Ménage à trois in display advertising starts on schedule.
The ménage à trois in display advertising among Yahoo, Microsoft, and AOL has started on schedule. The three companies said today they are officially offering one another's unsold inventory.
As a result, all three sales forces now have access to a trough of Interactive Advertising Bureau standard ad space bigger than any offered in one place before. But more important than reach and volume is quality, as the deal's architects pray media buyers will view the new marketplace as the first stop for brand campaigns concerned above all with locking in "premium" media.
Yahoo and AOL's ads will be served on the Right Media Exchange, while Microsoft will use its own branded exchange, which is built on the AppNexus platform.
The agreement, announced in November 2011, spans not only the portals' branded sites but also network partners. It lets the three companies do what ad networks have been doing for years - resell each other's media. The main difference is a matter of scale and complexity. AOL, Microsoft, and Yahoo together represent a greater variety of inventory types than is available through smaller ad network companies.
One risk is that the arrangement could remove the differentiating audience characteristics of the companies' three ad network products: Yahoo's Network Plus, AOL's Advertising.com, and the Microsoft Media Network. Those networks will still offer unique data and other capabilities.
Another interesting question is how intensely these three ad sellers will compete to be the point of contact for agencies. In a blog post today, Yahoo advises its media buyers interested in accessing inventory on Microsoft and AOL to "please contact your Yahoo account executive or account manager."
"I want to thank Yahoo and AOL for their partnership on this agreement, which took a concerted effort from all parties," Daniel Scheinberg, senior director, display marketplaces at Microsoft Advertising, wrote in a blog post. Four months ago, the trio announced the partnership would take effect in the first quarter of 2012.
Correction: An earlier version incorrectly stated AOL is offering its inventory on Microsoft's ad exchange. In fact it will use Right Media.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!
Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects.
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
June 10, 2015
12:00pm ET/9:00am PT