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The display-advertising marketplace is being rapidly transformed by the emergence of advertising exchanges. With exchanges, advertisers buy the specific audience member – based on the profile of the person visiting a particular Web page – as opposed to a general advertising buy on a media property. The transaction occurs through a system of real-time bidding that’s more similar to Google AdWords than a traditional display ad sale.
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When advertisers buy display space through ad exchanges, they’re directly buying the eyes of their target consumers – not a page in a magazine, not a 30-second window in a TV show, not a square on a Web page. Instead, they’re buying the actual audience – the targeted ad, purchased by a real-time bid based on the specific viewer of the Web page, loads seamlessly onto the page just as the consumer reaches it.
The banner advertising world is close to radical transformation from the influence of advertising exchanges, where ads are purchased based on a real-time auction for the person actually viewing the spot, instead of a general media buy. For agencies, ad exchanges threaten to upend established ways in which digital advertising is bought and created. For advertisers, ad exchanges offer incredible efficiencies and effectiveness. For publishers, ad exchanges are an entirely different story.
How this will play out: the major media companies will each buy or build DSP-like capabilities to allow data-driven access to their inventory. They will build out their network of publishers so they can fulfill any audience request internally (internally here meaning either their own inventory or that of their enfiefed publishers.) At that point media buyers will be faced with an array of relatively undifferentiated media companies to buy from, each offering to best place the media buyer’s ads in its own audience.
AdScale, the leading marketplace for online advertising in Germany, has announced today the successful conclusion of the financing for its expansion in continental Europe. TIME Investors, a Paris based specialized investment firm providing strategic support to European Telecom, Internet, Media mid-sized companies, is investing more than 5 million euros in AdScale (www.adscale.de) for a minority shareholding and is thus expanding the circle of existing investors, beyond the European Founders Fund and Holtzbrinck Ventures.
“The power of the ADSDAQ Ad Exchange comes from being able to connect to multiple ad networks effortlessly with just a few clicks. This ensures that I maximize revenue for every impression that I sell from our site. It also eliminates the need to create a long daisy chain of ad networks which speeds up loading. In addition I can maintain fewer business relationships and get a single payment from ContextWeb covering all network providers working through ADSDAQ,”
Our trading platform allows us to buy from all major inventory sources in the exchange space, including the ones that matter most for the French market: Right Media, AdX, Improve Digital, Rubicon, OpenX/Orange Ad Market and AdMeld.
One of the interesting things we have seen is that the increasingly variable price of media that transparent bidding enables is starting to effect what publishers do. Because RTB enables us to pay a lower price for junk impressions on a bad site, and more for good impressions against a good audience, it effects the way publishers are rewarded.
Orange will operate the market, bringing suppliers (publishers) and buyers (agencies and advertisers) to the market. OpenX will power the underlying global market and technology. All supply and demand will connect via the single global market that OpenX powers, ensuring the full network effect and global competition so important to online ad marketplaces. At the same time, customers in Europe will be sold and supported by a local, dedicated Orange team with a very rich understanding of the needs and subtleties of each market.
Jerry Neumann follows up on his recent ad exchange-related post with a cautionary post on comparing today’s commodity markets with the potential of the ad exchange model. Neumann writes, « Ads right now, especially with the behavioral targeting, contextual targeting and other data layered on top, are way too varied to be traded on exchanges like commodities. »
The truth is, there are few companies out there that successfully manage all pieces of the “macrotization” process. Those that can will deliver true efficiencies for their clients because they can seamlessly connect and control all pieces in the value chain—from audience identification through media delivery and resulting insights—in a completely transparent manner.
The platform employed by 5to1 gives content owners the ability to place ads in relevant places at the right time, and to the correct audience. The company is run by former Fox Interactive executives Jim Heckman and Ross and this extension brings its total intake of funding to just over $6.3 million.
In terms of trading media in real time, we have been focused on how the evolving models of digital-inventory trading will allow us to find advantages for our clients, with more efficient pricing and more effective inventory selection. Buying at the impression level, as opposed to the placement level, allows segmentation strategies to be executed with greatly reduced waste. It is the arrival of ad exchanges, such as Right Media and DoubleClick Ad Exchange, which has enabled impression-level buying at massive scale.
Microsoft plans to launch a new and improved version of its AdECN exchange early next year. So, what can advertisers expect from the new system? ClickZ News asked Microsoft some detailed questions, and the firm agreed to respond via e-mail. Here’s ClickZ’s e-mail exchange with Jed Nahum, director of network strategy and planning for Microsoft Advertising
Unlike any other exchange, AdBrite’s version of real-time bidding allows marketers, ad networks and demand-side aggregators to purchase advertising on an impression level basis, with full visibility as to the properties they are buying, across over 100,000 sites in the AdBrite exchange.
Après le rachat d’AdECN il y a deux ans, Microsoft devrait enfin lancer en 2010 son Ad Exchange….
« As marketers continue to demand ad effectiveness and sustained return on investment for their ad spend, AdBrite is committed to providing best in class technology to deliver the most relevant audiences which drive greater intent and conversions. AdBrite’s API will provide agencies, advertisers and advertising networks with even greater access, visibility and control across our inventory of 100,000 sites. AdBrite’s API empowers advertisers to utilize AdBrite’s open sourced data and optimization engines at scale to engage their target audiences with greater precision, transparency and ultimately ROI, » Iggy Fanlo, AdBrite CEO.
Is there a way to even further improve economic efficiency by connecting exchanges to one another? This is a relatively new idea that is just starting to be discussed by players within the exchange community.
AdBrite, the first fully transparent ad exchange, has created a revolutionary Open Source Platform for integrating multiple 3rd party data partners (e.g. AlmondNet and Exelate).
eXelate, the first and largest open marketplace for online targeting data, announced today that they have launched teXi:DM, the first toolset that empowers publishers to take back control of their audience data management and monetization efforts.
Superbe vidéo d’une heure sur une table ronde sur les places de marché publicitaires et les networks. Excellent niveau d’intervenants, mieux qu’Ad:Tech…
La place de marché Allemande continue à se développer…
Compte rendu d’un table ronde sur le futur du trading online via l’émergeance des ad exchanges…
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