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Google Opens the New DoubleClick Ad Exchange

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Ad Operations OnlineOpen marketplace to help advertisers get better results and help publishers maximize their revenue

Google announced that it is opening the new DoubleClick Ad Exchange, a real-time marketplace for display advertising space.

By establishing an open marketplace where prices are set in a real-time auction, the Ad Exchange enables display ad space to be allocated much more efficiently and easily across the web.

“Better technology can help make display advertising work better for all involved,” said Neal Mohan, Vice President of Product Management at Google. “We’re focused on growing the display advertising pie for everyone. The DoubleClick Ad Exchange is a major part of that goal.”

The new DoubleClick Ad Exchange has been rebuilt using Google’s technology and infrastructure. It contains a wide variety of key features that will help improve returns for advertisers and enable publishers to get the most value out of their online content.

On the “sell side”, participation in the new Ad Exchange is designed for major online publishers. It already includes a wide variety of large premium publishers including newspapers, large portals, entertainment and branded sites. In addition, ad space on Google’s third party AdSense publisher sites, representing over 76% of U.S. online audiences and 73% of global online audiences1, is being made available through the new Ad Exchange. This will increase the volume of quality display advertisers available to Google’s AdSense publishers.

On the “buy side”, the new Ad Exchange is designed for ad networks and agency networks – companies that connect web sites with advertisers. It already includes over 40 ad networks across North America and Europe, including most of the 25 largest ad networks in the US2, with more now to be added. Additionally, AdWords advertisers will be able to run ads on sites in the Ad Exchange, using their existing AdWords interface.

Features of the new Ad Exchange include a completely new interface; a “real-time bidding” feature to allow ad networks to use their own technology to bid on an impression-by-impression basis; a “dynamic allocation” system, which automatically generates online publishers the highest return for every impression by allocating ads to the highest-paying sales channel, based on real time data; more granular publisher and advertiser controls; payments and clearing managed by Google; and a new API to allow ad networks to extend the functionality of the Ad Exchange.

Key benefits for sellers include:

* Real-time dynamic allocation to maximize yield. Publishers can automatically generate the highest return for every impression, using real-time data and bids to allocate ad space to the sales channel that pays the most at that second.
* Access to many more advertisers. The Ad Exchange offers publishers access to new buyers, including AdWords advertisers, bringing higher quality ads and more competition for ad space on their sites.
* Hassle-free payments managed by Google. We manage the billing and payments from networks so publishers get one monthly payment and minimize having to manage multiple relationships.
* Greater controls. Publishers can decide what advertisers, networks, ad formats, and bid types to allow.
* New easy to use interface with enhanced reporting. We use the simplicity of Google’s user design principles to help publishers easily find out how their sites are performing, to help them make the right decisions about their ad space.

Key benefits for buyers include:

* Access to more publishers and more ad space. Hundreds of thousands of AdSense publisher sites are now available on the Ad Exchange to Google-certified ad networks. And as more publishers join the Ad Exchange to take advantage of its yield management capabilities, more high quality inventory is being added all the time.
* Real-time bidder. The Ad Exchange has a new real-time bidder feature that allows buyers to use their own data, optimization and ad serving technologies to bid on their desired inventory on an impression-by-impression basis, choosing only the sites, audiences, or particular type of ad space they want to reach.
* New easy to use interface with enhanced buyer reporting capabilities. Redesigned reports are simple to use and understand, so buyers can easily see how their campaigns are performing to help them make the right decisions.
* More control and precision. Buyers control where their ads appear and don’t appear. They can use frequency capping, pacing and other features to precisely control ad delivery.
* Centralized clearing system. Google makes all payments to publishers, reducing complexity with a single billing and payment point. Buyers benefit from managing one business relationship instead of many.
* A new API – Ad networks and agency networks will have access to an API which enables them to integrate their own functionality and systems when working with the Ad Exchange.

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