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Yahoo’s Budget Ad Exchange is Folded amid Company’s Push for Quality
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Yahoo’s Budget Ad Exchange is Folded amid Company’s Push for Quality

Yahoo has confirmed that its Right Media ad exchange is no more, just eight years after the foundations of the property were acquired for $680 million.

Formerly regarded as Yahoo’s budget ad-buying product, Right Media presented a way for performance ad networks and other groups to obtain online ad space and reach sizeable audiences at a relatively low cost.

However, demand for what many perceived to be ‘low-quality inventory’ purchased on the likes of Myspace appeared to be waning, and confirmation has now arrived from Yahoo regarding Right Media’s closure.

A fairly low-key announcement from the company comes in the form of an update made on its publishers page, stating that Right Media will now operate as part of the company’s general Ad Exchange.  

No clues have been given regarding the extent to which Right Media will continue to run.

Sign of the times

Right Media as a company was acquired by Yahoo in 2007, but took four years to build itself up to the billing of a major purchase. Analysts believe a lack of evolution from the exchange meant that it simply could not cater for the needs of clients in 2015, who are increasingly demanding premium inventory for reaching the best audiences. 

Yahoo is intent on being able to satisfy these groups, according to the firm's CEO, Marissa Mayer, who has constantly outlined the company's plan to become a premium publisher and media platform since starting her role in July 2012.

When rumours of a closure for Right Media circulated last week, some pointed to the merging of app analytics group Flurry and the Gemini marketplace, both of which are Yahoo properties, as a natural successor to the Right Media exchange.

While the old system would have relied heavily on networks snapping up high amounts of direct-response ads, the involvement of Flurry could pave the way for more in-app options - now one of the fastest growing product types around.

For now, it’s thought the Yahoo Ad Exchange will accommodate several Right Media ad options. Buyers have also been informed of a change in service. 

Richard Towey

Richard Towey

Richard serves as head of content at PerformanceIN. After many years spent covering developments from the automotive, sports, travel and finance sectors, he eventually turned his full attention to reporting on stories from the fast-evolving world of digital marketing. Richard now heads up the editorial team at PerformanceIN: the performance marketing industry's leading publication.  

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