Before the internet, our media industry had a finite scale, but now it’s virtually unlimited. This causes problems for publishers, who must decide whether to develop their own technology, so they can fill various ad “inventory” within private marketplaces.
Artificial intelligence can’t replace true art, entertainment or journalism. What separates human beings from Turing-tested robots is our ability to dream. Whereas *they* are told one way or another, we draw from inspiration and truly innovate — zero to one.
“Every great business is built around a secret that’s hidden from the outside. A great company is a conspiracy to change the world; when you share your secret, the recipient becomes a fellow conspirator.” — Peter Thiel
In his book, Thiel mentions that his favorite interview question is, “What important truth do very few people agree with you on?” Our answer…
Google and Facebook will not always control the digital media industry.
Both take 45 percent of revenue from video creators in exchange for selling pre-roll and mid-roll inventory. Owning all the data provides leverage, but many publishers are starting to develop (or buy) their own ad tech systems.
In the online ad industry, direct sales are synonymous with sponsorship. Various display formats get filled programmatically, but thanks to server-to-server header bidding, advertisers can purchase guaranteed inventory within private marketplaces.
Bidio facilitates direct bidding (vs. indirect bidding through Index Exchange, prebid, pubfood, etc.) and temporary exclusivity drives up your price, depending on the social relevance and quality. Our system guarantees ROI for marketers hoping to leverage user-generated content.
Peter Thiel also said, “The most valuable businesses of coming decades will be built by entrepreneurs who seek to empower people, rather than try to make them obsolete.” Bidio empowers genuine storytellers to maximize ad revenue, while protecting the integrity of their work.
Market Analysis
Facebook: $27.6 Billion in 2016
“We cannot assure you that we will effectively manage our growth.” (page 22 of their Annual Report)
Has FB jumped the shark?
Their revolutionary News Feed model still interrupts viewers (forced impressions), which means money controls what you see.
In addition to boosting posts, Facebook TV is funding original productions, led by new hires: Ricky Van Veen & Mina Lefevre. Recently, they began helping select partners monetize original videos with mid-roll inventory.
Alphabet: 90.272 Billion (Annual Report)
Exchange Bidding in Dynamic Allocation (EBDA) can’t stop the creative revolution. Google promotes transparency, yet only works with a few 3rd-party exchanges, all of whom report to media buying agencies, not supply-side platforms. Without complete autonomy, independent video producers will continue to struggle with monetization.
“Creative projects do not exist to create revenue. Revenue exists to fund creative projects” — John Green
Why can’t we all just create? Time is valuable, and the goal is to make a living just doing what you love. Premium publishers deserve proportional compensation. Quality content is the arbiter of attention and meaningful engagement. Bidio is proving that digital advertising can support filmmakers, comedians, musicians, journalists and other genuine storytellers.
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