Understanding the Value of Ad ExchangesMarch 24, 2011 By Jim Sturdivant
INBOX: How can publishers and other media sellers capitalize on the growth of ad exchanges?
FANLO: As media sellers and publishers adapt to shifting success metrics through their online properties ... advanced analytics [can] give publishers more opportunities to adapt without overhauling their yield management operations. By minimizing arbitrage, exchanges provide the clearest representation of fair market value for ad inventory, attracting advertisers to shift more dollars online and cultivating a robust network for publishers to draw from. This clear value proposition has propelled adBrite's growth; we now serve more than 1 billion ads per day across more than 120,000 publishers.
Exchanges like adBrite provide click-through algorithms and other estimations to bring the largest and broadest amount of ads into consideration for any particular spot. It's very easy for publishers to join exchanges and tap into the marketplace they support, in order to start reaping these benefits across their properties.
INBOX: What does the recent publisher-as-agency trend (Hearst buys iCrossing etc.) mean for services like yours?
FANLO: Consolidation will be a fact of life for all members of the online ecosystem, and the ability of ad exchanges to determine fair market value for each participant will ensure our continued growth.