Why can’t media placement firms guarantee online ad placements? As a marketer, is this a business model they need to just “deal with”?
The structure of the online advertising system is complex and there are so many clutters between the advertiser and the consumers, as mentioned in the article, for it is the programming that is doing the entire ad placement. And even with all the checks and balance the computer is doing it still cannot guarantee 100% where the ad will be placed. Not to mention the involvement of the resale market, where the ads can be exchanged. And since the programing is the inevitable future and the advertiser focuses on the price efficiencies and direct responses, then I believe this business model will have to be accepted as part of the norm.
• Explain what an online “resale market” is? Visit the website www.appnexus.com and briefly explain what they do in your own words (please refrain from coping directly from the “About ”section).
The online resale market is where ads are exchanged thousands of time a day solely by computers. It is where buyers and sellers are matched based on their requirements, which are the companies with ads to place and publishers with video players and spacing to provide. Appnexus is a technology company that tracks online advertisement performance and trading, also provide solution to their customers. It is a platform for the customers to buy and sell their media openly and transparently.
• The article states “it behooves almost no one to clean up this mess…” Please explain the reasoning behind this statement.
The reason behind this statement as mentioned in the article, the advertising system is complicated and complex and there are so many clutters and multiple players between the advertiser and the consumers, such as media-buying desks, demand-side platforms, supply-side platforms, syndicators, data management platforms, encoding and transcoding companies etc. And these businesses are