1 00:00:01,140 --> 00:00:03,180 Unknown: Okay, now that we have a chance to go over all the 2 00:00:03,180 --> 00:00:05,100 different players in the ecosystem, we're gonna talk 3 00:00:05,100 --> 00:00:07,020 about how they all work together. And this is where it 4 00:00:07,020 --> 00:00:09,090 gets pretty complex a lot of buying and selling between 5 00:00:09,090 --> 00:00:12,600 partners. Starting with a publisher, we have ESPN, New 6 00:00:12,600 --> 00:00:15,300 York Times, Huffington Post Sporting News, every month, they 7 00:00:15,300 --> 00:00:17,640 go out and they try to sell all their ads, but they might not 8 00:00:17,640 --> 00:00:20,460 sell all their ads every single month. At the end of the month, 9 00:00:20,490 --> 00:00:25,050 ESPN might say we only sold 80% of our available ad units. We'd 10 00:00:25,050 --> 00:00:27,720 like to monetize the other 20%. We don't want that just sitting 11 00:00:27,720 --> 00:00:31,290 there that's leftover and not being used.

So they look for a 12 00:00:31,290 --> 00:00:34,170 partner who might be able to do that. So they might go to double 13 00:00:34,170 --> 00:00:37,620 click and say, Hey, double click. If we give you a few 14 00:00:37,620 --> 00:00:40,500 million impressions, can you take the to your clients and 15 00:00:40,500 --> 00:00:43,650 sell it? and double click says, Sure, we'll do that we work from 16 00:00:43,650 --> 00:00:46,140 number different advertisers, and we'll try to sell it. We'll 17 00:00:46,140 --> 00:00:51,240 find somebody who fits ESPN. But ESPN might also go to open x 18 00:00:51,240 --> 00:00:54,180 because open x works with different clients then double 19 00:00:54,180 --> 00:00:56,610 click.

So you go to View and say, Okay, we're going to just 20 00:00:56,610 --> 00:00:59,790 put our inventory out there. It's all bought on the real time 21 00:00:59,790 --> 00:01:03,330 exchange. The first one to buy it at a good bid wins, and we're 22 00:01:03,330 --> 00:01:07,110 good and ESPN is happy, because they can monetize our site, 23 00:01:07,320 --> 00:01:10,710 double click and open extra happy because they have some 24 00:01:10,710 --> 00:01:12,420 more inventory that they otherwise wouldn't have had. 25 00:01:13,080 --> 00:01:18,810 Now, this happens every month with multiple advertisers. So if 26 00:01:18,810 --> 00:01:22,860 you're an advertiser, the value of going to an exchange is that 27 00:01:22,860 --> 00:01:26,880 you get high reach at one partner. So instead of having to 28 00:01:26,880 --> 00:01:30,060 do four different contracts, you go to double click and work with 29 00:01:30,060 --> 00:01:34,260 multiple people with just one individual buy.

However, we just 30 00:01:34,260 --> 00:01:37,170 talked about how this kind of leftover inventory, so it's not 31 00:01:37,170 --> 00:01:39,600 great for advertisers, it's great because you get the region 32 00:01:39,600 --> 00:01:43,350 the low cost, but at the end of the day, all the good stuff is 33 00:01:43,350 --> 00:01:46,200 already sold. So if you're an advertiser and you want some 34 00:01:46,200 --> 00:01:48,930 more premium stuff, but you want the high reach in that 35 00:01:48,930 --> 00:01:52,890 efficiency, you go to an ad network, some even collective or 36 00:01:52,890 --> 00:01:56,430 bright role or specific, they buy a lot of inventory upfront 37 00:01:56,490 --> 00:01:58,950 at the beginning of the month. So they know it's more premium, 38 00:01:59,280 --> 00:02:02,160 but they have So many partners that can give you a lower cost 39 00:02:02,160 --> 00:02:04,890 and you get a higher reach.

