It was a pleasure to catch up with Rio Longacre, an experienced online advertising and media buying expert, to discuss the evolving online ad ecosystem. We focus on the benefits of first-party data for publishers and advertisers, and highlight the shift from direct deals to programmatic advertising, noting the challenges of lower CPMs and the rise of MFA (“Made for Adsense”) sites.
Rio emphasizes the importance of AI in optimizing media buying and the need for publishers to invest in yield models and first-party data management. We also discuss the impact of creative fatigue, the role of AI in enhancing creative processes, and the potential for AI-driven SaaS solutions to level the playing field for smaller players. We conclude our conversation with predictions of significant changes in brand safety, addressability, and the rise of publisher technology in 2025.
Discussion points include:
- The ongoing challenges of media buying, given that some media is still bought through traditional methods and that programmatic buying is not always the most cost-effective option.
- The impact of programmatic advertising, which was supposed to automate and boost monetization but often led to lower CPMs and the inclusion of MFA sites.
- Challenges faced by large holding companies, which may have more resources but move slower due to internal bureaucracy.
- The importance of conversion rate optimization and the need for agencies to invest in creative capabilities to improve user experiences.
- The potential benefits of AI in optimizing inventory and driving yields
- Challenges of frequency capping in a fragmented media landscape, where agencies may use multiple DSPs simultaneously.
- The impact of third-party cookies on frequency capping and the potential for viewability issues to undermine its effectiveness.
- The potential for new entrants using AI to address issues with incumbents and the importance of addressability and contextual targeting.
