Mplx ad serverwhitepaper

a WHITEPAPER from MEDIAPLEX
By Geoffrey Katz
Vice President, Client Operations
ValueClick, Inc. (NASDAQ: VCLK)
ASACOMMODITY
STOPVIEWINGADSERVERS

2STOP VIEWING AD SERVERS AS A COMMODITY
© COPYRIGHT 2012 MEDIAPLEX. ALL RIGHTS RESERVED. MEDIAPLEX AND MOJO ARE REGISTERED TRADEMARKS OF VALUECLICK, INC.
01 INTRODUCTION
01 A RAPIDLY CHANGING AD SERVING MARKET
02 RETHINKING WHAT AN AD SERVER DOES
03 THE CONDUIT OF USER DATA
03 CORE BENEFITS
03 CORE FEATURES
04 WHATMATTERSINANADSERVER
04 1. THE BASICS
04 2. MULTICHANNEL CAPABILITIES
05 3. PLATFORM INTEGRATION
06 4. CUSTOMISATION
07 5. INDEPENDENCE
07 6. CORPORATE COMMITMENT
08 7. COMPANY STABILITY
09 8. TRACK RECORD AND PEOPLE
10 CONCLUSIONS
11 ABOUTMEDIAPLEX

INTRODUCTION
Many people think of the ad serving
business as a relatively sleepy,
commoditised space. Agencies and
brands alike review their ad serving
relationships periodically, playing one
supplier against another with a focus
on getting the best possible financial
terms.
I understand the need to push for
great rates. As a long-time veteran
of the agency-side, I worked with
virtually every major ad serving
company at one point or another.
Getting the best value on ad serving
services is clearly a fiduciary
responsibility for agency teams and
brand teams alike.
But I do think there is a big difference
between negotiating the cheapest
price and identifying the best value for
your brand.
ARAPIDLYCHANGINGAD
SERVINGMARKET
While some may think the third party
ad serving business is pretty staid,
the reality is just the opposite. Lately,
there’s been more press interest in
our sector because so many of the
leading companies are in flux. There
has been a great deal of change in the
category, much of which needs to be
considered when assessing goodness
of fit with the various ad server
partners out there.
• Microsoftisreportedlyintheprocessof
selling offAtlasSolutionsinabidtogetout
ofad techandfocusonothercategories.
• DG, parentofMediaMind,saysthey
are exploringnumerousgoingforward
financial strategies,“whichmayinclude
partnerships,strategicbusinessmodel
alternatives,asaleorothertransaction.
In connectiontherewith,[they]engaged
Goldman Sachstoassisttheminexploring
strategicalternatives.”
• A variety ofsmallstart-upshaveentered
the business,withvaryinglevelsoffunding.
Many areprimarilyfocusedonadserving
within aspecificchannellikeMobile.
• Google continuestointegrateDoubleClick
more completelyintoitsadvertisingstack,
giving themmoreandmorecomprehensive
visibility intobrandandagencydata.
Given all of these developments, it
makes sense to re-examine the ad
serving category with an eye toward
what really matters – to ensure you
get all of the value possible out of
these important digital platforms.
“WHILESOMEMAYTHINKTHE
THIRDPARTYADSERVING
BUSINESSISPRETTYSTAID,
THEREALITYISJUSTTHE
OPPOSITE.”
DGPressRelease:“DGReportsThirdQuarter2012Results”

