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@ pcAds: It’s Not Google That’s Diabolical; Others Aren’t Diabolical Enough

The rise of digital advertising exchanges, real-time bidding and other new innovations in the online advertising market has the potential to open the market to significant new opportunities — unless the pushback from traditional marketers and ad networks stalls things.

Although online advertising is growing at a fast clip, it is still less than a quarter of the overall ad market worldwide.

In 2011, Magna says that online advertising will account for 17.3 percent ($30.1 billion) of total ad revenues, and it will take until 2016 for that to grow a further five percent, to 22.4 percent ($47.4 billion).

In a panel at the paidContent Advertising conference today, Kurt Unkel, SVP, VivaKi Nerve Center; Melissa Goidel, SVP of sales,; Jay Sears, GM of ContextWeb Exchange, ContextWeb; and moderator and paidContent staff writer David Kaplan laid out the challenges and opportunities for newer technologies and business models within that growing online ad market.

Google (NSDQ: GOOG) has long been considered the dominant force in online advertising with its emphasis on real-time bidding for advertising — a position that only seems to be growing as the company looks to launch new services such as the DoubleClick for mobile and video services that it announced today to drive more display business on wireless devices.

Some argue that this has all but destroyed the value for direct inventory on sites. That’s not an entirely negative state of affairs, though:

“It’s not that Google is diabolical,” said Sears. “It’s that everyone else needs to be more diabolical.”

But that’s not to say that ruthlessness is the order of the day, either: “There is an obligation on us to educate more,” he added later.

But there seems to be a contradiction in how new players are interfacing with clients. While on the one hand, Goidel noted that “Innovation equals revenues” is the main message for clients; Unkel admitted that it’s not as easy as that: “It’s difficult to get performance-based clients to try out new platforms,” he said.