Jay Friedman, partner and COO at Goodway Group, shares his insight into the ad tech future resulting from the explosion caused by header bidding. His core notion is that the vast number of queries generated by programmatic ad buying are forcing overload on both the supply and demand side of the ad equation. The quantities are swamping the systems and will inevitably force consolidation.
As an example, Friedman talks of a web page that today generates 120 bid requests for four ad positions as limiting to maybe five, the number of DSP’s with the infrastructure to handle the volume. Similarly, on the supply side Friedman sees the real need for only “three display, three video, three native and a couple of mobile SSPs.”
The message is that we may be coming to the end of the Wild West stage of programmatic expansion and that we should expect the market to exercise some law and order in the foreseeable future. Source: eMarketer