Anywhere there is advertising, there is a story that needs to be told to a group of people. The revolution and evolution of digital media since the early days of the internet was driven by a mantra of “One At A Time.” No longer would advertisers be bound to large blocks of audience in take-it-or-leave-it transactions with television broadcasters, cable companies, newspapers, magazines, and radio. This was a true revolution for advertising.
Real-time bidding enabled buyers to individually select and price every pair of eyeballs they buy. To achieve this new vision, an entire infrastructure was put in place that dwarfed technology for transacting traditional media. We have seen multiple unicorn IPOs in digital, while technology for traditional media languished. But for many years, the secret everyone knew was that the money flowing through the traditional systems was much larger than the money flowing through digital systems. But, with nearly a decade where all media spending growth was happening in digital, the divide closed. Today, ad tech is waking up to the green field opportunities in transacting traditional media.
Unfortunately, the green field of traditional media is on the other side of a vast canyon. Getting to the other side of that canyon requires an ability to transact blocks of impressions, before they show up. This is a key reversal of how these markets and technologies for addressable media work. A one-at-a-time market requires impressions (supply) to exist before the buyer presents their demand. Conversely in traditional media, where blocks of impressions are sold, buyers first present a large block of impression demand which the seller then answers.
For those that have attempted to use the one-at-a-time architecture to sell large blocks of audience, Google TV Ads and Google Radio Ads proved exemplars that no amount of money will let you fit that square peg in that round hole. In a one-at-a-time environment the way demand overlaps inventory is explicit. Impressions actually exist and all the demand (bids) for each are collected in an auction. A one-sided second-price auction. In this type of auction demand only exists if supply is offered.
When large blocks of audience are offered, inventories must be forecast, and the way demand overlaps inventory must be computed. That means sellers must be able to understand how an individual bid is applied to inventory as well as how that inventory is impacted by all other bids. In a one-at-a-time market the auction knows all the bids and the inventory being considered is only a single impression, so we know exactly how the bids overlap, they all do. In a one-at-a-time market there is no chance that there could have been a better deal. Conversely, when large blocks of impressions are sold, the seller must always consider what other deals are being forgone so that this deal can be made. These sellers are always questioning if they took the right deal. They are constantly evaluating inventories, current deals, historical deal activity , and pricing.
The technology to answer these questions and respond to demand is not offered by any company other than us. This is the missing other half of the ad tech stack and the reason that today’s ad tech is still restricted to media that is device addressable.