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The Programmatic Arena - If You Build It, Publishers Will Come?

Much has been posted about the integration between Search & Display. Yet there's been little to nothing said of an independent Global OPEN marketplace capable of handling up to 100 Billion transactions per day.

In that recent instapost I have endeavored to point out that it's very possible that a newer pay-to-play model is now evolving. - Hey, and in doing so I've taken plenty of 'flack' in the past week or, so (much, may well be deserved), and the many comments received following that above linked post are no exception.

Over on Yahoo Finance myview2day had (once again) asked me the questions as to..Who are Looksmart's publisher partners again? [and] Where is their distribution network?

My reply (back to him) was (his words) "amusing if nothing else".

In spite of the fact that many web publishers have a certain fear of the programmatic arena, Global publishers of note will (no doubt) be making their inventory available within the Looksmart Search and Display Marketplace (to my way of thinking) with this now - almost becoming a forgone conclusion, is my strong feeling.

Looksmart's CEO had as good as advised all of this being the case (during the CC, immediately following the Q1 2011 Report), in saying:

"It has positioned us as quite an interesting partner for all the Yahoo Partners & the World [advertiser solutions?] Partners in helping them deliver to Yahoo and Google - and that is really part of how we're looking at our business going forward."

Q2 2012 Transcript: Source: [PDF] LOOKSMART LTD

Now read the following words from CEO Jean-Yves Dexmier:

"The current U.S. search advertising market is estimated to be between about $15 billion and $20 billion today, and the vast majority of this is in the search-to-search market.

Capturing even a fraction of the market would represent significant value creation for LookSmart.

So, to capture the opportunity, one has to start with a robust and proven search advertising platform.

Such a marketplace needs to be capable of delivering a very large volume of display traffic to search advertising campaigns - up to 100 billion events per day. It must be a scalable, high-performance technology platform. LookSmart is positioned to answer both of those challenges.

We are positioned to deliver an open, independent marketplace by leveraging our existing search advertising platform."

"...When discussing game-changing events for online advertising with our customers and partners, there is strong consensus regarding the significant value that an integrated Search and Display open marketplace would have for them.

There is a clear opportunity to create value by providing such a marketplace, enabling advertisers, who are primarily focused on search-based advertising and publishers, who mostly provide display opportunities to directly meet and efficiently settle-in real time-[with] individual search ad placements." (P2)

..."We are beginning to expand the types and sources of search traffic without compromising on the quality of the traffic delivered to advertisers, thanks to our soon to be released next-generation click server. We are increasing our focus on direct sales led by our Chief Revenue Officer Chris O'Hara, who recently joined the Company." (P5)

.."Search advertising will continue to be the strongest and most consistently growing online advertising market. .........Its growth has been limited by the supply of quality search traffic available to meet advertiser demand.

Delivering traffic through unlimited display supply and effectively targeting it to search advertising campaigns is the game-changing event advertisers and publishers are resoundingly asking for." (P5)

Before closing, I would like to sincerely thank swanson1 for all his (36) Comments that he has made. But if I can make a point-that it should be clear Looksmart are hardly going to involve just anyone (other than what would be a carefully chosen, select few Big Brands & Agencies), during the Co's "testing" period, no?

Again (on P5 of the CC transcript), The CEO advises:

"We have done extensive proof of concept work and believe that we have eliminated, at this stage, the key technical uncertainties about the new integrated platform. The devil is in the detail, of course, but I believe it is reasonable to say that it is now a matter of development and execution, not a matter of technical feasibility."

If you build it, Publishers will come?

Always, only an opinion.

LC

Disclosure: Long LOOK and so happy to be so.

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