[Hire the wall street guys] Online Ad Platform Predicts Future Prices – Advertising Age – Digital

Despite digital media’s virulent growth, it’s still TV that drives the billion-dollar advertising budgets for most major corporations, which means planning for those ad dollars is often set well in advance. Online marketing, however, is often up-to-the-minute, steered by vast ad networks and exchanges that broker the buying and selling of page views in a sometimes opaque bidding process.

But one company recently unveiled a new system that claims to predict the future prices of page views, which could allow buyers to lock in prices up to 12 months in advance, more akin to TV buying.

Brand.net is releasing a new buying platform today that would allow advertisers to purchase page views at specific prices ahead of time, a specialized form of hedging. The tool forecasts what prices for online ads will be at a future date within a particular category, such as entertainment or automobiles.

Brand.net will set a price on a per-thousand-impression basis (CPM), which the ad agency can buy ahead of time. In actuality, Brand.net will not own any inventory of pages but will instead log the price and bill clients. The company will only insert the buy order at the intended buy dates across ad networks and exchanges. Should its forecasting technology set a lower price than the actual price on the intended buy dates, Brand.net absorbs the loss. In the reverse case, the company will pocket the difference.

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