from Rob Rasko’s MediaBizBlogger.com article on the danger of the standalone DSP model
By Robert Rasko, President & COO, CPX Interactive
I have been in the online ad network business for over five years now. When I started in the space, the market was complaining (loudly) about the networks and how they were a ‘ticking time bomb’ waiting to explode online advertising. Conventional wisdom was that ad networks would lead to a complete lack of transparency and artificially drive prices down and margins up as they commoditized online inventory. I even remember a certain comment that got quite a lot of attention about the danger of, “trading banner impressions like pork bellies.” What no one counted on, however, was that the ad network’s position of working with both advertisers AND publishers, gave them huge incentives to watch out for the interests of both sides. Now, while I am certainly not an alarmist, it is worth noting that the real danger of inventory commoditization could easily emerge as a reality if there was a model developed to solely benefit the advertiser, even at the expense of the publisher. This model, I fear, has come to exist as the standalone DSP.
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