Exchange Buyers: Third-Party Data Costs Not Always Justified

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

ClickZ, 4/24/11

The volume of online ad inventory purchased through exchanges continues to grow. Yet, the cost of third-party data on which to target those buys remains prohibitively high for many advertisers, agencies suggest. Most advertisers currently buying ads on a real-time basis are therefore doing so based on their own first-party data, rather than audience information acquired from vendors.

The number of real-time impressions bought by Publicis-owned technology unit VivaKi has increased roughly 300 percent, year-over-year, according to SVP and director of the organization’s Nerve Center operation, Kurt Unkel.

Despite that fact, less than half of the 150 advertisers currently buying real-time impressions through its Audience on Demand (AOD) platform are doing so based on third-party data, he said, stating, “For some advertisers the results often aren’t effective enough to warrant the cost of the data. The question is – is the data adding substantive value to the campaign?”

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