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Advertising - Wednesday, April 4, 2007

DoubleClick Ad Exchange Speculation Confirmed

We speculated Monday on rumors that DoubleClick had a skunk works ad exchange up its sleeve. The NY Times reports that DoubleClick is announcing that it is setting up a Nasdaq-like exchange for the buying and selling of digital ads. A blogger who works at Rightmedia, an ad exchange funded by Yahoo! among others responded to our speculation here.

Given that Google and MSN may be in a feeding frenzy over DoubleClick this quote throws more chum in the waters:
"DoubleClick, based in New York, views the exchange as the centerpiece of a growth plan and may derive the majority of revenue from the new service within five years," said David Rosenblatt, the company’s chief executive, said in an interview.

Rosenblatt described the exchange as "a mix of eBay and Sabre, the airline reservations system that travel agents use. The service will let advertisers see information about what competitors bid for particular ads, in the same way that eBay shows visitors past bids. And it will let publishers try to ensure that they sell their ad spots at the highest possible price, the way that airlines try to do with the seats they sell."

DoubleClick says it has signed up 35 Web publishers, advertising networks, agencies and advertisers to test the system which it plans to launch in the third quarter. Testers include Advertising.com and Media Contacts.

Read - DoubleClick to Set Up an Exchange for Buying and Selling Digital Ads (NY Times)