

Why is Google Paying $400MM for AdMeld? High Frequency Trading - bproper
http://www.betabeat.com/2011/06/21/why-does-google-want-admeld-so-bad-high-frequency-trading/

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nobody_nowhere
Earth to techwriter... Google already has a full realtime exchange stack.
They're buying publisher relationships.

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scrollbar
Yes and no.

It's true that algorithmic traders from Wall Street will be let down when they
come to RTB trading and see how simple and undeveloped the ad ecosystem is
compared to financial services. Arbitrage is still important but not the
driving force for advertisers' success. Reach is more important: being able to
show ads to more of the users in your targeting segments.

Google made the Admeld move for _reach_. It's partially a "publisher
relationships" play, certainly not the technology, but mostly just the easiest
way to get a giant new chunk of RTB volume.

I thought this blog post summed it up well: "It's the QPS, Stupid"
[http://jaysears.com/2011/06/10/google-admeld-the-need-for-
di...](http://jaysears.com/2011/06/10/google-admeld-the-need-for-diabolical-
liquidity/)

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bproper
Agree - Google is more interested in expanding its power in the RBT market
than "purchasing publisher relationships".

The latter would be a dubious strategy given Google's place in the ad
business.

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mistermanager
I'm not sure this article is a particularly well-informed summary of the state
of things.

For one thing, the acronym is RTB (Real-Time Bidding), not RBT, and the
analogy to HFT is rather thin. For another, Google's existing Ad Exchange
already has extremely substantial impression volume. Google isn't so much
"jumping into a market" as the article claims but rather bolstering and
broadening their existing position.

The market is decidedly emerging but it's further ahead of what this article
portrays.

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mgl
Practically, what does HFT actually mean to ad business? Am I correct that
it's about being able to bid for ad placements according to _real-time_
CTR/CPA analytics?

That would be neat, I can imagine writing automated robots distributing your
ads in sub-optimal ways, moving with your target audience from website to
website during the day.

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genghy
Clear that people don't understand what high frequency trading is.

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catnip
Ramirez! Flash crash that ad.

