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DeSilva+Phillips Media Bank - Media Deals Reports

Agree with Darren Herman’s assessment— 

“I would say that the paper does a good job of setting up the history and current ecosystem that surrounds ad exchanges but lacks anything tangible about the future of online advertising…”

(via jryu)

Rafer sez:
Seconding Darren’s comments, adding three quotes from the white paper that are dead on, laughing at another quote that isn’t, and pointing out a gaping hole in DeSilva+Phillip’s framework.

Dead-on

• A mistake premium publishers made in the past was failing to protect their proprietary audience data against leakage and use by DSPs for retargeting campaigns. Premium publishers believe demand-side retargeting campaigns have contributed to depressing premium display CPMs.
• With supply-side platforms morphing into supply-side exchanges (and given their existing relationships with publishers already in place), these platforms could impede Right Media’s ambitions in the premium-exchange market. Right Media’s decision to add DSP-like capabilities may not sit well with many premium publishers.
• The relationship between Google and ad agencies has always been tense. The ad agencies have never been sure whether Google is a partner or a competitor trying to maneuver around them to their clients. As already noted, the ad agencies have been building their own demand-side capabilities, starting their own demand-side networks and ad-exchange trading groups. The fear is a move by Google to the demand side will take business away from the ad-agency trading groups. Google could then offer a comprehensive DSP directly to some or many of the advertisers who are also the clients of the holding companies.

HA!
However, it’s useful to remember that DeSilva+Phillips makes money by spurring transactions, preferably earlier than later, so it’s in their interest to pump up the hype. This comment of theirs is amusingly aggressive, “All ad exchanges will likely offer true RTB by the second half of 2010, including OpenX Market and Microsoft AdECN.”

The Gaping Hole
DeSilva+Phillips ignores one very potent sort of market player — DSP-SSP hybrids. A number of the vertical ad networks have invested in Owned & Operated properties. They both have near-exclusive agency relationships with advertisers and own a bunch of their own premium/remnant inventory. As always, the most profitable inventory and advertisers will keep 20 to 50% of their business out of the horizontal aggregaters to avoid giving GYM their share. DSP-SSP hybrids will do very well that way.