So again, you go to collective, you 40 00:02:04,890 --> 00:02:08,280 can be running across thousands of sites, but only buying one 41 00:02:08,280 --> 00:02:12,660 particular partner. However, at the end of the month, they start 42 00:02:12,750 --> 00:02:16,410 to buy and sell between each other collective might say, We 43 00:02:16,410 --> 00:02:19,350 bought 80 million impressions at the beginning of the month, but 44 00:02:19,350 --> 00:02:23,010 we sold 100 million. So we need to buy 20 million impressions 45 00:02:23,010 --> 00:02:26,670 quick to deliver to our advertisers. So collective will 46 00:02:26,670 --> 00:02:30,090 go to double click and say, Hey, double click, do you have any 47 00:02:30,150 --> 00:02:32,550 impressions that we can buy from you? And they say, Yeah, sure. 48 00:02:32,550 --> 00:02:35,340 So we've worked with all these some publishers, we can give you 49 00:02:35,370 --> 00:02:39,300 20 million impressions and they say, fantastic.

Now we've met 50 00:02:39,360 --> 00:02:42,660 our needs for our client, and we're good to go. And Tony, and 51 00:02:42,660 --> 00:02:45,960 on the other hand, might say we bought 100 million impressions 52 00:02:45,960 --> 00:02:49,170 at the beginning of the month, but we only sold 80. So we have 53 00:02:49,170 --> 00:02:52,200 20 million impressions that we've already paid for. And if 54 00:02:52,200 --> 00:02:54,510 we don't sell them, then we're going to eat that cost and we 55 00:02:54,510 --> 00:02:58,740 don't want to do that. So at caronian might go to double 56 00:02:58,740 --> 00:03:02,520 click and say hey, Would you mind taking these and selling 57 00:03:02,520 --> 00:03:06,030 them to advertisers? and double click says Sure, we'll take them 58 00:03:06,150 --> 00:03:09,720 and we'll sell them to whoever we need.

Now, right enrolled 59 00:03:09,720 --> 00:03:13,470 might come in and say, Hey, we'd buy a few impressions. So double 60 00:03:13,470 --> 00:03:16,950 click sends them to bright role specific says, Hey, we need some 61 00:03:16,950 --> 00:03:20,610 to. So essentially, you've got 62 00:03:22,110 --> 00:03:25,500 collective and Kenyan selling and buying from each other 63 00:03:25,650 --> 00:03:28,200 without necessarily even knowing it. That's where a lot of 64 00:03:28,200 --> 00:03:31,170 transparency issues come in. So you can imagine this is one 65 00:03:31,170 --> 00:03:37,080 example. But if Nexus gets into the play and open acts, this 66 00:03:37,080 --> 00:03:41,310 becomes very complicated.

So DSPs came in and said, okay, we 67 00:03:41,310 --> 00:03:43,620 see what's going on over here. And when you see that there's a 68 00:03:43,620 --> 00:03:45,270 lot of buying and selling between each other. There's not 69 00:03:45,270 --> 00:03:48,000 a whole lot of transparency. And that's not great for really 70 00:03:48,000 --> 00:03:53,100 anyone. So the value add that a DSP provides that they can buy 71 00:03:53,100 --> 00:03:57,390 across everything. And they'll give you the transparency.

So 72 00:03:57,390 --> 00:04:02,100 rocket fuel goes to collect it. into bright roll into specific 73 00:04:02,100 --> 00:04:06,060 into Conan. And they go over double click and they go over to 74 00:04:06,120 --> 00:04:09,900 open AX. And they buy all the inventory. And they say, Okay 75 00:04:09,900 --> 00:04:13,470 advertisers come to us. And we'll buy all this stuff.

76 00:04:13,860 --> 00:04:16,020 Because we have the greatest reach. Now we can give you the 77 00:04:16,020 --> 00:04:19,140 best rates. And we'll provide technology that will give you 78 00:04:19,140 --> 00:04:23,010 full transparency into all of this. So you don't have this 79 00:04:23,010 --> 00:04:25,680 hidden who's buying from what will tell you what sites you're 80 00:04:25,680 --> 00:04:27,840 running on will tell you how much it costs will tell you the 81 00:04:27,840 --> 00:04:30,900 performance will tell you everything you need to know as 82 00:04:30,900 --> 00:04:34,650 well as a layer on data. really heavy data could be CRM data, it 83 00:04:34,650 --> 00:04:38,790 could be third party data, like blue Kai or app net, our data 84 00:04:38,790 --> 00:04:43,080 Zoo or whatever it might be. So there are the difference between 85 00:04:43,080 --> 00:04:48,510 to mobile and rocket fuel media map in turn, is pretty much nil.

