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Ad networks can contribute to solving the situation by providing inventory transparency so that advertisers can exclude certain publishers that they already have a direct relationship with or perhaps may reach through another ad network.
As these factors get addressed, the survey indicates brand marketers may embrace networks more. According to survey results, currently only 40 percent of respondents use ad networks for both branding and direct marketing, suggesting that it's the brand advertisers who are most concerned about transparency, audience duplication and editorial quality.
"Over the long haul, I expect advertisers to warm up to the idea of less editorial control, as the need for this will be trumped by the desire for quality inventory as more advertising dollars shift online," says Hespos.
Indeed, Mollie Spilman, chief sales and marketing officer for ad network Advertising.com, already sees this happening.
"We are seeing branding campaigns becoming a core and continually growing part of our business," Spilman says. "Hybrid campaigns seem to be the preference these days, or CPM campaigns tied to an ultimate, backend performance metric."
Getting in on the action
Another negative mark against ad networks -- cited even by those who plan to increase their spending -- is a belief that there are just too many ad networks in the marketplace. The vast majority of media buyers surveyed (more than 62 percent) felt there were too many ad networks, making it more complicated to select which ad networks to work with.
Spilman agrees with the marketers' assessment. "With ad networks on the rise, everyone is trying to get in on the action," she says, suggesting that marketers focus their efforts on the higher-quality, experienced networks that offer a proven suite of solutions.
The key attributes cited by these media buyers that differentiate one ad network from another are targeting (cited by 57 percent of respondents), optimization, inventory and price.
Collective Media's Apprendi sums up the survey's key findings and what they mean for marketers.
"First, despite perceived editorial control and audience duplication barriers, ad networks are valued tremendously by online advertisers and they want to spend more in 2007.
"Second, the fact that 40 percent of online advertisers are using ad networks for branding is a great start and far exceeded my estimates. The survey results ring clearly that advertisers see ad networks much more as a complement to portals and publishers vs. simply pure direct response vehicles like affiliate marketing, paid search or email."
Spilman puts the results into further perspective. "Despite having pioneered such things as pay-for-performance advertising, optimization technologies, behavioral targeting and more, ad networks were once considered the 'red-headed stepchild' of online advertising," she says. "Today, ad networks are being recognized for their industry leadership and the reach, efficiencies and accountability they provide. Networks are now a standard part of any media buy, thanks in large part to higher quality sites, continually advancing technologies, more impactful rich-media and video formats, and more."
Dawn Anfuso is senior editor, iMedia Connection. Read full bio.