RETHINKINGWHATANAD
SERVERDOES
According to the IBM survey, 73% of
marketing organisations attribute
marketing effectiveness to specific
tactics in some way. But delivering
accurate sales impact attribution
across multiple media touchpoints is
rather complicated.
To find out just what people think an
ad server does, I asked about a dozen
people to explain to me what they
thought were its essential functions.
The answers I got were remarkably
consistent, but only told about a third
of the story.
Most people’s answers concentrated
on the act of literally serving ads –
answering “ad calls” from a variety
of publishers and networks. Many
also pointed to the idea that using
a centralised ad server is far less
complex than relying on site serving,
and that the simplicity of using an ad
server helped reduce costs and errors.
BUT AN AD SERVER IS ABOUT SO
MUCH MORE THAN THAT. ULTIMATELY
IT MEETS THREE CORE NEEDS:
1. Storing ad creative and serving it on an ad
call according to
business rules
2. Collecting data about marketing activity
– impressions, clicks, interactions,
conversions, etc.
3. Reporting and auditing on marketing
performance in order to facilitate
optimisation
As you can see, the respondents of my
informal poll were absolutely correct
that managing and serving creative is
a very important role of the ad server.
But the other core functions of an ad
server are perhaps even more critical
to a modern advertiser’s success.
As the central tracking hub of your
integrated marketing efforts, the ad
server is vital in today’s world of data-
driven marketing.
“ASTHECENTRALTRACKING
HUBOFYOURMARKETING
EFFORTS,THEADSERVERIS
VITALINTODAY’SWORLDOF
DATA-DRIVENMARKETING.”

THECONDUITOFUSERDATA
Certainly the act of serving ads is key
to what an ad server does. But what
often gets far less attention is that
an ad server is (or should be) the
centralised conduit of user data into
your organisation.
An ad server collects critical
information on how consumers are
viewing and interacting with your
brand messages. It accumulates the
data that enable a detailed view into
your customers, their needs, and their
actions. That’s why we need to take
a broader view of what “best value”
means in this category.
In the course of my career and
experience, I developed a set of the
criteria that are critical to selecting
the ad server that delivers the
“best value”. Developing a broader
understanding of the critical role ad
servers play in a brand’s marketing
success will help you make a more
informed choice when selecting a
supplier for your business.
ADSERVINGATAGLANCE
CENTRAL CREATIVE MANAGEMENT
AUTOMATED CREATIVE OPTIMISATION
UNIVERSAL CREATIVE RETARGETING
CENTRAL FREQUENCY CONTROL
IMPRESSION /CLICK COUNT
VERIFICATION
CROSS-CHANNEL DATA COLLECTION
UNIVERSAL MEASUREMENT AND
REPORTING
CENTRAL USER DATA MANAGEMENT
FOR TARGETING AND BID OPTIMISATION
REDUCED LABOUR
COSTS THROUGH
CENTRAL CAMPAIGN
MANAGEMENT
BETTER CAMPAIGN
PERFORMANCE
THROUGH
OPTIMISATION
BETTER
MEASUREMENT AND
REPORTING THROUGH
CENTRAL DATA
COLLECTION
COREBENEFITS
COREFEATURES

WHATMATTERSINANADSERVER
IN MY VIEW THERE ARE 8 THINGS
THAT MATTER WHEN CHOOSING AN
AD SERVER. EACH WARRANTS YOUR
SERIOUS ATTENTION.
1.THEBASICS
A traditional ad server hosts
advertising creative, and delivers it
to web browsers for display when
visitors arrive on publisher webpages.
Ad servers also collect data about
campaign execution, counting
impressions, clicks and other
measures relevant to a brand and its
marketing programmes.
On the most basic level, the ad server
you choose needs to deliver on these
basic tasks. To do so effectively, it
must be:
• Certified by all leading web publishers
• Able to store and deliver a wide variety of
creative types
• Accurate and timely in collecting and
reporting data
• Highly secure and reliable
• Simple to configure and use
Many ad servers meet these baseline
hurdles, but you might be surprised to
hear that some do not. In particular,
some of the leading ad servers are
rather problematic to deploy, exposing
clients to long delays and the very real
possibility that they will lose critical
marketing data.
2.MULTICHANNELCAPABILITIES
Related to integration is the need
for a multichannel approach to
collect, report, and analyse consumer
data. We all complain about silos in
marketing – the idea that display,
search and the rest should be
managed separately. Picking the
right ad server is the first, and
perhaps most important step in doing
something to break down silos.
Multichannel is about more than just
display, search, video, mobile, and
social. Many supliers can address
these 5 channels, at least in some
way. Without a doubt, a combined
measurement system for 5 channels
is better than 5 separate systems.
However, this does not go far enough
to achieve the greater goal of moving
beyond channels to a user-centric
approach to marketing. In addition to
collecting data, you need to be able
to correlate multichannel data at a
user level. This type of user-level data
correlation is critical for precision
targeting and advanced attribution
tactics.
“USER-LEVELDATA
CORRELATIONIS
CRITICALFORPRECISION
TARGETINGANDADVANCED
ATTRIBUTIONTACTICS.”

