Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

RTB & Web Marketing - Algorithm is the new decision maker, it seems?

.
That ability of Looksmart's open marketplace (& I strongly feel), in that it will soon allow marketers to connect all their campaigns with ROI in a totally transparent (less costly, 'neutral' to both sides) and with the 'one push of a button' buy (and, at massive scale) is certainly where the Looksmart AdCenter marketplace is heading, I'd say.

(The above, an opinion from my previous InstaBlog post - [IAC and Yahoo both increase their 'canvas' for 'sea-change', on the horizon])

Varick Media Management tell us that it has pioneered the art and science of the advanced algorithmic buying of media through multiple inventory sources. [www.varickmm.com/about/],

They also tell us that they have over 20+ audience partners that allow it to find the right audiences for the right campaigns & that they do have access to numerous biddable inventory sources including Yahoo!, Google, MSFT's AdECN, AOL, Pubmatic, and AppNexus.

Greg Hills (DS platform manager for VMM) writes a very good and easily understood article at AdExchanger.com [Read the rest of this entry »] in which he points out, that whilst ..........

< trusted personal relationships have historically been the conduits through which ad dollars flow, this [kind of] relationship driven world of advertising is now being replaced by the data driven world of advertising. RTB, DSP, SSP.>


[Real Time Bidding - Demand Side Platform and Supply Side Platform]

Greg points out, that ...

< Brands still want effectively priced advertising units in safe environments that will get consumers to engage with and buy their products. The key shift is that I no longer decide whether any specific publisher or web page fits that need. The algorithm is the new decision maker.

The algorithm is a better decision maker. It bids rationally by fully incorporating learnings from past performance. It can value tens of thousands of individual impressions per second based on multiple data points.>

He also advises that: 

<.... From a time management standpoint, it is inefficient to actually go through with buying and optimizing more than a dozen sites/networks. But with algorithmic buying, the agency can buy & optimize in real time across thousands of sites.> 

The article goes on to say, that:

< Now, the agency-publisher conversation is less of a sales conversation, and more of a collaborative problem solving conversation. Both agency and publisher are solving for the same thing: getting as much inventory as possible in front of the true decision maker, the buyside's bidding algorithm.>
 
The article shows the current "complex" ecosystem slide (Original GCA Savvian slide here - PDF) and then Greg Hills says, that ....

 < ........Ideally, this chart would be much simpler. There would be one big pool inventory that everyone plugged into & bidding optimization would be entirely automated. This is not the case, unfortunately.>

But what if the likes of VMM were able to access all their abovementioned biddable inventory sources (in the one single buy) and could maybe even add a few more (including, say, an IAC publisher platform) & were (at all times) able to 'measure' across the total inventory & get to build their own set of algorithms (at a huge scale), the competition then (in an at all times "blind" auction marketplace invironment), would really be "on" in earnest.

DSP's (& Agencies, buying from in house) blindly out-bidding each other in a 'neutral', fair & fully transparent to both sides, global marketplace and publishers being rewarded equally.

In a situation whereby (and, as Greg puts it), 'agencies and publishers are almost administrative assistants, working together on logistics so that the the publisher's inventory can get in front of the ultimate decision maker, the algorithm'.

And (some second tier), Scale?

Technorati may well even be an example of a 'niche' SSP in saying that it's evolution from a single site into a network (representing blog publishers) serving billions of ads on thousands of sites each month. [Read the rest of this entry »] ..

Richard Jalichandra, President & CEO of Technorati:

< "to give a sense of scale, in April, over 200 million unique visitors worldwide saw Technorati Media’s ads. ....How do we support it all?  -  Rubber bands and paper clips! - No seriously, a variety of proprietary & 3rd party technology, and of course, some very dedicated people".>


There are many 'options' (I feel) that Looksmart's AdCenter auction based (and 'management') platform can be utilised. And that it will be so, is my strong feeling.

LC

Disclosure: Long LOOK