The online advertising market is very interesting. I want to talk about ADSDAQ's online ad exchange since I use their service along with Google's Adsense to display ads. The main difference between the two is ADSDAQ allows me to set prices on my inventory while Google auctions it off to the highest bidder (correct me if I'm wrong). I like how Adsdaq gives the publisher more power. If I put the price too high buyers will walk away and lower my fill rate. I can then tweek my price toward the bid or rotate to another ad network if I'm not satisfied. There are actually market makers on the ADSDAQ exchange (first video). I also don't want buyers to price out CPMs and not fill the inventory, what's the point of that?
You can't fight the free market, it will always be the most efficient pricing mechanism (with liquidity of course). It will be interesting to see how the online ad exchanges evolve. In March, from
comScore, Adsdaq reached 62% of the population. As for the online ad market, "Over the long term, Nielsen predicts that the Internet's share of total ad spend will continue its steady upward trend as global economies emerge from the current recession." (
MediaPost) Check out the videos below they are interesting discussions.
OMMA Ad Exchange Panel: ADSDAQ, Interevco, Google, Innovation and Yahoo
Ad-Tech NY: Exchanges with Omnicom, Google, Yahoo, Traffiq and ContextWeb’s ADSDAQ
