When Is A Mobile, Private Exchange Relevant To A Marketer's Needs?

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Mobile Private ExchangeAs publishers look to take advantage of the ad exchange model and max out yield of their inventory, one emerging opportunity has been the private exchange (or marketplace, depending on whose terminology you're using) where a publisher provides exclusive access to buying partners looking to purchase on a per impression basis. In addition to providing better controls around channel conflict, the private exchange model can provide higher CPMs for publishers while buyers get exclusive, "first look" access at remnant inventory among other potential benefits.

So with an eye to mobile and its abundance of inventory today - both direct and remnant - AdExchanger.com asked a selection of industry executives in the mobile space the following question:

"Today, when is a mobile private exchange relevant to a marketer's needs?"

Click below or scroll down for more:

Sal Candela, Mobile Director, PHD (Omnicom)

"There clearly is an abundance of mobile ad inventory in the market, but running on brand-safe content at scale isn’t always easy.

Typically, mobile ads have been bought directly from publishers, or in aggregate through networks. The challenge is that direct buys don’t offer enough scale and most networks are ‘blind’, meaning marketers only get a sample of where the ads are running.

With the emergence of private exchanges in mobile, marketers and agencies now have a simpler way to reach their audience in premium environments. These private exchanges can be very beneficial as they provide the benefits of a network - one point of contact for coordination and less time dealing with paperwork – with the bonus of running on an approved list of properties that meet brand requirements."

Dave Gwozdz, CEO, Mojiva

"Private exchanges give publishers a control mechanism for a limited set of buyers. In return, these buyers are assured of the type of content they want, at a real time market price. In order for these to work in mobile, the inventory needs to be: (1) optimized for mobile devices (smartphones, tablets, etc.), (2) correctly identified by content type; and (3) have enough scale by OS , device type, or geography to make the marketers efforts worth it. Then, and only then, does it begin to make sense."

Scott Spencer, Product Management Director, Google

"Marketers are looking to reach the the right audiences, and private exchanges are a powerful way for them to access high-quality inventory across all formats, including mobile. Though we and others in the industry are helping publishers leverage this model for their mobile inventory, the good news is that much more inventory is coming online in 2012. For instance, we think there is a huge opportunity for publishers in the "consortium" model, in which multiple publishers pool their inventory under one private exchange. This will offer marketers a new level of scale for their buying efforts while enabling sellers to capture new spends."

Are Traasdahl, CEO, Tapad

"Given the recent success of private exchanges within the online display space, I’d anticipate that it’s only a matter of time before forward thinking premium publishers start scaling the concept more with their mobile inventory as well. From a marketer’s perspective, this is good news. The opportunity to layer 1st and 3rd party data on top of quality content in a controlled, biddable environment should allow smart marketers to unlock significant value. Furthermore, there are clear benefits to publishers as well – higher CPM’s (provided that floor prices are set appropriately), higher fill rates, higher quality advertisers. Technology continuing to move the media buying process forward, more directly connecting buyers and sellers – everyone wins."

Anne Frisbie, VP & Managing Director, North America, InMobi

"Managing sales channel conflict and maintaining pricing integrity is priority number one for publishers. In mobile today, given the disparity of common serving standards across ad servers, segmentation of devices, and inability of most networks to serve engaging rich media, mobile private (or public) exchanges are currently great in theory and challenging in practice. In mobile, the scale and reliability of a platform matters. Rich media serving across smart devices matters. The sheer global aspect of mobile is another distinguishing feature with PC/desktop.

The mobile industry should not follow in the footsteps of PC/desktop display necessarily, but rather breakout on its own trajectory for technological developments and companies that help publishers and advertisers optimize, gain control, and protect their brands."

By John Ebbert

 

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6 Responses to “When Is A Mobile, Private Exchange Relevant To A Marketer's Needs?”


  1. Nathan Levi says:

    I would not recommend mobile display advertising to any client right now. We have still not reached tipping point which is very fast mobile connectivity, seemless m-commerce transaction and richer ad formats. All these things need to happen for mobile advertising to even be viable.

  2. paul gubbins says:

    Nathan

    In response to your post, here at StrikeAd a global mobile DSP we regularly deliver seamless mobile campaigns for agencies and their trading desks in scale driving both m-Commerce & brand engagement via HTML5 formats traded leveraging RTB. You only have to look at companies early to the opportunity to realise the potential “The company is projecting that eBay would reach $8 billion in mobile GMV in 2012, and PayPal will reach $7 billion in transactions in 2012” Tech Crunch.

    Private exchanges will only help to speed up adoption as the buy side is afforded greater control/transparency and the supply side, tangible yield/inventory management & higher sell through rates.

    Paul
    UK

    • Nathan Levi says:

      Hi Paul,

      Would be good to chat further on this. I certainly see the potential for mobile advertising in the future, for now I find the format to be slow, overly intrusive and not customer centric. I'm not convinced mobile display ads get a great response rate in any sector right now. I'm happy to be proven wrong.

      Nathan

  3. Nathan -

    Interesting take, but I think that irrespective of perceived technical challenges, the question is - for those who do see display, does it drive value? We run test/control groups across clients, and find, without fail, that there is tremendous lift post-impression.

    Liz

  4. Nathan seems to assume a certain kind of marketing event is taking place. Using mobile for targeting in a way that leverages the location-based power of mobile to engender direct engagement at the retail level has been pretty darn spiffy.

    Of course, it is Nathan's perogative to be a laggard, but why read Adexchanger if you aren't going to be on the bleeding edge! :-)

  5. I would agree with Nathan to a certain extent here. I think we should see more evolution, both on the advertiser and publisher side. Folks like inmobi, admob, buzzcity, etc should start allowing for targeting beyond just geo & device. Websites should see more serious / transactional traffic from mobiles. Ex: expedia.com in the US even today get less than 2-3% of their sales from mobile devices. Unless we see this improving, there will be very little collaboration like what we are seeing in the internet/traditional website display inventory space.

    Gourav

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