As an industry, digital advertising has made incredible progress over the past decade. We figured out how to make ads more relevant to consumers, we’ve consistently increased the revenue generated for each ad, and we’ve even determined how to deliver an ad at lightning speed.
However, despite all this progress, our supply chain — web publishers and app developers — is still suffering from an archaic payment scheme. It’s the end of the month before cash can be collected for ads delivered at the beginning of the month. And in many cases, it’s 30, 60, or even 90 days after the month ends.
Sadly, things appear to be getting worse. Some advertisers now enforce Net 60 payment terms, with others demanding terms as long as Net 150. That’s a full five months between the time the publisher provides the service and the moment the advertiser pays for it.
Keith Smith is the Co-founder and CEO of Payability, a FinTech company that provides financing and payment solutions to eCommerce sellers. Its patented technology utilizes machine learning algorithms to underwrite customers based on sales quality and historical eCommerce performance - rather than simply looking at personal credit scores. Previously, Keith founded and ran multiple startups, including; CyberMortgage, Zango, and BigDoor. Keith lends his time to early-stage startups via Techstars and serves as an adviser, investor, and board member for multiple tech startups.