Collecting data is far less difficult
than associating it across channels
with particular web users. When
you choose an ad server that can
actually connect someone’s PC
browsing data with their tablet
browsing data and their smartphone
browsing data, you gain a startling
competitive advantage. Consumers
don’t think about or classify personal
experiences in channels or devices.
Our understanding of them should not
be limited in that way either.
I can’t stress how important it is to
get this right. This user-centric data
strategy forms the foundation off all
your data-driven marketing efforts.
If this data is compromised, it can
negatively impact the effectiveness of
all of your data-driven programmes.
To do it right you really need expert
guidance from your ad serving
supplier on how to implement proper
data collection and management. This
is a key place where hands-on support
and service can help ensure you
get the maximum benefit from your
technology.
3.PLATFORMINTEGRATION
Many supliers in the ad server space,
especially new players, are focused on
providing point products for particular
types of ads, like mobile, rich media,
or video.
When companies begin to advertise
in new media types or channels, such
specialised systems can be simpler to
implement. For example, deploying a
mobile-specific ad server may appear
to be the path of least resistance for
ramping mobile efforts.
But those short-term time savings are
far overshadowed by the inevitable
challenges that multiple supplier
platforms create in realising a
user-based data strategy. When
information is difficult to get from one
platform to another, the likelihood
of integrating user data across
platforms to build robust user profiles
dims. These types of silos make it
far more difficult to harness the true
value that data can provide.
“SHORTTERMTIMESAVINGS
AREFAROVERSHADOWEDBY
THEINEVITABLECHALLENGES
THATMULTIPLESUPPLIER
PLATFORMSCREATE.”

At Mediaplex, our approach is
very different. We designed our ad
server with integration in mind.
With comprehensive data collection
and ad execution capabilities, it is
a foundation for a complete data
strategy and action plan. Mobile,
video, rich media and other forms of
marketing data all come together in
the MOJO® Adserver platform.
Our ad server includes an integrated
Data Management Platform (DMP).
The DMP stores a wealth of cross-
channel first- and third-party user
and campaign data that powers both
true algorithmic marketing attribution
and bid optimisation for managed
DSP services.
This sort of integration is invaluable
as companies recognise the need
for more holistic and user-centric
approaches to data management,
performance analysis, and data-
driven execution. With a less
integrated solution, you ultimately
raise your cost and risk due to
less accurate data collection and
application. Whether you choose our
ad server or another, make sure that
platform integration is a real strength
for the supplier you choose.
4.CUSTOMISATION
Ad servers tend to have standardised
approaches to recording and
presenting data. For some clients,
such approaches are quite beneficial
because they make it easy to get up
and running quickly.
But many companies find a big gap
between how their ad server “wants”
to present information and how their
company wants to consume it.
To address this challenge, Mediaplex
has developed a platform that
enables its clients to customise every
aspect of their instance. This sort of
customisation has helped a number of
our clients save time from not having
to reformat, combine, or otherwise
manipulate ad server data in order
to meet their company’s reporting
needs. Here you’ll need to consider
whether your business will benefit
more from platform flexibility or a
template UI that is easier to use.
“COMPANIESRECOGNISETHE
NEEDFORMOREHOLISTICAND
USER-CENTEREDAPPROACHES
TODATAMANAGEMENT,
PERFORMANCEANALYSIS,AND
DATA-DRIVENEXECUTION.”

