Google's Invite Media Buy

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Forbes reporter Laurie Burkitt features three takeaways from Google's buy:

1. The consolidation begins here. The $8 billion digital advertising landscape, which--in case you haven't seen--is one of the most chaotic, cluttered spaces in business. Hundreds of companies are in the midst of a marketing money-grab, all vying for the same piece of the ad pie. The Google buy will spark other demand-side platforms (DSP) to close shop or to merge in order to compete with Google. It may even spur some DSPs to cozy up closer to ad agencies.

2. Expect Google to push marketers to buy more ad inventory on its exchange, AdX. Exchange buys are still nominal in comparison to the total of ads placed on the Web each year. But these inventory grabs, when infused with targeting technology, according to digital ad companies such as Turn and AudienceScience, are more efficient uses of marketing budgets. Auction-based platforms allow ad agencies and marketers to place advertising in real-time, when it appears most relevant to consumers.

3. Expect publishers to cringe. Most publishers shy away from ad exchanges for fear that they drive down revenues. Ad auctioning on the Web, where the supply for ad space is endless, hasn't been a profitable attempt.

The complete article is available at Forbes.