On The DoubleClick Ad Exchange: Michael Brunick, Mediabrands Worldwide, Cadreon

Cadreon - the buying platform of MediabrandsMichael Brunick is VP, Media Technology Director at Mediabrands Worldwide, a media buying and planning unit of Interpublic Group.

MB: The rollout of Google’s updated DoubleClick Exchange offering – and the proliferation of other similar real time bidding platforms – marks a watershed moment in the progression towards truly dynamic, demand-driven advertising transactions. These mechanisms give us the ability to efficiently and effectively determine value and make purchasing decisions at the most atomic level – impression by impression – at scale and across a host of inventory sources. The real key to success in this area for agencies and advertisers will be to take advantage of intelligent buying platforms like Cadreon to enable buying across all of the available real time offerings as more inventory sources and media types come online.

We, of course, need to ensure that the technology works properly and is available for open integration with the technology platform partners in the space, but we also need to make sure that enough inventory and demand gets pushed through the offering so that we can provide for the continued evolution of the media industry.

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1 Comment

  1. For two years I have been both a buy and a seller in the adXchanges. I have represented networks, agency, publisher, and advertiser and I don’t think this is going to help the underlying problem; low conversion rates for advertisers. Historically Ad eXchanges have resulted in few conversions for advertisers, thus, advertisers weren’t willing to pay much (understatement of the year). For instance (are you sitting down?), in November 2008 we daisy chained the Double Click adXchange and Adwords, which resulted in a $0.03 eCPM; and that’s with the Q4 push!. We go a $16k check from Google and a $25k bill from DoubleClick (don’t forget that ad serving cost are incremental and run more than $0.03, so, this has been a losing game. Thus, premium publisher are out of the picture and the AdXchange business has been tough.
    If somehow the AdXchange connectivity to Adwords and AdSence now raises the eCPM and the AdXchange somehow starts miraculously converting for advertisers , display ads will have a new life, but that remains to be seen. As for how this scenario will affect the industry; if it works then there will be no great change – everyone will fall into their comfort zone: Agencies will buy, networks will arbitrage, publisher will distribute, and so on. TV will once again suffer the most. I hope it works, I could use a comfort zone 😉