5.INDEPENDENCE
When Atlas was owned by ad agency
Avenue A, there were many agencies
that chose an alternative because
of a concern that somehow their
client data would end up in the wrong
hands. While all ad server suppliers
provide assurances that client data
are protected, some people still have
understandable concerns.
Today, DoubleClick is a part of Google,
and Atlas a part of Microsoft. That’s
something that may trouble some
agencies and brands. Further, some
also may have a concern that Google’s
incredibly broad access to brand
data gives them ever more power
as a media supplier. After all, they
often have access to most or all of a
brand’s SEM activity and (for those
brands that use it) Google Analytics
data. Mediaplex, by contrast, is part
of ValueClick, Inc. It is managed as a
separate unit from all other ValueClick
divisions and those divisions have
absolutely zero access to Mediaplex
data. In our view that sort of
independence has real value – it’s
something that we are very proud of.
6.CORPORATECOMMITMENT
The technology of ad serving is
constantly changing as new channels,
ad formats, interactions, and
placements are devised by brands and
publishers interested in attracting
more user attention. Staying ahead
of those developments requires real
commitment from your supplier in
the form of technology and people
investment. The best ad server for
you should be making significant and
sustained investment in people and
technology, to keep you ready for new
marketing opportunities and market
circumstances.
Start-up ad server companies are
naturally full of commitment, but
may lack the resources to keep
their products current. By contrast,
ad servers that are owned by large
companies can get short shrift on
investment if ad serving is not core to
the company’s overall business.
At Mediaplex, ad serving is at the
centre of what we do. Our mission is
to help marketers maximise return on
their marketing investments. In order
to achieve this goal, we need to be
able to understand “what works” for a
brand at the user level. Over the past
several years, our parent company
has made major investments in our
ad server platform. Dozens of new
people including respected, long-time
“THISSORTOFCUSTOMISATION
HASHELPEDANUMBEROF
OURCLIENTSSAVETIME.”

industry veterans have joined our
team. New technology capabilities
have been layered onto our core ad
server to better meet the needs of
today’s data-driven marketers.
We may not be the only company
investing seriously in their ad server
businesses. But whichever supplier
you choose, make sure that it is
making the financial investments
necessary to stay ahead of marketing
developments.
7.COMPANYSTABILITY
Your marketing data are absolutely
critical to your future success. Many
suppliers in this category are new
companies, bootstrapping or relying
heavily on venture capital investment
to cover costs. Sweat equity and VC
money have done very positive things
for digital. Do consider, however,
that many start-ups have an exit
strategy focused on getting acquired
by a larger company. In a number of
cases, in the ad serving category, that
hasn’t been a positive for customers.
Sometimes those larger companies
lose interest in a platform and reduce
investment in its workforce and
technology. Make sure that whomever
you work with has enough money
to get off the ground and sustain
themselves, while they get market
traction. It may well take years for
them to sign the clients needed to
fully sustain their business.
Switching costs are also an important
consideration. When you change ad
servers you must retag your site,
and also retrain your ad operations
and analysis teams in using the
new platform. For agencies, an even
greater challenge is integrating a new
platform with existing work flows and
accounting systems.
While there are certainly good reasons
for changing ad servers – reasons
that are worth the switching costs –
you’ll want to minimise the number
of times you switch. It’s simply a
hassle you don’t need year after year.
By choosing a stable supplier, you go
a long way toward reducing future
headaches.
The most stable companies in our
category, in my view, are DoubleClick
and Mediaplex. DoubleClick is part of
Google, so there’s no chance of them
running out of money any time soon.
Mediaplex has been in business for
more than 15 years, and is a division
of ValueClick Inc., a large, profitable,
publicly-traded company focused
entirely on digital marketing.
“OURMISSIONISTOHELP
MARKETERSMAXIMISE
RETURNONTHEIR
MARKETINGINVESTMENTS.”
“BYCHOOSINGASTABLE
SUPPLIER,YOUGOALONG
WAYTOWARDREDUCING
FUTUREHEADACHES.”

