Saturday, June 15, 2013

Would Apple Join Facebook, Twitter by launching an Ad Exchange



According to IAB, an ad exchange is a sales channel between publishers and ad networks that can also provide aggregated inventory to advertisers. They provide a technology platform that facilitates automated auction based pricing and buying in real-time. Ad exchanges' business models and practices may include features that are similar to those offered by ad networks. 

Apple alumnus Dan Grigorovici, now CEO at AdMobius, believes Apple has the potential to build a “tremendous” ad exchange. “Apple owns the device, the app ecosystem, the ad SDK, the transactional system (iTunes, etc.), multiple media channels (online, TV – albeit that’s small today, smartphones, tablets), multiple content categories (music, movies, etc.),” Grigorovici tells AdExchanger. “From that standpoint, I had always believed that if Apple plans to evolve the ad business to be more important, they have probably the best opportunity for cross-channel advertising, and one of the best data assets out there.”

So, will Apple pull the trigger and actually go through with launching an ad exchange?

Facebook's exchange has been a huge success for advertisers. The product has been expanded to include ads in Facebook's main news feed, not just the display ads at the side of the page. Facebook waited until after its public offering to go after the digital ad dollars tied up in display retargeting with last summer’s launch of Facebook Exchange (FBX). 

Twitter, reportedly planning an IPO for early next year, looks to follow suit -- but perhaps in a different order. The micro-blogging platform is planning to erect an exchange similar to FBX that would let brands retarget people who visit their sites with ads on Twitter, according to people with knowledge of the matter. Twitter did not respond to requests for comment.

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