The Evolution of the Media Exchange
Email Now Part of the Exchange Model
Since the dawn of the Internet, publishers have always tried to get the most value for their available ad inventory. Likewise, advertisers have always been adamant that they receive the best deal on said inventory. Throughout the last decade, this has gradually become a reality through the creation of auction-style media exchanges. With better technology and more competition for valuable inventory, these virtual marketplaces have helped publishers monetize unsold inventory and helped advertisers get the most value for their dollar. From banners to display, the exchange has been an efficient tool for engaging in online marketing and has been an ideal approach at doing business for both parties.
Last month, Datran Media introduced Exchange Online (EO), the first and only marketplace for cost-per-acquisition media and a destination for publishers and advertisers to earn revenue from the email channel. Having a dedicated exchange for email was a natural progression, one that was long overdue. Datran Media takes a look back at the evolution of the media exchange from the early days of ad serving to the new way of looking at email marketing today.
1996 – The Birth of Ad Serving
Still in its infancy, online advertising was slowly capturing ad dollars. However, advertisers were cautious where they invested their budgets. With the first introduction of the ad server, the internal sales department of a web site managed to sell high-value chunks of inventory but little else. Most inventory eventually went unsold, but the ad server was a promising new technology.
In the email world, inventory was sold on a list-based marketing initiative.
1998 – The Network Effect
By 1998, the arrival of the ad networks started to change the face of online advertising. The internal sales department still used ad serving to sell its high value inventory, but ad networks like Ad.com and Real Media offered to buy inventory the internal sales team thought couldn’t be sold. Through the practice of arbitrage, these networks bought huge chunks of inventory and sometimes made a lot of money, especially in 1998 when online adverting spewed hundreds of new companies with big budgets.
Things remained as is for email inventory until 2001, when email began to be sold based on the list, demographic information and response.
2002 – Behavioral Targeting
By 2002, technology had helped marketers understand their consumers and their patterns online. Behavioral networks like Revenue Science and Tacoda would buy small bits of inventory that they could match to behavioral targeting. Additionally, more and more networks began popping up to compete with Ad.com and Real Media. Networks like ValueClick, Tribal Fusion and Specific Media arrived on the scene and also bought chunks of inventory through arbitrage.
Email remained the same and despite the effectiveness and cost-efficient nature of the channel, it kind of got lost in the hype over behavioral targeting and ad networks.
2006-2007 – The Birth of the Exchange
With the ad exchange firmly in place, both publishers and advertisers faced a win-win situation. Inventory was broken up into several pieces and auctioned off to the highest bidder. Advertisers were able to bid for media they felt were most valuable to them. This, along with behavioral targeting and branded media, helped publishers monetize more of their inventory.
Datran Media applied these exchange efficiencies to the email channel and created EO. Now, advertisers can choose the email inventory that offers the highest value and highest yield while publishers can finally get the value they deserve for their email media.
For more information on Datran Media's Exchange Online, click here and take an exclusive tour of the EO marketplace.
Get the Dash Out!
The DMA's Spelling of Email Will Not Include the Hyphen
Back in September, the Email Experience Council released a universal standard on the spelling of email; it suggested no more use of the hyphen. This is a pretty simple idea that has been slow to catch on. I have not seen anyone follow this new format; from major news outlets like CNN and Business Week to people in our own industry, that hyphen is always there, mocking me. It is a shame. Besides the fact that I never use the hyphen in my own writing, it would be nice for email to finally have a universal standard spelling rule. Not only does it save everyone one less key stroke, it says a lot about for the evolution of the medium.
Chad White, an editor at the Email Experience Council explains how words like "Web site" and "on-line" have over time have become "website" and "online" as people became more comfortable with them. "Electronic mail" has followed a similar acceptance arc, becoming "E-mail" and then "e-mail." He goes on to ask people to sign a petition to help email get the same treatment. Since doing so, people have slowly begun to take notice including the Direct Marketing Association which will no longer use the dreaded hyphen. So, save yourself the keystroke and get the dash out!
Q: My business is looking to put more dollars behind email marketing. We currently do email in-house but don’t know if we will continue to do so as our email efforts get more demanding. What are some of the advantages of using an email service provider?
A: It is no surprise to hear your company wants to invest more in the email channel as it parallels
our very own statistics that show 73% of marketers plan to do more email marketing in 2007 and of those respondents, 55% use or plan to use an outside email provider.
Why do so many marketers turn to email service providers (ESPs) to manage their email campaigns? Simply stated; to make sure things are done right. There is no doubt an email marketing program can be handled in-house, but using a standard email client to send mass emails can be very risky. There are several important elements that go into an email marketing campaign that must be followed and executed accordingly. A small investment in an email service provider can have a big effect on your long term success.
The most important part of an email program is making sure your messages get delivered. ESPs help you achieve the highest possible deliverability rates through their relationships with ISPs and their experience understanding things like certification and whitelisting: vital elements in making sure an email gets delivered. What’s more, the ESPs are well versed in the latest rules and regulations surrounding CAN-SPAM compliance. A good ESP will make sure your email is following all the guidelines that affect your deliverability.
Once you’ve made it to the Inbox, your goal is to get your message read. ESPs can help format, design and write emails that are more likely to get read. You may have an idea of how you want your messages to look, but that may not always be the right thing for your customers. There are a lot of elements to review before pressing the send button. From subject lines to HTML formatting, ESPs offer the direction you might not have realized you needed.
Of course, the whole idea behind launching your email campaign is to generate revenue. ESPs have the tools to help you track and analyze your success rate. With real time, comprehensive statistics, you can make sure you are doing things correctly and managing your goals.
JupiterResearch and Forrester Research are both great sources for researching ESPs. And you can learn more about some of the solutions Datran Media provides right here.
Send your questions to askanexpert@datranmedia.com. If we answer it, we'll send you a FREE Datran Media t-shirt!
