By: Luke Edson

It is a telling sign when the theme of each blog entry is similar. The power to reach valuable local audiences and deliver business results is an obsession here at IB.

In the trade press it is impossible to miss the buzz around DSPs and RTB. When a segment of the industry grows to $1BN in less than 12 months it’s hard not to take note. Not to mention these are two new acronyms to throw about.

While digital display media has long been heralded as new media driven by technology, recent innovations shine a light on what is a fast closing chapter in our evolution. Websites with visitors, page views, time spent, pixel space for ads, impressions and maybe some clicks is half the equation at best. For the past number of years the “evil” ad networks have been delivering the right answer for marketers, results, but were using far too Machiavellian a process, arbitrage.

Audience targeting, delivery and optimization innovation is ushering in an era of more mutual profit for publishers, technology providers, service providers, agencies and marketers alike (the ecosystem). Data, technology and knowledgeable consulting and customer service is providing the ability to deliver, at scale, the full equation, audience + message + analytics = results.

I recently read two interesting pieces of industry information. First a market analysis entitled “Getting Real Ad Exchanges, RTB and the Future of Online Advertising published by DeSilva + Phillips, LLC in March 2010. In this smart and comprehensive overview of the changing display landscape, three things caught my eye:

- Controlling the best ad technology is going to be a determinant of future success

- RTB is game changing linking search and display into one audience and results matrix

- Finally, DeSilva projects that much of today’s transactional banner media market will be automated through algorithmic trading

This report was published in March and since then we have seen Google purchase leading DSP Invite Media along with a slew of other investments into the burgeoning and successful audience market. A more recent report published by AdSafe (who recently garnered a sizeable round of financing), the AdSafe Quarterly Review Q2 2010, noted that 49% of the inventory that they monitored came from Exchanges, RTB Platforms or DSPs.

So it is clear that this change is happening very quickly and for all the right reasons. This will not be a flight of fancy or a soon to be defunct set of buzz words. These structural changes are driving real value and will therefore require that companies change/innovate to survive. At the IB Local Network we see a real opportunity to consult and provide knowledgeable service to our publishers and advertisers along with operating these powerful technologies. I recently heard an anecdote where OMG was looking to hire 150+ quantitative media analysts to operate its growing display trading desk. With 150 open spots, I conclude that people with the right skill sets do not exist. Technology is powerful, but it is not empathetic. It will still take people listening, understanding and having the right stack of tools and solutions to get to the right answer results.

When I look across the IB Local Network I get excited to see the audience we have been building in 2010:

131MM users in market for and automotive

123MM users in market for business and leisure travel

31MM heavy consumers of grocery, health and beauty products

191MM political enthusiasts

Finally, I am exited to see the growth of our employees who are becoming experts in data targeting, optimizing for success and ultimately helping all of our customers navigate this dynamic period of industry expansion.