The other thing they (smartly) realized is that the two products in the example above are different. For the most part, the xyz.com inventory they are selling directly is not the same as that which I get in the exchange. For those who find it constructive to think in simile/metaphor, you might think the correct analogy is the outlet store – - those Hugo Boss pants I might find in their outlet if I want to drive 45 minutes outside of the city vs. going to Bloomingdales and paying 200% more — but that’s not correct. While sometimes you find slightly damaged goods selling for cheap in the outlet, often it’s the exact same merchandise for sale more cheaply in out-of-the-way locations. To be sure, this certainly happens, but its more often akin to an airline metaphor (I like those):

Think of the publisher direct, guaranteed inventory as a seat on a full-price economy ticket to fly on a plane, and think of the remnant ad exchange inventory as a standby seat. In the first case you know what you’re going to get, it’s a published fare (perhaps you got a discount, perhaps not), you are first in line, eligible for and might get upgraded to first class, and you have an assigned seat. The remnant standby guy is only going to get a seat if there’s space available (sometimes there’s a lot, often not so much as I recall “you missed your flight on a sunday morning out of las vegas? what were you thinking” gave up and stayed sunday night) and will if they do may be one of the last to get on board, won’t have room for their rollaway and will have to check it etc. They get a lesser product; it might be very similar but there’s also a degree of uncertainty involved meaning it might be nothing.

In remnant display, the first impression you see might end up being the 8th ad impression the user saw. And you have no way to know. See my piece on AdExchanger about why real-time bid prices are overinflated.

Our job here at XA.net is to help the advertiser or agency place their (or their client’s) inventory across that priority/price curve in the locations that drive the most ROI for them, in a creative- and campaign-specific way. It’s a tough job, but we’re having fun doing it!

In May 2009, according to the numbers we aggregated, 70% of all Facebook users in the US were under the age of 35 – that dropped to just 59% this month (September 2010). While growth among the core Facebook demographic in the US was still strong, 79% since May 2009 in the 21 to 24 age group – it was far outpaced in percentage terms by the older groups with 55+ weighing in at over 377% during this period. Another thing to notice is the growth rates among men being higher, and starting to catch up with women who have to now been earlier adopters on the social media platform. Now that there are over 30 million monthly users aged 45 or more in the US that are in some way addressable on Facebook, traditional marketers if they haven’t already have to start taking notice!

The data referenced here goes into some more detail, and also talks about the Canadian Facebook usage profile. Growth has been slower (40-45%) over the last 15 months but the same demographic shifts apply.

We believe that tapping into this advertising marketplace is important for us and for us to help our clients to do. This is one of the reasons why we’re making the product announcement tomorrow that we are. Stay tuned for details!

XA.net strives to bring value to advertisers through transparency and was excited to see that almost a third of the first organizations to commit to self-certification made up a significant portion of our inventory partners: AOL/Advertising.com, ContextWeb, Inc./ADSDAQ Exchange, Fox Audience Network, Google, and Yahoo!. XA.net’s CEO, Rob Leathern is a current member of the IAB Networks and Exchanges Committee.

Read the IAB’s full press release for more information about the certification process.

Grill the Vendors: Real Time Bidding

According to some predictions, up to a third of network advertising may be moving through real-time bidding systems by the end of this year. This latest technology trend promises to match the right ad to the right person within milliseconds of their entering the page. The technology and the algorithms are complex, but do they always work as advertised? Do agencies and brands know what they are buying…and what they are buying into? Are the RTB systems out there working in the publisher’s best interests or the media buyers? We bring in some of the top competitors in the field for a class OMMA grilling in order to determine how RTB vendors differentiate themselves and answer the hard questions both publishers and media buyers must bring to the table.

If you’re going to be at the event and would like to catch up with us, send us an email.

Register and Get $400 Off OMMA Ad Nets with Code: ADNETSXA

The code is only good for the first 20 registrants, so act now!

The conference takes place on Monday, July 19, 2010 at the Hyatt Regency Century Plaza, located on 2025 Avenue of the Stars, Los Angeles. We hope to see you there!