The Automated Advertising Industry

Focus on the Right Competitors

March 29th, 2011   |   by Frank Addante

I did a presentation yesterday at the Digital Publishing Summit in Deer Valley, Utah.  Instead of doing a pitch about the Rubicon Project, I chose to take the opportunity to lead a discussion for the industry about focusing on the right competitor.  I think it came as a bit of a shock to the room; but I felt like we really needed to elevate the conversation.

Competing often pushes teams to develop better solutions for a market.  However, sometimes competing can become a massive distraction from the big picture.  In the display advertising market, there are over 1,000 companies competing with each other.  Publishers competing with each other, ad networks competing with other ad networks, ad networks competing with publishers, publishers competing with Google, DSPs and real-time-bidders competing with ad networks…  The list goes on and on.  On one level, there is room for everyone, it’s a $30BN global market.  On another level, it’s very short-sighted — everyone is so focused on the $30BN that’s in the market today, that they have lost sight of the fact that there are more than $200BN that haven’t made their way online yet.  There are a number of reasons why, including: massive fragmentation, inefficiencies, confusion, buying friction, antiquated methods of measurement, lack of standards, privacy concerns, etc.  The industry focuses so much energy competing with each other that it leaves little energy left to work together to co-develop solutions that will benefit everyone and potentially quintuple the size of the market.

Anyway, in the spirit of this blog being entrepreneurial focused lessons, the lesson here is to focus on the right competitor.  The airline industry is a great example, American Airlines and United Airlines focused so much time and energy competing with each other that they ignored the fact that their business models are inherently flawed.  They kept perpetuating the flaws and creating an even more destructive environment.  The result is that they are constantly needing to be bailed out by the government.  While they were so busy competing with each other, JetBlue and Southwest came along with better models — they are highly profitable and growing rapidly.  American and United were focused on the wrong competitor.

The lesson for the digital advertising industry:  the real competitor is broadcast and print media.  Solve for industry-wide solutions and we’ll find that at least $200BN new dollars will flood the market (away from broadcast/print to online)…  We at the Rubicon Project feel so strongly about this that we even invited all our competitors to join us in this project!

The lesson for entrepreneurs, do good for your market and focus on the right competitors — especially if they aren’t even in your industry.

Here’s my presentation:

Realizing the True Value of Digital Experiences #letsfixit from The Rubicon Project on Vimeo.

Realizing the True Value of Digital Experiences

“Realizing the True Value of Digital Experiences”

Key Points:

  • Something’s wrong: consumers are valued at 10X the rates when reading the same article in the NY Times print newspaper vs. shifting their attention 90 degrees to their computer reading the exact same article online at the exact same point in time
  • Digital experiences are getting richer:  started with AOL walled garden of content, World-Wide-Web came along and brought a flurry of content from premium websites, social networking connected everyone and inspired user generated content, video brings emotion and dimension and now with tablets we can hold the Internet in our hands (just like a newspaper)
  • But, we’re not capturing the increased value (rates/value are still the same as they were 10 yrs. ago)
  • Publishers are over-reacting:  they aren’t able to capture value so they’re throwing up pay-walls – blocking consumers from content and shifting burden to them to monetize it (opposite of the Internet promise of content access), they fire ad networks because of concern about pricing, they strip their valuable brands out of the market when selling through channels (concerns over channel conflict) and block data because of privacy concerns
  • Advertisers are reacting too: they’re holding back billions of $$ from the market because they want the exact opposite – transparency, leverage data, harness the innovation from over $1BN that was invested in ad technology in 2010 alone, and they need efficiency (it costs 3X as much to buy online vs. offline) – doesn’t make any sense in a tech driven environment!
  • Lastly, sorry to say it – but the way we sell media is bullshit!  We’re using tactics from the 1950’s – the “mad men” martini lunch days.  The best dinner wins, not always the best value or the best technology
  • If this continues:  lower revenues will lead to lower quality content which will attract lower quality audiences which will eventually be commoditized (and yes, traded like pork bellies) which will only lead to lower revenues and so on and so forth…
  • The quality content business could go out of business.
  • Lots of talk in the industry (committees, forums, working groups, etc.) — but no action!
  • Instead:  energy focused on competing with each other, like rats eating at the last piece of pie (like it’s the last dollar in the market)
  • But, there’s a much bigger pie available (5X as much $$ – $200BN)
  • We at the Rubicon Project propose a new way forward:  work together instead of against each other
  • We take the term “project” in our name very seriously.  We’ve been working from day one to help the industry and the ecosystem realize the true value of digital experiences.  We’ve been committed to efficiency, transparency, an open market and harnessing and organizing the collective innovation and value that’s been created in this market — this from day one.
  • Now, we’d like to invite everyone to join the project…
  • By everyone, we really mean everyone:  our 450 customers, 600+ ad networks/exchanges/DSPs who participate in the REVV Marketplace, our smaller competitors (AdMeld, Pubmatic) – we’d be foolish to think we can solve every problem in this market alone –  and the big giants in the space (Google, Microsoft, Yahoo!, etc.)  Yes, the big guys have billions of $$ being spent with them and you probably think you can go at it alone…  But, if we can all come together to solve this problem, there are billions more waiting for us.
  • What if we took all of the energy we spend working against each other and instead worked together?  What if we:
    • create an open market
    • make it easy for advertisers to buy (easier than broadcast and print)
    • deliver value to the consumer (through advertising)
    • unlock the benefits of data; safely
    • embrace privacy and put it in the hands of the consumer (where it belongs!)
    • provide a risk-free environment where publishers are safe to leverage the billions of dollars that they’v collectively invested into their brands
  • Let’s get connected!  Work together to solve these problems.  Because… if we can, there are over $200BN more dollars waiting for us!


