Media: Double Standards - Why this could be the year of the ad exchange

campaignlive.co.uk, Friday, 13 February 2009 12:00AM

Online will see a larger proportion of budgets dedicated to performance advertising. Here, the heads of two exchanges say why 2009 can be a good year.

DAMIAN SCRAGG - EUROPEAN SALES DIRECTOR, RIGHT MEDIA EXCHANGE

- What is your response to critics who argue there isn't enough competition in the media market?

For the Right Media Exchange, competition for online media is fundamental to driving success in an auction-based environment. Competition exists but, in a fragmented online media market, it perhaps requires technology to bring it together.

- What are your predictions for online advertising this year?

Overall, it will be an interesting and challenging year. I foresee that a larger proportion of campaign budgets will be dedicated to performance-based advertising, as marketers look to achieve better return on investment and accountability for their investments. And as marketers strive for greater efficiencies, more of them will explore new platforms that can automate their activities.

- What are the main strengths of your exchange?

A true exchange requires a significant volume of balanced demand and supply to provide reach and scale to help ensure a buyer for every impression. The Right Media Exchange currently trades nearly 200 billion impressions monthly in 83 countries from 50,000 buyers and sellers. Right Media's exchange offers ways to remove many of the manual, time-consuming activities associated with buying online media. It is much more efficient for an advertiser to operate on a single online platform rather than manage multiple relationships and systems offline. It also uses market dynamics to determine the price of each impression, via an auction, which helps bring greater openness and transparency to our online market.

- What are the benefits to advertisers?

Robust reach and the ability to buy on a CPM or performance basis. Our system generates bids based on the perceived value of every impression and the advertiser's goals in order to prevent advertisers from overpaying for the inventory they win. The Right Media technology also auto-optimises campaigns, learning what sites and sections creatives work best on, upweighting budgets to the more successful creatives to help ensure ROI goals are met much more quickly.

- How do you measure the effectiveness of a campaign?

Clients are able to set up bespoke reports from a wealth of campaign metrics driven by information captured throughout the life of the campaign. Reports are updated hourly and campaign effectiveness can be monitored and measured based on how clients define their success criteria.

- What new technological innovations are you working on?

Yahoo! has launched APT from Yahoo!, a next-generation exchange encompassing both guaranteed and non-guaranteed activity. This new platform will eventually become available to international markets but is currently available only in the US.

- What would be your alternative career?

A sports agent. I'm sure it's not all glitz and glamour and probably just like any other sales job. However, after watching Jerry Maguire many years ago, I decided that it would be the ideal career - but, of course, only if I represented the likes of Kaka, Tiger Woods and Roger Federer!

TANZIL BUKHARI - MANAGER, EMEA, DOUBLECLICK AD EXCHANGE

- What is your response to critics who argue there isn't enough competition in the media market?

The UK is one of the most advanced and vibrant online markets in the world, and the healthy competition that exists will continue to drive innovation.

- What are your predictions for online advertising this year?

As the economic downturn bites, there is an increasing focus on value and return on investment so advertisers, agencies and publishers will use the vast amounts of data now available to make informed choices about marketing.

- What are the main strengths of your exchange?

DoubleClick Ad Exchange is a global marketplace, where marketers and publishers can buy and sell media efficiently - irrespective of location and currency. By aggregating online media from numerous websites, we offer marketers and media buyers an effective way to reach their target audiences at scale. Our unique system offers advertisers both an auction and option to reserve media in advance at an agreed price.

- What are the benefits to advertisers?

Selective buying - DoubleClick Ad Exchange allows buyers to buy only the inventory they want at the price they want on an impression-by-impression basis. Buyers can test, learn and pay for media which converts and not be limited to an individual publisher/network relationship. Buyers are also provided with the functionality to target specific industry segments or users across multiple sites and locations thereby lowering costs and increasing ROI.

- How do you measure the effectiveness of a campaign?

DoubleClick Ad Exchange has a strong history in digital tracking and reporting through its market leading ad management product (DFA), which many global agencies currently use to manage digital campaigns. We provide marketers with granular reporting that provides insight into effectiveness for each media buy with the option to link through to a conversion action.

- What new technological innovations are you working on?

As a leader in display advertising and part of the Google organisation, DoubleClick Ad Exchange is continuing to evolve with significant new features scheduled for release throughout 2009, focusing on increasing ad inventory, improving ROI and delivering solutions that will better integrate third-party systems.

- What would be your alternative career?

I would be a property developer. The process of developing properties poses similar challenges to the ones I face today. Looking for the right opportunities, managing resources, planning developments, understanding target audiences/clients, creating marketable products while adding value are just some of the requirements to either career path.

This article was first published on campaignlive.co.uk

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