Demand Media believes Krux’s header bidder will eliminate the friction between marketers that want to use their data and publishers that want to hawk theirs to advertisers.
For example, when publishers try to combine their hair-care segment with a marketer’s shampoo-buying segment, those audiences often don’t overlap, leading to a failed campaign with little scale.
But when Krux serves as both the data exchange and the media-buying marketplace, “There is no cookie loss, no loss of scale, no sending carbon copies of audiences to DSPs without any security oversight, and there is no double filtering of data,” said Scott Messer, Demand Media’s VP of content channels.
According to Messer, this solution will allow publishers to see where advertisers are buying without violating the standard 4A’s contract, where publishers and advertisers agree not to cookie and repurpose each other’s audiences.
“Krux can collect all the bid-stream data, and give enough back to publishers in a transparent and aggregated way,” Messer said. That data helps Demand Media understand and determine the value of its audience.
Although Krux’s header-bidding tech replaces the SSP and exchange as it’s set up, Moreau doesn’t think SSPs will go away. But he does say it will change their relationship with publishers.
“It changes the business models, but it’s not the death of the SSP,” he predicted. “If you are giving many companies equal access to inventory, and there are no preferential relationships, it’s great for publishers and it will be a lot harder to take hidden fees and do things that are not transparent to publishers and marketers.”