The Monopoly Report: Episode 36 - Buy Side vs Sell Side vs Regulatory Side

Released on July 2, 2025

Introduction

In Episode 36 of The Monopoly Report, host Alan Chappell delves into the intricate dynamics between the buy side, sell side, and regulatory frameworks within the ad tech industry. Joining him are two seasoned veterans: Erez Levin, a buy-side expert with extensive experience at Google and the founder of Emmett Advisory, and Gareth Glazer, a sell-side programmatic veteran and entrepreneur with a rich history at AppNexus and Magnite. The discussion navigates the historical separation of buy and sell-side technologies, the evolving landscape of ad tech platforms, data quality concerns, the ramifications of privacy regulations, and the competitive tensions between independent ad tech firms and tech giants like Google and Meta.

1. Origins of Separate Buy Side and Sell Side Tech Stacks

The conversation begins with Alan seeking to understand the historical reasons behind the distinct technological stacks for the buy side (advertisers) and sell side (publishers) in ad tech.

• Erez Levin reflects on the market's natural division:

  "[00:03:11] Erez Levin: ... there was an exchange, a buy side, and a sell side, and it just made sense for folks to service those different sides of the market."

• Gareth Glazer adds depth by tracing back to the pre-real-time bidding era:

  "[00:03:36] Gareth Glazer: ... Before real-time bidding, the market consisted of isolated networks dealing with liquidity issues. Platforms like Right Media were created primarily as market makers to bridge these liquidity gaps."

Gareth explains that these early platforms allowed networks to manage pooled inventory, enabling them to differentiate themselves by focusing solely on serving buyers or publishers. This bifurcation laid the groundwork for the separate development of Demand-Side Platforms (DSPs) and Supply-Side Platforms (SSPs).

2. The Role of DSPs and SSPs

Alan probes into the necessity of maintaining distinct DSPs and SSPs in today's converging ad tech landscape.

• Gareth Glazer argues that the lines between DSPs and SSPs are blurring due to overlapping functionalities, particularly with the advent of solutions like Prebid:

  "[00:10:15] Gareth Glazer: ... Prebid and SSPs have tremendous feature overlap. We're migrating towards a model where SSPs no longer need to solely protect publisher interests because flat, open auctions suffice."

• Erez Levin counters by emphasizing the continued need for separate entities due to the adversarial nature of the market:

  "[00:03:36] Erez Levin: ... The majority of the market requires different entities representing each side because they're adversarial not just with each other, but also within their own sides."

Key Insight: While technological convergence suggests a merging of DSPs and SSPs, the fundamental adversarial dynamics between buyers and sellers necessitate maintaining distinct platforms to ensure competitive integrity and market balance.

3. Data Quality and Attribution Issues

A significant portion of the discussion centers on data quality discrepancies between DSPs and ad servers, leading to inconsistent campaign metrics.

• Alan Chappell highlights trust issues:

  "[00:06:05] Alan Chappelle: ... Advertisers and publishers fundamentally don't trust each other, necessitating independent counting methodologies."

• Gareth Glazer acknowledges the problem but distinguishes it from the roles of DSPs and ad servers:

  "[00:07:42] Gareth Glazer: ... The counting is handled by ad servers, not DSPs or exchanges. The inconsistencies arise from how different platforms record and report metrics."

• Gareth further critiques big tech's data handling:

  "[00:36:56] Erez Levin: ... Data is not as valuable for the walled gardens as we pretend it is..."

Notable Quote:

"[00:25:47] Gareth Glazer: ... If competition is there properly, everyone could be making way more money. Our problem is that the buy side is not assessing things competitively."

Key Insight: Discrepancies in data reporting undermine trust between advertisers and publishers, highlighting the need for standardized measurement methodologies to ensure fair attribution and accurate campaign evaluations.

4. The Impact of Privacy Regulations

Privacy initiatives have reshaped the ad tech landscape, with significant implications for both independent ad tech firms and tech giants.

• Gareth Glazer expresses concerns that privacy regulations inadvertently strengthen big tech:

  "[00:35:30] Gareth Glazer: ... Privacy initiatives benefit Google and Facebook by shoring up their moats, making it harder for independent ad tech to compete."

• Erez Levin echoes these sentiments, suggesting that privacy measures limit the effectiveness of data for most advertisers:

  "[00:36:56] Erez Levin: ... Buyers are going to have to find different ways to measure and understand media value beyond IDs."

Notable Quote:

"[00:35:51] Alan Chappelle: ... More people need to recognize that privacy restrictions are often a canard of big tech."

