Much has been said recently about auction mechanics and how they work, even Boz from FB got in on the act in a very interesting thread on Twitter about their VGC model. Discussion around auction mechanics, auction structure and how they work at a high level are all well and good and they add significantly to the transparency debate that the industry needs.
Lots of companies use auctions to price things – but is there a better way? We think so…
Media is fundamentally an intangible asset. We call it a commodity. And we mean commodity as opposed to commoditisation. A commodity is something that can be bought and sold. Something that has been commoditised is undifferentiated competing on price – a race to the bottom. The two concepts are very different.
We think this intangible asset can be turned into something of value. We think this asset can be traded. We think the price of this asset will change with changes to audience, with applied data science on consumer data, with seasonality.
We think this asset should be traded on a market. LMX is building this market.