AOL, Microsoft, Yahoo agree on APIs to streamline programmatic digital ad sales

What: Three of the main leaders in digital advertising worldwide agree on a series of technical specifications aimed towards standardizing programmatic direct digital advertising sales.
Why is it important: This is a breakthrough in the whole purchasing process of premium digital ad sales, as advertisers and agencies will have less trouble in finding, ordering and paying for premium inventory, because everything will be better automated and therefore it will "help speed the migration of offline media spend to online", as Rik van der Kooi, corporate vice president, Microsoft Advertising, said.

AOL, Microsoft and Yahoo have joined together to introduce a new, streamlined set of API specifications which overall goal is to simplify the purchase and sale of premium digital ad space. These new standards (expected to be available "in the coming months") will make it simpler and easier for agencies and marketers to buy via real-time bidding (RTB).

As reported yesterday by Bloomberg, buying and selling of premium ad offerings has been largely constrained by manual sales processes, so if other publishers and ad technology vendors align around the common set of APIs Microsoft, AOL and Yahoo will be providing, the growth of programmatic trading will be enhanced, as this would complement current direct sales channels and remove barriers for both advertisers wanting to buy and publishers wanting to sell (programmatically).

“We’re working to programmatically enable more than 50 per cent of the inventory that is currently sold via manual processes. This is digital’s next salvo in the efficiency war, bringing more premium inventory online. Agencies and brands have spoken. Automation of manual processes is a key priority. This is our collective response and the beginning of the journey to simplify the ecosystem and shift more TV budgets online”, said Seth Demsey, senior vice president, global advertising products and strategy at AOL Networks.

As John Ramey, founder and CEO of programmatic direct company isocket (a Burlingame, CA-based company dedicated to building tech for direct ad sales and Microsoft's partner in programmatic direct) explained in an interview to Media Post's Tyler Loechner, "programmatic direct is using technology to speed up and automate the process of direct deals. It eliminates Excel spreadsheets, fax machines, RFPs, IOs, etc., from the trading process. It deals with direct, guaranteed campaigns, and fills 'the manual gap in the middle with technology'."

As Ramey said, this announcement is a true milestone in the evolution of programmatic direct because of the size and importance of AOL, Microsoft, and Yahoo, and many significant publishers are already embracing it. The announcement of the three joining together means –as Ramey puts it– "that Microsoft, AOL, and Yahoo are collectively 'putting their stamp' on programmatic direct."

Sources: Bloomberg, The Drum, Media Post News.

Get ready for #Portada16 on Sept. 14 and 15 in New York City! The Hispanic Sports Marketing Forum on September 14, and the 10th Annual Hispanic Advertising and Media Conference on September 15 will provide you with the best content and unparalleled networking opportunities to succeed in Multicultural America.

Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.


Miami Tech Investors Provide LatAm Entrepreneurs with Path to Growth

Miami Tech Investors Provide LatAm Entrepreneurs with Path to Growth

We sit down with Raul Moas, the managing director of Accelerated Growth Partners (APG), a Miami-based angel investor network that provides capital to entrepreneurs in Miami, to discuss the city’s exciting startup scene, and how it has fostered the growth of Latin American businesses.

Ad-Tech Play The Trade Desk IPO’s at Higher than Expected Price

Ad-Tech Play The Trade Desk IPO’s at Higher than Expected Price

California-based ad tech company The Trade Desk, Inc. has officially gone public on The Nasdaq Stock Market.The Trade Desk debuted on the Nasdaq at US$28.75 as opposed to the company’s US$16-to-US$18-per-share projection.

How Brands Can Use Fan-Generated Video Content in Sports Marketing Campaigns

How Brands Can Use Fan-Generated Video Content in Sports Marketing Campaigns

Sports marketing experts talk about what self created fans’ video content represents to them, at Portada’s Hispanic Sports Marketing Forum, held in New York on September 14.