Since the advent of “Ad Exchanges”, industry speculators have been predicting, as the article does below, that ad exchanges would eliminate the need for ad networks. While exchanges will serve a role and certainly change the landscape, I think the reports of the networks demise however are greatly exaggerated for a host of reasons. Here are two of the big reasons.
First, many (most) premium publishers simply won’t auction off their audience and allow the cherry picking of just a handful of users. The costs of running a publishing organization have to be born across an entire audience, not just a few.
Second, we are entering into the thick of a privacy storm that has been brewing for a while. Congress and the FTC are moving towards actions, not just words, and behavioral targeting technologies, like those employed with ad exchanges, are right in their sites.
What do you think?