DoubleClick plans to release an Ad Exchange
Post by webgear on
Apr 4, 2007 1:30:55 PM CST
DoubleClick Inc. will be launching a new ad auction exchange, according to the New York Times. The exchange will provide a platform for buyers (or advertisers), and sellers (or publishers), to get the best prices on the advertisement placements. Usually the big advertisers and publishers fill up their ad inventory with human negotiations, and often it is difficult to know the ongoing rate for an ad spot on a website.
The Ad Exchange will provide some knowledge of how much the competitors are paying for such an ad spot. Yahoo and Google already provides such platforms for search engine text ads. Whereas, some other media companies such Media Contacts of Havas (mediacontacts.com) have been providing this type of media buying.
DoubleClick will charge a commision for each ad impression traded on their exchange. The ad media exchange are not new, and were mostly used for unsold ads by publishers. Even the bid ad networks worked in the same way to bring the advertisers and publishers together on one platform and charge commisions based on impressions delivered. The difference in this case would be that the big players will get involved and media buying rates will be little more transparent.
DoubleClick agrees to allow publishers to remain anonymous during the bidding process. The first release of the ad exchange is slated for the 3rd quarter of 2007, and they have signed up some of the big players in the advertising industry for testing the platform. More has to be seen in later days if it turns out to be success.
DoubleClick Inc. is a recent target aquisition for the larger fishes in the internet advertising market. Google has been rumoured to join the bid for acquiring DoubleClick. The value of the deal has been estimated at over $2 billion dollars. Microsoft, Yahoo and AOL have also expressed interest.
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