Specific Media is arguably one of the strongest DR ad networks in the European market, appearing on most of the big agency media plans. How do they do it? Good optimisation? Good technology? Good ad ops? Good sales? You could say it’s a bit of all of the above.. Ian Dowds, VP UK, Specific Media, took time this week to speak to ExchangeWire about Specific Media’s premier status in the DR space, the possibility of consolidation in the ad network market, and the continued evolution of online display.

Can you give an overview of Specific Media’s offering?

ID: Specific Media is a pioneering online advertising specialist, offering a distinct combination of sophisticated targeting technologies, premium web sites and granular audience reach and insight to power advertisers’ businesses.

We combine innovative targeting technologies with a premium publisher network, which reaches more than 34 million UK consumers monthly, nearly 100 million European consumers and over 250 million globally, to help advertisers in the retail, travel, automotive and financial services sectors, target consumers with incomparable scale and accuracy based on demographics, behaviour, geographic locations and/or the contextual relevance of websites visited.

Specific Media appears to have a competitive advantage over other performance ad networks in key verticals of the UK DR space? What differentiates you from your competition in the UK market?

ID: Our focus has always been and will remain on providing our clients with unparalleled data knowledge and analytics to drive campaign performance – and that is what sets us apart. Specific Media is able to provide brands and agencies with powerful intelligence before, during and after campaigns to ensure their advertising is ultimately value-driven in the current campaign but also in planning future campaigns. More than this however, we are combine this knowledge with unique targeting technologies and proven best in industry customer service, as highlighted in the latest IPA survey. It is vital for us as a business and for the value we bring customers that we are on the cutting edge of online display advertising, so we continue to invest in our technology, analytics and people to ensure we remain a leader in the industry. All in all, we believe we provide brands and advertisers with a distinct and compelling offering.

There are nearly eighty ad networks in the UK market. Is that number sustainable? And will the display market’s move towards a more measurable media buy signal the end of the middlemen and arbitragers?

ID: Consolidation is inevitable in this industry as in any other. Clearly consolidation will weed out weaker networks and foster growth and innovation across strong network offerings who have a proven USP in the market, which we have.

What is important is that the industry is inevitably moving towards standard measurement and this will most certainly be a good thing. It will give the ability to demonstrate the measurable value of online and of course it will increase accountability and expectations of the overall network offering resulting in a natural separation between those weaker and stronger in these areas.

Measurement is very much at the heart of our company. Specific Media is a founding member of Internet Advertising Sales House (IASH) which aims to champion the value and improve the understanding of online advertising as a medium

What will ad networks need to do to remain competitive? Is it better technology? Better targeting, optimisation and audience insight?

ID: It is all of the above – investing in proprietary technology, targeting, audience insight and analytics, performance and accountability. Ultimately ad networks need to be able to evolve at a faster pace than this ever changing industry – they need to stay one step ahead of what a brand or agency needs and continue to offer powerful results through innovation. This may well be in the area of more intuitive targeting technologies or in the intelligence they can supply with data – but it is the rapid evolution of services and products and variety that will keep networks at the forefront of the industry.

Do you think Behavioural Targeting works in the UK? Does contextual still return better campaign results?

ID: It is about aligning the targeting method for the campaign to the desired results. Behavioural targeting absolutely works in the UK. It is a technique that allows advertisers to communicate with online users with relevant adverts rather than scatter-gunning consumers.

But ultimately it is about offering flexibility – one size never fits all. Specific Media offers a suite of targeting capabilities on a single platform, including demographic, behavioural, contextual, geographic and retargeting technologies. The company’s comprehensive suite enables marketers to combine methodologies in order to target highly specific audiences with scale and accuracy, thereby maximising efficiency and reducing wasted impressions.

What trends is Specific presently seeing in the display market? Are we likely to see more online spend move into DR?

ID: Specific Media is seeing significant growth across all advertiser verticals and more traditionally brand focused advertisers are now entering the network space. We are exploring upper funnel metrics and are proving to our clients that the value of display goes way beyond measuring only the click or acquisition. Our success in meeting the demand for proof of ROI means that our growth is therefore now coming from both DR and brand advertisers.

What’s your view of DSPs (Demand Side Platforms such as Invite Media and MediaMath)?

ID: If DSPs can identify not just the commodity value of the impression but the true value of the user at that time, then they may provide value to clients and of course they have a place in the digital market. It is important that DSP’s do not simply hasten the commoditisation of online inventory, and that agencies are set up to use them properly.

Do you think they will have a major influence on how ad inventory is bought by agencies in 2010?

ID: Agency use of DSPs will grow in 2010 but from an extremely low base. Most agencies are testing the water now, exploring what resource is required at their end to make the most effective use of them. That resource will be based around technology and human skills.

LucidMedia recently announced it was brining its own DSP to market? Do you think ad networks will have to build out their own DSPs to survive?

ID: We believe that robust ad networks that continue to innovate and evolve will continue to prove their value as they do now

Are the lines between agencies and ad networks becoming more blurred? What effect do you think that will have on the display market?

ID: The expertise that agencies demonstrated in the use of insight to plan and buy traditional media in the past (TV, press, radio, etc.), is now being used effectively in the online space, not only by agencies, but also by the more quality ad networks. By working together to combine this knowledge, we can help them provide their clients with deeper and more valuable insights.

Insight drives performance and performance drives revenue. We are helping develop the measures of performance beyond CTR and CPA and that is helping grow and broaden the display market.

Do you think RTB is going to have a major affect on the way online display is bought and sold? Does Specific Media have any plans to use RTB to trade ad inventory?

ID: If RTB proves to be a method of buying inventory cost-efficiently and, more importantly, only if it adds significant data segmentation value, then we are technically set-up to be able to use it.