Move over Don Draper. The slick, martini-drinking, chain-smoking smooth talkers of Mad Men no longer rule Madison Avenue. It’s geeky quant jocks like Dr. Rajesh Koothrapalli from Big Bang Theory who rule in the world of advertising today.
Far from living by John Wanamaker’s maxim about not knowing which half of advertising spend works, the explosion of measurable real-time data has transformed the world of adtech (advertising technology) away from the traditional “ad” and much further towards the emerging “tech.” Here are some trends we are seeing:
Networks Shift to Platforms: Technology, data, and audience targeting have evolved the world of display advertising from basic ad networks to ad exchanges with real-time bidding in a marketplace. That requires demand-side platforms such as Turn on one side (for brand advertisers) and supply-side platforms like Rubicon Project on the other (for publishers). (Disclosure: Mayfield is an investor in Rubicon Project.) Humans are becoming less involved in decisions to buy and sell ad space, as those trades are made in milliseconds through a market that looks more and more like a Wall Street trading desk. The industry is shifting away from older ad network and agency business models, which investors tend to disdain because of inherent challenges with scalability and arbitrage.Continue Reading