The Rise of Online ‘Exchanges’

Not many people are discussing the emergence and potential implications of so-called “exchanges” (NYSE analogy) for the buying and selling of online ads. But BusinessWeek does a reasonably good overview story on Right Media. AdECN is Right Media’s chief competition. I think this is a very interesting subject.

Right now ads are bought and sold through relatively closed proprietary networks, without much “liquidity.” In some cases, sites, such as online newspapers, turn to ad networks to fill inventory they can’t sell. With the exchanges, the idea is to create a broader, more open and liquid market across the Internet for CPM/display advertising, right now in the “non-premium” categories (you can sell your own premium ad inventory presumably).

Yahoo! bought into Right Media; and the private-labeled Right Media platform has been chosen by Tribune Co. and several others as a way to auction inventory they can’t effectively sell themselves.

If you buy the stock market analogy, then of course these exchanges will rise and be the way ads (display and possibly video) are bought and sold eventually. They will likely replace some of the existing ad networks.

Broader networks/exchanges such as Right Media could offer a solution to the problem of monetizing local consumer sites without a sales force or effective channel partners. Right now this would be limited to CPM inventory and national advertisers. But eventually local sales channels could potentially bring all types of advertisers (and inventory) to the exchanges for broader local distribution (right now this is all being done via business development).

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3 Responses to “The Rise of Online ‘Exchanges’”

  1. DoubleClick Exchange Now Planned « Screenwerk Says:

    [...] written about online ad “exchanges” in the past, which is one of the more interesting developments in online advertising in my opinion. [...]

  2. DoubleClick Exchange Plan to Boost Value for Google, MSN, AOL or Yahoo Buyout Says:

    [...] written about online ad “exchanges” in the past, which is one of the more interesting developments in online advertising in my opinion. [...]

  3. Yahoo! Buying Right Media « Screenwerk Says:

    [...] Media is the leading “exchange” among several now emerging in the market, including AdECN and the newly announced (but not [...]

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