Advertising.com explains why networks are heating up, but maintains that site buys are still key to your media mix.
Over the past year, there has been a distinct trend in the kinds of network buys advertisers are making, creating interesting implications for publishers. With more sophisticated targeting capabilities available from networks, advertisers are increasingly addressing multiple objectives through network segmentation. While individual endemic site inventory remains a core branding vehicle, networks provide a valuable addition to the branding mix. (For those not familiar with the term "endemic sites," these are essentially vertical-specific sites. Ex. An endemic site for an automotive advertiser would be Cars.com; an endemic site for a movie advertiser would be Fandango.) This is good news for publishers, because the more sophisticated the targeting tools a network can offer to advertisers, the higher the potential inventory yield for publishers.
The new network advertising
As branding dollars spent online increase, advertisers are finding networks to be an efficient complement to endemic site buys. As the space continues to become more fragmented, buyers are finding that networks are not only cost-effective, but also offer outcomes which are more granular and measurable than ever.
Examples of the newer, high-value solutions available include content channel targeting, demographic and psychographic targeting, behavioral targeting, publisher approved network/site transparency and rich media solutions.
What network brand advertising means for publishers
The emergence of these more robust network advertising solutions creates lucrative opportunities for publishers. It also raises some issues, especially when it comes to site disclosure. Site disclosure can open doors to significantly higher advertising dollars, and if you tread carefully, it needn't pose a risk to your endemic sales.
The key to navigating the disclosure issue successfully is to establish a good relationship with a reputable network. Begin by opening up site disclosure to limited, trusted network partners. Networks, in turn, while offering advertisers more selectivity in content and audience, must be sensitive to their relationships with individual publishers. A trusted network partner will never position their offerings as a cheaper route to access inventory on a site-specific basis because a) it is likely not the case, and b) it will put their relationship with the publisher at risk.
The truth is, while a percentage or area of a site's inventory can be allocated to an ad network, it does not always provide the same branding or customizable opportunities for advertisers that an endemic media buy does. Targeted network buys and endemic buys are two different and complementary marketing tools, and a good network partner will represent the relationship that way.
A positive evolution
While brand advertising over a network remains a fundamentally different sale than an endemic site sale, both can mean high revenue to publishers. The trend on networks is to offer more sophisticated and targeted solutions, whether it is display advertising, behavioral, demographic or content targeting, wireless or video. With advertisers willing to pay more for these formats, publishers stand to gain. The key is to choose network partners that provide responsible disclosure, a solid track record with publishers, and the solutions, reach and advertiser relationships to ensure long-term results, simplified administration, and a truly strategic partnership.
David Jacobs is SVP, US publisher services, Advertising.com. Read full bio.