Thursday, April 05, 2007

The Growth of Ad Auctions

The idea of an online auction has been around for a good, long time. The idea makes a lot of sense: a ton of ad space is either undervalued or unsold, simply because it too frequently, the process of selling involves people, and people are focusing on buys that are bigger and more interesting than just a bunch of banners scattered across a network.

Or...we realize that ad space has a temporal element to it: if someone doesn't buy the home page at 4:00 on a Saturday, that impression is gone, along with any potential value, just like a hotel room.

But we've got two big stories this week around auctions: Google is doing it with TV and DoubleClick is doing it online. It's a pretty amazing step forward, and one that could potentially change much of the dynamic of buying ad space. The planning portion is going to be a challenge, of course. That is, where CPMs were previously some combination of rate card times relationship, we'll now just get pure market-based pricing.

The big thing to see, of course, is the quality of the inventory that is posted up. That will determine much about whether buyers will see auctions as a way to backfill buys to hit reach and frequency goals, or if they will actively engage as a method of getting high-value placements.
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3 Comments:

Anonymous Anonymous said...

Right Media has already built and proven this "new" model works. I've been purchasing ads from them for over a year. DoubleClick has a fair amount of catching up to do.

1:15 PM  
Blogger Drew said...

If the quality of the inventory is lacking, is guess the next step developing campaigns that support bargain bin media buys?

Perhaps modest media signifies authentic business on some level. For example, the mise én scene of local cable commercials (produced on Handicams or worse) suggests local business honesty. What then does a bargain-banner look like / convey?

2:41 PM  
Anonymous Yahoo Japan Auction said...

Simulate the excitement of live bidding, or acting as the fast-talking auctioneer. An interactive group activity that everyone will enjoy.

5:22 AM  

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