In Focus

A primer to navigating the ad network landscape

Introduction

Quick! Name all the good online ad networks you could use for your next campaign.

Actually, that's a triple-trick question for the following reasons:

  • First, because there are far too many good online ad networks to name.
  • Second, because the specific website availabilities they represent are constantly shifting, so a top network for a campaign this week might be a second choice network for the same campaign next week.
  • Third, because the barriers to entry have sunk so low that new online ad networks are popping up regularly, proliferating faster than desirable website advertising opportunities.

Ten years ago, online ad networks were relatively new and relatively scarce. At the turn of the century, there were only about a dozen online ad networks. Today, there are hundreds (as many as 400, by one count), no one of which can satisfy all the needs of a sophisticated advertiser.

So which networks should you use? The answer is about as complicated as a good response to the question, "Where should you shop?"

Obviously, no single store carries everything you're likely to want or need. And while you might get most of your food and household supplies from a large supermarket, you'll likely continue to patronize a few smaller, more specialized stores that offer certain delicacies and boutique items. What's more, your choice of exactly where to do your spending will vary, day to day and week to week, depending on myriad factors, including price, availability, convenience, your changing tastes and preferences, occasional special needs and many more.

Compared with your personal tastes for everyday food, drink and other items, advertising campaigns often present even more complicated requirements. So it's important to understand where and how to shop the full range of networks for the particular campaign results you seek.

To help you save time and get the most from your online advertising spend, here's a brief rundown of key ad network models.

 

Comments

Andy Atherton
Andy Atherton October 31, 2008 at 7:00 PM

I enjoyed this article and have a few points to add, referencing specific points you made:

"However, ad exchanges typically do not guarantee flight times, target audiences or even campaign launch dates, making them too unpredictable for many advertising campaigns.”

>>This is a great observation and an important point. Too many of the solutions on the market - particularly exchanges - do not accommodate forward planning and other important requirements for Brand (non-Direct Response) campaigns.

"For example, reaching in-market buyers -- in categories like automotive, financial services, travel and retail and shopping -- via behavioral targeting can be tremendously beneficial to a campaign. It enables direct response message delivery to an exact core audience, which can then be supported by a branded push using rich media like video.”

>> This is also very insightful. You are one of the few folks that I have seen come out and say BT is primarily a DR tool. Lots of networks position BT as a tool for branding.

"Transparency. It matters greatly. Although networks promise to get your ad delivered cost-effectively on a large scale, their ability to do so requires more than just running ads on brand-friendly content. It's important to know which sites are delivering what audiences, and how much those audiences cost. When networks keep advertisers blind, they encourage a cycle of inefficiency and withhold the data necessary to make effective long-term marketing decisions.

>> I disagree with this point though, for 2 reasons:

1) Transparency to individual sites limits the operational efficiency and therefore scalability of a network and those are two of the reasons folks buy from networks in the first place. Metrics on audience composition, reach and frequency are very important and can be shared without visibility to individual site delivery.

And, more importantly,

2) Transparency to individual sites creates channel conflict. Top quality publishers will not take advertising from top quality advertisers through a network that is transparent – this would undermine their direct sales efforts. Site-level transparency creates a situation where the only buyers and sellers are of lower quality and the high-quality players stay away from the market. Blindness is necessary to make sure all players can participate without generating channel conflict. The trick is specifying rigorous standards and metrics such that transparency isn't necessary.