Web publishers left with little after middlemen split ad spoils | Marketing & Advertisi... - 0 views
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In a not-atypical scenario, a publisher may only receive $1 of a $5 cost-per-thousand media buy once all the middlemen have taken their tithes. Where does the rest go? According to an estimate from Tolman Geffs, co-president of investment bank Jordan Edmiston, it gets divided like this: The agency ($.75), ad network ($2), data provider ($0.75), ad exchange ($0.25) and the ad server ($0.25).
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The space between advertiser and publisher has become jam-packed over the last decade, with literally hundreds of ad networks, data companies, yield managers, ad servers and exchanges all purporting to serve advertisers or publishers in some unique way; but all have their own business models that may or may not be adding value to either.
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what parts of the online display-ad ecosystem, estimated by eMarketer to be worth $7.9 billion in 2010, are adding value for publishers or brands, and what parts are preventing the flow of brand dollars into the system.
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While some publishers remain wary of Google as both a service provider to publishers as well as a competitor for display-ad dollars, Google's argument is that its motivations are virtuous. As VP-Product Management Susan Wojcicki said last week at the Internet Advertising Bureau's annual meeting, Google makes money when publishers do. That, and the set-up isn't much different from Microsoft, itself a seller of online ads as well as a service provider to publishers.
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Any time you have companies talking about their secret algorithms or black boxes, it should raise a red flag, he said. For publishers and advertisers, the question should be: Do they make the whole thing bigger and better?
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AdAge - In a not-atypical scenario, a publisher may only receive $1 of a $5 cost-per-thousand media buy once all the middlemen have taken their tithes. Where does the rest go? According to an estimate from Tolman Geffs, co-president of investment bank Jordan Edmiston, it gets divided like this: The agency ($.75), ad network ($2), data provider ($0.75), ad exchange ($0.25) and the ad server ($0.25).