Read the comments of our co-founder Pete Robins talking about private ad exchanges. What is your view? We want to hear from you:
The industry has called for more education about private ad exchanges to increase uptake, following news that Collective has launched the first real-time private ad exchange for premium video programming in the UK.
Ad exchanges promise to deliver a more effective and efficient way of buying and selling advertising online. Real-time bidding (RTB) on exchanges enables the buying and selling of single ad impressions in real time.
Despite the huge promise of exchanges, they have been held up by a nervousness among publishers, which fear losing control over advertising on their site. The introduction of private ad exchanges could ease these worries though as they enable premium publishers to connect only to the advertisers they choose.
Pete Robins, Agenda21 founder, linkened ad exchanges to eBay. “You might say, ‘I’m going to sell this watch and the minimum price I want for it is £30’,” he said. “If no-one bids for it at £30, you don’t sell it, but if people want it, then you might sell it at £50. But with a private exchange, you might say I still want £30 but I’m only going to let certain people bid because I don’t want it on the open market. It gives you more control.”
Robins added that private ad exchanges offer advertisers and media owners an increased level of protection, but as they are in their relative infancy, people will need to be patient because there will be an initial element of trial and error.
“Nobody has the answer just yet,” he said. “People obviously want to monetise as much of their inventory as possible and buyers are becoming much smarter about which bits they want and the different prices that they’re prepared to pay. You’ve got people on both the buying and selling side actually genuinely wanting a market place where you’re paying and earning the right price for the value of the media you’ve got or you want to buy. The understanding of how to do that with the technology has advanced a lot in the last year.”
However, he also warns that it is imperative to have the right people in place for it to be successful. “Even if you’ve got the best technology and best inventory, if you don’t have the right people or processes to know how to run it then it’s not going to work,” he said. “And those are really difficult to find because it’s such a new part of the market.”
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