Organizations that want to target Wall Street Journal, New York Post or The Times UK readers online will now have to go directly through a News Corp owned advertising exchange, it has been announced.
No More Third Party Ad Networks for News Corp
News Corp is one of the true titans of media, and its size means it can generate even more money for itself by cutting out ad networks from its store of more than 50 websites.
The only way to reach the world's greatest content and the most prestigious and lucrative audiences is directly through our digital properties," Robert Thompson, News Corp chief executive said in a statement.
"Third parties are no longer invited to the party."
Much like the widely used DoubleClick exchange from Google, or RightMedia from Yahoo, the News Corp exchange will allow advertisers to bid on display space solely within News Corp properties. This gated access to a more segmented audience could be good for some marketers, but in some ways News Corp had no choice. Installing paywalls for many of its online properties has resulted in a big drop in traffic to those sites, so this move is one way to make up for that.
Additionally, News Corp can likely charge more for the ads because it has access to subscriber information and detailed traffic data.
Rubicon Project to be Sell Side Partner
To help News Corp get its exchange off the ground, it will partner with a firm called Rubicon Project for selling its ads. Ad exchanges are still a pretty new phenomenon, so News Corp is for sure leading other media companies with this decision.
By allowing buyers to bid on News Corp ad space, and by eliminating those third party firms, News Corp will have total control over its inventory. Whether or not that will mean it can drive up prices is not yet known, though the company would likely try to do just that.
The network will be called the News Corp Global Exchange, and it will cover both online and mobile space for WSJ.com, NYPost.com, Times.co.uk, TheSun.co.uk, MarketWatch.com and many more. Global ad revenue just for mobile is set to pass US$ 11 billion in 2013, a recent report from Gartner found, with Facebook as the display ads leader.
As more people transition to mobile as their primary computing devices, display ads may become more valuable in general, another possible plus for News Corp on this deal. Unfortunately for most media companies, they are not nearly as large as News Corp, so thay can't go off and form their own exchanges. However, because third parties no longer have access to News Corp websites, they may be forced to spread their ad dollars around to smaller organizations, a possible boon to other media companies.