As I wrote those words – “Display Market” – I sure wish we could get our nomenclature right. Because that term means a lot of things to a lot of people.
In any case, Google today announces its Doubleclick Ad Exchange, which it promises will “simplify the process of buying and selling advertising,” according to the Times coverage.
Google is leveraging it’s competitive advantage: “the new system will automatically allow hundreds of thousands of advertisers and publishers who now use Google’s AdWords and AdSense systems to run their ads and ad space through the exchange.”
Of course they are.
This pits Google directly against Yahoo, AOL, and Microsoft in display, as each of these companies is playing here, though at various levels.
But let’s be clear about what we’re talking about – which is remnant display. This is not a premium publishing play. I’ll have more on that, but the distinction is very important. VERY important.
I know I bash this point a little too often, but does nobody care anymore (least of all Google) about that whole little “the advertising’s gotta be relevant” thing that made us trust and accept Google ads in the first place? Display advertising like this is (as I’ve said in the past) the polar opposite of the ideal that they once stood for as a company.
I’ve suspected it for years now, but is it time for me to simply acknowledge that old Google is no longer in existence, that it is gone and dead forever?
John, I’d be willing to make a bet with you that in two years both premium and spot buys of remnant will be integrated into these exchanges. Once the buyside has technology in place for managing their buys they will start to insist that premium publishers sell their inventory through the exchanges. The days of faxing IOs are going to be gone soon.
These ad exchanges are just another example of the pressures facing traditional ad agencies. They are being disintermediated completely by these types of tools. As Zach pointed out, faxing IOs might soon be a thing of the past. So, if the agencies aren’t even doing that anymore, how *will* they add value? As soon as corporate marketers can buy OUTDOOR advertising using online tools, it’s *completely* over for the agencies.