Tsafrir Peles Discusses The DMG Proposition, How The Ad Net Model Is Evolving, And Growth In The Mobile Display Ad Space

Tsafrir Peles is co-CEO at DMG (DSNR Media Group), a leading online marketing company. Here he discusses the DMG (DSNR Media Group) offering, how the ad net model is evolving, and the mobile ad space.

Can you give some overview on the core competencies of DMG [DSNR Media Group]?

DMG is a technology driven result based interactive (online and mobile) advertising company running 3 business units.

We operate a display ad-network, running advertising campaigns across multiple media sources and exchanges as well as our own publisher network.

We also have a results based mobile ad-network with DSP capabilities, utilizing our proprietary Traffiliate for mobile platform to aggregate media from different sources. Our technology allows conversion tracking in mobile, better visibility and hence much better optimization. In most case exceeding our clients’ campaign goals and expectation.

The there’s Traffiliate, our post-click management and optimization platform. This is now sold on a SaaS basis – allowing advertisers to improve post-click processes and increase conversion. Traffiliate for mobile is designed specifically to meet the unique needs of mobile advertising.

All of our technology solutions, both for internal use and for external use, have been developed only after a strong business case is proven. We developed Traffiliate based on our experience as a leading result based ad network, and years of operating as a large DR international advertiser. The same goes for our campaign management platform and all of its components, which enables us to manage large scale campaigns on multiple exchanges.

What do you define yourself as a traditional ad network? How do you see the ad network model evolving?

If the traditional ad network is focused on representing publishers, then we are not a traditional ad network, not in display, nor in mobile. Since inception, we’ve been focused on aggregation and optimization, aggregating large amounts of inventory of all kinds and distributing it based on results to our growing advertiser base.

The ad network model has been evolving for quite some time now. The supply side (traditional ad nets) had to develop targeting and optimization capabilities in order to maintain demand and remain competitive, and at the same time had to expand their reach and get access to more inventory. The demand side (which emerged with the introduction of the exchange model back in 2006-7) had an easier job as supply of remnant inventory grew significantly during this period. But these new demand side players have had to develop tools for publishers in order to to secure the supply.

So the recent introduction of the DSP and SSP is not a big development for me. It’s just become necessary to define the value proposition of the ad network. Ad nets of all kinds will have to make sure they continue to add significant value to both publishers and advertisers. In the growing complexity of our eco system, I still see a big future for these ad nets. No one entity can cover of the whole value chain by themselves now. It is just too complicated and not scalable.

DMG does a lot of buying across ad exchanges in Europe. Can you give some insight into your exchange strategy and how this is helping your clients? Are real-time optimization products, like Traffiliate, good example of how to leverage RTB and exchange inventory?

Since inception, we’ve always relied on external traffic sources,. We were always the first ones on new exchanges; if we thought there might be a chance for “new media source” we were running to test it out – in an ongoing effort to fulfill our clients’ demand. The ultimate goal of Traffiliate is to improve campaign KPI’s.

Given the move towards ad automation and the growing influence of ATDs and DSPs, the traditional ad network model needs to evolve. How is DMG meeting the challenges of the changing environment?

As described above, we have been in the process of evolving our business model almost since we founded the company. I am happy to say that not only we are able to continue add value to both ends. We now have new segments of clients: on the demand side we have DSPs and ATDs buying from us – and on the supply side we are now buying a lot form SSPs.

Is your business dependent on agency spend – or do you take a stronger client direct approach?

Not so much. The majority of our advertisers are direct – about 75%.

DMG, as a company, has moved aggressively into the mobile ad market? Can you give some insight into your mobile ad business? How are differentiating from other players in the mobile space?

We were the first result-based player in mobile – the first one to offer our advertisers conversion tracking in mobile. That’s the first differentiator with other mobile advertising solutions. The problem is if you don’t continue to innovate then you lose your competitive edge – so we are aggressively adding more reporting, targeting and optimization capabilities, using our Traffiliate for mobile platform. The combination of very detailed reporting, targeting and conversion tracking makes a very powerful optimization platform for mobile advertising.

Given the lack of a universal cookie on mobile devices. How is DMG tracking campaigns on behalf of your clients?

Part of our proprietary technology is a tag management tool that is capable of token tracking, a server-side tracking capability.

Do you think this lack of transparency is preventing more spend coming into mobile?

Absolutely. But I think that advertisers are not able to benefit from mobile advertising – and hence are not buying enough. With regard to transparency, you could add lack of efficient trading and inventory. There are too many walled gardens and closed eco-systems in mobile, which is preventing efficiencies to be developed.