Ad Networks Talk Exchanges And Yield Optimization At Admonsters Event In London

The biggest ad networks in the UK market assembled today in London to discuss issues affecting their business. Ad network optimisers, publisher networks and ad server vendors were also in attendance at the day-long Admonsters event.

The event had a number of closed sessions through-out the day. Some of the exchange-related topics covered included a presentation by Martin Kelly, Managing Partner at Infectious Digital. Kelly provided attendees with an overview on how the exchanges were impacting the media landscape from a buy side perspective – and how they would ultimately shape the business models of agencies and ad networks. Asked in a Q&A following his presentation whether there was the possibility of disintermediation of ad networks from the sell-side, Kelly was confident that they would adapt and thrive in the exchange marketplace:

All the major agencies are building their own trading platform, and they are only going to trade performance media. There is a place for networks, but it will be on exchanges because that’s what the buy side is going to demand. Networks are better than any other sector at evolving their model. They are strong on technology and ad operations. And there will always be a place for players who can add value with that expertise.

Also of note was a session presented by Dirk Fiebig, Head of Ad Operations at Media Initiatives Group. He focused on the challenges and opportunities of working with the yield optimisers – and the impact on ad networks’ eCPMs. Ad networks would, in the view of Fiebig, have to work harder and smarter to win the bids within the publisher’s exchange system.

Yield optimisation was certainly the theme of the day. IASH’s Julia Smith fielded an interesting question about yield optimisers working closely with ad networks to adhere to her organisation’s guidelines:

It’s important that we all work with new optimisation technology coming into the market. The networks will be trading with Admeld, Rubicon and Improve Digital. And at the end of the day if the network’s IASH specifications aren’t mirrored in those systems, and something does go wrong, the network could potentially be suspended from IASH.

Both Tom Jenen of Admeld and Jay Stevens of Rubicon argued the point that working with IASH not only improved quality control for advertisers but also increased the amount ad networks could charge for ad inventory.

Interesting perspectives form the much-maligned ad networks. They clearly still have a lot to offer, and are addressing the new challenges of working with exchange platforms.