‘Subprime’ Advertising Threatens Online Ad Ecosystem

Bundling (a.k.a. mixing quality with not so good quality) inventory is the oldest, most dependable yield management technique in the book.  It’s a game of cat and mouse and the cats do a good enough job of not letting this industry get to a crisis situation.

Some ad tech executives are alarmed enough about the problem that they’re likening it to the subprime mortgage crisis of 2008. These critics contend that just as banks repackaged risky mortgages in a way that made them look better than they were, some ad networks are bundling and re-selling ads that appear far down on a page or are otherwise hard to see to make them appear to be higher-quality placements.

via ‘Subprime’ Advertising Threatens Online Ad Ecosystem – The Information.

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