Cutting your Ad Tech Tax — Building DSP & SSPs in House — Talk with Daniel Kornblit
On the podcast this this week we had Daniel Kornblit, who is the GM ofBaron’s Media. Baron’s is in an interesting part of the ad tech world because they are smaller shop, but have decided to build a lot of the technology that they would normally pay vendors for. This has both dramatically increased their ability to provide services to their clients and cut their internal costs.
Barron’s started by building an ad server which allowed them more flexibility and lower serving costs than anything they could find in the market. They then build out an internal SSP to interface with the market and now in the process of building a DSP, which allows their clients and advertising partners a full range of inventory options.
As ad tech tax has become a larger topic industry, with some reports of it exceeding 55% of overall earnings, it was very interesting to talk with company was built a lot of their own technology in-house. It doesn’t sound easy to both hire the right talent to build this type of technology or to invest the time and energy in rolling out, but it sounds like this is a worthwhile use of money if us if your company can afford.
2:00 — Building your own tech in house
2:30 — Baron’s history
3:08 — What to take into account before building tech in house
4:03 — What is baron’s main business?
5:05 — What are the costs of building something like this?
5:45 — Forming unique partnerships because of their internal SSP
6:07 — Decreasing discrepancies
6:40–3rd party costs of tracking companies
6:50 — Most savings are recouped in 9 months for what they’ve built so far
7:15 — Other knock on savings
7:45 — How did you start hiring for tech skills?
8:40 — What exactly did you build in-house and where did t you start?
9:45 — Building VPAID support int the ad server
10:15 — How do you decide what to build next?
11:20 — Do clients ever express concerns that you’ve built your tech in house?
13:15 — Open RTB and bringing on DSP partners
13:30 — How hard is it to build a DSP or SSP?
14:20 — Do you feel like this has put you ad odds with the big industry players?
15:22 — If a company wanted to build tech in house, where should they start?
15:51 — Is this something that most companies can do?
16:20 — Where do you hire from?
17:05 — Are there draw back to building your tech in house?
17:50 — Do you have a sense of where you’ll be building in 2–3 years?
18:45 — Having all of this tech build in house, has this changed your perspective on the industry?
19:20 — Anything else you’d want to pass along to the ad ops world about building tech in house?
20:35 — Building ad tech for connected TVs