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By Kayleigh Barber

BuySellAds is a small ad tech company that has found a way to stand out on the Lumascape — by buying publishers.

The advertising marketplace for publishers and marketers last week scooped up Pando, a tech news site formerly known for its strong opinions and a membership model that had fallen by the wayside, following its purchase 18 months ago of digital news aggregator Digg. The bet, according to Todd Garland, CEO of BuySellAds: Use these sites to prove out BSA’s model of being a one-stop monetization shop for media publishers.

This is something of uncharted territory for ad tech, which normally plays a middleman role. It’s not unheard of, as the biggest player in ad tech, Google, owns and operates media. The Washington Post and Vox Media are both publishers who license monetization platforms.

Garland said that BSA is still very much in the vision-and-mission phase and hasn’t yet released the products to its clients; however, Pando’s acquisition is the next step in the testing process. The newly acquired brand will be moved onto the publishing platform that was created for Digg and will be used as a test case before opening the platform up to clients.

“Part of our general premise is that the big ad tech companies have stopped innovating, and we’ve seen our customers looking for new revenue sources,” said Garland. Therefore, his goal is to transform BuySellAds into a revenue tech company in order to figure out how to create monetization tools for its publishing clients beyond programmatic ad sales and direct ad buys.

While Digg is profitable now, Garland said that the goal of buying the site was never to earn revenue off of it. Instead, it’s a testbed for creating a publishing platform that he can be licensed to other publishers. It’s a model that carries echoes of Say Media, which started as a video ad tech company before scooping up publishing brands.

When Pando launched its membership product in 2015, former co-founder of Pando Paul Carr said that the small, in-house team had to invest a lot of time and money into building the current CMS. Garland’s goal is to remove the financial and time burdens that go into producing the system, so that journalists and publishers of any size can create profitable platforms for their content.

Similar to what the Washington Post created with its Arc Publishing and Zeus platforms, which give publishers ad optimization and other publishing tools, BuySellAds is focused more on journalists and smaller publishers that want to build profitable platforms for their journalism without having to sink tons of money into multiple vendors or web developers.

“Not everyone has figured out how to successfully monetize digital media,” said Garland, which is why he sees “an opportunity for small to midsize folks to get the tools they need to have successful businesses and operate successful platforms.”

With Digg, Garland said that BuySellAds was also able to learn about the struggles that its partners are dealing with firsthand and he noted that operating Digg has been a challenging experience on par with the general struggles of the industry.

A former employee of Digg said that immediately after the acquisition, half of the roughly 30-person staff — the technology team — was let go, and the sales and business-side staffers were absorbed into BuySellAds. From there, the staff’s video editor, general manager and two original content editors were laid off over the course of the following 11 months. In addition to the layoffs, other editorial members departed and currently the brand’s entire staff consists of five full-time employees and one part-time staffer.

Pando’s former owners, Carr and editor-in-chief and CEO Sarah Lacy, both departed the staff and not including the two recent posts announcing the sale of the publication, only eight articles had been published on the site this year. Garland said that the company will be relying on freelancers and outside contributors to provide content for the site.

“I’m not trying to enrich myself directly with these properties but trying to figure out how to enrich others,” said Garland.

“We know [Pando had] been stale for a while, but we didn’t want to start from scratch,” said Garland. “We wanted something workable that we could experiment with as well as learn to build better tools for publishing clients.” And similarly with Digg, the media brand had been in desperate need of money, according to former employees’ accounts, who said that when the brand was acquired in April 2018, it wasn’t profitable.

Garland and BuySellAds have been aiming to learn more about the media business for some time, but it doesn’t appear that the editorial staff at Digg was aware that this was the driving reason for the brand’s acquisition in the first place.

By Kayleigh Barber

Sourced from DIGIDAY

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Google has confirmed to Ad Age that an industry trade body tasked with deciding which “annoying” ad formats web browsers should block largely used its data and research methodology to do so. The trade body, known as the Coalition for Better Ads, last year publicly presented the material in full with Google and 18 company employees’ names removed, describing it as “the Coalition’s research.”

By not crediting the search giant for its research, the Coalition had until now effectively insulated Google from potential new unwanted attention to its influence over the web, which could raise questions of transparency at a critical time for the search giant: The company was hit with a $21 million fine last Thursday after the Competition Commission of India said it abused its dominant position in the online ad search market.

And in August, after Google said its Chrome browser would block ads according to Coalition criteria, European Commissioner for Competition Margrethe Vestager said her organization “will follow this new feature and its effects closely.”

After first sourcing its foundational research methodology to unnamed “members,” the Coalition has also confirmed that the work originated at Google. It emphasized that a broad group of members oversees the research and standards it adopts, and that further research has been done by others.

“The Coalition obtained the rights to publish the underlying research methodology from Google and to use it for ongoing research of consumer ad experience preferences in global regions,” the Coalition said in a statement. “This research effort is overseen by the Coalition’s Standards and Research Committee which includes a cross-section of Coalition members.”

Google said in a statement that it conducted research in April 2016 into poor consumer experiences on the web. “In October 2016, the newly formed Coalition for Better Ads asked member companies to share any research that had been conducted,” it said. “Google along with Facebook, Teads, the IAB Tech Lab and Washington Post, submitted their existing research as requested. In late 2017, the Coalition conducted additional research to define which ad experiences online were acceptable and unacceptable. In March 2017, the Coalition announced the initial Better Ads Standards based on this body of research. In addition, the Coalition has a dedicated Standards and Research Committee, which includes both companies and industry trade groups. Google is a member of this committee.”

When asked last week why its name wasn’t on the research on the CBA’s website, a Google spokeswoman said, “The Coalition for Better Ads made the decision as to what to publish and not to publish on their website.”

