Angry SSP Veteran: Stop the SSP Hate!

I’ve put booze on hold for a while, but after reading and listening to all the SSP articles and podcasts including Friday’s, ‘The Big Story:? The SSP Extinction Event,’? I had to fight the urge to put some Kaluha or maybe even Absinthe in my coffee…(I drank my coffee black, don’t worry). ? I’m truly amazed at the writing from the recent days.? The AdTech ecosystem is one of the most dynamic, innovative industries in the world, yet we continue to see articles that suggest a vital part of our ecosystem will remain complacent and fail, as if it's a deer caught in the headlights.??

By nature, an exchange provides a service where two or more parties receive value through its process.? In our ecosystem, exchanges/SSPs play a valuable role creating connections and efficiencies for marketers, publishers and all of the companies that exist between the two.? To suggest that SSPs could become extinct is short-sighted, and frankly is just click-bait.

Before we start, let’s remove Yahoo’s recent SSP sunsetting from the conversation. ? Yahoo’s move is not a signal of the market.? Over the past few years, Yahoo put on a masterclass of how not to create a unified exchange.? I could sit here and write for days, and maybe one day I will, but for purposes of brevity, I'll stop here.? It was a missed opportunity and is an excellent history lesson.?

Getting back to the challenges at hand, SSPs are facing an uphill battle, and so is every other aspect of the AdTech ecosystem.? In my opinion, the DOJ is just getting started with its Google suit.? Apple and Amazon could very well be future DOJ targets, we don’t know.? The impact could be that of a Tsunami or a pebble thrown in a pod. Advertisers are faced with a myriad of challenges that include targeting, 1P, 2P, 3P data everywhere,?transparency, measurement, endless avenues to allocate budgets, walled gardens (along with other gardens with some walls), and a possible economic recession. ? Streaming platforms are hemorrhaging cash, just look at the most recent earnings reports.? Publishers are grappling with ways to sustain and engage their audience, and create value propositions for demand partners in part to avoid paywalls or other focuses to subsidize their business.? Every company in between the marketer and the advertiser faces challenges that will not be clear until for the foreseeable future. ? I’ve been in this industry for more than half my life, and with each economic downturn (Dotbomb, 2008, etc..) we’ve always seen success rise from the ashes.

Let’s take a little trip back in time. ? Remember L90, Valueclick, Interclick, Fastclick, Blue Lithium, 24/7, Exponential, and Advertising.com? ? Whose left?? ? Our ecosystem is evolutionary and ever changing. ? There is no expectation that every single SSP out there will survive.? In every industry, there has to be innovation, as complacency breeds failure.? We must also understand that an SSP is a function, a service, not necessarily a standalone company. ? Truth be told, I’d never heard of EMX prior to Friday’s podcast. Perhaps the 6+ months out of AdTech is the cause. ? There will always be companies that fail.? Grouping EMX with Yahoo and suggesting SSP extinction is a bit extreme. ? We should be refocusing our energy and attention on the companies that are advancing.

TheTradeDesk is a brilliant, innovative, industry changing company.? Kudos to Jeff Green and team for creating and committing to a vision.? In its most basic sense, TTD is solving problems for marketers and providing value to publishers. ? I’ve been guilty of speculating that TTD will buy an SSP in the past.? I do not believe that will happen anytime soon, if at all.? TTD has consistently returned higher than expected quarterly performance in the face of critics who question whether or not they’ve tapped out.? But TTD is one company, and they do not have 100% market share.? There is room for others. ? I raise TTD first, b/c they are in a category of their own.??

I’m a big fan of Michael Barrett.? Magnite’s actions over the past few years raised some questions, but have now positioned its business to navigate some rough waters. ? Their acquisition of Telaria and SpotX cast them into the #1 spot for streaming.? The strategic purchase of Cryptography creates potential for growth (or sustainability) given the 3P cookie headwinds.? They partnered with Criteo to have a foot in the retail game.? Yes, they trimmed 6% of staff in January, and that stinks, but all businesses have to make adjustments. ? Magnite has created potential for success, diversifying their offerings, and keeping it part of a holistic strategy.??

Other SSPs like OpenX executed a strategic partnership with Horizon Media, which brings in 1P activation and exclusive audiences, thus elevating their offering.? Pubmatic continues their success with private deals and diversification away from display supply. ? Index seems to be focused heavily on CTV, measurement and other aspects, while otherwise being quiet about what’s to come. With Matt Barash at the helm, you know something good is coming.? Always #BetOnBarash. ? I can sit and go through dozens of other SSPs, but my point will be the same.? If you’re making moves, good for you.? If you’re waiting to see what happens, I would sharpen up the resume.

SSPs are not at the brink of extinction, they are at an inflection point.? Their ability to clearly understand the needs of marketers and agencies, and create solutions or paths towards solutions will separate the good from the many.? SSPs create a marketplace for every company in the LUMASCAPE that sits between the marketers and publisher.? They provide needed functionality for targeting, measurement, security, and more. All Marketers and Publishers do not have the resources needed to build or buy all of the functions that sit within SSPs. ? The AdTech industry is in a prime position to introduce an avenue of new partnerships that brings SSPs closer to the marketer, resulting in more targeted partnerships with measurement companies, clear rooms, and others.? While others may continue their focus on potential demise, I am of the belief that we will see SSPs chart a stronger, more focused path forward.