In the final installment on the rise of the ad tech app ecosystem, ExchangeWire speaks to Adacado, a solution provider offering a DCO solution for traders. Here CEO and Founder, Michael I. Brown, discusses the Adacado app in more detail as well its app strategy.

What is the app? How does it work?

The adacado RA app is a site re-targeting app involving a smart and on-demand ad creation process. The ad serving uses auto-optimization algorithms and a fully automated process for regularly updating the ad content.

Who would be a typical user?

Our focus is on agencies and partners that work with DSP platforms and see an opportunity to fast track the on-boarding of site re-targeting initiatives. Our app clients find it comforting that our app is based on our full core platform which they can use for all other types of campaigns such as prospecting micro segments, search re-targeting or highly branded programs involving huge-volume offers. In practice, many of our clients use both the app and our full platform, depending on the needs of the campaign.

What does the product solve?

The RA app supports the entire process of campaign set-up and management of ad inventory. The objective was to provide an app that minimizes an agency's client involvement, particularly on the IT side. A smart pixel process requires no additional configuration or parameter passing and the app passes all campaign-related information (e.g. line-item, campaign, segment, default settings for trafficking, creative tags) directly populated into the DSP main console.

What are the opportunities around scale and distribution by leveraging a platform like AppNexus/ Google/ Turn/ MediaMath?

It's a win-win situation. The DSP can offer a more compelling stack enabling their clients to build better campaigns faster, and as such directly impacting their bottom line. On the other side it allows app providers to expose and promote their solutions directly within the app store.

AppNexus seem to have embraced the app model. Do you think the app strategy will be adapted by other platform vendors - like some of the DSPs or maybe MediaOcean?

We see two models in the DSP world that will most likely succeed. First, the one where DSPs will adapt the idea of an app store allowing 3rd parties to contribute to their Eco system via their standard API layer. This is ideal for fast on-boarding of new apps, often with a focus on overcoming workflow inefficiencies that otherwise would occur. The other model is one where a 3rd party solution requires much deeper integration than typically available through the APIs; for example, when merging into the bid layer. However this requires a different type of partnership with additional resource commitment on both sides, hence the turn-around cycles are much longer.

Will this actually make it easier to build ad tech companies? No need to raise ridiculous sums of money to build out the infrastructure and resource to distribute the product - when the pipes have already been built by a number of large infrastructure players?

Certainly a big plus of an app store model is the ability to contribute with a small app first, thus requiring less resources and commitment from a 3rd party. Whether this lowers the barrier of entrance has yet to be seen. In many application areas (etc. DMP, DC) 3rd party providers typically build their apps on top of well established and much more complex core products that might have been around for years.

Often point solutions in ad tech find it very difficult to build sustainable models in the space. If a product is successful it will be aped by a stack offering thus reducing its competitiveness in the market. Does an App strategy give ad tech companies the focus to not only innovate but also build a sustainable business?

In the dynamic creative space we see point solutions being complementary rather than trying to achieve sustainability by its own. Point solutions can certainly help resolve some pressing issues with current workflow processes. Today, media buyers are confronted with dealing with several interfaces at the same time, often manually transferring information from one system to another, or facing additional set-up tasks (e.g. data syncing, reporting etc.). However as mentioned above they need to be part of a larger solution stack offered by the 3rd party - to eliminate the need for yet another vendor solution, thus being able to easily share data, interface, and inventory across the entire stack.

What platforms are you currently connected to? Is there risk involved in being reliant on one platform?

Adacado is platform-agnostic. Our platform was designed to work with all major platforms on several fronts. Clients that are utilizing dynamic creative typically have a need to integrate DSP, DMP, sometimes Tag Management functionality within the campaign and as such we have currently partnered with (but are not limited to) some of the most respected ad tech companies including AppNexus, BlueKai, BrightTag, DataXu, RocketFuel, TriggIt as well as some of the large agencies who own their own stack.

Are there technical challenges in being a connected API partner? In terms of data pipes / flows, does being a separate layer to the ad server represent missed opportunities in terms of fully maximising the potential of the product?

Is there a risk to the number of apps emerging that operate on a pre bid basis? How many points can realistically be pinged, before submitting a bid request, before you actually time out?

Let me answer these last two questions at once. Understanding and utilizing API layers from DSPs is usually straight-forward and not a concern. Apps are a great step to make the Eco system more efficient and more widely adapted, generally lowering the threshold for bringing new and better performing campaign solutions into the RTB world. However there is still a huge additional performance lift opportunity left on the table and DSPs are realizing the importance of micro-data and large volume offer data (as typically found in retail, travel, large-sku brands, real-estate and classifieds) directly informing the bid process. Some DSPs are already starting to further opening up the bid layer, working on deeper integrated solutions and co-hosting with app providers in the same data center.