Ad Exchanges: Disrupting the Digital Agency

©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.

ClickZ, 7/20/10

The display-advertising marketplace is being rapidly transformed by the emergence of advertising exchanges. With exchanges, advertisers buy the specific audience member – based on the profile of the person visiting a particular Web page – as opposed to a general advertising buy on a media property. The transaction occurs through a system of real-time bidding that’s more similar to Google AdWords than a traditional display ad sale. For advertisers, the potential benefit is clear: precise targeting and no wasted spend because everyone who sees the ad is a part of the target audience. For creative and media agencies, ad exchanges are a different story: ad exchanges promise to completely transform the digital agency business.

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