The irony: selling premium inventory direct

With the popularity of ad exchanges, there is a lot of conversation about what is happening with premium inventory. The irony is that just as newspapers seemed to catch up to the digital world and monetising their sites, the value of premium inventory seems to be declining. As advertisers are crunching budgets to get the best ROI, premium inventory doesn’t always add up from a direct response perspective – especially when compared to what can be bought off exchanges.

With the popularity of ad exchanges, there is a lot of conversation about what is happening with premium inventory. The irony is that just as newspapers seemed to catch up to the digital world and monetising their sites, the value of premium inventory seems to be declining.

As advertisers are crunching budgets to get the best ROI, premium inventory doesn't always add up from a direct response perspective - especially when compared to what can be bought off exchanges. Furthermore, their excess inventory ends up in the exchanges anyway - as the article says,"It's like a publisher trying to sell me an Armani suit for $3,000 but I can walk around the corner and buy it from Google for 90 percent less". Sites selling their premium inventory direct will need to work harder to prove that their brand impact is well worth the added spend. Also, this forces them to come up with new, sellable formats - exciting for us media managers!