Anthony Vargas and James Herscher, both AdExchanger journalists with expertise in programmatic advertising, delve into the challenges digital media companies face in securing quality inventory amidst an influx of low-quality content. They explore the intricate definitions of 'premium' inventory and buyer preferences, emphasizing the effects of evolving technology. The duo also discusses Viant's strategic acquisition of Locker, highlighting its implications for data management and privacy compliance in a rapidly changing ad tech landscape.
The digital advertising industry is striving to prioritize high-quality content creators, emphasizing the need for transparency to combat low-value inventory.
Recent ad tech acquisitions are reshaping the media landscape, influencing identity management and the quest for enhancing overall inventory quality.
Deep dives
Challenges in Digital Advertising Quality
Digital advertising faces significant challenges in distinguishing premium quality inventory from low-quality alternatives. The industry is grappling with the problem of how to restructure programmatic buying to prioritize quality content creators over websites that merely churn out low-value material. Recent discussions highlight the role of transparency in helping publishers avoid being caught in the web of 'made-for' sites, often resulting in subpar advertising experiences. By encouraging collaboration and transparency at industry and company levels, the hope is to create a more equitable system that rewards high-quality digital media.
The Impact of Ad Tech Consolidation
Ad tech consolidation continues to reshape the landscape, with notable acquisitions affecting the availability and accessibility of inventory. Companies like Trade Desk and Double Verify have made strategic purchases such as Sincera and Rockerbox, which are meant to enhance their capacity to provide quality solutions. Viant's acquisition of Locker reflects a growing trend where companies embrace innovative tools, potentially leading to improved identity management and first-party data utilization. This consolidation raises questions about how well these integrations will serve to enhance overall market performance and address the fundamental issues of media quality.
Defining Premium in Programmatic Advertising
The discussion around what constitutes 'premium' inventory in digital advertising has evolved but remains contentious. Industry professionals contend that the perception of premium should be driven by clear indicators such as a low number of high-impact ad placements and a positive on-page experience. However, the determination of premium often depends on buyer preferences, leading to a debate on whether definitions should be uniform across the industry or tailored to individual buyer needs. This tension illustrates that while some advertisers prioritize high-quality signals, others may simply focus on maximizing reach regardless of the content's quality.
The Shift Towards Quality and Ethical Standards
The digital advertising community is increasingly moving towards a model where the focus is on rewarding high-quality inventory rather than just eliminating low-quality content. Discussions point to the importance of understanding buyer preferences while navigating the complexities of brand safety and content moderation, especially in light of recent movements against misinformation. As advertisers seek to optimize their campaigns, they also advocate for better representations of quality in the ecosystem, suggesting a paradigm shift. This drive for higher standards is crucial as the industry confronts challenges such as fake news and the varying perceptions of quality among users and advertisers alike.
Programmatic algorithms optimize for performance, which can leave digital media companies floundering. Inside programmatic’s pursuit of “premium.” Plus: an ad tech acquisition forged on matchmaking buy-side and sell-side IDs.
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