Google’s DoubleClick Ad Exchange
September 21st, 2009 by christineLast Friday, Google’s Official Blog announced the new DoubleClick Ad Exchange, the first big product to be born from Google’s $3.1 billion acquisition of DoubleClick back in 2008.
The DoubleClick Ad Exchange offers an open marketplace for display ads, allowing advertisers to bid in real time for any ad space being sold by publishers across a variety of Websites. Both Yahoo and Microsoft have been in advertising exchange since their 2007 acquisitions of RightMedia and AdCN respectively so the Ad Exchange is a little late to the party.
Google’s additional prep time was based on their belief “that a better system built on better technology can help grow the display advertising pie and benefit everyone.”
Ideally, the Ad Exchange will bring a new level of simplicity and transparency to the display advertising field.
Taking a cue from their success in search advertising, Google is welcoming display advertising n00bs. The Display Ad Builder was recently launched for easy display ad and campaign set up. (This actually does look super simple to use.) Current AdWord advertisers will be able to use their existing AdWords interface to run display ads on sites in the Ad Exchange. More advertisers should equal more pie. Publishers also benefit from the Ad Exchange’s real time bid feature which would allocate ad space based on who is willing to pay the most at that particular second, maximizing return for every impression.
At the same time, the Ad Exchange provides advertisers access to more publishers and tools to cost-effectively purchase ad space based on target audience and impression data. Google is hoping to bring the ‘long tail’ concept from search into the display ad world by making it easier for advertisers to find cheaper, less popular sites that can bring similar or better return than the big ticket, high traffic sites.
Of course, this is where some ad executives reach a bump on Google’s road to a pie filled world, noting that if the Ad Exchange succeeds, the big ticket, high traffic sites are going face increasing competition from smaller, cheaper sites. The Ad Exchange open market bidding could lower the price of high-end ad space which would be problematic for high-end publishers.
Others never believed in the pie filled world to begin with and shrug off the Ad Exchange as just another ad network.
As a dedicated Googler, I am eager to see where the Ad Exchange will take display advertising if anywhere at all.
















