The Evolution of Display Advertising, Ad Networks and Ad Exchanges
In a previous post, I talked about the difference between ad networks and ad exchanges being only technology. With the emergence of demand side platforms ad exchanges are positioned to lead the way in redefining how “none premium” display inventory is bought. It is simplifing the process of buying remnant inventory for advertisers, reducing the intenal processes for agencies and allowing publishers to monetize their website traffic. Below is chart I’ve seen that explains the changes we see demand side platforms driving.
| Old School | New School | |
| Buying Pages |
1 |
Buying Audience |
| Forward Markets |
2 |
Spot Markets |
| Sellside Optimizes For Both Advertiser Performance And Publisher Yields |
3 |
Sellside Optimizes For Publisher Yield While Buyside Optimizes For Advertiser Performance |
| Sellside Aggregates Audience |
4 |
Everyone (Sellside, Buyside, Intermediaries) Aggregates Audience |
| Technology Is Strategic For The Sellside And Tactical For The Buyside |
5 |
Technology Is Strategic For Everyone |
| Agencies Work To Foster Internal Collaboration Between Digital And Non-Digital Buyers |
6 |
Agencies Work To Foster Internal Collaboration Between Buyers Of Display And Buyers Of Site Integrations And HPTO’s |
| Buy Instructions And Optimization Instructions Submitted Via Email Phone & Fax |
7 |
Buy Instructions And Optimization Instructions Submitted Via API |
| Testing Cycles Of 4-12 Weeks For Brand Metrics And Media Performance |
8 |
Testing Cycles Of 4-12 Days For Brand Metrics And Media Performance |
| Agencies Allocate Dollars Manually Based On Publisher’s Reach, Brand Equity And Perceived Value |
9 |
Agencies Allocate Dollars Through Automation, Based On Modeling Of Projected Returns On Ad Spend |
| Agencies Rely On A/B Testing For Learning |
10 |
Agencies Use Exploratory Data Analysis For Learning, As Well As A/B |
The ability to add data intelligence in a near real time basis has display advertising behaving like direct marketing. As the scale of inventory available through ad exchanges increases a new standard will be created for measuring the effectiveness of display advertising. I wonder what this would do to social media website’s?
