The Ad Network As Financial Market

December 30th, 2005

My coworker Ramsey McGrory at Right Media has written his first article in a series on The Macro and Micro of Networks.

Ramsey’s theory is that ad networks are a lot like a financial exchange like the NASDAQ. The network basically provides the platform, facilitates the transactions, and aggregates supply and demand for both sides. Obviously though the network is still like a broker in that it takes a cut of each transaction.

Obviously years of time, effort, and analysis by many smart people have fine-tuned financial trading markets to make them efficient. What can ad networks learn from examining financial markets? How can the online advertising world get that efficient?

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Entry Filed under: Ad Networks, Advertising, Right Media