The Mobile DSP - Hype or Reality? - Eric Mugnier

Eric Mugnier Senior Vice President of MampampC Saatchi Mobile discusses whether Delivery Side Platforms DSPs can transform mobile advertising in the same way that they revolutionized traditional amp8220fixedamp8221 online advertising and also answer mobile advertisingamp8217s critics over targeting audience segments and measuring the effective performance of a mobile campaign Excitement continues to grow around DSP technology and its influence on mobile advertising amp8211 in particular as a catalyst for better targeting of ads to consumers via the mobile channel and also as an enabler for RealTime Bidding RTB for inventory DSPs give advertisers better amp8220real timeamp8221 insights into mobile audiences allowing them to serve more accurate and targeted adverts to consumers according to precise criteria such as enduser demographics and behavioral data This in turn leads to more efficient and costeffective use of mobile ad inventory by advertisers and brandsRealtime ad serving has been used in the fixed online space for the last decade but is still relatively new in mobile And there are important differences in how it is used in mobile compared to fixed Unlike in the fixed space an advertiser or agency cannot track a useramp8217s online behavior and activity using cookie files in the mobile space To overcome this the advertiser uses a DSP to identify and learn traffic models that lead to certain types of enduser activity such as an app download viewing a video or any LTV eventThis type of predictive analysis of enduser mobile traffic plus the ability to access mobile ad inventory in realtime with extra layers of targeting requires processing and modeling of vast amounts of data in realtime which can only be provided by DSPsIn addition the rise of mobile ad exchanges virtual marketplaces in which publishers developers and adnetworks trade ad inventory between one another in real time amp8211 is yet another reason why advertisers and agencies will increasingly invest in DSPs in 2013More importantly DSPs provide to the brand or advertiser far greater transparency into what inventory they are purchasing on which sites and in which apps their ad has been displayed and when Having this type of indepth information readily to hand lets advertisers understand and measure how successful a campaign and its related media purchase strategy is in reaching the intended target audience or audiencesFrom a campaign management perspective as well by consolidating and presenting this potentially bewildering amount of data into a single interface a DSP makes it easier for a media buyer to manage a campaign without having to rely on a variety of reporting systems from numerous ad networksThe growth of DSPs together with the rise of realtime bidding for ad inventory may spell the beginning of the end for mobile ad networks in their existing format In their current state ad networks are amp8220blindamp8221 in that they donamp8217t provide any visibility or insight for the advertisers around where their mobile ads are appearing when they are appearing and who they are appearing toIn contrast thanks to DSPs and RTB mobile ad networks can now become smarter with more builtin intelligence The more precise amp8220realtimeamp8221 targeting of audiences plus the improved reporting and analysis enabled by DSPs is changing how brands advertisers and agencies purchase mobile inventory The result is that they now have greater control over the purchasing process and can reach specific consumers more accurately with relevant adsThe advantages and benefits of DSPs to mobile advertising are therefore clear However itamp8217s too early to celebrate DSPs for their role in forever changing mobile advertising for the better Not all the necessary components are in place for this to happen The main challenge to address is scalability there simply isnamp8217t enough RTB ad inventory available on the market right now for DSPs to dominate the mobile ad ecosystem in the way that we expectA DSPamp8217s sophisticated algorithms for modeling and analysis can only achieve so much when there is a limited amount of mobile ad space to work with This is almost certainly set to change howeverAccording to Gartner the number of smartphones purchased worldwide will rise from 675 million in 2012 to one billion this year The global tablet phenomenon shows no sign of slowing down either with Gartner predicting an increase of almost 70 per cent in worldwide tablet shipments from 116 million units in 2012 to 197 million units in 2013In contrast PC shipments continue to slide Gartner forecasts a 76 per cent drop in PC shipments from 341 million worldwide in 2012 to 315 million in 2013 amp8211 the result of consumers shifting away from desktop PCs to mobile devices as their principal computing deviceWe can therefore expect a rise in mobile ad inventory to accompany this trend And as more mobile ad space becomes available so too will the role of DSPs and RTB grow and evolve For the time being however DSPs only represent a small percentage of total campaign spendEric Mugnier is Senior Vice President of MampampC Saatchi and leads the global marketing agencyamp8217s presence in the Americas He has vast marketing experience having worked with a number of major global brands over the last decadeIn 2006 Eric joined the founding team of Inside Mobile established to provide international brands mobile marketing solutions with a creative edge As one of the first purely mobile focused marketing and advertising agencies Inside Mobile was viewed as visionary in the industry and Eric has played an important role in this Eric has worked across all areas of Inside Mobileamp8217s business with a particular focus on managing technology and strategy By 2010 following a track record of award winning successes Inside Mobile was sold to MampampC Saatchi and rebranded MampampC Saatchi MobileEric has used his extensive knowledge and experience to help drive MampampC Saatchi Mobileamp8217s business forwardIn 2011 Eric moved to the US to open MampampC Saatchi Mobileamp8217s first international office Today Eric Mugnier heads up MampampC Saatchi Mobile in the Americas with offices in New York and Los AngelesCheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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The Mobile DSP - Hype or Reality? - Eric Mugnier

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