July 24, 2017

AOL Microsoft Yahoo 3 Admigos

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Major Internet Advertising players, AOL – Microsoft – Yahoo are teaming up to compete against Google and Facebook in the Display Advertising market.  The market which has long been dominated by Yahoo has seen the balance of power shift over to Google.

Microsoft - AOL - Yahoo!The Display Ad market has massive growth potential. Zenith Optimedia projects that display internet advertising spend, expected to reach $25.27 billion this year, should grow an impressive 36% to $34.4 billion in 2013. Similarly, paid search spend is forecast to grow 33%, from $35.1 billion to $46.6 billion.By contrast, classified internet ad spend, pegged at $11.81 billion in 2011, is expected to grow a comparatively small 18% to $13.96 billion in two years.

All Things D Peter Kafka reported: “Executives from all three companies briefed a group of top Web publishers and ad buyers about the plan at a dinner presentation last night in Manhattan. AOL, Yahoo and Microsoft hope to convince big Web properties to share some of their ad inventory as well, and to get big ad holding companies to funnel some of their purchases through the consortium.”

The concept is: Microsoft, Yahoo and AOL  agree to sell each other’s “Class 2 display” inventory — graphic ads the companies can’t sell on their own and would normally hand over to ad networks. The plan, which could start as early as the end of this year, does not require exclusivity from any of the players, or does it prevent any of the consortium members from working with any other ad networks, ad tech company or even FaceBook or Google directly.

Google meanwhile has released new tools within the DoubleClick Ad Exchange and DoubleClick for Publishers, to help publishers maximize ad revenue. Publishers will be able to manage all currently running ads across all platforms from a single dashboard and compare channel data. The other new feature, Direct Deals on the DoubleClick Ad Exchange, allows publishers to offer ads to specific groups at a set rate before releasing them to the general auction.

The future of the AOL – Microsoft – Yahoo online advertising syndicate remains to be seen, but it sounds like a great idea who’s time has come!