If you work in digital advertising, there's no escaping the flurry of buzz around the overcrowded number of ad tech vendors. There are too many "specialty" solutions, and advertisers are rightly frustrated about how to navigate this bloated tangle of technologies to get the ROI they are looking for. Waste and duplication are rampant, so much so that it's come down to this: for every media dollar spent, only about $0.45 (on a good day) actually goes to the inventory meant to make a connection. The rest is absorbed by the chaos, diluting the impact of what campaigns are setting out to achieve.
Does this mean that compression of the ad tech landscape is inevitable? No doubt there are a number of vendors at risk of extinction because of their inability to hit venture capitalists' payment schedules. But to truly succeed as an industry, ad tech needs to do a whole lot more than just wait for the shakeout. Houston, we know we have a problem. The question is, what do we do about it?
Waste and chaos are eroding the power and credibility of digital advertising. This state of affairs is no longer sustainable, and industry compression is coming. The stakeholders who cultivate duplication and waste will fail. Those who unite have a golden opportunity to deliver real, tangible value where everyone - publishers, advertisers, and the true innovators in the middle - will win and dominate.
Image on home page via Shutterstock.
Meet Your Favorite ClickZ Contributors
Many of ClickZ's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Jeremy Hull, Lisa Raehsler, Andrew Goodman, Bryan Eisenberg, Mathew Sweezey, Aaron Kahlow, Stephanie Miller, Simms Jenkins, Jeanne S. Jennings, Dave Hendricks and more!
As the SVP of Global Advertising Products and Strategy, Seth Demsey is responsible for the strategic vision of advertising products across AOL and AOL Networks. In this role, Seth leads the development of innovative ad technologies that solve the toughest challenges facing global digital publishers and advertisers. Since joining AOL, Seth has launched AOL's mobile offerings and AOL Network's platform solutions AdLearn Open Platform and MARKETPLACE by ADTECH.
Prior to joining AOL, Seth served in senior positions within industry leading global technology companies such as Google and Microsoft. During his tenure at Google he was a key contributor to the development of Google Webmaster Tools, Google Talk, and DoubleClick AdPlanner. At Microsoft, he was a part of the original .NET team and helped to build and release the first two versions of the platform and co-authored the .NET ISO standards. Seth's career in technology spans over 15 years and in this time he has launched several companies, including Zero Crossing and YieldMetrics. He has also invented several technology and hardware solutions with 20 U.S. and foreign patents to his name.
Seth holds a B.S. in Computer Engineering from Bucknell University in Lewisburg, PA and is a fellow at The Wharton School, University of Pennsylvania in Philadelphia, PA. He is a frequent speaker at industry events, including many Microsoft PCD and MDC events. When he's not building and innovating ad products you can find him playing guitar or skiing at Deer Valley.
March 19, 2014