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WebProNews Live Coverage of SES: San Jose SES: San Jose 07
SES San Jose: Ad Exchanges
SES San Jose: Ad Exchanges

Ad exchanges are a hot topic, and here to tell us all about them is Context Web’s Vice-President of Strategic Products and Business Development, Jay Sears.
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Jason Lee Miller
Tuesday, Aug 21, 2007

SES: Ad Exchanges Are Changing The Game

There's a new frontier in online advertising: ad exchanges. Operating more like a stock exchange than a traditional auction, ad exchange networks seek to make better use of the long-tail of search destinations by matching up unused inventory with appropriate advertisers.


Editor's Note: The experts, or, if you're cynical, new service salesmen, say ad exchanges are the new frontier. Maybe you agree, or maybe you differ. Let us know which in the comments section.

(Our on-scene WebProNews staff have passed along this latest news from SES San Jose 2007. If you can't be there, you need to be here with WebProNews this week, for videos and reports.)

The Search Engine Strategies panel in San Jose addressed how "ad exchanges are changing everything," and speakers from industry heavy hitters like DoubleClick and Right Media explained what this means to a still burgeoning market.

Microsoft's regulatory objection to Google's buyout of DoubleClick may have been more strategy than concern, especially as the Beast and fellow-rival Yahoo made similar purchases a short time later.

These companies represent an ad sales market that deals in impressions on the destination side rather than the entry side, and, according to DoubleClick, as much as 80 percent of publisher inventory goes unused.

At the same time, advertisers are stumbling over each other as the short tail gets fatter (cluttered and well-trod), leaving less inventory available for potentially converting contexts and destinations that are less traveled, but collectively are powerful.

So diffusion must take place, and ad exchange companies are betting on the overflow into the long tail, even if panelist Jay Sears, of ContextWeb, admits the "long tail is perceived as a scary place" where there is little control of where ads appear and where impressions are wasted when paired with irrelevant content.

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But that also means there exist necessity and invention, and out of that new models and networks are born to address these issues.

While much of publisher-advertiser matching is automated, ad exchanges allow for a certain level of advertiser and publisher control. The publisher sets an asking price for ad space, and the advertiser sets a bid price for specific inventory. (And one would imagine advertisers can block or reject as well.)

A system like this allows for tighter targeting, more control, and an escort for treacherous wanderings into the long tail. Sears and ContextWeb boast about their aptly named ADSDAQ product, which has four key offerings: premium inventory; pricing control; contextual technology; and an open platform.

"ADSDAQ is turning the long tail into a clean, well-lit place for advertisers," said Sears, always ready with the pitch.  

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About the Author:
Jason Lee Miller is a WebProNews editor and writer covering business and technology.

How To Waste Your Search Budget

David A. Utter By David A. Utter
Editor | WebProNews

Companies that buy search advertising may be flushing away part of their budgets as they bid on brand keywords they probably don't need.

It's always seemed strange to look for information on a brand, and to see it appear both in the organic search results and at or near the top of the paid listings. Why spend money on a brand term that's going to deliver a top five organic result for the same query anyway?

An Adweek report cited Microsoft-backed research by its Atlas Solutions group into brand spending. Atlas suggested marketers waste about half of their budgets buying keywords that they don't need.

"What you're really paying for is a glorified Yellow Pages listing," Young-Bean Song, VP of analytics for Atlas, said in the report. Atlas studied 30 campaigns reaching some 120,000 people on Google, Yahoo, and Microsoft.

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