More data, another DSP and another snappy startup that has some kick ass algorithm that will change the world for marketers. Just another week in the new display ecosystem that is emerging around the seperation of media and audience. I’m sitting in the middle of this thing, and I can’t help but wonder if the people that are creating all of these new businesses are doing the most inportant research that they can do – talking to potential customers to see what they actually want and need. It seems obvious – create products and services that meet a need – but all too often entreprenuers don’t think that way (sometimes for very good reasons). It’s the only way that I think and I am hearing things from clients that some of the new service providers would benefit from hearing too – algorithms are bullshit and they are often a red flag for media buyers. OK, of course some algorithms are valuable and effective, but I would argue that most vendors that have a product that relies on a “proprietary algorithm” have nothing at all to offer and they use the algorithm to make their offering sound compelling. Well, I have some news from the field – buyers aren’t buying it. They want transparency and they want understanding. If your pitch involves asking the media buyer to trust you, you are not going to win many deals. If you can’t explain exactly what your company does and HOW they do it, you probably won’t win many deals. I think the winners in the new data/media space will be the companies that develop the managed services and products that are understandable to buyers.
In my opinion, there is too much focus on infrastructure and not enough on service. If the whole data driven display market turns into a $3 billion category, how much money can be made from infrastructure? 20% of the total market? The money will be in the managed services and fancy algorithms will only go so far. The media buyers are looking for real products, not magic. I plan on meeting their needs, not dazzling them with bullshit.
