What’s Up With These Ad Exchanges?
Double Click announced a bid-driven ad marketplace a few weeks ago. Today, Yahoo said it was buying the rest of Right Media. As we all know, Google in March revealed its commitment to an auction approach to Cost Per Action. Big players clearly see some value in bringing buyers and sellers together for online display ads. Is this the future?
I’d say it is at least part of the future for CPL and CPA. A successful exchange requires transparency and measurement standards. In the equities markets, the former means quarterly reports and10K’s, and the latter means agreement to evaluate stocks on earnings or revenue.
But in the world of performance advertising, there’s a real risk of “apples and oranges”. How can an exchange equate the value of a sale versus a newsletter sign-up versus a webinar attendee? It will be fascinating to see how these exchanges approach the multitude of possible actions. In the meantime, there’s real value in standardizing programs for niche advertiser needs. I’d appreciate any thoughts on how the evolution to exchanges might happen.
Posted on 4/30/2007 by Gary Kreissman in Lead Generation
Double Click announced a bid-driven ad marketplace a few weeks ago. Today, Yahoo said it was buying the rest of Right Media. As we all know, Google in March revealed its commitment to an auction approach to Cost Per Action. Big players clearly see some value in bringing buyers and sellers together for online display ads. Is this the future?
I’d say it is at least part of the future for CPL and CPA. A successful exchange requires transparency and measurement standards. In the equities markets, the former means quarterly reports and10K’s, and the latter means agreement to evaluate stocks on earnings or revenue.
But in the world of performance advertising, there’s a real risk of “apples and oranges”. How can an exchange equate the value of a sale versus a newsletter sign-up versus a webinar attendee? It will be fascinating to see how these exchanges approach the multitude of possible actions. In the meantime, there’s real value in standardizing programs for niche advertiser needs. I’d appreciate any thoughts on how the evolution to exchanges might happen.
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