Home  › Media › Media Buying
centro-riegsecker-swinand

Centro Throws Down Gauntlet to Ad Exchange Arbitragers

  |  May 16, 2012   |  Comments

Firm launches brand exchange, says other exchanges "failed on their promises to deliver" for publishers.

centro-riegsecker-swinandMedia logistics firm Centro is launching an ad exchange to help combat what the company believes is dragging down ad prices paid to publishers: mainly the current ad exchange ecosystem. The Centro Brand Exchange will operate differently from others, and promises to protect publisher's audience data that can sometimes be bought and sold by exchanges without publisher consent.

The firm, which has a legacy of working directly with local and vertical media publishers to connect them with advertisers, has partnered with data management and security company Krux to launch the private, invitation-only exchange. The exchange will include inventory exclusively from premium publishers, according to Centro, which says it will help its publisher partners garner higher CPMs for ads because it won't let their audience data leak onto other exchanges. It also will allow publishers more control over the advertisers buying their inventory, the company claims.

Ad exchanges "failed on their promises to deliver" higher CPMs to publishers, said Centro CEO Shawn Riegsecker (above, right, with Centro board member Andrew Swinand) who met with ClickZ last week to discuss the new offering. "Exchanges and [supply side platforms] haven't really helped publishers," he added.

He argues that arbitrage - the buying and selling of publisher's audience data by several middlemen - has become the name of the ad exchange game. He suggested many advertisers go to exchanges to target their ads to audiences of those premium publishers when the users are elsewhere online, thus reaching the audience at a much lower cost than when sold direct from publishers - and in arguably less valuable inventory. The result, said Riegsecker, is that the audience that the publisher pays to produce valuable content in order to attract does not reap the ad dollars it legitimately deserves in return.

"We're putting the rest of the market on notice to say, 'Guys, this has to stop.'"

The buying and selling of digital audience data has become a big business, and it could be difficult for Centro to build up enough inventory to make it worthwhile for advertisers to want to buy through the exchange. Still, Centro's promise to advertisers is higher quality inventory than what's in other exchanges. Riegsecker said he will appeal to publishers to participate by exposing the data dissemination problem.

Centro was founded by Riegsecker 11 years ago, and got its start helping advertisers buy local digital ad inventory. The Chicago-based company has 300 employees, 26 offices, and more than 400 agency clients, according to Riegsecker. Centro recently re-branded to highlight its evolution to a data-driven media buying and selling management technology and services firm.

The company also recently named members to its board, including Andrew Swinand, founding partner of Abundant Venture Partners and former Starcom MediaVest Group president, global operations.

Tags:

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Kate Kaye

Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...
    • Health Marketing Editor
      Health Marketing Editor (Agora Inc.) - BaltimoreCome flex your intellectual muscle as part of Agora, Inc’s (http://agora-inc.com/) legal team...
    • Marketing Systems Analyst
      Marketing Systems Analyst (OmniVista Health) - BaltimoreOmniVista Health is looking to add a Marketing Systems Analyst to our expanding team. We...