
With AOL and Yahoo stepping into the network fray and keeping more inventory to themselves for their own network offerings, one might think the pool of available remnant inventory might become constrained. However, while the size of the online population may be leveling off, the amount of time spent online continues to rise, resulting in more pages generated and greater inventory supply. Yet despite the increasing supply of available inventory, the supply of quality inventory becomes constrained as the major publishers hold on to more of their own supply and remove inventory from the general marketplace. Thus, while there is seemingly no shortage of inventory overall, premium branded inventory becomes even more constricted.
The standalone networks are thus competing for the same inventory, driving up bids for remnant inventory. Consolidation allows networks to merge, combine sales forces and remove much of the competitive pressure for inventory. It also greatly benefits buyers.
