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'Performance Based Advertising' will eliminate the problem of "Channel Conflict"

Does it bother you that DoubleClick (Google) and Atlas (Microsoft) are both owned by media sellers????? - Do you want them to be the ones giving you all the (their own) ad-serving data? - - (As per my previous InstaPost)

Clearly, the answer was a loud NO. Thus the 'creation' of the likes of AppNexus (for Microsoft) and an acquisition of InviteMedia, by Google.

seekingalpha.com/user/36191/instablog/se...

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[Mar. 15th, 2011 - Netezza 'powers' AppNexus Blog this story- Plus (in addition), the giant media Co WPP's (Quick View) ZAP Solution. (And a user of ad verification company, DoubleVerify) along with others of note.

MediaPost Publications DoubleVerify: MIG, Invite, VivaKi Top ...

seekingalpha.com/user/36191/instablog/se...]
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The Yahoo! Right Media Exchange's blog tells us that:

In December, 2010, Right Media’s Ramsey McGrory published an article highlighting some of the potential risks and challenges that Real Time Bidding presents to publishers. - His article introduces the concept of Primary and Secondary Markets.

www.rightmediablog.com/blog/2011/02/26/t.../

It is within the Secondary Marketplace where I feel that Looksmart will get the role of interoperability between all players that get to be involved.

The need for a 'blind' RTB auction for (so called) 'remnant' inventory is made quite clear in the article, where Ramsey McGrory points out:

< When a publisher has unsold inventory, this is sold or redirected to one or several networks.

........In this "Secondary Market," the publishers agree to sell inventory to the ad network because managing unsold inventory can be time consuming, not a core competence and low revenue compared to their Primary Market activities.
>

< With the full transparency that RTB provides, the opaque unsold market becomes fully transparent. Buyers get billions of bid requests across publishers where the full URL is exposed. From this, they can bid on only the most valuable URLs and reduce the need to contract directly with a publisher's sales team. This creates direct and severe sales channel conflict.>

On this very problem of "channel conflict", he then goes on to explain:

< Publishers focus their sales efforts leveraging field sales to call on advertisers and agencies. The vast majority of their revenue is generated via the field sales, seller-based model.

While field sales may generate 70-90% of revenue for a typical publisher, it may only represent 20-30% of all available inventory.

The unsold remainder can be monetized via ad networks which are contractually prohibited from disclosing site level reporting.

By distinguishing their direct sold, transparent, guaranteed campaigns from their indirect sold, non transparent, non-guaranteed campaigns, publishers are able to price their inventory with more control and little sales channel conflict.

With the full transparency that RTB provides, the opaque unsold market becomes fully transparent.

Buyers get billions of bid requests across publishers where the full URL is exposed
. [So] From this, they can bid on only the most valuable URLs and reduce the need to contract directly with a publisher's sales team. This creates direct and
severe sales channel conflict. >

Enter the 'shift' to the (blind) targeting of 'users' and audience buying within the marketplace and, across the entire web.

Looksmarts own marketplace (we have been recently told), will now focus on expansion of CPV (cost per visit) and CPA (or, cost per action), with those areas being the initial 'performance based advertising' offerings, as was mentioned in a recent CC made by the company.

seekingalpha.com/instablog/36191-looking...

At best a 'mini' exchange, Networks such as MediaTrust (with it's new Performance Exchange-that connects advertisers with customers - and, in real-time) may well be 'typical' of publisher representation within a (blind to all advertisers') marketplace. 

This then, will clearly provide a better deal for all publishers involved. Simply by (fully) eliminating the/that 'cookie to URL characteristic' (of, behavioral targeting) and by the retargeting of 'users' (or, by/with audience buying) no matter where they go, to sites within the total marketplace.

Read more: http://www.mediatrust.com/#ixzz1FItK8SpP

[With MediaTrust you get access to vetted publishers representing US and international markets. - I guess that may include ...The Webfirm Group subsidiary Adslot that (also) licenses a web-based platform to Internet publishers enabling them to sell premium advertising inventory more effectively?- seekingalpha.com/instablog/36191-looking...]

[Looksmart have also told of the licensing of approximately 30 new Publishers to it's Marketplace.]

LOOK: 4:00PM EST: $1.76  Down 0.02 (1.12%) - Volume 10,151/83,398

LC

ps; (12th September, 2011) ..

Performance Marketing Insider Interviews MediaTrust CEO, Peter Bordes. It's a revelation, I feel. A great interview.

performinsider.com/2011/09/peter-bordes-...

MediaTrust - seekingalpha.com/user/36191/instablog/se...

:LC
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Disclosure: Long LOOK and happy to be so...
.