NBC Universal is getting into the private digital ad exchange business.
NBC Universal says the move is to reduce the reliance on third-party ad exchanges -- which have been criticized for driving down CPM user pricing. Private ad exchanges can work better for premium digital sites, where they can set specific price limits.
This move would help NBC's family of sites and premium video digital site, Hulu, of which NBC Universal is a partner.
NBC says private exchanges will provide clients with direct access to premium display ad inventory that can be targeted at scale across the NBC Universal Audience Platform, NBC's own digital ad network.
"One of our main goals in launching the UAP was to take better control over our uncommitted digital ad inventory and dial back our reliance on third-party ad networks," stated Peter Naylor, executive vice president of digital media sales, NBC Universal.
"By launching this private exchange, we can work directly with our agency and media partners, offering them better pricing, more informed and targeted advertising buys," he added, "and the opportunity to deal directly with trusted and premium content sources." NBC will use technology from Admeld to monetize its ad inventory in a controlled, real-time bidding system. NBC says with its new private ad system, premium platform publishers can target their most valuable audience segments, as well as restrict access to a select group of buyers. They can also set granular rules around pricing.
NBC Universal's Audience Platform says its inventory is sold solely by targeting audiences and not by specific Web sites, using top data providers including BlueKai, Nielsen and Quantcast.