Open ad marketplaces are an attractive, low-cost option that give marketers more control over their ad network buys. See how this model works for brands and publishers alike.
Ad networks are experiencing explosive growth. No topic is more widely discussed than transparency, a key point of difference among ad network models (see The truth about ad network transparency).
The focus of most discussions on the topic is on two common models: the site representation network, which offers transparency, but only for hand-selected premium inventory, and the "blind" network, which offers low-cost bulk inventory, but without disclosure of specific sites represented.
Less is said about a new generation of ad networks -- open ad marketplaces. Open ad marketplaces actually offer both massive pools of diverse publisher inventory at market-based prices and full site-level transparency to all market participants.
Brand advertisers: transparency breeds trust
Brand advertisers -- especially major consumer goods companies -- care a lot about where their message is displayed. Lack of transparency has been a key hurdle that ad networks must overcome to be successful with brand advertisers.
For this group, blind networks simply don't work. Major brands such as Coca-Cola, DeBeers and Estee Lauder will not buy ads across the internet without knowing and controlling where their ads appear.
There's good news for branders, though. The new generation of ad networks allows brand ads to run across thousands of sites, reaching tens of millions of consumers, while still having the ability to select where the ads run and see site-level reporting. There's no need to choose between transparency and scale.
Direct-response advertisers: transparency breeds knowledge and effectiveness
Let's start with a fundamental truth of direct marketing: the more you know, the better you perform. That's why smart response-oriented advertisers swarm to performance reports like bees to honey.
Advertisers should have access to as much detail on ad networks as they receive on direct site buys or any other marketing campaigns: impressions, clicks and conversions by user target, site and ad creative. Armed with this level of granularity, they can optimize their campaigns and better achieve their marketing goals. Without this data -- as is the case with "black box" optimization on blind networks -- it's harder to manage to results.
Publishers: transparency maximizes exposure and value
So, where do publishers factor in the debate on transparency? Historically, concerns about sales channel conflict and brand erosion have limited some publishers' participation in ad networks.
Today, we're finding that high quality publishers are rapidly joining open ad marketplaces and embracing full transparency, with good reason.
For high quality sites, transparency maximizes their exposure and the revenue they can yield from their pages. As advertisers optimize their campaigns, pausing non-performing sites and shifting budget to high-converting sites, premium publishers attract the most relevant ads and command the best price premiums.
As a result, high quality sites thrive in the marketplace economy, and often find their initial concerns about channel conflict or brand impact were misplaced.
Putting it all together
From the dawn of civilization, open marketplaces have enabled efficient commerce. The advertising space is no different.
Ad network participants need not choose between transparency and reach. And quality publishers should embrace transparency to attract more advertiser demand and earn premium yields.
New ad marketplaces that embrace transparency at their core can help advertisers maximize their effectiveness, while allowing quality publishers to proudly sell their inventory, including premium inventory, at attractive market rates.
Paul Levine is vice president of marketing, AdBrite. Read full bio.