Online Ad Marketplace

by

Fred Wilson writes:

Online advertising is a marketplace and its working great. That $12.3bn number was around $9bn last year. Any market that is that big and growing at 30% per year is super healthy.

But there are some things that aren’t yet right about this market.

For one, there really isn’t true price transparency. And there isn’t true performance transparency. It’s not like anyone in the world can look at the xbox 360 ad campaign that Microsoft is running, chart it, see how it is performing, understand how it is being priced in the marketplace, and step up and say “I’ll take some of that”. I can do that with MSFT, the stock. But I can’t do that with Microsoft the advertiser.

I believe that right now, we have a marketplace, but it’s a nascent marketplace.

The thing that gets me so excited, though, is that is so clear where all of this is headed.

Toward massive liquidity

Toward total price and performance transparency

And toward a completely open marketplace where anyone can run anyone’s ad campaign.

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