Sramana Mitra: When it comes to publishers, how much revenue are publishers making by plugging you in? Are they doubling revenues or tripling revenues? What kind of ROI are you showing them?
Kevin O’Malley: A lot of times, they are doubling the amount of revenue they’re bringing in from a traditional display advertising. Obviously, different publishers charge different amounts. We have seen, on many cases, that we have clients that are literally doubling the amount of display advertising revenue from plugging our solution in.
Sramana Mitra: What is your sweet spot in terms of publishers? Are we talking large publishers like New York Times and Mail Online or are we talking about smaller publishers? Where is your clientele?
Patrick Shea: I think our sweet spot is the medium to large-sized publishers. We are working with some of the largest publishers in the world. However since our technology is fully automated, we can also work with small publishers. We have small publishers that are using us. They may have very valuable audiences but they might not have a lot of visitors and a lot of impressions to sell.
However, they can still package up their audience and sell their audience instead of selling their contextual environment on the site. Our publisher clientele runs the gamut but I would say our sweet spot is definitely that medium to large publishers.
Kevin O’Malley: One of the other interesting aspects about that is when you look at some of the smaller publishers that do have very niche audiences in a very focused vertical. You might be looking at something that’s in a very specific area of finance. That content and user base is extremely valuable to advertisers. However, the company that manages it may still be relatively small compared to some of the largest publishers in the world as you mentioned.
However, because of the way that we’ve designed our platform and the fact that so much of the work is automated, we’re able to work with these smaller publishers and give them the same capabilities, if not better than what these large companies can do on their own. In some ways, it has really flattened the landscape for these smaller publishers to compete on the same terms and the same dollars.
Sramana Mitra: Obviously, we are seeing the whole industry actually move to automation. You can’t really do anything manually because it’s happening at such a real-time level that it has to be done algorithmically. It has to be done in an automated way.