While plain text ads are very popular on the Google Content Network and form a very important part of the AdWords online advertising platform, display ads still lag far behind in popularity. Google’s new Ad Exchange hopes to change this.
One of the reasons for their low adoption rates could be the complexity involved with display advertising. Display ads are available in several formats, such as images, videos and interactive gadgets. It can be a laborious task to manage the organisation of such varied ads across thousands of Google Content Network sites. Hence, advertisers have not been too keen on this form of advertising.
Publishers on the other hand, are left with a lot of unused ad space on their sites.
To help simplify this process for both the parties involved, Google has now launched the new DoubleClick Ad Exchange. This ad exchange will be a platform from which publishers can sell and advertisers can buy the required ad space via their existing Google AdSense and Google AdWords accounts.
The exchange will function as a real-time automated auction market. Advertisers will try to get better ad space, while publishers will try to extract better rates from the advertisers and also sell more of their available ad space.
The exchange will also allow advertisers to measure the performance of their ads, thus offering a degree of accountability. It will also make display advertising more accessible to all advertisers.
In 2008, the total revenue generated from online advertising was $23.4 billion, while display advertising accounted for only $7.6 billion of that total. Hopefully, the new, better integrated Google AdWords / DoubleClick Ad Exchange will help to increase the revenue generated by display ads.
So far, Yahoo! remains the market leader for display ads ever since they bought RightMedia in 2007 for $680 million. Google, no doubt, hopes to be able to now overtake Yahoo!
Introduction to the new, open Google Ad Exchange