Is 2010 going to the year of Innovation?

Quite Simply ‘ YES!’

Let’s jump back to my previous post where I mentioned quite a few changes I think will be seen in the advertising landscape.

We have a value chain as long as Mr Tickle’s arm from the Mister Men series – which is simply inefficient and constrained with small slices of ‘margin’ with each chain participant coupled with the stress of the technology.

Stressed technology -what is that? Well its the technology that we currently use to power one ad moving from the advertiser to the end user. It has to go through a vault of different tech cycles; automated creative tester, human creative tester, ad server, third party ad tag in some cases then you add on the various data analytical strings and you have a myriad of stress throughout the cycle. This stress is also shown from the sheer number of partners in the value chain:

  • Advertisers
  • Agencies
  • Ad serving companies
  • Optimisers – creative, data etc
  • Verification tool companies
  • Ad networks
  • Vertical Ad networks
  • DSPs
  • SSPs
  • Performance networks
  • Data ad networks
  • Yield Optimisers – Publisher side
  • Ad exchanges

The market is overcrowded and so inefficient. You have to go through piles of research to know who when what and how to work the advertising industry. So what was Advertising 1.0 was the emergence of ad exchanges that allowed technology to play such a fluid role in advertising.  Now that the ad exchange has left such a huge footprint in US and EMEA – its still yet to take full force in APAC.

Why>?

Well come on APAC is the most difficult market to break anything into; it like running the marathon with only a glass of water in your stomach.  APAC has the beauty of many cultures, many languages in many vertical or horizontal written formats; time zone challenges and an infrastructural nightmare. Just recently I saw the 2009 world internet stats and it showed that 42% of all internet users in the world are from ASIA!!!!

So how come Ad exchanges have not taken a foot hold here if the market is so strong for internet users? Well the users are from Asia but the market is not fluid here for adexchanges because of the way internet advertising is sold in parts of Asia. You have non standard IAB sizes, you have ad space sold on a timed basis – I don’t mean hours or minutes but days and months in some cases. You have many little bots running in certain countries that factor in trust issues in this region and a region that is not e-commerce savvy due to the credit card and payment challenges in this region.

Some very savvy ad networks are on the exchanges but not to any degree of their counter parts in the US or even in Europe. Then of course you have the interesting concept of most internet users in APAC who actually are not interested so much in local content but look to US content.  So jumped off point but wanted to give you an insight into why not only do we have a crowded value chain but we have a advertising landscape that is differing by region.

Eventually everything merges over time but the real question is when is the year of innovation for APAC?  The answer lies in the growth of technology and more importantly in the adoption of it in USA and Europe. So now i’ve  come full circle.

Stay tuned for more.

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About adsolver

Ad-exchange expert with Rightmedia and Yahoo. Strategist on the evolution and ecology of the international display digital platform. Specialties: Evanglising Glocal digital marketing with outstanding experiences in Ad Exchanges, Behavioural Targeting, eCommerce, Multivariate Testing and data mashing. Have worked previously in the following industries: Internet ebusiness solutions multivariate testing Oil and Gas experience and Renewable Energy White-labelling Travel websites Telecommunications Advertising Exchanges
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