Advertising Exchanges Will Rule Digital Advertising
They will rule the digital advertising world because they are so efficient. Basically, the put two parties together to buy and sell various forms of advertising in an electronic manner. Buyers enter their campaign criteria (i.e. demographics, markets, day parts, days of the week, creative, etc.) and get matched up with Sellers, the folks that have the advertising inventory.
For the most part, there is excess advertising inventory for everything from billboard ads, television ads, radio ads, mobile ads, online ads, to print ads, to elevator ads. You name the advertising channel, and, I bet that someone has some excess advertising to sell.
Now, the sellers do not want to give up their high CPMs. But, with so much excess advertising inventory, there is so much pressure to lower rates. And, in the online world, there are over 600 million hostnames and over 180 million active websites. Now that is a lot of websites on the Internet.
With all those websites comes content. Now, not all websites are content creators (i.e. text, images, and videos), but a large number of them create content for their readers and viewers. Youtube, Yahoo, AOL, Internet Brands, and Demand Media are just a few of the largest content creators on the net. Not to mention the content curators of others’ content. All that content produces all those pages for consumption. In the United States you have over 239 million people on the web according to the Internet World Stats. That is 77% of the US population. But, not all readers/viewers are from the us. A good portion of a website’s audience comes from abroad.
Now, here is the problem. The traditional and new media publishers just don’t have enough demand from all those millions of businesses for their advertising inventory. And, the process of connecting with each other in the real world is time consuming and challenging. Since supply outstrips demand and the process is complicated to buy/sell advertising, the advertising exchanges will come to the rescue and rule the net.
They make life easy for buyers/sellers of advertising inventory: simple process, matching buyer/supplier campaign criteria, easy to upload creative, data driven, optimizable, fast and efficient.
- RTB Or Real-Time Bidding Is The Future Of Digital And Mobile Advertising – Who Will Be The Winners And Losers? (businessinsider.com)
- Defining Premium Inventory In Today’s Evolving Display Ad Marketplace (marketingland.com)
- AOL’s New Video Audience May Consist Largely of Robots (businessweek.com)