Comments on: Machine Zone’s CEO interview where he calls upon media companies to quantify their performance
Gabe Leydon, CEO of Machine Zone, speaks to a room of media people at the Code/Media Conference 2016. He shares his frustration, along with many other advertisers, declaring that advertisers are universally unhappy because media companies are deliberately avoiding quantifying their media and giving real value to their work.
He claims that the advertisers suffer from a lack of information and the ad technology that is being developed to help the individual advertiser is very poor. Media is ignoring performance marketing and giving a set price to all the media calming that they have ‘eyeballs’ in their technology.
His hypothesis is that the advertisers will get more sophisticated and the media companies will be pushed to the corner and be forced to change their technology and reprice.
Once the market centralizes around the advertisers and focuses on growing their business through performance marketing, you will be able to detect improvement both for the publishers and the advertisers.
Gabe states that there are tools out there that combined can cater to the advertiser’s needs, but it requires combining a large number of services that would make the process not practical and not workable.
Gabe also doubted the agencies work. He claimed that the agencies have a tendency to focus on quantity and not quality of the users. In addition, the agencies are not putting enough efforts into smart buying due to a lack of tracking of different ad formats and therefore having a misunderstanding about where the valuable placements are.
Gabe’s pain was projected to us about 5 years ago, when appTV was just starting out. Already then, we identified the excessive advertising value chain that exists in the industry and how the chain led to less value then their actual cost.
appTV noticed the importance of creating a full service advertising company, being the exclusive middle man between advertisers and publishers and cutting out various costly players along the way.
Furthermore, appTV’s technology was developed in-house by a team that came from the performance marketing industry and built the technology based on deficiencies they detected in the field.
Firstly, they noticed that most of the performance marketing agencies don’t have their own in-house technology and end up outsourcing a technology that is not fully compatible to their clients’ needs.
appTV’s technology was developed according to market demands and for that reason 100% of its features are utilized and bring profit to its client.
Secondly, they realized that the quality of the traffic is poor and there is a tendency of media companies to recycle traffic.
For that reason, appTV’s algorithms work to bring new and quality traffic that support performance marketing, giving advertisers informative results and quantifying their media. Through appTV’s technology, the advertisers win high quality traffic that generates a large number of in app engagements which allows advertisers to focus on quality users and actual sales, increasing their revenue and maximizing their ROI.
In addition, appTV has added value to the agencies in the market today. It offers programmatic buying technologies to agencies allowing them to be more precise as for who are the right customers and what are the optimal ad formats that will gain maximum revenue from their campaigns.
In conclusion: appTV’s technology makes it possible to fit the right ad to the right user and focus on costumer engagements!