Chrome will gradually begin enforcing the Coalition standards starting Thursday.

Once enforcement is fully enacted, the browser will block all ads on websites—including those that aren’t “annoying”—should the publication be found in violation of Coalition standards and thresholds. The Coalition will grant publishers that volunteer to participate a period of time to defend themselves or address potential violations before ads are blocked.

Although the Coalition is devising standards for any participating browser to follow, Microsoft is the only other Coalition member that also has a browser. It told Ad Age last week that it has no plans to follow in Chrome’s footsteps. Firefox and Apple are regarded as longshots to join the Coalition, according to several high-level executives familiar with those conversations.

Blocking the blockers

Marketers, ad buyers, publishers and tech companies including Procter & Gamble, GroupM, Facebook, the Washington Post and Google announced the Coalition in September 2016 as a collective effort to undermine consumer demand for ad blockers.

The plan was to eliminate the worst ad experiences for users—like videos that play automatically with the sound on—in order to reduce the siren call of blocking software that lies outside the industry’s control.

“The Coalition’s research identifies the ad experiences in both North America and Europe that ranked lowest across a range of user experience factors, and that are most highly correlated with an increased propensity for consumers to adopt ad blockers,” it said in its initial press release, which did not bring up Google outside a roll call of members in the boilerplate. “These results define initial Better Ads Standards that identify the ad experiences that fall beneath a threshold of consumer acceptability.”

Public eye

Google knows many people are wary of its sway over digital media, says Nick Lee, a professor of marketing at Warwick Business School.

“They are very worried about perception when it comes to that kind of stuff—the perception of not just actual power, but that they are starting to control the data around these issues,” Lee says. “And maybe that is something they don’t want to be necessarily known for.”

Industry members say they embrace the fight against intrusive ads and consider Google’s research approach sound. Before sharing its research with the Coalition, Google sought feedback from the Interactive Advertising Bureau, publishers and ad-tech vendors after making them sign non-disclosure agreements, according to people familiar with the process.

When the Coalition asked members to submit any research they had, not just Google but Facebook, The Washington Post, Teads and the IAB Tech Lab complied. Coalition members ultimately chose to start with Google’s work.

“It’s as if they are caught between a rock and a hard place,” Lee says. “No matter how much of a good job they think they are doing, they don’t want the world to think they are controlling everything.”

Rivals in the digital ad ecosystem could cite Google’s influence as a reason to question the Coalition’s standards.

It remains unclear whether regulators would take an interest in the Coalition, says James Speta, a law professor at Northwestern University who specializes in internet policy and telecommunications.

“If it can be shown that Google manipulated the standard setting process, that would be a concern to the Federal Trade Commission,” Speta says. “The underlying issue in cases like these is how transparent is the trade body, and how fair is it? Was everyone able to see what was going on?”

Feature Image Credit: istock

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Sourced from AdAge

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There are so many ads for sale on the web that ad tech firms can barely even handle it.

Many ad tech companies promise software designed to process thousands of ad transactions in real time. But thanks to header bidding – a tech hack that has leveled the playing field in programmatic ad space over the past several years – ad tech can’t process all the ads that are out there.

That’s according to Tom Kershaw, chief technology officer at the embattled ad tech firm Rubicon Project. The surge in popularity in header bidding, which allows web publishers to open up their ad space to multiple potential buyers simultaneously, has led to such an explosion in inventory that it is straining the current infrastructure, he contends.

That’s why Rubicon just spent $38.5 million to acquire the two-year-old startup nToggle. The company’s technology is designed to make it easier for ad buyers to sift through millions of ad impressions at a given moment.

The very premise of ad tech is that software can evaluate and buy thousands, if not millions, of digital ads with a level of speed, sophistication and precision that humans can’t replicate. Dozens of companies have launched promising to help media buyers avoid having to directly make deals with thousands of websites, instead allowing them to use all sorts of data to target individual web users in milliseconds with a few clicks of a mouse.

Ad buying software companies like DataXu and The Trade Desk, known as demand side platforms, or DSPs, are supposed to be good at doing solving for the challenge Rubicon is describing. But ever since header bidding took off, these companies are dealing with five times the number of ads, said Kershaw.

Previously, when an ad on a publisher’s site went up for sale via various programmatic channels, potential buyers took turns. Google’s ad exchange might get the first chance to bid on that ad, and if that exchange passed, another buyer, like AppNexus might get a shot.

But with header bidding, publishers can let multiple ad buyers all get a chance at their ad inventory all at once. Which means that DSPs are seeing potentially all the same ads on all the same publishers again and again.

“DSPs see tons more traffic than they used to,” said Kershaw. “Now every exchange has access to all the impressions. Buyers see see same ad slot 10 times.”

That dynamic is straining ad tech companies’ infrastructure while adding to their costs, he said. “Something had to give.”

That’s where nToggle comes in. The startup had been selling its tech to publishers, helping them avoid having to dig through every single ad impression on the planet by using a proprietary algorithm and compression technology. Rubicon plans to bake it into its ad exchange.

“Buyers will only see requests they want to see,” said Kershaw.

The acquisition comes at a pivotal time for Rubicon Project. The company has had a rocky time every since it went public in 2014. And executives have acknowledged that the rise in header bidding has impacted the company’s business negatively. It’s stock price has hovered around $5 for a while.

Rubicon’s founder stepped aside from his CEO role earlier this year, and the company was reportedly looking for a buyer, according to the Wall Street Journal. Meanwhile, Rubicon is being sued by the Guardian, which alleges that Rubicon did not disclose certain fees.

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Sourced from Business Insider UK