AOL launches ad exchange so advertisers can pay even lower rates
Everybody who's anybody has had an online-advertising exchange since the spring of 2007, when Google announced it would acquire DoubleClick and Yahoo overpaid for Right Media. AOL's advertising network, Platform-A, is finally catching up. Today it announced BidPlace, which top exec Lynda Clarizio told PaidContent will launch next year. How it works:AOL will make some of its ad-banner space and partner sites' inventory up for bid in an online auction. Advertisers will be able to make cost-per-impression, cost-per-click, and cost-per-action bids. The good news for advertisers looking for cheaper alternatives in a tough economy — such as General Motors, which just announced it plans to cut online ad spending — is that the process will remove costly "friction" from the ad-buying process. The bad news for publishers: "Friction" is another word for "profit." Another concern: Allowing advertisers to buy space on their sites through ad networks will discourage them from developing relationshps with their highly paid salespeople.