If the margins are so high for an ad exchange (~20%), I don't understand why nobody opens a new independent one. Sure, such a thing is hard to get off the ground, but if you have VC backing or contacts with a few classical media sites and industry associations, it seems definitely possible.
Also, I don't think the advantages of targeted advertising and ad auctions are as big as people think. Maybe people should start placing ads via the sites' thematical context instead of the users' browsing history.
Finally, I would also look into serving ads first-party, that is embedded in the page and from the same domain. A lot harder to block, more performant, and you might be able to get rid of the stupid cookie banners.
I looked into this a long time ago and here’s what I realized.
1. You need to be really well capitalized. AdOps engineers work for the most lucrative business model in these companies and you need large scale to convince publishers to integrate with you. While you are building this out you are burning money so you need to convince VCs to pour millions to fight the darlings of SVs.
2. The publishers don’t have any choice and are already struggling. Not many of them are going to take a chance integrating a new platform that might make them less money so you need to have sellers ready to go. Ultimately it’s in Googles best interest that publishers struggle because it prevents them from experimenting with other exchanges.
3. Sellers are largely unsophisticated. They might have a hunch that GOOG/FB might be bordering on useless but nobody has been fired for spending 10MM on Facebook ads. Trying to get a piece of that spend so you have something to give publishers leads to a chicken and egg problem.
Ultimately, GOOG has a massive moat that lets them protect that 20%
Also, I don't think the advantages of targeted advertising and ad auctions are as big as people think. Maybe people should start placing ads via the sites' thematical context instead of the users' browsing history.
Finally, I would also look into serving ads first-party, that is embedded in the page and from the same domain. A lot harder to block, more performant, and you might be able to get rid of the stupid cookie banners.