’ll do one thing their rivals can’t do in header bidding, why not cross-check that with their rivals? Get on a name and inform them what your potential companion mentioned they might do, and see what they are saying.

2. Go for simplicity

If a companion can’t clarify their providing to you in a method that you simply perceive, they will not be providing you with the entire reality. Whereas advert tech is difficult, the core ideas that drive current capabilities and improvements are easy. A real knowledgeable can clarify them in a method a nonexpert may digest.

However preserve this in thoughts: If it sounds too good to be true, it most likely is. For instance, if a companion says they take a a lot decrease income share share than their rivals, don’t simply calculate what that may seem like based mostly in your present numbers; take into account the opposite numbers that go along with that decrease income share determine, similar to whole income for writer companions. 

3. Verify for respected companions and related certifications

Does the companion you might be contemplating have or present entry to a knowledge administration platform (DMP) that may allow you to promote your knowledge? With out a DMP, you’re lacking out on an essential method to improve your CPMs.

Are they licensed with the Reliable Accountability Group (TAG)? With out TAG certification, main manufacturers gained’t work with you or your stock.

Should you’re a youngsters’s writer, is the companion licensed with KidSAFE, the Youngsters’s Promoting Evaluation Unit (CARU) and the COPPA Secure Harbor Program? With out these credentials, your total model is in peril – not simply your income.

The checklist goes on, however the level stays: Irrespective of how large the advert tech firm is, it nonetheless has to work with the suitable instruments and get the suitable certifications to be of use to you.

The advert tech panorama is ever evolving, however your strategy to choosing the proper companion ought to stay constant. Do your analysis and assume critically.

Comply with Playwire (@playwire) and AdExchanger (@adexchanger) on Twitter.