DIGITAL MARKETING HUB v2.0 - AdExchanger

Digital Marketing Hub v2.0
BMO Capital Markets
nisms. This has naturally resulted in innovation focused on the sell-side, such as the sell-side
platforms and private exchanges, which are explored more below.
Ad exchanges are increasingly offering online video and mobile advertising. For example,
Google’s DoubleClick Ad Exchange offers ad inventory from YouTube and mobile ad
network AdMob. This underscores how the business models profiled here are increasingly
underpinning all IP advertising. Whether on a smartphone, tablet, PC or IP-connected television,
the exchange model is increasingly spreading through more and more advertising.
Exhibit 48. DoubleClick Ad Exchange Overview
Source: Google
Retargeting
Retargeting isn’t new, however the term has risen to prominence in recent years. The
basic “twist” of re-targeting is using data from users that showed intent signals to optimize
targeting. This data used to re-engage the user could include simple site visitation, shopping
cart abandonment, search keywords or data from, for example, an auto-comparison site. For
the user, this has the effect of seeing an advertisement “follow” them around the web, as the
re-targeter purchases ads from other networks and ad exchanges in order to deliver an ad for
the product the user was shopping/searching/learning about based on an anonymous profile.
By engaging users after they have shown intent, re-targeting (like search) is normally seen as
bottom-half-of-the-funnel marketing.
E-commerce-based re-targeting is well-established; more recently it has been the use of
search query data that has garnered more attention. As it does in many conversations
around digital marketing, Google is a key cog in the discussion due to its significant share in
search engine usage. As multi-channel optimization gains traction, the company is increasingly
at the center of the conversation around “unified” data from across various media and
advertising channels. This marks a good moment to move onto the section business model.
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June 7, 2012