Question: Will DSPs (demand side platform) and RTB (real time bidding) Ad exchanges wipe out Ad networks in 2011?

Answer: No way. Especially not when you consider that some of the largest “ad exchanges” are actually really “ad networks” at heart (see my piece on AdExchanger.com about why 2011 is the year of the ad network!)

“DSP,” “ad network” and “ad exchange” (and perhaps “agency” too) as terms may need to be redefined this year as the lines will continue to be blurred. Today, let’s face it, ad networks are still making a lot more money than agencies or DSPs. And still, today, everyone needs everyone else in this space – the symbiosis between agencies, ad networks, dsp’s, publishers and advertisers is still high. That won’t be the case forever, but is still the rule now.

Read the feature on AdExchanger.com

Here is a ustream recording of the session

Matt reinforced XA.net’s position that, while RTB is crucially important in the online ad industry for its transparency and efficiency and will continue to grow strongly, advertisers cannot yet abandon traditional tag-based CPM buying models, where the majority of publisher inventory still exists.

Grill the Vendors: Real Time Bidding

According to some predictions, up to a third of network advertising may be moving through real-time bidding systems by the end of this year. This latest technology trend promises to match the right ad to the right person within milliseconds of their entering the page. The technology and the algorithms are complex, but do they always work as advertised? Do agencies and brands know what they are buying…and what they are buying into? Are the RTB systems out there working in the publisher’s best interests or the media buyers? We bring in some of the top competitors in the field for a class OMMA grilling in order to determine how RTB vendors differentiate themselves and answer the hard questions both publishers and media buyers must bring to the table.

If you’re going to be at the event and would like to catch up with us, send us an email.

Register and Get $400 Off OMMA Ad Nets with Code: ADNETSXA

The code is only good for the first 20 registrants, so act now!

The conference takes place on Monday, July 19, 2010 at the Hyatt Regency Century Plaza, located on 2025 Avenue of the Stars, Los Angeles. We hope to see you there!

It’s kind of like the Miss Wisconsin beauty pageant. Lots of young women who meet the organizers’ criteria enter the pageant. There is a judging process which ends in the selection of a Miss Wisconsin. Miss Wisconsin (MW) then qualifies to go the Miss America pageant. There is travel, lodging, rehearsals and activities but eventually the big day arrives where MW gets to take the stage in her quest to win the Miss America crown. There can be only one winner but along the way ladies like MW have experienced intermediate glory.

So think of Wisconsin as our real-time bidding system, and what happens there as the Miss Wisconsin pageant. For every impression in an ad exchange or aggregator (Miss America pageant) there can be only one winner, and so every bidder (state) puts forth their absolute best. California, Arizona and Delaware all want to win that pageant – and they’ve all held their own pageants ahead of time to put forth that one winner to go through to the final. Now some might argue that California is bigger and better than many of the other states (budget deficits notwithstanding) and should get more entrants into the Miss America pageant, but hey – this isn’t a representative democracy! One entrant per state only please!

Now think of 10,000 pageants a second and you’re starting to get the idea.

For RTB each bidder is conducting some kind of real-time assessment before deciding which bid to place on a given impression. It could be a complex or simple assessment, but more complex internal real-time decisions (local pageants) mean less time to prepare and compete at nationals.