Advertising exchanges have been termed as the idea for the future though they currently only account for 10 to 15 percent of the overall display advertising business.
Analysts state Google’s strong push could well shake up the market. Its new system integrated with DoubleClick ad exchange will automatically let hundreds of thousands of publishers and advertisers, who now make use of
Google’s AdWords as well as AdSense systems, run their ads and ad space more profitably through the exchange. It should let brand advertisers execute ambitious campaigns, to reach virtually everyone online. Here’s how Advertising exchanges operate:
• When an individual seeks a Web page from a site joining the exchange, the publisher will notify the exchange about space available on that page.
• It might also allow the exchange to know more about that person, on basis of past activity or shopping habits.
• Advertisers then bid on the ad space.
• The winner’s ad gets slotted into the page.
The whole process takes place in no time. Some industry experts feel the DoubleClick exchange will provide advertisers with greater flexibility. It will let marketers aim their ads at specific types of customers and to purchase one ad spot (impression) at a time.
Google lags behind Yahoo both in display ads and in ad exchanges. The latter bought a pioneering ad exchange, Right Media, in 2007. Its business has steadily grown since, in part because most ads, which run on it, are brokered through the ad exchange.
Yahoo welcomed the competition, expressing confidence in its own capabilities and ability to innovate. In fact, other exchange operators could gain from Google’s success, as more publishers and advertisers get used to selling and buying ads through exchanges, expanding the market. This indeed is a great avenue for brand advertisers in Winnipeg and Portland to reach virtually everyone online.
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