Microsoft Advertising Exchange launches in Australia

Wednesday, November 9, 2011

November 9, 2011, Sydney – ninemsn today announces the Microsoft Advertising Exchange, a real-time bidding (RTB) marketplace that allows advertisers to bid on premium online inventory, is officially “open for business” in Australia.

The Ad Exchange, which will operate similarly to a stock exchange for ad impressions, delivers a new option for purchasing premium inventory on an individual impression basis — in real time. Advertisers (bidders) can look at each impression in the light of existing data and make an informed decision about whether they want to buy that impression, and how much they are prepared to pay for it.

Only those players who have the technological relationships in place to bid on the Microsoft Advertising Exchange are able to take part in the auction. Demand-side partner agencies joining the exchange for its Australian launch include: STW (Ikon), OMD, PHD, Group M (Xaxis), Cadreon (MediaBrands), Vivaki, Aegis (Carat/Emitch) and Criteo.

ninemsn’s Group CEO Mark Britt launched The Exchange before a live audience of more than 500 of Australia’s most senior marketers and media agency heads, at ninemsn’s annual Digital Marketing Summit held at Sydney’s Luna Park.

“This is not a product, it’s an entirely new way of media buying and an entirely new way of selling. We’ll be trading targeted impressions in real-time, based on real insights and data about the individual browser,” says Britt.

“The capabilities of real-time buying are yet to be fully realised in this part of the world. Exchanges are changing the ad game globally, and we’re predicting a major shift in the way the Australian market operates as a result of this technology being introduced.

The exchange won’t be offering just ninemsn inventory, major third party publishers have expressed interest in coming on board and trading their ads in this space also.

“This enables advertisers to define both the type of individual they want to reach and how much they’re willing to pay for individual ad impressions – this signals major change for the media industry.

“In addition to buying ad placements in an ‘environment’ with an audience, advertisers can now buy impressions for an audience they know is actively looking for products and services like theirs,” says Britt.

Display inventory across all ninemsn’s 80 premium product sites, as well as MSN and Windows Live inventory are now available in the exchange. Third party publisher partner inventory will be added to the exchange in the coming months also.

Impression data in the exchange can either be client-side owned (first party) data, third party market data that has been acquired by an advertiser, or a combination of the two. No personally identifiable information will be involved in the ad trading process.

APAC represents 40% of the global online audience and is set to overtake North America by 2014 in online ad expenditure. RTB is a key growth driver for online spend in Australia and we’re projecting a speedy migration to RTB buying for advertisers and agencies.

“You need only look at the results in the US to see just how rapidly Real Time Bidding is taking off,” says Britt.

  • In March 2010 3% of traded inventory was transacted via a real time exchange. Today, only 18 months later and since the launch of the Microsoft Exchange, 64% of traded inventory is RTB.

  • From the publisher side, Windows Live - in pre-launch tests in the US - saw inventory sold through the Exchange monetised at rates 192% higher than the rates achieved through traditional non-guaranteed channels.

Further media materials for the Microsoft Advertising Exchange:

Media Release Microsoft Advertising Exchange Launches

Demand Side Platform Partners: Quote Sheet

Media Q&A: Microsoft Advertising Exchange

Ad Exchange Case Study 1: Demand Side Platforms

Ad Exchange Case Study 2: Vivaki

Ad Exchange Case Study 3: Windows Live

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