Rubicon Project and Telaria have announced plans to merge to create “the world’s largest supply-side platform”. Rubicon will own 52.9% of the new company to Telaria’s 47.1%. “Together, Rubicon Project and Telaria will enable thousands of publishers to connect with hundreds of buyers and brands, creating a global, independent alternative to closed players in the ecosystem”, read the joint announcement.
How will the Rubicon and Telaria merger benefit publishers?
This deal will benefit publishers in the form of reductions on fees; higher volume leads to lower transaction fees. The size of Rubicon and Telaria’s combined arsenals should lead to increased availability of inventory. Rubicon’s digital ad buying, selling and header bidding is renowned, and Telaria’s model allows them to specialise in video; Telaria’s product is software that allows publishers to effectively manage video advertising.
“We want to be the lower-priced player in the market, the scaled player, the efficient player,” said Michael Barrett, Rubicon CEO and chief executive of the as-yet-unnamed new company. “You’ll continue to see that play out as the market contracts: there will definitely be a lowering of the ad tax.”
It seems as though this new company is aiming to tackle Google’s status as the king of supply-side platforms. Google currently dominates the market in terms of both buying and selling ads.
The rise of header bidding – which lets publishers offer inventory to multiple ad exchanges simultaneously – has transformed the behaviour of many SSPs, throwing the priority of many services they provide into question. So, many have shifted their focus to new areas of biddable media, like TV and audio. The areas on which Rubicon Project and Telaria have focussed previously mean this new company will be an industry leader across the wide spectrum of digital ad buying and selling.
For publishers wishing to work with Rubicon, they can get in touch here. Rubicon will tend to only work with publishers who can prove they yield over 5 million page views per month. Whether the new company will lower, raise or maintain these requirements remains to be seen.
Rubicon and Telaria’s deal is expected to close in the first half of 2020, and we hope that simultaneously, a doorway will open to publishers hoping to develop their advertising strategies easier and more powerfully than ever before. Only time will tell.