Advertising is a $700 billion global industry and a staple of our market economy. Advertising sets trends and increases market share. But fluctuating prices for impressions can wreak havoc on the budgets of media buyers, not to mention the broadcasters and publishers who depend upon them for their revenues or cost savings. From advertising networks to social media influencers and creators that depend on advertising for their livelihood to content providers who depend on advertising to promote their latest films, the number and range of people who are effected by advertising costs or businesses whose sales and profits are impacted by the price of advertising are enormous.
Given the size of the advertising industry and its impact on our economy, it is astonishing how little was done in the past to manage this price risk. Some large companies could use the “Up-front” for network television, but his was and remains an inflexible solution and television has been declining at 3 – 4 % a year on an annualized basis, carrying substantial risk for advertising companies and does not correlate to their revenue exposures. Typical consumers also could not lock in costs as advertising and demand side platforms only allow bidding rather than fixed price contracts that are not firm and tradable. Few solutions were available to shield companies from the normal quarter-to-quarter price fluctuations in the price of an impression, or, for that matter, in fluctuating costs of media placements. Yet these fluctuating prices had a direct impact on the corporate profits, both for advertising buyers and sellers.
Today, all this has changed, PortalsX has created a new breed of financial and physical risk management tools and structures that can be used to immunize companies against a wide range of advertising risks