Commentary

Scarcity: Ad Industry Doesn't Have A Choice

Wow - what an undertaking. How does the industry get to "scarcity"? At the OMMA Premium Display conference in Los Angeles on Tuesday, Mike Rich, VP of media at comScore, said companies need to reassess and revalue the network. They don't have a choice. It's important to remove all the worthless supply. The price of what remains will stabilize or rise. The remnant inventory is also undervalued, he said, though it hits the correct audience. "We think the CPMs will rise from $5 CPM to $6," he said. It should help to flat-line, stabilize or even growth the industry. Important metrics will become audience composition and targeting efficiency. Those who sell ad units will need to adapt quickly and measure visibility. 

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