Key Insight: Privacy regulations, while intended to protect users, may inadvertently entrench the dominance of big tech firms by restricting independent ad tech's access to crucial data, thereby limiting competition and innovation in the industry.

5. The Future of Independent Ad Tech vs Big Tech

The episode further explores the competitive tensions between independent ad tech companies and dominant players like Google and Meta.

• Gareth Glazer warns that abandoning IDs could devastate independent ad tech:

  "[00:39:44] Gareth Glazer: ... Abandoning IDs will have a profound negative impact on little ad tech, making it difficult to compete with big tech's sophisticated data capabilities."

• Erez Levin suggests that the value of IDs may be overstated and advocates for alternative measurement strategies:

  "[00:38:09] Erez Levin: ... The premium open Internet will move towards authentication, allowing competition based on IDs, but not solely relying on them for attribution."

Notable Quote:

"[00:35:56] Gareth Glazer: ... Privacy is a sword for big tech, not a shield."

Key Insight: Independent ad tech firms face significant challenges in competing with big tech's data prowess, especially in an ID-less future. However, alternative measurement and authentication strategies could offer pathways to maintain competitiveness and foster a more balanced market.

6. Challenges for SMBs in the Ad Tech Ecosystem

Small and Medium-sized Businesses (SMBs) represent a critical segment affected by the evolving ad tech landscape.

• Gareth Glazer highlights that SMBs often rely heavily on single-channel advertisers like Facebook, making them vulnerable to attribution and measurement issues:

  "[00:29:20] Gareth Glazer: ... SMBs are often single-channel advertisers, making it difficult to accurately attribute outcomes and optimize campaigns effectively."

• Erez Levin concurs, emphasizing that even multi-channel SMBs struggle with accurate attribution:

  "[00:32:52] Erez Levin: ... SMBs using multiple channels face complex attribution challenges, as big tech continues to claim credit for various touchpoints."

Notable Quote:

"[00:30:24] Erez Levin: ... There are a lot that are wasting their money... valuing things according to view through conversions and viewability."

Key Insight: SMBs are disproportionately impacted by data quality and attribution challenges, often leading to inefficient ad spend and suboptimal campaign outcomes. Enhancing measurement accuracy and providing better attribution tools are essential for empowering SMBs in the ad tech ecosystem.

7. Addressing Attribution Theft and Measurement Integrity

Attribution theft—where multiple platforms claim credit for conversion events—poses a significant threat to accurate measurement and fair compensation in the ad ecosystem.

• Erez Levin underscores its prevalence and impact:

  "[00:27:39] Erez Levin: ... Attribution theft corrupts the system, stealing money from valuable media opportunities and skewing performance metrics."

• Alan Chappell questions whether resolving attribution theft could address broader industry concerns:

  "[00:29:20] Alan Chappelle: ... How much of our issues stem from attribution theft, and can solving it mitigate other problems?"

Notable Quote:

"[00:27:39] Erez Levin: ... It's a very big thing... stealing money from other opportunities."

Key Insight: Attribution theft undermines trust and efficiency within the ad tech industry, highlighting the need for robust, transparent attribution models to ensure advertisers are accurately credited and compensated for their investments.

Conclusion

Episode 36 of The Monopoly Report sheds light on the complex interplay between buy side and sell side technologies, the persistent challenges of data quality and attribution, and the outsized influence of big tech within the ad ecosystem. Through insightful discussions with Erez Levin and Gareth Glazer, Alan Chappell emphasizes the pressing need for standardized measurement practices, the detrimental impact of privacy regulations on independent ad tech, and the critical importance of empowering SMBs with better tools and strategies. As the ad tech landscape continues to evolve, fostering cooperation, enhancing transparency, and advocating for fair competition emerge as pivotal strategies for ensuring a balanced and effective advertising ecosystem.

Key Takeaways:

1. Technological Convergence vs. Market Dynamics: While DSPs and SSPs are merging technologically, the inherent adversarial nature of the market necessitates maintaining distinct platforms to preserve competitive balance.

2. Data Quality and Trust: Discrepancies in data reporting between platforms erode trust, emphasizing the need for standardized attribution methodologies.

3. Privacy Regulations: Intended to protect users, these regulations may inadvertently reinforce the dominance of big tech, sidelining independent ad tech firms.

4. Attribution Theft: A pervasive issue that distorts performance metrics and undermines fair compensation within the ad ecosystem.

5. SMBs at Risk: Small and medium-sized businesses face significant challenges in navigating the complex ad tech landscape, necessitating improved measurement and attribution tools.

6. Future of Independent Ad Tech: To survive and thrive, independent ad tech firms must innovate beyond traditional ID-based targeting and advocate for fair competition and transparency.

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