Data Offense:  Charting the Path to Direct Sold RTB Advertising

Krux' co-founder and CEO provides his perspective on data safe RTB.  With the rapid growth of programmatic channels, innovation has outstripped the rules that govern it, leaving operators wanting for the core capabilities required to participate in the media market safely and smartly. 

Charting the Path to Direct Sold RTB Advertising
September 5th, 2012 - 12:05 am

“Data-Driven Thinking” is a column written by members of the media community and containing fresh ideas on the digital revolution in media.

Today’s column is written by Tom Chavez, founder and CEO of Krux Digital.

When he was running the Right Media Exchange, Ramsey McGrory posited what I call the McGrory Conjecture during a panel discussion at an IAB conference in 2009.  He suggested that publishers and marketers were using the RightMedia exchange not just to buy and sell impressions, but also to gain access to data.  The circumstantial evidence was pretty convincing:  Remnant channels were clearing publisher inventory at south of fifty cents, while average prices through RightMedia were north of a dollar.

The only thing that explained buyers’ willingness-to-pay for media at those rates was access to data without having to take the impression.  Buyers would get a seat on the exchange to ensure access to the bid flow, buying at much lower volumes and thus correspondingly higher average CPMs, in exchange for access to ‘free’ data.  For sellers putting their media on the exchange, this represented a type of data leakage I like to call ‘cookie licking’:  bidders lick the cookie, put it back in the jar.  What we’ve seen during the last three years in our industry abundantly confirms Ramsey’s early speculation.   McGrory’s Conjecture is now McGrory’s Law...


Read the whole post on AdExchanger.