• by Seth Hittman , May 31, 2013

Before Ferruccio Elio Arturo Lamborghini began manufacturing cars, he drove many Ferraris and discovered flaws in the models. This sparked his mission to build a car equipped for optimal performance under any circumstances. That tenacity and innovation shaped the automotive industry when the first Lamborghini was introduced in 1963. 

Today’s advertising landscape mirrors the one Lamborghini surveyed in the 50s.  There are traditional demand-side platforms (DSPs) with solid reputations and capabilities, but a new generation of mobile-focused DSPs is emerging. These companies have their sights set on addressing the problems the first generation has had difficulty solving. 

Ad Tech 1.o

Exchange-based buying was the way of the world a few years ago. The pioneers in the advertising industry were operating largely as the next iteration of ad networks and focused on serving ads to computers. 

These companies were primarily concerned with keeping their partners—mostly within the investment community—satisfied through the usage of cookies and loose statistics. This strategy worked well for specific opportunities meant for desktops, and these actions were fully supported by the foundation these legacy companies had built. 

However, as new channels continue to emerge, what’s surfacing is a need for DSPs that are flexible enough to handle new sources of data in a cookie-less world. And though these legacy companies are proficient in more traditional areas, they are unable to simultaneously evolve with each new channel as it emerges.  This would require them to completely rebuild their infrastructure.

DSPs must be nimble. In the blink of an eye, the industry will shift the spotlight from mobile, to tablets, to connected TV and beyond. We’re always preparing for the next connected device to take off, and it’s imperative to have a working system in place in advance of when it does.

The Dilemma

One of the most detrimental issues the mobile industry faces is the fact that many companies are misinforming advertisers through negative messaging based on their ulterior motives to keep business on board. Because these companies are unable to adjust their systems to identify, react to and target mobile devices, they are leading clients to believe that specializing in mobile is unnecessary or claiming that it fits into their sphere of expertise. 

Brand awareness works to their advantage. Despite the reality of these operational inefficiencies, they’re successfully persuading clients that are new to the mobile experience that they can handle the job. And as a result, clients will take the experience—albeit unsatisfactory—at face value.  First impressions are lasting, and the mobile industry cannot afford to be perceived as a work in progress.

The “year of mobile” is here, and has been for quite some time. If you look around you at any given moment, in any surrounding, people of all walks of life are enthralled by their mobile devices. 

Real-Time Transparency

There are also misconceptions about the amount of time it takes to provide analytics for real-time bidding. Some clients are waiting 24 hours to find out how a campaign performed, and more importantly how and where their dollars are being spent. In actuality, that data can be made available to them instantly.  

Some might argue that there isn’t a need for results by the second. Though this is a valid position to take, the alternative of waiting up to a day is at the opposite end of the spectrum and should be viewed as an unacceptable lag in a world that prioritizes real-time information. The benefit to a mobile-first approach is that companies can zoom out and adjust the analytics window based on preference. 

Most advertisers would be surprised to learn that DSPs are able to streamline this process. By editing the parameters while the buying is taking place and sharing insights with clients, DSPs will allow them to feel both empowered and informed, while providing a level of control and visibility that has been lacking to date. 

This malleability and transparency directly benefits the end user and all parties involved. It saves clients time, money and pares back some of the guesswork. Bidding technology is not meant to be all that intuitive on its own. Any company can buy mobile inventory, but it takes a certain level of expertise, focus and infrastructure to provide a robust analysis of the mobile data, and in turn make it actionable.

Ad Tech 2.0 

The mobile industry is now in the same place display ads were in the early 2000s. There are certainly kinks to iron out, but there’s ample room for new companies to move beyond standard DSP functions and truly innovate in the space. The new generation can show its strengths in terms of speed, transparency and managing big data across multiple platforms. 

The industry needs companies who are not only passionate about mobile, but have the gumption to explore the less sexy areas rather than reinvent the wheel. It’s up to the Ad Tech 2.0 generation to assume a leadership role and gradually educate and mold the industry. 

The second wave of DSPs weren’t the first to do it. But being first isn’t always ideal. The minute Lamborghini fired up the engine of his game-changing creation, he paved a lane for automotive hopefuls to find inspiration. Mobile DSPs must stay encouraged, not feel intimidated and keep the wheels churning.