Product Strategies to Stem the Erosion of Ad Rates
Wednesday, February 18th, 2009
During News Corp’s quarterly earnings call earlier this month, global media mogul Rupert Murdoch explained his long-term position on Internet advertising. He states that the almost infinite increase in ad inventory is putting a constant downward pressure in prices, making it difficult to monetize audiences, especially with ad spending on the decline.
A large chunk of my responsibilities at Yahoo! deal with this exact problem. In an environment where online advertising is becoming a commodity, how do you maximize the selling of premium inventory while using networks and exchanges to monetize the gaps? All while achieving the highest possible rates the market will bear. In an ideal world, exchanges and adservers would maximize network traffic to monetize each impression to its fullest. The truth is that the imbalance between supply and demand, as well as the relative immaturity of exchanges is causing a huge gap, and impressions are selling for bargain bin prices.
Tags: exchange, monetization, networks, nytimes, product strategy, tech ticker
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