In Focus

6 myths about ad networks

Myth 4: No good for branding

Myth #4: You can't use an ad network for branding.
Reality:
Marketers have traditionally used ad networks for inexpensive, efficient lead generation. Brand-oriented marketers have, for the most part, eschewed the networks to buy more premium inventory on a CPM basis. However, there is a way to intelligently use the ad networks, particularly the behavioral networks, as a complementary branding vehicle. Sophisticated online advertisers understand they need to build diverse media portfolios. Those that do, tend to focus their optimization efforts on creative and media optimization. Yet there is a third optimization metric advertisers need to consider: delivery.

Marketers are beginning to understand that they need to optimize their frequency distribution, and an effective way to do that is through the ad networks. The behavioral networks, especially, can be used to attain a better frequency distribution. In most media campaigns, the largest group of the target audience is typically exposed to one impression per user. The second largest group is often exposed to upwards of 10 impressions per user. Assuming the sweet spot for most advertisers is a frequency of three to 10 impressions per user, the goal of the advertiser should be to increase the percentage of the target audience that sits within that sweet spot. The networks are an efficient channel to gain additional exposure to the target audience and normalize the frequency distribution.

 

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