Emergic: Rajesh Jain's Blog

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Online Ad Marketplace

December 8th, 2005 · No Comments

Fred Wilson writes:

Online advertising is a marketplace and its working great. That $12.3bn number was around $9bn last year. Any market that is that big and growing at 30% per year is super healthy.

But there are some things that arent yet right about this market.

For one, there really isnt true price transparency. And there isnt true performance transparency. Its not like anyone in the world can look at the xbox 360 ad campaign that Microsoft is running, chart it, see how it is performing, understand how it is being priced in the marketplace, and step up and say Ill take some of that. I can do that with MSFT, the stock. But I cant do that with Microsoft the advertiser.

I believe that right now, we have a marketplace, but its a nascent marketplace.

The thing that gets me so excited, though, is that is so clear where all of this is headed.

Toward massive liquidity

Toward total price and performance transparency

And toward a completely open marketplace where anyone can run anyones ad campaign.

Tags: Search Engines

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