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There Is No Remnant, There Is Only Optimized And Not Optimized

mediamath-digital-media-trading-experts-results_1240850002962AdExchanger is the hot new advertising blog.  Have no doubt.

I was reading their interview about MediaMath, and I noticed the part where they said, “we don’t view the spot market as remnant!”  This got me thinking, “that is true, but true because they take an advertiser perspective.”

Remnant is a publisher concept.  Advertisers do not buy “remnant”.  They buy cheap, they buy high-frequency, they buy run-of-x.

Furthermore, publishers would imply that advertisers are choosing between their “premium” and “remnant” inventory, but this is simply another publisher conceit.  Truly, advertisers are choosing between better impressions and worse impressions and those impressions are scattered in between the premium and remnant inventory.  The first several impressions of a unique tend to perform better.  Does buying premium get you that?  Nope.  Many publishers don’t sell frequency caps as part of their standard IOs.  Of course, frequency caps are a tiny part of the optimization equation.  Things like DFP should, theoretically, be optimizing for publisher value – of course, I think they frequently don’t really optimize for much of anything at all.

Does that mean there is room for aggregators who can algorithmically add value for advertisers?  Absolutely!  Long live the revolution!

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