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BUILD or RENT a DSPAdTech Meetup London #2
29th April 2015
Maciej Zawadziński
ABOUT ME
• Maciej Zawadziński
• Co-founder and CEO of Clearcode and Piwik
• Clearcode - software house specialising in building custom ad technology and analytics platforms
• Piwik - the leading open source analytics platform
• You can find me on Twitter @zawadzinski
INTRODUCTION
HOW DO WE SPEND ADVERTISER’s MONEY?
HOW DO WE SPEND ADVERTISER’s MONEY?
HOW DO WE SPEND ADVERTISER’s MONEY?
HOW DO WE SPEND ADVERTISER’s MONEY?
Advertiser's budget
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Media Agency Trading Desk DSP 3rd Party DataAd Exchange Ad Network/SSP Publisher
IN-HOUSE PROGRAMMATIC vs
IN-HOUSE PROGRAMMATIC TECHNOLOGY
BUILD vs RENT
Build• Fixed cost of maintenance,
no markup on the media
• Cost transparency
• Upfront cost of building or acquiring the technology
• IP ownership
• Additional risks
BUSINESSRent
• No fixed costs, markup on every £ of the media spent
• No cost transparency
• No upfront costs
COST SIMULATION
10M
Operating costs
DSP commission
Media cost
Media spent
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
COST SIMULATION
25M
Operating costs
DSP commission
Media cost
Media spent
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
COST SIMULATION
50M
Operating costs
DSP commission
Media cost
Media spent
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
COST SIMULATION
75
Operating costs
DSP commission
Media cost
Media spent
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
Build• Control over the data
• Custom proprietary features and algorithms
• Lengthy implementation and rollout process
• Lengthy learning curve for in-house team
TECHNOLOGYRent
• No control over the data
• Limited customisation possibilities
• Instant access to features and vast range of inventory
• Access to the dedicated support vendor’s experts
