Market Share Breakdown of Rich Media Vendors in Digital Advertising

In the digital advertising landscape, rich media vendors play a crucial role in the delivery and production of ads. Traditionally, this process was split into two parts: rich media creation and serving that creative. Initially, these functionalities were handled by separate vendors, but as technology and market dynamics evolved, the boundaries between these providers blurred.

Convergence of Creative Production and Media Serving

The convergence of creative production and media serving can be traced to the cost-effectiveness of rich media serving. Rich media vendors began to offer both interactive display ad creation and serving. This move put traditional ad serving vendors under pressure, as their offerings became more commoditized by networks and exchanges. In response, these vendors added rich media production services to their portfolios.

As a result, the distinction between the two functions—that is, creative production and media serving—is becoming less clear. However, this analysis is largely anecdotal rather than based on scientific research. The changes reflect the dynamic and competitive nature of the digital advertising industry.

Market Share of Rich Media Production Services

The current market share for buy-side rich media production services (excluding serving) can be summarized as follows:

40% - Pointroll 30% - DoubleClick 15% - Atlas 10% - Eyeblaster/MediaMind (recently renamed to the latter) 5% - Other (including EyeWonder and the rest)

While Pointroll seems to be leading in the rich media production space, it's important to note that the landscape is highly complex and evolves rapidly.

Ad Serving Market Share

When considering the entire value chain of advertising, the focus shifts from pure production to the delivery stage. Ad serving plays a significant role here, often with much higher volumes of transactions.

The total media dollar capture by these companies, whether through production, serving, or hybrid functions, might provide a more comprehensive view. Based on industry insights and experience, the market share for sell-side display companies could be estimated as follows:

60% - DoubleClick 20% - Pointroll 15% - Atlas 5% - Other (including EyeBlaster/MediaMind, Eyewonder, etc.)

While Pointroll holds a significant advantage in production, DoubleClick's lead in ad serving results in more overall revenue. The sheer volume of transactions is a key factor, reflecting the greater margin in serving compared to production.

The Role of Ad Exchanges and Networks

Ad exchanges and networks further complicate the market share picture. They offer hybrid services combining serving and optimization, adding another layer of complexity. This has led to a fragmented market, with various companies leveraging these integrated services to compete effectively.

Finally, it is essential to note that the revenue from sell-side display services from these companies should also be considered. This aspect of the market may significantly influence the overall share of these vendors.

While this analysis provides a snapshot of the current market dynamics, the fast-evolving nature of digital advertising means that the landscape could change rapidly. Insights like these are valuable for businesses looking to navigate this complex and competitive industry effectively.