In an article in Ad Age, vertical ad network IDG TechNetwork announced that it has entered into an agreement with sell-side platform AdMeld, who will provide technology and services for a private display ad exchange called TechMediaExchange.com. AdMeld CEO Michael Barrett tells Ad Age's Edmund Lee, "More and more publishers are looking to find ways to reclaim their inventory, which has long been sold in a black-box exchange where buyers get lowest possible rates." Read more in Ad Age.
Peter Longo, CEO, IDG TechNetwork, discussed his company's private exchange strategy.
AdExchanger.com: Why is it important that buyers are curated for your private exchange?
PL: Our goal is to build a premium experience on Tech Media Exchange (TMX) in the same way that we have delivered on the IDG TechNetwork. As a private ad exchange, we are creating an environment where the best technology advertisers will appear on the best websites creating the best experience for the end user. To accomplish this, we have chosen to partner with AdMeld to power TMX. In addition, while the Exchange will be a real-time environment, our largest and best technology marketers and agencies are going to want to secure longer-term inventory futures to meet their campaign objectives, which is in the best interests of both our publisher sites and the TMX.
Can you share who the partners will be and why?
We are in beta through next month, and will announce partners by the end of February. However, the likely advertisers are not hard not to imagine: DSPs and ATDs representing technology clients.
How does the private exchange work with your publisher network partners? Do they opt-in? Is it part of their ad network stack which they adjust as needed?
Sites in our current ad network - IDG TechNetwork - will have the opportunity to join TMX. In many cases where we have exclusive relationships with sites, the Exchange and our adnetwork will be one and the same. New sites will have the opportunity to join TMX, IDG TechNetwork or both depending on their objectives. Our goal is maximum flexibility and monetization for the publisher. As is the case with the IDG TechNetwork, we will select only the highest quality sites for TMX.
What's your expectation for total volume and revenue from the private exchange?
We currently have more than 450 publishers and two billion impressions in the IDG TechNetwork worldwide. We expect TMX to be even larger. It's important to note, however, that this isn’t a volume only game for us. We want to select the best technology sites that can return the most value to our advertisers so they are ultimately able to buy inventory from us in a way that best suits their business objectives. We are creating a quality experience for advertisers that matches their brand values.
How will you manage potential channel conflict with direct sales?
Tech Media Exchange is a new sales channel for us; however, the majority of our customers want to buy from our IDG TechNetwork sales team as they always have done for their advertising campaigns. They want custom units and custom packages from our sites in a non-preemptible, guaranteed environment now and in the future. They will continue to be our direct sales customers. With the Exchange, these customers will also have the opportunity to look at inventory avails as well as futures, if they so desire. Additionally, for those who want to purchase standard IAB units in an automated, biddable manner that makes use of Demand Side Platforms and/or Agency Trading Desks, TMX will now give them that option.
By John Ebbert