eBay Ad Exchange In Business
This past May, eBay launched an Online Media Exchange which functions as an ad exchange to buy and sell TV time. Most networks have been skeptical about the idea; however the Oxygen network took a risk that has seemed to have paid off.
Being the first successful seller on the advertising exchange, Oxygen has sold a schedule for the third quarter to Intel for a reported six-figure sum. Previous to this, Intel had not advertised on the network.
Mary Jeanne Cavanagh, Executive VP of ad sales for Oxygen stated that the auction did not turn out to be a price-deflator, contrary to the worries of many other networks. While almost a dozen other networks registered to obtain Intel’s request, Oxygen was the only bidder.
The Ebay auction environment is yet another step in the growing popularity of advertising exchanges online and offline. Ebay was arguably one of the first auction environments online, while not a formal exchange model, Ebay has led the way in auctioning many kinds of products and services through its popular portal. The recent acquisition spree of online advertising exchanges like Right Media by Yahoo and AdEcn by Microsoft bring the auction exchange model to the forefront. The question remains if these new revised concepts on traditional network models will bring the efficiencies and value to the table of online and offline media buyers expect.
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