Building On-Ramps to Media Futures Markets

It's been a long time since technologists started building electronic systems for trading forward media . To be fair, it has been at least 20 years since the first companies gave it a shot. In fact, we have a little symbolic graveyard in our office to commemorate our fallen comrades. Some pivoted, some got acquired, some went out of business, and some were divisions inside big tech firms that faded into the background. All made valiant efforts. All failed to build a real exchange for forward media. Let's pour one out in their honor.

Fallen Comrads.jpg

Our fallen comrades who had taken on forward media buying and failed, could not effectively prove to both sides that their platforms and technologies drove greater efficiency and led to better deals.  

So how is it that so much media is bought on a guaranteed basis, but none of it actually trades. As far as we know, no one in the market provides a biddable environment for forward media. To have real markets supply must compete with other supply and demand must compete with other demand in the same market. But, competition is not just the application of a single bid to a single inventory opportunities, it also means the application of multiple bids to multiple inventory opportunities simultaneously. Without this, there is no real exchange, without a real exchange, none of these technologies were able to reach critical mass.

We can ask ourselves if there was a theme among all of these heroic attempts. Is there a common reason that we can point to? Is there one thing we can identify that tripped up silicon valley greats like Google, Yahoo, and Microsoft? We think there was. 

When we look at any of these "marketplaces", some of which still exist in one form or another, we see that they all actually provided ecommerce platforms for media, not exchanges. While that was true, most were marketing their products as if they were exchanges. If a searchable list of products that can be purchased, from multiple buyers,  through a website is a marketplace, than why is doing the same thing over the phone with a sales rep not a marketplace? (Because automated sales wasn't sexy or VC fundable)

Media buying is much more like portfolio management than buying electronics from Amazon. Setting aside the fact that none had an environment in which anything can be traded, none provided the types of solutions that enabled demand from other channels to flow into these forward media marketplaces. In real-time impression markets, pricing and analytics tools facilitated the movement of budget to increasingly targetable audiences. This in turn enabled the measurement of greater efficiency from real-time impressions markets than traditional insertion orders.  In short, buyers and sellers could measure how good of a deal they were getting and simply followed the money. And so, many left the on-ramps to their highways unbuilt. It was too hard to get into the markets, so none got traction.