Open ad marketplace, continued

Pat McCarthy replies to Chas Edwards’ questions about value in an open ad marketplace:

Just because an open ad marketplace is “frictionless”, doesn’t mean these same advertisers couldn’t find these same high quality publishers and advertise on their inventory. The value of an auction is that it bids the value of inventory up. If Fred Wilson’s blog advertising was available in an open marketplace, he could still get a premium for his inventory, and only accept advertisers he wanted to work with.

:LATER: Zach Coelius, who’s starting an ad network and technology company, also responds. Note that Triggit, his company, now has an ad relationship with LiveJournal.

  • my 10 pence/cents on this..

    As an industry we’ve got a real problem here in defining ‘value’ and ‘quality’ to both advertiser and publisher. Value to a direct marketer is in cost per acquistion, value to a brand is in environment, impact and awereness shifts (something that as an industry we shy away from).

    For publishers, what we think is ‘quality’ may not deemed so by advertisers. A ‘smiley’ site might be ‘quality’ for Jamster or Ladbrokes but certainly not for Cartier or BMW.

    I agree that a marketplace by its nature finds it’s own value, but in an industry weened on metrics and numbers, the ‘brand’ site will struggle to get the premium it needs…so those sites stick to selling themselves, face to face.