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Demand Is Hot In Digital Advertising, But Needs Supply

The digital advertising industry is constantly evolving, and the only way to prepare for the future is by arming yourself with a full stack technology platform that can quickly pivot to change with the times. For example, SSPs dominated 2016, but as we look to the year ahead, the new rage is centered around DSPs…

So, why the sudden change to DSPs?

DSPs help advertisers manage digital ad inventory purchasing decisions to buy impressions across several ad exchanges and publishers, while targeting specific users based on information like location and previous browsing behavior. DSPs automate the decision making process for advertisers, by telling them which impressions make the most sense to buy. Put simply, DSPs help advertisers get the most bang for their buck.

But then why did Time Inc. purchase a company like Adelphic Inc. earlier this week? Won’t it essentially minimize ad revenue for the publisher, Time Inc.? Yes, but it will also arm Time Inc. for the future by adding to their tech stack. (They also acquired Viant last year — which has a universal ID — and when paired with self service capabilities of Adelphic, they are meeting the two biggest needs for agencies.)

Alright, so they are appealing to ad agencies, but how can they combat the revenue hit?

The easiest way to do this is through a SSP, which can integrate numerous different DSPs through API access, and create a true auction engine that will work to get the highest price for publishers. It will also better curate inventory, and connect advertisers with better audiences by breaking down the “walled gardens.” Sure, both sides are trying to maximize yield/ revenue/ ROI, but SSP integration can help both sides find a fair middle ground where both sides make concessions, overall quality is maintained and long-term prospects for programmatic digital advertising prevail.

So SSPs and DSPs actually complement each other?

Yes, without a doubt. And this brings us back to where we started; in order to succeed in the rapidly changing digital advertising industry, it is important to arm yourself with the tools and technology to succeed. Although DSPs help advertisers target consumers on publisher sites, SSPs will help advertisers maximize the breadth of publishers to choose from, while providing unique inventory, distribution and audiences. The platforms can be integrated seamlessly, and sure, both sides of the equation will have to engage in some old fashioned “give-and-take,” but it will result in a giant step toward building a long lasting sustainable economy where everyone can win.

By Frank Sinton, Founder and CEO Beachfront Media