5 points to remember
Whatever you're trying to accomplish, remember to keep the following five things in mind when selecting and working with any online ad network:
1. Overlap. "The main concern that most advertisers have is overlap," says Katz. "Since most large networks do overlap with one another due to the nonexclusive nature of the relationship that they have with most major publishers, the advertiser's goal is to determine which type of network can reach their target audience in the most cost-effective manner."
2. Competition. The large number of online networks vying for business places these organizations under extreme competitive pressure. While each one tries to portray itself as different, their similarities are often much greater. Rather than simply accept a network's claims of difference, ask for proof: proof of transparency, proof of technology, proof of performance, proof of whatever other claims are being made.
3. Price pressure. Because online ad networks are so similar, website publishers feel very little loyalty and regularly reshuffle their unsold inventory among the various outlets. With so many networks offering the same inventory, they tend to compete for advertising dollars mainly on price.
4. 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. According to Greg March, digital group director of New York ad agency Weiden + Kennedy, "Without transparency, it's difficult for me to know the details, such as exactly where and how often my ads are being run. Without 100 percent network transparency, I've got to trust somebody."
5. Competing interests. Ad networks are intrinsically torn between two masters. The website publishers that supply their inventory are interested in maximizing revenues, while the advertisers and agencies that provide their revenues are always looking for lower prices. Ad networks must walk the line between these competing interests. It's a zero-sum game unless the network can add value or grow. Fortunately, advertising dollars are currently trending online, so networks have been able to carve out slices of a rapidly expanding pie.
The bottom line is that the best networks for your campaign will vary with your key performance indicators: Are you more interested in clicks or customer acquisitions? Brand awareness or deeper engagement? Or something completely different? It's a difficult puzzle to solve, but look at it this way: If one size were to fit all campaigns, advertising wouldn't be as exciting, challenging and rewarding as it is.
Robert Moskowitz is a consultant and author.
