In Focus

A primer to navigating the ad network landscape

The fluid network topography

Of course, with networks developing so rapidly, these categories are by no means mutually exclusive or set in stone. How you break down the categories depends on your intended outcome. In fact, Michael Katz, president of interCLICK (the fastest-growing ad network, according to comScore), says, "I think you could make the argument that some networks are segmented by the pricing they offer, like CPA versus CPM versus CPC, but that's not really a determining feature. I think it's more accurate to remove geo-networks and the pricing model, and add in... transparent versus blind networks, and premium versus remnant networks, along with possibly even contextual networks."

Katz suggests advertisers use networks to find the right balance between granular targeting and run-of-network reach, building brand awareness and generating immediate response. 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. The specifics, of course, will depend on your product, your campaign goals and other parameters.

Susana Tsui, regional managing director of Neo@Ogilvy, a division of OgilvyOne Worldwide, says, "Although every campaign should have a media mix, larger brand advertisers would not usually rely exclusively on ad networks. However, some SOHO [small office, home office] businesses that have different requirements than brand marketing may benefit greatly from network buys, which tend to be very performance based and can work very well for direct response."

 

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.