While online trading companies in the UK are still at an early stage, a look at the more developed US situation gives a few clues as to their future in this country. A recent entrant to the market, Cuica Corporation, is enjoying success, while rivals have been forced to close their doors.
CuicaExchange launched this week into what is already a crowded marketplace. Describing itself as a “dynamic online advertising marketplace”, the system is available to both buyers and sellers and provides tools for highly targeted internet-based advertising.
With no upfront fees, advertisers, media buyers and sellers can log on without commitment. Sellers tag and price pages to be sold and watch as advertisers bid for their space. As an advertiser logs on, the system automatically integrates its online catalogue, creating online ads in various sizes before allowing them to specify a particular target category. Finally, the advertiser submits their budget and timing information and CuicaExchange then places the ad in the spot where it will generate the highest return.
“Cuica offers an extremely efficient way for buyers and sellers of online advertising to maximize returns,” explains Eduardo Llach, Cuica’s CEO. “Using our Exchange, advertisers are assured that their ad is placed within relevant content and sites can sell their specific unsold inventory at the optimal price. Our unique technology leads to increased ad revenues and e-business success.”
The site is already enjoying success, with click-through rates of up to 4%. Its main competitors include sites such as Broadcastspots.com and OneMediaPlace.com but the market has already taken two victims – AdOutlet and AdExchange – who were recently forced to close their doors.
Online trading systems in the UK are less developed so far, but there are a number of platforms currently being used for monitoring advertising offers and for basic briefing. Phase one of MediaTel’s own MediaTrader carries advertising opportunities from over 70 media owners including Capital, Chrysalis, Emap, IPC, Freeserve and the Guardian.
Other systems include imediapoint, ADazzle and Optimad. The most advanced media e-commerce product in the UK remains J-ET, the radio industry’s booking and accountability system, created by the CRCA and IPA, and developed by MediaTel. This is now used by all the major radio sales points and the top twelve radio buying agencies.
www.cuica.com www.mediatrader.co.uk
