Marco Bertozzi is president of global clients at VivaKi.
I have watched with interest the backlash against the Google decision to pull its YouTube inventory back from DoubleClick Ad Exchange. It got me thinking about the past and the present and the fact that there is this view that all companies must make everything equal to everyone. Google has disabled something that represented 5 percent of its total YouTube sales — is that really worth all the fuss?
While it is an issue insofar as many businesses are built on the back of disruption and filling niches and a multitude of other business models, Google has no obligation to make life easy for them. Indeed, Google is not alone. Facebook locked everything up; Amazon would rather shut sales down that let you get hold of its data; AOL, Yahoo and others hold all their best inventory back so you can only buy it through their platforms.
Welcome to the future. These companies have invested billions into their product, and they have no obligation to make other competitive businesses rich on the back of their investments. It is called competitive advantage.
Holding on to the Google debate a little longer, five years ago it had a poor ad server and limited display business. It was seemingly going backwards in terms of innovation outside of search and video. And then a few things happened: Some smart people made some smart decisions. Google bought companies, it invested in their stack, it invested in data, and before you knew it, it was dominating display. It did the same in video, so if it chooses to limit the access to just three entry points from four, then that is Google’s business. If AOL, after investing in content, tech and data, wants to only allow access to the best of what they have via its platform, that is its prerogative.
It was only five or six years ago that we were all forced to work like this. If you wanted inventory from The Telegraph, you rang up The Telegraph, likewise Guardian, ITV and so on. We were forced to deal with hundreds of walled gardens. We have improved the situation with technology, so now we have many fewer entry points to inventory, but when we started down this road no one ever said everyone had to sign up to this new way of working, the deal was that we could buy inventory through platforms and use data — not — be able to access all inventory through any platform.
As an example, AppNexus is the self-proclaimed independent solution outside of Google. It is doing well. But should Google then help AppNexus or worry about whether it can get access to YouTube inventory via AdX? Of course not. The same would go for many other demand-side platforms that would issue complaints on the topic.
Now, as a buyer, we would prefer to see an ecosystem where we can access whatever we want from wherever we want. And we do rally against the approaches of Google, Facebook and Amazon. But at the same time, we have options. We can work around most of this, and we will create solutions that help us navigate and deliver against the utopia we were once searching for. That said, this is business. This is about companies investing and then looking to make returns off the back of it. YouTube is not the BBC, and it can decide how you buy its content.
Marketers seek agency-of-record relationships with influencer agencies as influencer marketing matures
Marketers are moving away from a project-based approach to a long-term vision with influencer marketing agencies participating in strategy meetings along with other agencies rather than being an afterthought.
Why acquisitions could be the inevitable future for embattled in-game ad companies
As game developers and big tech companies alike realize the revenue-generating power of mobile gaming, they have engaged in a flurry of merger and acquisition activity.
Marketing Briefing: With younger consumers questioning brands’ trustworthiness, marketers turn to scenario planning
More certainty that a marketing play is an authentic fit for a given brand is key as consumers are more skeptical of advertising than ever.
SponsoredHow ad tech is tackling waste by optimizing supply chains
Sponsored by Bidtellect The programmatic and digital advertising industry is well aware of the inefficiencies in buying and selling — from auction duplication and volume bias to multi-integrations and reselling. For many, these challenges can appear to be out of control, leaving programmatic teams asking the question, “how can we fix it?” A redundant, multiple-step process […]
Digiday+ Research: Agencies see different paths for online, offline ad spend this year
Agencies expect a big jump in online ad spend this year — but the same isn't true for offline ad spend.
Governments around the world are changing their policies to support esports
Governments' interest in esports is encouraging, but despite this groundswell of policy-level support, not all countries are equally enthusiastic about the space.