Google's new advertising policy will probably no longer open to third-party DSPs buyIng YouTube ads from DoubleClick Exchange

(Reprinted.) RTBChina review: For platform-level companies, when "closed" is beneficial to the user experience, product quality, economic benefits of the three options, the story of procedural "open" is over. ]


According to Business Insider and the Wall Street Journal, Google will issue a new advertising deal that may no longer allow third-party DSPs to buy YouTube ads on the DoubleClick Ad Exchange platform, According to Business Insider and the Wall Street Journal, according to Business Insider and the Wall Street Journal.


Under the new policy, advertisers must contact YouTube's sales department directly or use Google's own DSP platform, DoubleClick Bid Manager or Google AdWords, to buy ads.


Google says it is investing more to create the best and most effective YouTube ads and the best possible ad buying experience.


According to the Wall Street Journal, only about 5% of YouTube ads are traded through DoubleClick Exchange. But some in the advertising technology world and ad buyers have expressed concern about Google's announcement. Some argue that Selling YouTube ads only through its own platform is unfair, because it would push other advertising technology providers out of the market, and that banning advertisers from using other company's technology could help Google get more data on the effectiveness of its ads.


The industry has previously expressed concerns about Google's barriers. Last year, Digiday reported that Google required advertisers to buy impressions on the DoubleClick Ad Exchange platform through The DoubleClick Bid Manager. A Google spokesman denied the report to Business Insider at the time, but there was no denying that industry insiders were concerned.


In January, Google banned some third-party data management platforms from analyzing data on Google Display Network, cutting off key sources of data from some marketers.


Ciaran O'Kane, chief executive and founder of ExchangeWire, an advertising technology trade publishing and research firm, believes Google's move has further tightened the open-door model. "This suggests that Google intends to close its supply from now on, which will undoubtedly raise widespread concern stoicinofe concerns in the US and Europe, which will continue to investigate Google's competitiveness in digital media and advertising technology," he said. "


TubeMogul, one of the advertising technology companies that relies entirely on YouTube advertising, fell 3 percent after the announcement.


Brett Wilson, chief executive of TubeMogul, said: "Google wants to serve a lot of people, including users, investors and advertisers, but it's clearly not in the interest of advertisers. "


Ari Paparo, chief executive and founder of Beeswax, an advertising technology start-up, thinks the move will be counterproductive for Google. "I don't think blocking programd procurement needs has the potential to boost YouTube ad sales or CPM, and there will be more demand outside the Google platform than there is to be outside the platform," he said. I think the most important thing YouTube should do is to adapt to the market demand for programd media procurement. "


Danny Hopwood, vice president of eMEA regional solutions and platforms at Yangshi Ritchie, told BusinessInsider that Google chose to use the skipable "TrueView" ad model as a way to turn off third-party DSPs via DoubleClick It's not surprising why AdExchange bought YouTube ads.


TrueView ads are more expensive than other YouTube ads, but this has something to do with better performance of such ads and consumers are more willing to accept them. Google wants to clean up its relatively low-quality ads from the YouTube platform because advertisers are so concerned about ad fraud, ad visibility and ad quality.


From a long-term and macro perspective, Jonathan Beeston, a digital advertising consultant and former head of new product innovation at Adobe's EMEA region, points out that Google's latest move may be a disguised example of how complex the entire advertising technology market has become. Perhaps the advertising technology industry should reflect on itself and start over.


"Procedural advertising means it's an open way to buy and sell media, but it's not open now and it's never been open before," Bisten told BusinessInsider. Because people keep trying to control it, both publishers and advertisers, it makes it a very complex system. I don't know who can benefit. "


Google's move seems to illustrate this point. In fact, many of the most successful digital advertising vendors are monetizing their own original advertising spaces, rather than giving third-party advertising technology companies the opportunity to share their revenue. This is true of Google's AdWords, Facebook's NewsFeed, Twitter and even Buzzfeed's native ads.


"I think in the long run, it's a sign that the whole system is crumbling," Hesten continued. It's too complicated, whether you're going to adjust it by increasing the minimum price limit or visibility control, it's actually starting to break. Maybe we need to start over. "

Via: Reprint Compilation (Tencent Technology, Lin Jingdong)