Publishers plan to fight ad networks

Rich Cherecwich
  • Rich Cherecwich
Posted on November 30, 2009

In the face of mounting fears about ad networks, exchanges, and agency-side buying platforms, several publishers are discussing the possibility of forming a publisher-centric ad platform, Mediaweek reports.

Other publishers are debating a firm anti-demand-side stance, effectively freezing out companies like Publicis' VivaKi and Havas' Adnetik. The primary motive for both moves would be to protect pricing and data for premium content websites.

Drama between publishers and ad networks is nothing new, and several high-traffic websites such as ESPN and Weather Channel refuse to work with both networks and exchanges. But it's demand-side buying -- ad network-like models created by agencies -- that really has publishers sweating.

Many worry that agencies will buy cheap inventory from publishers, then sell it to clients at a substantial markup. The economic recession has already left publishers with excess inventory, and demand-side buying essentially strips them of pricing power while simultaneously reducing inventory to a commodity.

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Comments

Ken N
Ken N December 1, 2009 at 9:33 PM

CRay hits it right on here; if the Publishers didn't allow their inventory to go to Networks/Exchanges...this would not be an issue. But those entities can & do perform a valuable service to clients, when used correctly.

I've also heard tangentially, that many sites that 'refuse' to work with networks, in practice only really do that for their prime pages.

Whether that is true or not, the key issue will be that if just one Publisher blinks here [and accepts lower rates or goes with a network buy], the whole thing goes down from there.

A mix of all these options is likely where we will end up very soon from now.

Charlie Ray
Charlie Ray December 1, 2009 at 12:13 PM

Sounds like the publishers just want to create their own ad network to better control pricing to their advantage. Ad networks exist because a.) people buy them and b.) the inventory exists. It's a simple supply and demand.

Yes, the low CPMs are stinky but if the publisher said no to the RFP the ad network would not exist.

We have over 2,700 premium sites we work with in our ad channels and not once have we ever bought remnant space from them below market price.

I don't want my clients ads five pages deep below the fold. Lazy media buyers looking for a deal may be satisfied with just getting those impressions, but savvy media buyers realize good ROI and visibility cost more.

Y'all, this is not rocket science. It's sound business strategies.

Charlie Ray
Charlie Ray December 1, 2009 at 12:12 PM

Sounds like the publishers just want to create their own ad network to better control pricing to their advantage. Ad networks exist because a.) people buy them and b.) the inventory exists. It's a simple supply and demand.

Yes, the low CPMs are stinky but if the publisher said no to the RFP the ad network would not exist.

We have over 2,700 premium sites we work with in our ad channels and not once have we ever bought remnant space from them below market price.

I don't want my clients ads five pages deep below the fold. Lazy media buyers looking for a deal may be satisfied with just getting those impressions, but savvy media buyers realize good ROI and visibility cost more.

Y'all, this is not rocket science. It's sound business strategies.