The open market is compressing - NOT collapsing. Recession naturally follows inflation. The ad industry was aggressively accelerated by technology and innovation. Digital investment inspired a boom that was filled with conquesting for marketshare. It was very difficult to fail as a new supply company entering programmatic because the rev share payment model and ease of integration (facilitated by header bidding and Prebid specifically) led to basically any company earning a chance to test. The DSP side was a bit more challenging to break into as agencies locked into exclusive relationships with technology providers. A new DSP had to differentiate to earn a place on a media plan. However, it was not very hard to justify in the early programmatic days when companies were setting up shop. Recession ALWAYS follows inflation. The best thing about a recession is it naturally resets the market - closing doors for some who failed to differentiate over time and opening doors for others who seize the opportunity of a challenged market. Recession is the best environment for innovation! Those who build and pivot during tough times lead us out of recession. For every company I see struggling there is someone else eager to take their market share with a new approach, product or service. "A crisis is a terrible thing to waste" - Paul Romer. Naturally, our industry follows macro economic trends. We're not fear mongering that struggling retailers signal the death of commerce. Every brick and mortar store that closes is taken up by "something" else. Similarly the open market, a foundational backbone of the modern open web, will not collapse because macro trends are down. AdSense is the largest open market channel powering a large portion of the open web. I don't believe AdSense is "collapsing" just as I do not believe competitive open market solutions will collapse. Will they change - for sure. One of the greatest opportunities waiting to be captured lies in signal enrichment for open auctions. There are many companies working to innovate and bring first to market solutions in this emerging space. If anything, these solutions threaten exclusive and expensive private relationships with advertisers. They will offer scale and performance across many inventory sources and simplify inventory access just as the original open marketplace did. https://lnkd.in/gzjp_kzc
Couldn't agree more, Lila! Even as a publisher that suffers greatly from the contracting programmatic market, it made us look for improvements and innovations. We've made massive strides towards a better and more profitable ad stack, and when the economy rebounds, we'll be in a much better position than before. Without this challenging macoeconomic environment, we might not have gone down that route and become complacent.
Sharad Yadav
9mo
Spot on Lila H. !
Shay Brog
9mo
👏
Chief Commercial Officer at Audigent
9moPreach!!!!! How can we elevate your voice? It’s a critical perspective and more ppl need to know you.