Discover the vision of Jay Prasad, Tubemogul’s Vice President of Global Business Development, as he talks about the latest challenges and opportunities of the digital advertising industry, like the evolution of programmatic advertising on new platforms, the optimal organization of the current market, and the importance of private deals and audience buying.

Dailymotion Exchange had the opportunity to catch up with Jay at Dailymotion’s official 2015 SXSW party in Austin. Get the full exclusive interview right here.

Earlier this year Dailymotion and TubeMogul (NASDAQ: TUBE) were proud to announce a strategic partnership that allows advertisers to purchase Dailymotion’s in-stream inventory and custom audience segments across their newly established global private exchange. (See press release).


DAILYMOTION EXCHANGE: What do you think about the evolution of programmatic advertising onto new platforms (i.e. smartphones, tablets)?

JAY PRASAD: The evolution of programmatic on new screens is a natural fit for the technology. A lot of times when new platforms are released, many consumers adopt viewing content on those screens faster than many publishers are able to monetize on those screens adequately. With programmatic you already have the pipes in place, which makes it a lot easier and more natural to advertise on new screens.

We are really excited about VOD and live streaming content as the number of connected TVs and devices continues to grow.

This means that programmatic is a really good fit to be able to monetize those screens and help publishers make proper revenue off of the growing amount of consumption.


DAILYMOTION EXCHANGE: Market fragmentation: what is the best organization for this complex market?

JAY PRASAD: The ecosystem, ad tagging and publishing is always changing. It’s almost as if the sand is shifting under everyone’s feet in real time. The fact is that the best technology and the best products are often the ones which are the most focused.

We firmly believe that a buy-side technology should be really focused on developing the best products for advertisers and brands, thus ensuring that the interests of the advertiser remain the focal point.

On the other hand, supply-side partners and ad serving systems that serve the publishers are best of when they are only focused on serving the needs of the publishers and optimizing yield for them.

When you have people that play on both sides, you end up wondering whose interests they really have in mind. I believe it can lead to a conflict of interest and that the quality of the product will suffer.

The same could be said for DMP and data providers.

If you are only focused on helping a brand or a publisher organize its data [e.g. if you are a DMP only] this data is more readily able to be used in the way the advertiser or the publisher wants.

On the other side, if you are both a DSP and a DMP, you might have a preference that your data only be used in your buying ecosystem, which is great for that specific provider but not very good for the advertiser or the publisher.

This effect can be seen with the resurgence of walled gardens […]. In the past, walled gardens were portals […] that had all of the content, data, and buying mechanisms. Currently, large providers are mimicking those walled gardens by obtaining those elements and trying to erect those walls once again. It is the perfect way for them to shift spend from other competitors on the open market into

[their own] system. I don’t think that’s in the best interests of both advertisers and publishers in the long run.

We believe it is actually better for innovation and the overall marketplace to partner with Dailymotion and other companies that can provide the best technology solutions for you instead of providing them all yourself.

We are focused on the buy side and investing our partnership resources in the respective solutions our like-minded partners are currently developing.


DAILYMOTION EXCHANGE: What are your thoughts about the evolution of Private Deals on programmatic?

JAY PRASAD: Digital advertising has actually been more difficult to transact compared to traditional media like television, despite all of the data and the real-time aspect of it. Programmatic is trying to simplify a very complex process.

Besides, programmatic isn’t just about real-time and marketplace opportunities; it’s actually being used more and more for securing premium inventory. Direct deals that can be done programmatically are just the next logical step in that process. We are firmly in favor of private deals; we have many clients who know the publishers and the audiences that work well for them. Rather than hoping for that inventory to be readily available in an open market, those publishers are much more likely to succeed if they can secure that inventory upfront in a fixed-price manner. This is happening with a lot of premium broadcast video quality publishers.

If you want to buy twenty publishers, at scale, with fixed price and secured inventory, you still want to manage reach and frequency. That’s exactly what programmatic allows you to do; manage reach and frequency, […] match buyer data against publisher data, and secure that at scale.

It’s a positive trend that programmatic is used for direct deals.


DAILYMOTION EXCHANGE: Is audience buying going to make the context not as important as it used to be?

JAY PRASAD: The key to a good buy-side software is the ability for the advertiser to target and buy against whatever is the best for that particular campaign.

Let’s take an example of an advertiser who has two campaigns running simultaneously.

One of them aims at reaching potential home renters […] or people who are likely to rent a new apartment. From a content perspective that is tougher to buy against than from a data perspective.

The other campaign may be broader in reach in that it needs to reach a specific age or gender, for instance adult males. They may want to advertise against premium sports contents because that’s the most relevant way to reach that demographic.

The ecosystem is aware of the ability to buy both audiences as well as context at scale. You need [as a publisher, ed.] to be able to offer both.

A software and buy-side technology that can offer, in real time, both audience and context targeting is going to serve the market best.