Yahoo Sprays “Network B Gone” On Class II Inventory And Classically Stumbles: Good Idea, Bad Delivery

It started with the retargeters. A couple weeks back, Yahoo decided to shut off stand-alone retargeters, like Criteo and Dotomi, who were sourcing cheap Yahoo inventory just to resell it at much higher prices. This was a clear effort by Yahoo to take back control of its display ad business, a move increasingly common among large premium media companies. Tuesday’s announcement, however, goes much further: Yahoo has told DSPs, networks, and other buyers of “class II” remnant inventory that they’re no longer welcome to buy. Rather, their end clients – the marketers and agency trading desks using their tools – will need to get their own direct “seats” (i.e., contracts) if they want to continue accessing this inventory through the Right Media Exchange (RMX).
Is this a good thing for Yahoo? In the long run, absolutely. It means it's getting serious about cutting out undifferentiated middle men and focusing instead on more direct, transparent, and mutually beneficial relationships with big buyers. So for that, bravo, Yahoo!

Read more