Remember being a kid and hearing the words “We’re having leftovers for dinner tonight.”? There was that sinking feeling that comes with the “Ok, I am not getting the best of the best here” realization.
Now take that mindset over to advertising. When a sales rep is trying to sell their leftovers it implies that what he or she is pushing has been passed over by those who are picky about their ad placements. As a result, there are inventory gaps that occur and you get to choose from the crumbs leftover on the display table.
Not very appealing, huh? Well, now imagine that Microsoft, Aol, and Yahoo have announced that they are looking to empty their ad refrigerators, if you will, as a team effort. It’s kind of like a garage sale for leftover display ad space. Let’s just say that the response is not exactly overwhelming.
The LA Times reports
In a deal announced Tuesday, the three tech giants said they would pool their resources to sell leftover ad space beginning in January.
“While this collaboration could drive some incremental yield improvements for the portals’ unsold display inventory, we believe it is unlikely that the combination of inventory can spur significant increases in overall display ad revenue given market share challenges,” J.P. Morgan analyst Doug Anmuth said in a research note. “We believe this agreement comes more from a position of weakness as all three players attempt to create a compelling alternative to Google for marketers and agencies.”
Wow, tell it like it is, Doug. Facebook and Google are gobbling up a lot of the online ad budgets these days and it will be critical for these remaining players to figure out just how they can compete. Can they do it?