Media buyers are concerned about the 'gang of four' premium exchange that could launch within weeks. They question whether it will actually happen. They also want to know details and what it means for relationships with the individual publishers involved.
Fairfax, Mi9, News and Yahoo!7 are joining forces to launch the exchange as early as next month, AdNews reported yesterday.
Australia's big four online publishers aim to counter Google and the rapidly growing might of media agency-owned demand side platforms (DSPs). The group has cited examples in France and Canada as case studies for success.
Media buyers agree with the theory but have demanded details. "What is premium? You have to be very clear what it means," said Group M chief digital officer Dany Bass. "It needs to be discussed and defined." He said the broader exchange concept also needed nailing down. "We need details. There have been no official briefings."
Bass said Mi9 Ceo Mark Britt had been "very vocal on the strength of Google" and that he understood the publishers' rationale. "But there are a lot of holes in the story that [are preventing] agencies making a decision on it."
Bass also asked what it meant for agencies' relationships with the individual publishers involved in the joint venture. As did Mediabrands executive chairman Henry Tajer.
"Currently the publishers named as partners all sell premium inventory directly, not via the exchange," said Tajer. "Will it substitute or compliment that? Is it a different type of premium inventory that we don't know of? There need to be clear, succinct answers to those questions."
Tajer said it was good that the publishers that had complained about exchanges about in other parts of the market had now created a solution.
If the four managed to get the private exchange up and running, said Tajer, and it "results in clients being able to engage in digital and extract better returns and higher value, then it is an excellent concept". But if it doesn't "it won't succeed. That's the ultimate filter and barometer for anything that the market does."
Peter Horgan, Ceo at OMD, said the attempt to create a premium private exchange was "positive as these entities had not been playing before". He said the decision for OMD optimisers was the "whether it is worth it or whether they can find better value elsewhere."
PHD national head of digital Peter Hunter suggested that the timings may be optimistic. "We hear that a technology has yet to be chosen so [a couple of weeks] might be premature." What the technology stack looks like is the kind of detail that the market needs to understand, he said.
Overall, Hunter said it was a good move towards open market prices, but wanted to see the effect on volume and price before making a judgement.
James Simmons, head of digital at Match media said that the move was positive.
"It creates volume at the premium end, which has been hard to come by in the past." To consolidate at the premium end of the market was 'a smart thing to do", he said.
According to Mi9, no other market has been able to get the top four publishers together with a reach of above 80%. If the premium exchange concept in Australia is able to get off the ground, it would be a world leading proposition. However, it is understood that there is not a concrete deal in place between all parties.
Fairfax commercial director of Metro Media said there was "no agreeement in place. I can't comment beyond that."
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