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DoubleClick To Launch Ad Exchange; Dressing Up For Acquisition

DoubleClick, the online ad firm, which is in talks with Microsoft and Google for a possible sale, is in the process of launching an online ad auction exchange, reports NYT. In this online exchange, to be launched in Q3, publishers and ad buyers will participate in auctions for ad space. It has signed up 35 Web publishers, advertising networks, agencies and advertisers to test the system. Two of the testers are, a large ad network, and Media Contacts, an interactive media buyer that is part of Havas. DoubleClick will charge a commission for each ad impression traded on its exchange.
The service will let advertisers see information about what competitors bid for particular ads, and it will let publishers try to ensure that they sell their ad spots at the highest possible price, the story says, describing it as a cross between eBay and Sabre airline reservation system.
The service will have feature such as anonymous auctions from pubslisher, as well as private auctions as well. The company views the exchange as the centerpiece of a growth plan and may derive the majority of revenue from the new service within five years, said David Rosenblatt, the company’s CEO.
Right Media, a company that has a similar system, received $45 million in funding last year, from Yahoo and others.
Online Auctioneer Right Media Hopes To Reinvent Advertising – Unless EBay Gets There First
Yahoo Makes Ad Moves: Acquires AdInterax, 20 Percent Of Right Media
— <a href="" title="Google Joins DoubleClick

One Response to “DoubleClick To Launch Ad Exchange; Dressing Up For Acquisition”

  1. As a 20+ year advertising veteran, it's interesting to see how the phrase 're-invent' keep showing up when talking about any new ad exchange or ad auction system. Yes I agree that the ability for advertising transactions to take place online in a 'bid' environment is new and exciting, there will only be a segment of the market that will be comfortable with this 'transactional' self-serve model.

    Advertising agencies, representatives and sales people have been around for a long time and I believe that the challenges around advertising transactions usually center around questions like 'what should I buy' and 'how can I make advertising work' and less about 'can I purchase this using my pay pal account or visa'.

    Accountability is a huge factor in the advertising transaction. When dealing with advertising as a commodity and making your own buying decisions, the customer will ultimately hold responsibility if the campaign is not successful and believe me, it is a lot easier to fail in advertising then succeed. If the wrong creative runs or there is a challenge with billing, dates etc… In the self-serve world of ad-exchanges, there is no AE or agencies butt to kick when things go sideways and things always do in the advertising world.

    Our agency is launching an ad exchange using an eBay store in June and will have remnant TV, Radio and other inventory available for our clients to bid on. That being said, all campaign executions and transactions will ultimately be made by the agency and responsibility and accountability will be with our agency…as it is now.

    The ad exchange is here to stay. It will be interesting to see how long until traditional and old-school media start auctioning off their products directly.

    Could CNN Exchange and NBC Exchange be far off?


    Mitch Drew
    BECK Agencies