Falck ultimately feels the market wasn’t ready for Turn's SaaS approach.
“We’re an omnichannel DSP. I want to focus on that and getting large customers to scale,” he said. That means investing heavily in areas like video. “There’s no need to reinvent the pricing model.”
So while the SaaS model continues to exist, Turn is moving away from it. “We’re doing the standard platform percent-of-media type deals,” he said, adding most of the SaaS work is happening around Turn’s data management platform.
The problem with the SaaS model is that many clients wanted an old fashioned I/O process, or they just wanted to buy media, not license technology.
Meanwhile, competitors offered pricing models buyers were more comfortable with than a monthly tech fee – like pricing based on a flat CPM or the percent-of-media deals that Turn is now embracing. And the 13-14% tech fee Turn charged wasn't enough savings to entice prospects – especially against competitor tech fees of 15%. Clients wanted at least five points difference.
Despite its restructuring, Falck said Turn will continue selling to agencies, trading desks and directly to brands. Its relationship with Kraft and the brand’s agency Starcom remains its poster child partnership.