Who doesn’t love a targeted ad? Users prefer them, and content networks and supply-side advertising players are okay with them, too – that is, until they get a little too narrowly targeted. Why? While CPMs go up, the inventory volume is so low that less money gets made. On top of that, smarter targeting eats more CPU cycles in the data center, so it’s costing more money to make less.
That’s the picture Tim Musgrove, chief scientist at Federated Media Publishing, laid out for Semantic Tech & Business conference attendees at a session during the event yesterday. Then he explained how Federated Media’s Conversation Targeting semantic-powered ad targeting platform has changed things.
“It’s different for Federated Media because we have an entirely different way to approach this that avoids this decline of revenue that you see,” he said. That different way includes the tech of Conversation Targeting, of course, but also the business side of advertising negotiations.