8.TRACKRECORDANDPEOPLE
As I’ve outlined, the ad server is a
critical source of valuable marketing
data, and your brand’s marketing
data is a critical driver of modern
marketing tactics. As such it is
important to select an ad serving
supplier with a strong track record
of service, support and reliability.
One of the leading companies in
the category owes much of its
success to an extremely appealing
dashboard. But when it comes to
implementing its technology, they
frequently fall far short of client
expectations. Integrations tend to be
slow, incomplete, and filled with small
points of aggravation.
A great UI can be tempting, but
make sure you take into account the
broader role an ad server will play
in your brand’s success. All of the
dashboard bells and whistles in the
world won’t help you make sense of
incorrect or incomplete data. And
the process of implementing a new
ad server isn’t something you want
to move forward with only to find
that the supplier cannot provide
the correct information and level of
service you require.
In ad serving, incorrect or incomplete
data means huge problems in
campaign management, budgeting,
auditing, data collection, and
reporting. It also prevents you from
deriving the data insights needed to
optimise your marketing investments.
Mediaplex has always believed
that flawless execution and strong
customer service are the keystones of
any business, but this is particularly
true in ad serving. We have many
clients who will attest to our on-going
strong service and support from
sign-up.
Other large players in the category
tend to offer their best service for
very large customers only. It stands
to reason, of course: big advertiser =
big revenue. But for advertisers that
aren’t as gigantic, service levels can
be questionable.
I believe that you should ask a
prospective supplier for references
from advertisers of your size; not
their three biggest advertisers, unless
that’s what you will be. But if, for
example, you spend £10-£15million
in advertising annually, ask for a list
of clients that do the same, and then
quiz those references on the service
level they get.
“ALLOFTHEDASHBOARD
BELLSANDWHISTLESINTHE
WORLDWON’THELPYOUMAKE
SENSEOFINCORRECTOR
INCOMPLETEDATA.”
“FLAWLESSEXECUTIONAND
STRONGCUSTOMERSERVICE
SHOULDBETHEKEYSTONES
OFANYADTECHNOLOGY
SUPPLIER’SBUSINESS.”

10
CONCLUSIONS
STOP VIEWING AD SERVERS AS A COMMODITY
I don’t claim to be an unbiased
observer of the ad server category. I
joined Mediaplex because I believe in
its vision, its model, its products, and
its level of client service.
There are other good ad serving
products besides Mediaplex.
Every company has strengths and
weaknesses, and your choice of
an ad server should be made in
consideration of those.
Ultimately your choice of ad server
is an extremely important business
decision. By carefully considering
alternatives and asking the right
questions, you can make a choice that
represents the best value for your
brand and company.
I welcome your comments on this
paper and on the ad serving category.
Please e-mail me at GeoffreyKatz@
mediaplex.com.

11
ABOUTMEDIAPLEX
STOP VIEWING AD SERVERS AS A COMMODITY
MEDIAPLEX:THEDIGITALRETURNON
INVESTMENTSPECIALISTS
We create massive returns for famous
clients across their multi-channel
digital marketing strategies.
We work at the leading edge of online
marketing, creating customised
optimisation strategies that enable
clients to precision-tune every
campaign and out-perform their
competitors.
We take a holistic approach to
real-time optimisation, combining
data analytics with expertise in re-
targeting, dynamic messaging and
real-time performance measurement
to create a tailored approach to every
client challenge.
We’re part of ValueClick Inc., the
world’s leading online marketing
company and the results we achieve
speak for themselves. Our clients like
Dell, eBay and Betfair have been with
us for years, would love to keep
us secret.
Geoffrey Katz is Vice President, Client
Operations at Mediaplex. He began
his career as a software developer,
and in 2000 transitioned to the
digital marketing field when he joined
Mediaplex as Product Manager for the
MOJO® Adserver. In this role he was
responsible for developing and leading
the development roadmap for this
flagship Mediaplex service. In 2008,
he joined Razorfish, where he was the
New York office lead for campaign
management and ad operations. He
was later promoted to a national role
for Razorfish as Director of Tools
and Technology. In this post he was
focused on finding and influencing
the best solutions for ad serving, ad
verification, OBA compliance, tag
management, dynamic creative and
rich media. He rejoined Mediaplex
in 2011.
“ULTIMATELYYOURCHOICE
OFADSERVERISAN
EXTREMELYIMPORTANT
BUSINESSDECISION.”

Mplx ad serverwhitepaper

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