Joshua Wepman, vice president of GCA Savvian, did a pretty good job of filling in for his arguably more colorful colleague, Terrence Kawaja of explaining the growing complexity of the audience-buying
marketplace that has emerged in the online display marketplace. And he even offered a few new epiphanies, riffing on Kawaja's now famous and well-circulated marketplace chart with a few breakdowns of
his own.
For the benefit of MediaPost Raw Blog readers, I've taken the liberty of further compressing these into a few simple top line insights from Wepman's presentation.
The first
column shows the amount of a typical display ad CPM ($5.00) that goes from an advertiser to the various middlemen (ie. intermediaries) during the process. The second column shows the share (what we
used to call "commission" in the old days) that go to each of them. Amazingly, publishers are now getting little better than a third of the revenue being sold through the audience-buying marketplace.
Agencies are getting a relatively slim 8% commission, while data providers and demand-side platforms (DSPs) are capturing the most significant other shares.
As for the future of the business,
Wepman gave a little "Ad Tech Scorecard" for some of the major players, predicting the market would benefit advertisers, DSPs, and data providers, but would be a net negative for agencies. Other
players would be neutral.
Online Display Ad
Market Players |
| CPM | Share | Savvian Ad
Tech"Score" |
| Advertisers | $5.00 | 100% | Up |
| Publishers | $1.80 | 36% | Neutral |
| Agencies | $0.40 | 8% | Down |
| Ad Networks | NA | NA | Neutral |
| DSP | $0.50 | 10% | Up |
| Data Providers | $0.75 | 15% | Up |
| Ad Exchange | $0.30 | 6% | NA |
| Ad Serving/Rich Media | $0.10 | 2% | NA |