Internet Week Interview With Rubicon Project CEO Frank Addante

Earlier today I had the chance to sit down with Rubicon Project co-founder and CEO Frank Addante. Frank is here with his team during Internet Week and will be part of the Mashable Expo on Friday evening. Frank is a serial entrepreneur, having started 5 companies. Two of the companies were acquired and one went the IPO route. Rubicon is very well funded, probably because of Frank's past successes.

I am very into the online advertising and analytics space so I was very much looking forward to the conversation with Frank. The conversation didn't disappoint. Sadly the online advertising market as a whole is still stuck in the late 90's. I rarely see any innovation - and please don't tell me that Facebook ads show innovation.

Frank explained that Rubicon is focused on "advertising technology innovation." The idea is simple -- for publishers, the system offers you a way to make more money with less effort. Instead of managing multiple ad networks and trying to decide which order to route them in, when to show what, and having to deal with all of the paperwork, Rubicon takes care of all of that. The system can give you back many hours of frustration a week to instead use to grow your business. During their beta period they signed up 625 publishers and now have passed 1,000 publishers. He didn't share actual active publisher numbers. Some of their largest clients include Slide, JibJab and eHarmony.

The Rubicon system is processing 250 million ads/day with 150 million unique users/month passing through their engine.

We discussed their "default killer" technology which is similar to PubMatic's default optimization service. Frank says they have submitted patents on this techology. The idea is that the system knows when a "default" ad is displayed and can re-route accordingly. If it works, the idea is great as it would remove the need for "chaining" of ad networks.

Rubicon charges publishers 10% of any income generated from the ad networks served through Rubicon. In speaking with a few people today who have used the system, overall the feeling was that the system hasn't increased their revenue enough to make them want to continue. And Clicky CEO Sean Hammons reported that the system was just a fairy tale back in February.

The truth is that if they are able to sign the largest publishers/applications to use their service, then frankly it won't matter if small publishers see no value in using Rubicon. Frank wants his service to be beneficial for publishers of all sizes and he noted that Rubicon focuses on the publisher first. This is something we normally don't see - most focus on the advertiser's needs and could care less about the publisher.

Other companies in this space include PubMatic and YieldBuild.

The Rubicon Project team is located in Los Angeles and made up of about 50 people, up from 10 when they launched the beta in October 2007. We may test the Rubicon Project this summer and will report back on our findings. If you plan to test any of these new publisher ad maximization services, I'd suggest giving it at least three months before drawing any conclusions. So many factors affect ad revenue and using at least a quarter's worth of data will provide some level of comfort in whether the selected system will work over the long-term. And to be honest, I'd test all of the services before selecting one and then pick the best one for your particular site or app.

I am glad we are seeing some innovation in the ad management area, now we need to innovate in the actual ad area. I still believe widget advertising will be huge once brands realize that for them, it doesn't matter where consumers interact with their brands, as long as they do.