Behind the Buzz - digital and interactive advertising and marketing

FOOA and Online Advertising Basics

by Rachel on June 7th, 2007

Bill Wise (Right Media) ‘Online Advertising Basics - Everything you wanted to know but were afraid to ask’

Although this was supposed to be the basics, I have to say that a lot of it went over my head; I’d love it if anyone could point me towards something that explains the basics for an exchange-based online advertising market which I could study at leisure to get my head around it.

Who are the players?

Publisher - more revenue, less effort, wants more demand, protect premium sales, user protection, want more product to sell;
Advertiser: wants better ROI, global control, efficiency, max audience relevance, protect brand
Networks: want more revenue, more ROL, huge distribution, less friction for clients, brand, user protection for clients.
Tech providers: make it more efficient, massive distribution

Old model, clear delineation between demand and supply. Now, publishers own agencies, own networks, own tech providers. The lines are all breaking down, everything can be under one umbrella.

So how is this acceptable? You have openness and transparency more than ever before, the numbers are out there. Advertising is evolving towards an exchange model. There is a lot of supply, from premium to remnant inventory. It;s still in infancy, moving up adoption cycle.

Ad exchanges: an auction on every ad impression; open access, direct relationships, true transparency. Better ROI…it’s search marketing for display. Previously it was a closed relationship, with a daisy chain of networks. But exchanges open up the world. Creates standards around targeting, quality, content.

So what is next? Futures market, clearinghouse, moves into cable/radio/print, mobile and video as well.

Three things need to happen: online spend continues, innovators need to devise better ways to monetise and increase open ad platforms.

There is a convergence btw search and display, auctions increase yield, open ad platforms make it more efficient.

Audience Q&A

Q: how does this ecosystem match up to user ad avoidance.

A: online ad spend is where it is because of accountability and ROI - so it works! We can measure success. Price has gone down over the last 10 years, advertising works and the advertisers are very good at looking at value. We track everything.

Q: How about advertising inside applications?

A: In-game ads are a huge potential marketing, MS thinking this way through acquisition of Massive. It;s too early, the spend not there yet. Still needs to be scaleable.

Q: You said mobile would go to an ad exchange????

A: I think they are embracing an auction model as it increases relevancy and income. in a constrained medium an auction is a good thing for both, so I think they will move into an auction model?

Share This

Related Stories

FOOA Blogging
Mobile Fundraising
Online Spend in 2008
FOOA and Online Effectivity
FOOA and BlogAds

POSTED IN: Advertisments, Conferences and Events