What is the next big thing out there that is really going to change the media game? I’m talking about tectonic changes. The way the introduction of display advertising really changed the game or what we are witnessing today with mobile. Where is the next big wave of disruption? It is going to be the expansion of markets and trading technologies. That might seem a bit obvious, but I think what is driving the change is very different than what drove it in the past. It is this reason that will make the next wave of media trading so disruptive. The most recent disruption in this space was the ability to buy impressions in real time. The difference is that real time was a bolt on to the existing system. Real time bidding made something possible that didn’t exist in the past, the allocation of an impression based on real time market dynamics. The next expansion will be different. The next expansion of advertising and media technology will not be a bolt-on, it will drive changes at the heart of media buying and selling.
So, how can disruption be measured in our business? For media, disruption is measured in the ability to shift spending on a media plan. Better ways to achieve campaign or media buying goals is the measure by which media products are judged and priced. The better the product, the more demand it will capture. Looking back, it is clear that the advent of display media really moved a significant amount of budget around in media plans and that mobile is doing the same today.
We saw the first move in the expansion of trading technologies when programmatic direct became possible in display. That small foothold has been expanding into things like print and outdoor media. The new changes are starting to build. The new systems are not the media planning platforms of old. Those were just messaging and ticketing systems that automated the paper process. These new changes bring new processes. Much more efficient processes.
There are literally billions of dollars of opportunity to create value by eliminating fraud and unviewed impressions. To do that, processes have to be better. We all know that the old way of media buying is just not measurable enough anymore. Measuring better means more efficient capital allocation and better outcomes. It means that sellers need to be able to slice, dice, and price their available inventory much better, and buyers need to be able to find it and bid.
This is the next disruption in media. Media transactions will be smaller and more frequent. Buyers will be buying shorter flights and more targeted audience segments. This means buyers and sellers need the tools to help them do what they already do, but at scale. Give people more time to make more decisions by speeding up or automating more of the basic administrative stuff. It’s like the difference between a hacksaw and a Sawzall. They do the same thing, except the Sawzall allows the carpenter to focus on cutting without worrying about powering the saw. The next disruption in media is power tools for buyers and sellers that meaningfully impact how budgets are allocated across and within media plans.