How GroupM's Exit From Open Ad Exchanges Shifts the Power in Ad Tech
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GroupM is looking to reset digital advertising’s balance.
The giant ad-buying network, part of WPP Group, plans to pull its clients’ budgets from open ad exchanges by the end of the year, as first reported by Beet.TV. Open ad exchanges offer vast pools of digital inventory to buyers through automated processes, part of the broader world of so-called programmatic buying. But when GroupM wants to use ad technology to buy digital inventory next year, it hopes it can instead rely on arrangements with publishers operating private exchanges or using automated tech to process direct sales. GroupM already has 91 such deals in place.
The decision to exit free-for-all auctions is a power move, in addition to a defensive measure. GroupM doesn’t want to bid on relatively random inventory in auctions that almost any advertiser can enter, nor does it want to risk paying for wasted ads on sites it or its clients don’t want. It does want to deal more directly with publishers so that it can assert its leverage.
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