In Focus

A primer to navigating the ad network landscape

Behavioral and big media networks

Category: Behavioral networks
Behavioral targeting networks are the current incarnation of the internet's vaunted promise to facilitate one-to-one connections between consumers and advertisers. Using clever technology that tracks individual consumer behavior across all their affiliated websites, these networks allow advertisers to target segments by their online activities and presumed intent. Going beyond commonplace contextualization of advertising and relying on past activity, these networks are capable of serving highly relevant ads, entirely irrespective of the content a consumer is currently viewing.

Where they fit: Advertisers that have an in-depth understanding of their target markets and can pinpoint the consumer intentions and behavior patterns commonly leading to a desired consumer decision can often generate big lifts in their results through the adroit use of behavioral targeting techniques.

Category: Big media networks
As the lines between publishers and ad networks blur, large-scale media "destination" sites are augmenting their strong relationships with advertisers by partnering with like-minded websites and morphing into the centerpieces of niche-oriented advertising networks. For example, Lifetime is doing well with its Glam network, CBS has launched a "local station oriented" widget advertising network, and BET's ad network seeks to transition established TV advertisers to the web. Meanwhile, Warner Brothers' TV group is betting on its network built around its MomLogic.com property, and Martha Stewart's website is now aligned with the Martha's Circle collection of high-end lifestyle sites.

Where they fit: These networks tend to offer rich media opportunities, which can work well for branding campaigns and for delivery of product demos or samples of entertainment experiences.

 

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.