Copy of comment by Bigbear over18 Nov 2015 08:36
On iii board I thought worth sharing...
Today’s press release declares that we now have 30 billion impression queries daily going through the RhythmMax exchange, but, we are told, less than 0.5% (one half of one per cent) of these impressions queries are being monetised. So I ask: Why is this percentage so low? And is this good or bad news for us?
First, note that the Overview section of today’s press release summarises the impressive scale of the integrations achieved during H12016: - 16 DSPs (demand side platforms, these are all listed by name; also ‘strengthened demand relationships” with some 60 or so “new video, mobile and display partners”; and - on the supply side - “284 new publisher partners” have been added.
All of which is, of course, good news – And it is also clear from this press release that there are more partnerships and integrations on the way.
But we must ask: With all the extra liquidity of demand and supply that these new integrations and partnerships imply, why is the monetisation percentage of the 30 billion or so daily impressions queries so low – it is now, we are told, less than 0.5% (i.e. one half of one per cent)?
The short answer to the question is given in that same Overview section: “While many of the above integrations are complete, only a handful are fully operating, with the remainder undergoing configuration tests to bring mobile, video, native and connected TV ad formats online”…. Yes, but what does this statement mean?
I had to google ‘configuration testing’ to understand this. I invite readers of this post to comment on my interpretation, but my take is that completing the integrations is not quite the end of the story. – You also have to test out all the main combinations of demand and supply data, software, load factors, and hardware that may arise before the new integration can go ‘live’. To use a car analogy: If I were to design and build a completely new type of car, I would first have to run extensive tests on its reliability – to debug it - before mass producing and selling it to the public.
I do feel that the earlier press releases should have mentioned that ‘configuration testing’ is yet another additional stage to be completed after the integrations. Especially since these configuration tests take up extra time and resource before the integrations can go fully operational.
Anyway, that said, the good news is that once all this configuration testing has been completed, we can expect to see the full benefit of all those extra partnerships boosting liquidity of demand and supply in the RhythmMax exchange. In other words, I would expect to see a higher monetisation percentage of the impressions queries, going upwards towards 1%, and – hopefully – beyond. (At the AGM, someone mentioned a monetisation % target of around 3% or 4% - that would r
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