Big media companies collaborate to sell digital ads to compete Google and Facebook with a new initiative, which is called TrustX.
It is reported that in August, the Association of National Advertisers, whose members include marketers such as Ford, Bank of America, Nike and Ford, totally unite to spend $50 million for ad spending referring to TrustX’s pilot program.
To briefly describe, the entity isnamed TrustX. It’s a non-profit company established by Digital Content Next, which is the trade group whose members include Viacom, NBCUniversal, Vox Media and The Washington Post.
The purpose of the initiative is to create a digital marketplace for ads where only A-list publishers promote their ads using the automated software.
Every time that Facebook or Google pick up larger portions of ad budgets, the urgency heightens. The lack of interest in the market for the must-know media giants triggered the process to gain speed. The trouble is that marketers who made all the effort to keep their ads up, might end up in unsafe places online — such as fake news, haters’ videos and etc. To resolve this problem, they’ll only be able to run their ads on only #1 quality websites, and the ads will only be shown to actual people.
The number of publishers who are selling ads via the TrustX has doubled, and the number of actual ads changing hands has speeded exponentially.
TrustX CEO David Kohl, who is being warned about the early launch processes. He commented,
We’ve seen more than hockey stick growth. This [growing] process has been driven by a foundational principle, that you don’t put something into the market until you know it really works.
If you think about the idea that p rogrammatic advertising was built over the last decade, and it t ook years and years for all of its problems like fraud to creep in, where you now have this trust problem. So we are realists. Undoing that is not fast.
Kohl is wishing to have 20 publishers in flow by the end of this year.
TrustX’s pioneering and power is good to go, yet it’s not a profit driven initiative. It’s a lot uncomplicated to settle when you don’t need to compromise with a bunch of members and you’re not forced to make short-term revenue as Kohl explained.