Interview: About Splicky, Programmatic Advertising, and the Mad Men Era
“Programmatic Advertising has established itself as a standard in many markets”
Is Programmatic Advertising only for the Online sector or also for traditional media? What impact do Advertising bans have on Programmatic Advertising, and how much human input is still needed alongside Artificial Intelligence for this type of Advertising? Sven Ruppert, CEO of Goldbach subsidiary Splicky GmbH, discussed Programmatic Advertising in detail with HORIZONT Swiss. The history of Splicky and the minor facelift that the GmbH recently underwent were also discussed.
The interview for HORIZONT Swiss was conducted by Mia Bavandi.
Mr. Ruppert, Jaduda GmbH, which you founded in 2009, now operates as Splicky. Can you briefly provide an overview of the historical development?
We originally founded Jaduda in 2009 with a different vision. At that time, we wanted to establish an Advertising-financed payment system for digital publishing content and advertisers. The incentivized app installs, which were very common in the rapidly growing app economy, served as a model. Ultimately, however, we encountered the classic problem of supply-demand discrepancy. Since we were Bootstrapped, we reversed the model and developed into a full-service provider for mobile marketing. We found traction with the new approach and were able to establish ourselves in the DACH region. However, we soon realized that in order to scale, we had to develop a technology that embraced the emerging Programmatic concept. At that time, all DSPs were designed with the idea of playing out Advertising on computers in the browser.
Based on our experience in Mobile Marketing, however, we knew that there were major differences between Mobile and Online, which were even more pronounced at that time than they are today. So in 2013, we founded the Splicky brand to create a specialized platform for Programmatic mobile Advertising, because Jaduda as a service model did not offer the same transparency as Programmatic Advertising. Splicky was the first platform in the German-speaking area to focus on Programmatic Advertising for mobile devices.
How did the acquisition of Splicky as a subsidiary of the Goldbach Group come about in 2015?
Goldbach was already our customer and recognized the potential for deeper collaboration. The integration into the Goldbach Group enabled Splicky to focus on the combination of various media genres such as digital out-of-home Advertising, Connected TV, and digital audio. One of the original ideas of us founders behind the acquisition of Splicky by Goldbach was the idea that the market for smart TV apps could develop as dynamically as that for smartphone apps. We founders thought that our expertise in mobile communication and app marketing could be very successful in this context in cooperation with a TV-affine partner like Goldbach.
Now the GmbH has been renamed from Jaduda to Splicky. What were the reasons for this?
We have been running both brands in parallel for a long time. The departure from Jaduda in favor of our leading brand Splicky is a logical step that should not only eliminate confusion among our customers, but also clearly align our company with Splicky’s focused business model. The change of name actually only represents the completion of the transformation process that has been running over the past few years and marks a strategic coming of age. What interests us is to reflect on this path and show how we have developed over the years. In the course of this, we have also given our brand a small facelift. Our logo and color concept have been revised, the website has been redesigned, and we are adapting a little overall.
How does remote collaboration work between Splicky’s Berlin offices and Goldbach in Küsnacht?
Even though spatial proximity would be an advantage in some areas, Splicky tries to make the best of it by remaining present on site. A significant step was the appointment of Florian Walz as the first Country Director in Switzerland, who directly represents Splicky both internally and externally. However, Berlin is an important part of our identity and also offers us some advantages that we do not want to miss.
How has Programmatic Advertising developed in recent years? Is it now dominant, or is the industry still thinking in traditional ways like in the “Mad Men” era?
It’s exciting that you mention Mad Men. A large US-DSP, MediaMath, which has not existed in this form for several years, had the “Math-Men” campaign a few years ago, and the entire management posed in the look of the Mad Men at the time. However, the Botschaft clearly pointed to the change in the industry: the classic advertiser as the sole decision-making body is an outdated concept. Algorithms and data play an increasingly decisive role in media buying.
Nevertheless, there is still room for both. Even in the Programmatic world, personal relationships and connections play an important role. The classic scenario, in which a business is created through personal discussions, is still valid today.
However, what has changed significantly is the relevance of Programmatic Advertising. Its share varies depending on the medium, but it has grown enormously, especially in Online media, and now represents the dominant purchasing route.
In which areas do you see the strongest growth of Programmatic Advertising?
Programmatic Advertising has established itself as a standard in many markets. Especially in the area of Online Display, up to 75 percent of Advertising space is now traded Programmatically. Automated processes have become the norm in these channels.
Since Splicky entered this area in 2018, the market has developed rapidly. Current figures from Viooh, JC Decaux’s Programmatic platform, show that 25 percent of campaigns in digital out-of-home Advertising are already purchased Programmatically in their top 10 markets – an increase from zero to 25 percent in just six years. Forecasts, for example from PwC or Idooh, expect a share of around 50 percent by 2030. The growth in the area of Programmatic IDOOH underlines the potential of classic media in the Programmatic area.
Advertising bans, be it for tobacco, alcohol or other areas, are increasingly influencing the possibilities of brand communication. How do such regulations affect Programmatic Advertising?
Advertising bans do not affect Programmatic Advertising more than other media, as they affect the entire industry. A bigger problem for Splicky would be the partially discussed bans on digital out-of-home Advertising in cities on public land. Personally, I cannot follow the arguments of the proponents; in contrast to other media genres, digital out-of-home Advertising offers a lower CO2 footprint. Bans would reduce the income of cities without sustainably solving the overriding problem of the population’s consumer behavior, as the Advertising money would probably simply be shifted to other Advertising channels, especially social media.
How do you see the role of Artificial Intelligence (AI) and automation in Programmatic Advertising?
Currently, the focus is on rule-based algorithms and machine learning. A fully automated, AI-controlled Advertising that works without human intervention is not realistic at the moment, we are still a long way from that. We often pretend that we are further along than we actually are. Human expertise remains crucial, especially in the development of campaign strategies and the personal support of customers.
What does the future look like for Splicky and Advertising?
Splicky plans to further expand its range of media genres. We see potential for Programmatic approaches, especially in the area of linear radio and digital audio. Our geographical focus remains on the DACH region, with local solutions being developed that take specific market requirements into account. An example of this is the integration of the Swiss currency standard SPR+ into our solution for digital out-of-home Advertising.
I see the future of Advertising in a balanced combination of technology and human interaction. Programmatic Advertising will continue to grow, but interpersonal relationships and service will remain key factors for successful campaigns. We are positioning ourselves as an innovative provider that uses regional strengths and stands out from global competitors with customer-focused solutions.
Would you like to know more about Splicky or Programmatic Advertising?
Visit the Splicky website or contact Sven directly.