The proliferation & evolution of online media trading platforms continues apace

Catryn Brogan, director at Media Lateral, says media agencies, owners and brands should not be scared to dip their toe into new trading platforms but embrace them as they become an increasingly vital part of the media trading process…

With the recent launch of our Media Lateral online trading platform – the first platform of its kind for print inserts – we are now one of a number of other technologies that are playing an increasingly important role in the way media is traded.

This begs the question: are we set to see a continued proliferation of such platforms, and are they on course to become the primary mechanic through which to buy not only online, but offline media?

To answer this, it’s important to touch on the history of such platforms. They appeared in the ‘noughties’, driven by evolving technologies and online publishers looking to sell remnant inventory.

After proving a hit in the trading of online adverts – just look at the big boys such as Yahoo! buying Right Media and Google’s investment in its DoubleClick exchange – these platforms have now made the jump into the offline world, with the likes of Bid4Spots delivering a trading platform in radio airtime, and ourselves in inserts.

Today, there is no question that exchanges are becoming an important part of the media trading environment – just look at Bid4Spots celebrating its fifth birthday this month. Also some platforms are taking the next step and are moving into selling premium inventory as Right Media is now doing in the online advertising marketplace.

There are numerous reasons for the strong growth of these platforms. One of the key elements is that they allow all parties to trade in a secure environment that ensures the confidentiality of all participants. Importantly, they provide media agencies and brands with control over the price they buy at – ensuring they never pay more than they are comfortable with. Conversely, media owners can ensure they never sell for less than they find acceptable.

Another is the nature of the web. The fact is media trading is highly flexible and can, in many cases, take place around the clock, making these platforms highly efficient. This efficiency is vital for a media industry that is notoriously time poor, particularly one that helps them make and save money.

In my view, I see these platforms allowing more face to face sales time for media owners and planning and buying time for media agencies; enabling all parties to focus on growing their business. It is worth bearing in mind at this point that the media industry is a very people-focused one and thrives on the relationships between the media agency and the owner. These platforms will not replace the media owner and agency relationships, which remain a vital part of the trading process. To put it simply, I see this technology enhancing the entire media buying and selling process. This is particularly pertinent in the offline media world.

It will be interesting to see over the coming months and years whether there will be trading platforms set up to manage offline display advertising, sponsorship and any other media not yet available via such platforms, as the media industry becomes more familiar with them.

Also, it is important to highlight that these platforms help to re-invigorate the media channels they operate in, which is vital in the inclement economic environment we currently operate in. There is no question that the advent of ad exchanges in the online advertising world really helped to deliver increased cash flow for all parties trading this media.

Therefore, media agencies, media owners and brands should not be scared to dip their toe into these new trading platforms, but embrace them as they become an increasingly vital part of the media trading process – one that can really benefit all participants.

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