This is not really a surprise to many as the acquisition of Double Click back in 2008 for a staggering £1.9bn was a clear indication that Google had some very serious plans to enter the display market.

No body questions that Google is the dominant force when it comes to online search and text advertising and they have dipped their toe in the display market previously alongside the AdWords platform but with limited success, this time however they are looking to change the game.

Google have promised to increase the display pie for everyone with three core principles that underpin how Google will approach display advertising.  Read more here.

For those of you not really familiar with ad exchanges it is a fairly simple process. As a site or media owner (seller) you would offer you available advertising space for sale via the exchange and invite people (buyers) to bid for that space in an auction. Now traditionally this form of advertising has been dominated by large media houses and big brands but with this launch Google are trying to address that balance, and apply the same methodology that was and is so successful for them with their Adwords platform.  They compare it to the stock exchange where only the large banks and investment companies plug directly into the exchange itself but individuals can still buy and sell shares through a broker without having to plug directly into the stock exchange. Same principle, but with advertising space. Existing AdWords and AdSense users will be given access to extra publishers and certified ad networks in the Ad Exchange, and have the opportunity to bid for space according to their given needs at anyone time.  This exchange mechanism along with the vast amounts of data that Google hold will tempt many advertisers.  Ease of use plus data plus massive scale will be a carrot that wil attract all advertisers great and small.  To date there a few other big players in this space the main one being  Right Media but the legacy and cache that Google provide will interest those, who to date, have not looked at this possibility for buying their media.

Where is the affiliate opportunity?

This signals a great opportunity for affiliates to bid on relevant ad space they think will convert for their merchant, add the clients banners or use Google custom banner service (with their affiliate link in) and watch the conversion roll in, much like they would with search.

Please feel free to comment with any thoughts.