Online Ad-Selling Fray
AdOutlet.com today starts offering media buyers and publishers another real-time, online discount media buying venue to rival competitors like AdAuction.com. Its site goes live today, claiming 3,000 registered media buyers and some 100 million impressions up for sale. AdOutlet.com sells banners now, but plans to sell print and broadcast in a few months.
AdOutlet.com works on consignment, allowing publishers to fix a price for excess inventory, and adding a margin to make a profit. This is a subtle difference from competitor AdAuction.com, which determines an opening bid with a publisher and gets a commission on the final sale price. Users can bid or opt to buy the space immediately at a premium. AdAuction.com, meanwhile, boasts 4,000 media buyers. (The number of its ad impressions are confidential.)
"It's very timely," says Alan Masarek, chairman and CEO of Columbus, Ohio-based AdOutlet.com. "More and more media will be distributed through a channel such as this."
The current player agrees, and is looking forward to the competition. "We're happy that there are other players in the space that clearly validate what we've been doing for 18 months," claims Neil Cohen, senior vice president of business affairs for San Francisco-based AdAuction.com. "We're not surprised to see others try to capitalize off of our success."
AdOutlet was formerly interactive shop AdNetMarketing, founded by John Detwiler and Eric Place, AdOutlet's president and executive vice president, respectively. ¡