86 00:04:48,780 --> 00:04:51,900 Their big selling point is data. They say we have the best data. 87 00:04:52,080 --> 00:04:54,870 So rocket fuel has convinced you that they have better data, the 88 00:04:54,870 --> 00:04:57,270 medium app have a better rate, and that they're a better 89 00:04:57,270 --> 00:05:01,140 partner and reporting whatever it might be. But think about 90 00:05:01,140 --> 00:05:04,530 data and transparency is a really big thing for DSPs. 91 00:05:05,580 --> 00:05:09,270 However, if you look at all these red marks, every time 92 00:05:09,270 --> 00:05:12,990 there's a transaction here, somebody's making margin. Now, 93 00:05:12,990 --> 00:05:17,250 advertiser advertising agencies are getting squeezed lately, 94 00:05:17,640 --> 00:05:21,390 they used to charge a flat fee.

If you were in a brand and you 95 00:05:21,390 --> 00:05:25,350 spent 100 million dollars a year in advertising, you would pay 96 00:05:25,350 --> 00:05:29,940 your agency about a 10% fee. So hundred million dollar budget 97 00:05:29,970 --> 00:05:32,550 $10 million, the agency great, everyone can make money. 98 00:05:33,180 --> 00:05:35,280 However, there's so many agencies and there's so much 99 00:05:35,280 --> 00:05:38,910 competition, that agencies are cutting their fees to be more 100 00:05:38,910 --> 00:05:43,740 competitive. So that 10% fee, now might be two or 3%. And if 101 00:05:43,740 --> 00:05:47,340 you only have $2 million to run 100 million dollar campaign, you 102 00:05:47,340 --> 00:05:51,420 don't have a lot of room for profit or margin. So they said, 103 00:05:51,690 --> 00:05:55,620 How can we start to get some of this money?

Well, let's set up a 104 00:05:55,620 --> 00:05:58,830 trading desk. We'll set up Patreon. So we'll tell our 105 00:05:58,830 --> 00:06:04,770 partners to go to cadre on and carry on can buy your DSP, they 106 00:06:04,770 --> 00:06:09,690 can buy your network, they can buy your exchange. But the big 107 00:06:09,690 --> 00:06:13,800 thing is that they can also go all the way back here and do 108 00:06:13,800 --> 00:06:17,700 what's called a private marketplace. So if you are a 109 00:06:17,700 --> 00:06:20,940 advertiser that wants to advertise in just sports, you 110 00:06:20,940 --> 00:06:24,420 say, Well, I really want to run ESPN. And I really want to run 111 00:06:24,510 --> 00:06:28,410 on Sporting News, because they're premium high quality 112 00:06:28,410 --> 00:06:32,880 sites.

But I don't want to have to do multiple buys. With each 113 00:06:32,880 --> 00:06:35,910 one of these sites. The trading desk will say we'll set up 114 00:06:35,910 --> 00:06:39,390 private marketplace, we will buy all those things together, we'll 115 00:06:39,390 --> 00:06:42,390 buy on the exchanges, we will buy on the DSPs we'll buy your 116 00:06:42,390 --> 00:06:45,870 publisher direct, and you run it all through us. Now they're 117 00:06:45,870 --> 00:06:48,480 going to charge you a little bit because they have to make a 118 00:06:48,480 --> 00:06:52,410 profit and that profit goes back to the agency. But instead of 119 00:06:52,410 --> 00:06:56,250 working with one DSP and multiple publishers, maybe a 120 00:06:56,250 --> 00:07:00,300 network, you just do it one time at the trading desk. These 121 00:07:00,300 --> 00:07:03,660 trading desks are owned by the holding companies got a cadre on 122 00:07:03,780 --> 00:07:09,240 that is part of IPG.

WP has their own sodas Omni COMM And 123 00:07:09,240 --> 00:07:15,030 publicists and anyone you can think of. So, I hope that you 124 00:07:15,060 --> 00:07:18,660 follow along and you're able to see how all these complex 125 00:07:18,660 --> 00:07:21,720 companies work together. And thanks for time