  • alibaba trade manager client download
  • christina milian am to pm download free mp3
  • borderlands modded character download
  • adrian minune omul norocos download
  • aborting video microsoft codec download page
  • bethel live dvd download
  • brenda lee sweet nothings download free
  • bharat sharma vyas songs download
  • ceramic destroyer game download
  • buddha bar music download
  • a r rahman vande mataram video download
  • busybox android download to pc
  • buzzer beat ep 7 download
  • champaign shower lmfao download
  • cartella download windows explorer
  • asus n16 manual download
  • catan a stAdte & ritter download
  • apostila direito constitucional download gratis
  • 3com 3c905 tx driver download windows 7
  • baki b3 zovi mp3 download
  • brincar com o fogo download
  • busybox download to pc
  • baby giggle ringtone download
  • animacje do gothic multiplayer download
  • acrobat reader full download
  • astral projection i doser download
  • boski A?igolo lektor pl download
  • bibi blocksberg staffel 1 download
  • adat shadmehr download mp3
  • canon c300 driver download
  • ain't no way mp3 download
  • 100 ?????? ???N? mp3 download
  • apparat album 2011 download
  • activar modo download samsung galaxy s2
  • baixar filme homem aranha 4 download
  • anonymous os x download
  • angel haze download mp3
  • audio book kindle download
  • asus o'play air firmware download
  • blessings laura story free download mp3
  • bio medical books free download
  • asus p5vdc mx drivers download for xp
  • apics dictionary 13th edition download
  • antes que termine download dublado
  • aAYk yeniden mp3 download
  • atozmp3 telugu free download songs
  • bewafai album songs download free 2010
  • celine dion mp3 free download
  • asus p5n e sli manual download
  • brush download illustrator cs5
  • ambani telugu songs download
  • anya your voice download zippy
  • capella reader mac download
  • android lock ipad download
  • anatomy of reanimation blitzkid download
  • age de glace 4 download fr
  • besplatna muzika za download mp3
  • buffy l'ammazzavampiri stagione 5 download
  • chennai 60028 songs download 123musiq
  • cd dvd druckerei 7 download crack
  • andala rakshasi songs download 320kbps
  • cassia eller para download
  • aarti om jai jagdish download free
  • alejandro dave aude remix download
  • bonus rpk dwie wiadomoAci download
  • autoroute freeware kostenlos download
  • cds de vaquejada para download
  • business plan pro download and crack
  • authentec fingerprint software download windows 7
  • 20 poucos anos download
  • andrea bocelli download romanza
  • astral projection burning up download
  • chilly cha cha music download
  • acero puro hd download
  • caAadores de emoAAes download legendado
  • attitude student's book 3 download
  • adobe acrobat x pro download portable
  • canon sx1 firmware download
  • addictive drums fl studio download
  • bank gothic download for free
  • 7.62 high calibre game download
  • battle realm 2 download
  • android lock iphone download free
  • carbide.ui symbian theme editor 4.0 download
  • ambiance a l'africaine free mp3 download
  • ahmet kaya yemen tA?rkA?sA? download
  • badrinath south mp3 download
  • cam hack download v1.2
  • acer aspire 7730 software download
  • chama negra download tenses
  • blackberry gps software download
  • 2A17 know thy enemy download
  • club dogo download album gratis
  • castellan fisico quimica download portugues
  • cant download bully xbox 360
  • anabela ne zovi me download
  • cliq xt recovery image download
  • canon mp560 treiber download mac
  • canon mx300 driver download windows xp
  • che la luna mp3 download
  • britain's got talent 2008 download
  • bo wodke trzeba pic download mp3
  • arial mt extra bold download
  • camel in action source code download
  • aplikacije za lg p350 download
  • apocalyptica noten kostenlos download
  • caramelldansen download english version
  • canon mx 320 download driver
  • alien vs predator 1 download full
  • chibi vampire vol 6 download
  • canon lbp 3000 software download
  • cinematic orchestra ma fleur download free
  • addison groove bad things download
  • accenture office communicator download
  • brother mfl pro suite mfc 290c download
  • acrobat x pro trial download for mac
  • anas younus free mp3 download
  • canon lbp 3000 driver download winxp
  • a usurpadora download dublado rmvb
  • 38 spec no more download
  • businessplan kostenlos download excel
  • brokencyde dying to live download
  • cartman poker face download
  • barA?o de munchausen download livro
  • autocad structural detailing 2011 download
  • apple airplay utility download
  • arcade fire sprawl soulwax download
  • atmosphere keep steppin mp3 download
  • almanaque abril download gratis
  • bully scholarship edition zip download
  • broadcom 802 11b g driver download
  • a riqueza das naAAes download mcconnell
  • ant smasher download para celular
  • akhiyan nu rehn de mp3 free download
  • alice maciel musicas download
  • amigo fura olho download mp3
  • cancion del mariachi download mp3
  • btoes 2.0 x micro driver download
  • band master complete download
  • achtung die ecke download
  • call of juarez 1 download full game
  • battlefield 3 reloaded free download
  • christmas carols english download
  • alicia a natale puoi download gratis
  • business plan template download word
  • appalaraju songs free download from southmp3
  • businessman sir osthara mp3 download
  • 4shared download kotak kecuali kamu
  • canon pixma mg3150 driver download
  • buika el ultimo dragon download free
  • apostila do stm para download