AOL, Yahoo, and Microsoft signed their ad-selling deal earlier this week, and some people criticised the partnership because it deals with leftover portions of the companies’ inventories.
Executives from the three companies, however, say that’s not a bad thing.
At the AppNexus Summit, Yahoo SVP James Heckman said they will be essentially selling everything that is not a sponsorship of the front page.
“Roughly 70-80% of all inventory for major media sites is unsold,” he explained. “It’s no longer remnant; it’s the super-majority of inventory. I would argue it’s great content. It’s most of the content. It’s just not a sponsorship. And then when you layer on data targeting, I think it’s incredibly valuable.”
David Jacobs, an SVP at AOL, and David O’Hara, COO of Microsoft Advertising joined Heckman during a panel discussion.
The trio also said on multiple occasions that the partnership was not a joint venture. They were insistent the audience understand this fact.
They also wanted to make everyone aware they were not sharing data.
“We all have our intenders, behaviours, and profiles that are totally different and totally proprietary,” Heckman said. “We may have data that Microsoft doesn’t, so there’s a reason to shop for all three. But the great thing is that now we have three times the reach. In effect, it’s three times the biggest data pools on Earth.”
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