The internet advertising business has a very large gap between publishers and advertisers. This gap exists because both advertisers and publishers want to be sure to extract the maximum amount of value from their relationship.
Online advertisers want to display ads as effectively — and as cost effective as possible — and publishers want to sell their inventory (space) for the highest online advertising rates they can without annoying their users and disturbing those users experiences with free classified site .
This is where adtech comes into the fold. It is that gap. The image above is actually a simplification of this industry.
This is a conservative version of the adtech space that exists between internet advertisers and online publishers (or site owners). Adtech — in all of its forms — is essentially trying to help one party — or both — achieve their ultimate goal.
Because of innovation in adtech, internet advertising has gotten better for both advertisers and publishers in the past decade.
Publishers have been able to better ensure they are earning the correct amount website ad revenue and advertisers have been able to ensure they are reaching their audiences effectively.
However, because this space is so packed full of various parties (all with self-interests as well) it can be really difficult to understand which parties are truly adding value.
Watch a detailed breakdown of this space at the Google-sponsored Publisher Forum
The truth is some adtech businesses are adding a lot of value, some are adding little value, a few are adding a minuscule amount of value, and some are probably not adding any value.
When you take a truly sober look at everything, all adtech effects other adtech, so because of the complexity in the space, there are likely some parties in the mix that are detracting on the value that others actually deliver to both advertisers and publishers.
What does this mean? It means that because of the complexity in the space, most advertisers and publishers don’t really know who’s helping them and who’s hurting them in this whole equation.