..And today we’re excited to announce the new DoubleClick Ad Exchange, a step towards creating a more open display advertising ecosystem for everyone. The Ad Exchange is a real-time marketplace that helps large online publishers on one side; and ad networks and agency networks on the other, buy and sell display advertising space. The Google blog set the proverbial cat amongst the pigeons with this announcement of it offically introducing the Double Click Ad Exchange.
With Double Click which it acquired back in 2007 Google is looking to extend its business into the world of display and rich media advertising. In other words it is entering a territory which surprisingly Yahoo’s Right Media Exchange sort of rules the roost. Right Media exchange is probably the biggest Ad Exchange in terms of volume and Google will perhaps do everything on its hand to take a major share out of this business.
Source:Search Engine Journal
Google has had to look beyond its traditional powerhouse – search PPC through ad words after stagnant sales early this year and advertising not working on as it would like to on sites like YouTube. One does wonder if this is a shift of focus from text based advertising that Google revived back in the early days after the bubble to more lucrative display and rich media ad world. I am not suggesting that Google will phase out its Ad Words system, there is no likelihood of that at all, but more than anything else Double Click might be geared towards newer platforms on the web with newer advertising options that goes beyond text. In fact the exchange is another avenue for Adwords to advertisers to look at promoting themselves ont he web with a wider publisher base.
The immediate impact for publishers ought to be higher payouts through higher CPMs. This of course because the exchange with its higher volumes can drive larger competition and therefore higher bids. Which means more publishers in the near future might want to try out Double Click’s system, which invariably turns out to be a better deal for advertisers on the other end of the spectrum.
The question then becomes, what can Yahoo’s Right Media or other ‘exchanges’ like Adbrite do to counter this new threat from Google. Other points to note would also be how ad networks which work on various exchanges besides their own set of exclusive publishers use Double Click to their advantage. In the meanwhile if you use Adsense to power your site’s monetization read this post on the Adsense blog, while Adwords advertisers should check this post out on what this means for them.
I in the meanwhile will go into a thinking mode to see the larger impact of this news in the digital advertising industry. And before anyone jumps into any conclusion – read this post on the difference between and Ad Exchange and an Ad Network.
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