Friday, June 3, 2011

Incestuous Trading Desks Raising Some Eyebrows

In his Digiday article “The Trouble With Trading Desks,” Mike Shields echoes growing concerns in the online advertising industry that are accompanying the advent of Holding Company owned media trading desks, especially when the same Holding Company also owns an Agency that is given the mandate to buy solely (or even preferably) thru that same trading desk.

At the core of his piece is this quote:

"According to multiple industry sources, some prominent brands are growing increasingly uncomfortable with their digital agencies funneling money to sister company trading desks (the holding company divisions that purchase ad inventory on exchanges). They are asking questions about how these trading desks earn revenue and whether clients are being charged more than once for executing the same media plan."

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