Just a bit of technical background if someone can help me out. This.
In November, Timehop instructed some of its product engineers to begin building an ad server that focused on its own inventory, mobile-only. Leviev said they also wanted to maximize CPM and fill rate, not just choose one or the other. Currently, the system integrates with about 15 SSPs and DSP, the exact number depending on the day.
So, the mental image I’ve got is this.
Starting position, they’re signed up to, say, Google. Which just fills their space with whatever Google decides at whatever rate (and thus Google profit margin) it thinks it can get away with.
So, they take control of their own ad space. Their “adserver” now talks to 15 or more other pieces of software.
Might be Google, and Amazon, and Advertising.com – say – forcing them to compete for access to the space and thereby gaining better pricing. Or perhaps it goes up a level and connects into the Ogilvy and Mather, WPP etc ad buying operations to do the same thing? Leaps over that step of the ad networks themselves?
Presumably, the adserver then takes the best offers on space. Perhaps with some fill from the networks to cover space that doesn’t sell directly?
Have I got this roughly right? Not technically, because that’s beyond me. But as a general idea of the logical structure here?
That at some point of volume it’s worth bypassing the ad networks? That is, to do what the internet does so well, disintermediate?