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Exchange Buyers: Third-Party Data Costs Not Always Justified

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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In-image ads developing

Media Business, 4/4/11

Banner advertising, in-text advertising, in-stream advertising. Business media companies face a number of options for how best to monetize their websites and boost their ad inventory without alienating readers. Now they can add another one to the list: in-image advertising.

In-image advertising, which allows publishers to serve contextual ad messages when users roll over a photo or other image on a website, can command higher CPMs and click-through rates than traditional online advertising because it is user-initiated. While in-image ads have been used in consumer advertising for about three years, they are now starting to creep into b2b media markets…

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Mobile Insiders Say Apple’s iAds Are “Hurting”

TechCrunch, 2/10/11

Apple’s iAds are hitting a rough spot. Across the board, several developers I’ve spoken to confirm that “fill rates” for iAds dropped drastically after the New Year and have yet to recover. The fill rate—what percentage of the ad inventory is actually filled with an ad—for two separate developers plummeted from 18 percent to 6 percent. And in a few instances for some newer apps, none of the ad slots were getting filled, compared to nearly complete fill rates from other mobile ad networks. Others report better fill rates but as one developer says, “They have definitely come down.”

One reason for the dip could be just seasonal. The fill rates and advertising budgets across all ad networks in general take a hit after the holidays. But there seems to be something else going on here as well. “The general consensus among the advertising community is that it is a product they don’t want,” says one mobile ad tech CEO. The iAds business, he suggests, “is hurting.”

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