Nasdaq today (March 14) announced the launch of New York Interactive Advertising Exchange (NYIAX) what it claims is the world’s first exchange-based media trading platform to be powered by blockchain technology.
NYIAX claims it will allow media owners and buyers to buy, sell and re-trade premium advertising inventory, including futures options, on a guaranteed basis with increased transparency using the Nasdaq Financial Framework architecture.
This means that media owners should be able to secure greater guarantees for their advertising inventory by growing sell-through, retaining higher CPMs and reducing fees, according to NYIAX.
In return, the exchange also offers advertisers the capability to better forecast their media spend, as well as discover premium inventory that meets their KPIs in advance.
Initially, NYIAX will be used to trade digital media but after a pilot program later this year it will begin to support the trading of TV, print, radio and out-of-home media.
Lou Severine, NYIAX, chief executive officer, said the cloud-based technology and proprietary matching engine are the trading tools trades required to bring greater efficiency to the space.
NYIAX, chief technology officer Richard Bush, is currently overseeing the onboarding of a select group of premium companies on the platform and work to ensure participants have the training and tools needed to make best use of the platform.
“Trading, a vital part of other market sectors, has now come to media. With the ability to trade guaranteed media contracts, advertisers and publishers can now be efficient and rid themselves of unnecessary costs and risks,” he added.
Lars Ottersgård, executive vice president and head of market technology, Nasdaq, added: “As a global leader for exchange technology, we can adapt our platform to accommodate a wide variety of market rules, asset classes and new technology innovations.
“NYIAX is leveraging our Nasdaq Financial Framework architecture, which draws on cutting-edge technology, including the integration of blockchain technology as our core ledger, as well as cloud-enabled trading and clearing capabilities.”
The roll out will be supported by a prominent group of financial services, technology and media veterans including Thomas O’Neill, Chairman of NYIAX and former Nasdaq board member, and Mediaocean CEO and founder, and board member of NYIAX, Bill Wise.
“The platform immediately delivers clients upfront media buying and re-sell capabilities. As a new secondary market, a new potential revenue stream is one of the main reasons we are seeing so much interest in our pilot program,” said Severine.
“What NYIAX is doing will change everything. Once the rest of the market is exposed, advertising as we knew it for the past twenty years will be ancient history.”