Signage aggregation. Part one.

One independent participant (apart from a number of specialised advertising agencies) will never be able to create a large advertising network alone, as one entrepreneur may effectively work only in his narrow location, where he can accumulate several video screens of various specialties, for example, a few screens in pharmacies, a few screens in railway stations or in a local airport. On the whole, such segmentary network is of small interest, but as soon as it is merged by the aggregator, its value increases drastically, as only the aggregator may collect complete clusters — airports — railway stations — pharmacies — banks — business centers — shopping centers etc.

The owners of video panels persistently search the ways to increase the profit from ad impressions. Due to the fact that major part of the advertising air remains unsold, the advertising aggregators and exchanges, assisting to sell the airtime, will become an evolutionary solution to this problem.

Exchange model (auction) of advertising sales is already confirmed by the sales of contextual advertising. Capitalism reigns here: the airtime on one video panel is worth a penny, on the other — a fortune, and in both cases, the advertising exchange creates an environment, where the price is determined by effective demand.

The advertising exchange conducts most transaction processes automatically. With increasing of the system capacity the number of video panels grows as well, and more advertisers abandon traditional models in favor of auctions. The advertising exchange, according to numerous forecasts, will soon take the leading position in the advertising market, similar to how it happened in the financial market.

First of all, the advertising exchange looks attractive not only due to its overall economy, ensured by the VISIOBOX system, but also thanks to its ability to avoid the routine work and numerous resellers, which are presented in large quantities in the OOH advertising market. The ad exchange model is not only used in digital advertising markets. This model has been already adopted by some Western channels, and the radio broadcast networks are on their way to join them.

Thus, the “exchange» trend in advertising is beneficial to all the participants:

• fewer agents in the middle: direct contact between the advertiser and the venue;
• less routine work: the ad exchange automates the main transaction processes and operates them quicker, avoiding the human factor;
• targeting: the user sees only what he is likely to be interested in;
• fewer “ad leftovers” for the screen owners: the ad exchange will quickly sell «stock» places.

The ad exchange is the platform, ensuring the selling of the ad airtime on the video screens. It offers for sale the views of the video content on the screens, receives the bids from the advertisers and declares the winner. The ad stock cooperates with the VISIOBOX ecosystem, accumulating various independent video screen networks.

Best Regards,
Mikhail Andriyashin.