In Focus

6 myths about ad networks

Marissa Gluck
Ad Networks Posted on September 08, 2008

Introduction

Long seen as the repository of less desirable, remnant inventory, the traditional definition of ad networks is quickly evolving. The rapid consolidation within the ad network industry has left few independent, stand-alone networks. Likewise, specialized ad networks, focused on behavioral targeting or vertical content, are also becoming increasingly scarce.

The reach of the larger networks is now astounding -- comScore estimates that AOL's Platform A now reaches more than 90 percent of the U.S. internet population. But reach only hints at the potential value of an ad network to a marketer.

With consolidation comes a change in the revenue structure of these businesses, as bargains become more challenging for ad buyers to find. However, as ad networks increasingly move upstream, representing more and more premium inventory, there are still common misconceptions about the strategic value of buying media through a network.

Let's take a look at some of the most common myths about ad networks and examine the realities.

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Comments

Bryant Garvin
Bryant Garvin September 12, 2008 at 1:50 AM

Going back to one of your first statements it is true that you can't "clump" all ad networks into a single bucket to classify. For example Both myth 5 & 6 have truths and yet there are some parts missing. There are "Networks/echanges" that offer full transperancy to be able to see EVERY SITE your ad ran on!(disclaimer AdBrite is one of them) so the excuse of brand advertisers to say we want transperancy so we can't use a network just means they are still stuck in an old myth that all networks are blind.

For Myth 6 yes it is true we are moving to more of a SEM Auction model for delivery but with the right partners you can still get the "true value of each impression". When you have a network selling on a flat rate there is no leeway for a downswing in price. Of course there is no upswing either. But with an Auction Model the Inventory that is worth the most (either through Brand Value or ROI) is going to get the highest bids. If it doesn't work as well they won't.

Thanks for opening a can of worms! I love conversation and discussion it is sooo boring when everyone sings the same tune.

Sean X Cummings
Sean X Cummings September 8, 2008 at 4:09 PM

Great article Marissa. We'd have a great debate on many of the issues, but I love your insights. :) Keep writing.

Robert Kadar
Robert Kadar September 8, 2008 at 9:44 AM

Marissa does a great job here outlining many of the strengths of ad networks and vertical ad networks. In the Health category, where more and more people bypass the bit "portals", a vertical Health advertising network offers even a greater benefit as it can effectively complement portal and search advertising strategies and reach patient populations otherwise missed by more traditional plans.
Robert Kadar
CEO
Good Health Advertising
www.GoodHealthAdvertising.com