Google’s online advertising segment, which brought it a multi-billion dollar revenue last year (and probably again this year) is going for another major upgrade.
As announced on its blog, Google is launching a DoubleClick Ad Exchange, which aims to grow the display advertising pie for everyone.
That means Google, advertisers and publishers alike!
The concept is simple. The new Ad Exchange is a real-time marketplace that helps large online publishers and advertisers buy and sell display advertising space.
Google explains:
“These publishers and ad networks manage and represent large volumes of ads and ad space from lots of advertisers and websites. By bringing them together in an open marketplace in which prices are set in a real-time auction, the Ad Exchange enables display ads and ad space to be allocated much more efficiently. This improves returns for advertisers and enables publishers to get the most value out of their online content.”
Benefits for Online Publishers & Advertisers!
Even with great content, many sites are experiencing trouble selling their advertising space. It is very much like an airplane flying at below its maximum capacity. This means that publishers are not maximizing ad space and therefore, revenue.
Even if publishers are maximizing ad space at an affordable price for advertisers, the old ecosystem is unable to bridge them together effectively. With this new open marketplace, online publishers will have a higher chance to sell their ad space and advertisers will enjoy a wider array of choices.
Catch this video to get a better picture.
Here’s a PDF file that explains this new product in greater details.
Last month, we saw minor changes in Google’s advertising-related platform: shift of its search engine ads to the left and a new conversion optimizer on Google Adwords.
Google never fails to make advertising more efficient!
Google just keeps going!
This new Ad Exchange marketplace will probably change the way online publishers and advertisers manage their business and campaigns respectively. Even though it is not exactly catered for the day-to-day consumers, Google has again brought us another revolutionary product! With all the possible benefits that the upcoming Google Wave is expected to bring, we would think that it is enough to keep it busy.
I guess we’re wrong and competitors, notably Microsoft should start bucking up.
