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ComScore + AdXpose is the Most Important Deal in Online Advertising in Years

The online advertising industry has reached an inflection point. No better is this critical moment in digital advertising portrayed than in the acquisition of AdXpose by comScore for $22 million.

CMOs are feeling increasingly comfortable diverting or devoting larger percentages of their budgets online, convinced that the benefits of online advertising are as revolutionary as promised. Brands spend tens of billions of dollars online, and they expect results.

How campaign performance is measured varies by brand or agency; some seek simple impressions, others seek clicks and conversions. One of the key selling points of online advertising is the ability to measure campaign performance against objectives in real-time. Tracking technologies record every visit and every impression, but the validity of these measurements have recently come into question. A major concern is falsely inflated impression counts, artificially inflating CPM prices for media buyers. Impressions are traditionally counted in tandem with page visits, which has proven to be a deeply flawed system of measurement.

AdXpose is changing everything.

Led by CEO Kirby Winfield, AdXpose verifies impressions by telling advertisers where their ad was placed on the page and, if below the fold, whether or not a visitor scrolled down to see the ad.

“If you’re counting every impression as viewable when only 50% are viewable, then every metric that you’re using to value your media is inefficient and inaccurate,” Winfield said. “You’re pulling in a bunch of impressions that have no chance to be viewed.”

Adxpose Logo

The company also identifies the content the ad was placed next to, an important tool for CMOs demanding their ads be served beside “brand safe” content. Winfield argues the consolidation of advertising measurement data is vital if digital wants to slice into the holy grail of ad dollars, television.

“You have to go to one vendor to get viewabililty data. Another for survey data. A vendor to get audience verification. Another to get conversation data,” Winfield said. “You’re taking a buying process that is already 4-5x more difficult than buying TV and making it 4-5x more difficult to get metrics.”

comScore CEO Magid Abraham believes a pricing revolution is underway.

“Prices are going to adjust. All of the junk inventory is going to be significantly slashed,” Abraham said. “If you’re charging $.25/CPM but only 20% are visible, then the unit price is actually $1.25. We will move from a medium from where there is no scarcity to an industry where there is scarcity.”

comScore and AdXpose serve as a powerful duo at a critical juncture. As TechCrunch’s Erick Schonfeld astutely notes, “it’s not about clicks and conversions, it’s about attention.” Innovation in online advertising is at an all-time high; it’s no longer simply text and banner ads. Rich media, branded content and social solutions are transforming the industry with the aid of real-time exchanges.

Ferociously accurate data is the catalyst that can launch online advertising to the forefront of brand spending in the digital era. CMOs are demanding stronger performance, media buyers are getting smarter, auditors are more closely scrutinizing campaign performance, and this industry evolution is good for everyone. Brands get accurate, verified audience data, and publishers are able to charge premium CPMs through guaranteed, validated ad presentation.

The revolution has begun, and AdXpose is poised to create a shakeup with financial implications that will dwarf its $22 million price tag.

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