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Online ad exchanges will redefine ad sales: Forrester

Online ad exchanges will redefine ad sales: Forrester
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First Published: Wed, Feb 06 2008. 03 14 PM IST
Updated: Wed, Feb 06 2008. 03 14 PM IST
New Delhi: According to the latest Forrester Research report, Online Ad Exchanges are set to redefine ad sales across channels as these exchanges offer an ad sales model that serves both ad buyers and sellers by opening access to inventory and pricing based on market demand. It says that smart advertisers and publishers will seek to join an exchange immediately, selecting a partner that is transparent, supports desirable media, and offers an open architecture.
And as these exchanges evolve, Forrester expects them to force ad network consolidation, supplant ad servers, and gradually infiltrate offline ad sales.
The report titled The Truth About Online Ad Exchanges advises publishers and advertisers to embrace these exchanges quickly, and lists key parameters for choosing the right one.
Authored by Forrester principal analyst Shar VanBoskirk, it highlights that rising search marketing costs, rich media and targeting advances coupled with a re-emphasis on branding are infusing online media with new energy, and one of the most considerable changes to date is the new model for buying and selling online ads.
It defines an online ad exchange as: An automated marketplace that connects advertisers to desirable inventory at a price advantageous to both ad buyers and sellers.
Says VanBoskirk, “It’s easy to confuse online ad exchanges with ad networks, because both facilitate online media buys between advertisers and publishers. However, there are key differences between the two. Although different flavors of exchanges are emerging, we find that a company can be called an exchange if it essentially enables marketplace pricing, and provides a technology platform to support its marketplace.”
She adds, “Though the concept of online ad exchange is not new, it matters now due to factors such as skyrocketing online media supply, marketers embracing bid-based ad buying, and new exchanges coming online. And as ‘exchange ad sales’ become commonplace among publishers and advertisers, the concept will force ad network consolidation, and, common ad servers without exchange capabilities will perish.”
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First Published: Wed, Feb 06 2008. 03 14 PM IST