Keith Gooberman of Programmatic Mechanics: The Ad Automation and Programmatic Confidantes

JAY SEARS What do you read to keep up with politics art and cultureKEITH GOOBERMAN The New York TimesSEARS What do you read to keep up with friendsGOOBERMAN ESPN CrainsSEARS What do you read to keep up with the advertising technology industryGOOBERMAN AdExchanger Mediapost Exchange Wire Digiday Ad Age etcSEARS Whatamp8217s your favorite commercial of all timeGOOBERMAN The Love ToiletSEARS With regards to advertising automation what are the three biggest trends you expect to impact companies in 2016 GOOBERMANMargin consolidation amongst the display video social and native players will continue and likely begin to accelerate as the technology becomes relatively commoditizedContinuing stock slide for many of the amp8220ad technologyamp8221 companies Venture Capitalists will become smarter about the analysis between amp8220Managed Advertising Spendamp8221 and amp8220Revenueamp8221 ultimately leading to a clearer divide between true technology companies and service based ad networksSnapchat First comes scalable user base second comes ad measurement and a platform and then comes explosion of valuable inventory and the introduction of another major digital playerSEARS With regards to advertising automation what are the three most overblown topics that you wish would just go awayGOOBERMANFraud Anyone who does not have a partner who is constantly digging through the log level data in order to identify fraud is not doing it correctly Or overlay a few fraud solutions do it yourself or move onViewability If advertisers and brands implemented correct attribution models then ads that donamp8217t get seen cannot improve performance amp160Are we on mars How could anyone claim that a nonviewable impression impacted anythingamp8220The Banner is Deadamp8221 The banner is not dead It is not sexy but it works if you know what you are doing And because of the scale and pricing it can fit into any media plan providing true attributable lift But again it is not sexySEARS Please describe your firmGOOBERMAN We are an amp8220independent media trading deskamp8221 We are the service layer sitting on top of DSP technology We claim to be the amp8220best traders in the businessamp8221 We tout ourselves as the amp8220best providers of programmatic spaceamp8221 to brands media companies agencies etc Weamp8217re fully transparent on costs and our technology and techniques And weamp8217re animals about understanding and sharpening the margins through the supply chain to show how we clean it up and provide value We sell our solution through insertion orders comanaged self service solutions with a variety of DSP partners or simply amp8220staffing tradersamp8221 at companies who need the talent and want to amp8220own the DSPamp8221 seat but cannot find talented traders to handle the business Display video mobile nativeSEARS Tell us about your firmGOOBERMANSEARS What are the three most common issues you help clients on with respect to advertising automation and programmatic tradingGOOBERMANUnderstanding the margins and the supply chain Fully teaching clients how to think about the technology providers and identify places for improvement of exchange based ad placementSeparation of remarketing and prospecting Helping clients correctly prospect for new customers and amp8220web or mobile trafficamp8221 and setting up dynamic remarketing strategies to correctly utilize firstparty data And really making sure clients understand the differenceUnderstanding the difference in service layer quality Making sure clients can really understand the difference a datascientist trader using great tools can really make in the success of programmatic plansSEARS The majority of ad technology companies relatively small unprofitable or both have struggled Of the poor performers what are the commonalities between them that have contributed to this weakness GOOBERMAN Blurring the lines between technology and service is a big deal on Wall Street because the valuation mathematics are so drastically different Servicebased businesses are valued on 47x EBITDA while technology can get upwards of 1520x But servicebased businesses typically have higher margins This confusion allowed many companies to raise over one hundred million dollars but with the commoditization about to come sweeping through none will be able to withstand technology margins because so much of this business is still service oriented Some small companies and publishers who focus on the bottom line do have success and are growing organicallySEARS A smaller handful of ad technology companies has achieved scale and performed better than the rest What are the commonalities between them that have contributed to this relative strengthGOOBERMAN Rubicon is a good example of first mover advantage There is only a handful of SSPs with the size and strength and it is because youamp8217ve been around a whileamp160 Most of the guys who are going to survive had a very sound engineering leadership early on raised lots of money but can withstand the margin crunch that is occurring I attribute it mostly to first mover advantage and quality engineeringSEARS Do we live in a amp8220tale of two citiesamp8221 where Google and Facebook win almost everything advertisers are dictated to and other media companies fight for the scraps GOOBERMAN We do at the moment in 2016 But Facebook was a blip on the advertising spectrum in 2011 That is five years ago Who knows which cable players publishers and social networks will be hot in 2021 Thatamp8217s why this is so much funSEARS Please answer the following statements yes or no GOOBERMANSEARS If you could go to the airport right now with friends or family and fly anywhere in the world for vacation who would you take and where would you goGOOBERMAN My wife and we want to visit IndiaSEARS If you could create an endowment to fund any existing nonprofit you designated what lucky nonprofit organization would that be GOOBERMAN Library for All a wonderful education nonprofitSEARS What is your favorite restaurant in the world GOOBERMAN Mumtaz An Indian spot on 84th and York in New York City The Bite in Chilmark on Marthaamp8217s Vineyard Sitar another Indian spot near Albany NYSEARS Thanks KeithDo know a leading ad automation consultant in the ad automation and programmatic area advising advertisers and media companies that I should consider interviewing Let me knowThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillagecomMyersBizNet management or associated bloggersamp160amp160

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Keith Gooberman of Programmatic Mechanics: The Ad Automation and Programmatic Confidantes

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