My news feed this morning was topped with not one, not two, but three headlines heralding the launch of OpenX’s new RTB + Networks solution, "Demand Fusion".
The key development here is adding in an additional supply query to the networks, which may be offering a higher price for the impression and therefore delivery higher value to the publisher (supplier). In addition to the incremental revenue, Demand Fusion helps to reduce or eliminate daisy chaining on the ops side — a burdensome task for ops teams.
As described an OpenX press release earlier this week:
It’s rather simple. If a network accepts an impression at a price that is higher than the RTB bid, then by all means, give that impression to the network. But if that network defaults and the next highest price is an RTB bid, then sell it to the RTB bidder rather than simply passing it to another network without regard for the RTB bid.
From Tech Crunch:
SSPs will usually compare the ad network with the highest CPM to the highest bid from RTB. The approach seems to make sense, but the problem, as explained by Pranay Gupta, OpenX’s director of sales engineering, is that ad networks can say no to a publisher. At that point, however, the SSP is committed to the ad network route, so they’re forced to “daisy chain” through ever-cheaper ad networks until they find a taker — which means that they might make significantly less money than if they’d gone with the bid from RTB. “Daisy chaining is the bane of any ad operations person,” Gupta said.
While Demand Fusion sounds like a positive development, I’m not convinced it’s a ‘game changer’ as some people are claiming. However, it’s certainly picking up a lot off buzz this morning!