Ad network survival tips

Ask any 10 media buyers what their biggest problem is with ad networks, and at least seven of them will tell you that networks are undifferentiated from one another, and that their biggest problem is telling them apart with respect to what they do.

Networks can take up different positionings, be known for certain superstars on their sales staff, and have aspirations for being the market leaders in one thing or another. But when an RFP is ready to go out the door, if you decide to send it to one network, you might as well send it to 50. 

I have a handful of networks that I believe are good for fulfilling certain strategic roles for clients, based on past experience and a belief that there is something distinct about their ad offerings. The rest of them might as well use their company names interchangeably.

This means that for the ad networks currently swimming in the sea of "me too," there is just one thing that is capable of making one company seem different from another -- service.

It would be easier, and even preferable from where I sit, to be able to tell networks apart by the quality of their technology, or by their approach to addressing certain types of marketing challenges. But for the vast majority of the networks, it comes back to service.

Service is most important when it comes to fulfilling RFPs. The agency and advertiser have a legitimate need and are putting money on the table to address it. I don't want to re-hash the common arguments around the typical agency RFP process -- it's counterproductive. What I do want to say is that networks really need to shine, and there are a few things they can do in order to stand apart through their service.

Many agency RFPs have a tight timeline. Much of the time, network partners (and even the agency) don't fully understand everything that is going on behind the scenes. There is a marketing challenge, and various marketing-related disciplines might be in competition to address it. PR, sales promotion, advertising, social media -- many disciplines might be struggling to put an approach to paper, and possibly using an even wider array of agency and consulting resources in order to do so. If the timelines are tight for a digital RFP, it might be because TV buyers can put together a plan to address the challenge in a single afternoon, and in order to get serious consideration the digital approach needs to be considered within the same timeframe.

While RFPs are going out and proposals are coming in, here's how networks can deliver superior service:

  1. Acknowledge that you've received the RFP, and that you're aware of the deadline. If you wait too long to say "message received," you might get frantic calls from assistant planners who are looking to clarify which networks are going to be able to respond. This pulls them away from other things they could be doing in order to flesh out the idea.

  2. If the RFP offers up insight into strategy and tactics, please read it. I've put out RFPs and taken time to explain what we're trying to do for the client, and received responses that made it clear the network sales team didn't read what I wrote. The information is there to make sure nobody wastes time going down the wrong strategic path. Ignore it at your own risk.

  3. If you can't fulfill, tell the agency. I have great respect for network sales people who call or send email right after they've read an RFP to tell me that they're not going to be able to put together a compelling response and why. I've also had sales people try to hammer a square peg into a round hole. Guess which approach works better for everyone concerned?

In the end, if it all comes down to service for your ad network, you really need to deliver. And there's no better time to deliver than during the RFP process.

Tom Hespos is the chairman and president of Underscore Marketing and blogs at Hespos.com.

On Twitter? Follow Tom at @THespos1 or @_MarketingLLC. Follow iMedia Connection at @iMediaTweet.

 

Comments

Dave Simon
Dave Simon April 8, 2010 at 2:02 PM

Hi Tom,
Great article. I might add one more thing to your list (based solely around the RFP process)
1) Deliver on promises. Once you tell a planner that you've received the RFP and will hit a stated deadline, it's very important to actually meet that deadline. For new clients, this is the "first impression" and missing initial deadlines could be the factor that gets an ad network removed from consideration.
2) Submit clearly and concisely. Planners might be RFP'ing 20-30 vendors for a specific campaign and don't have the time or energy to sift through pages of meaningless information. It's in everyone's best interest to clearly state what and why you've submitted the way you did.

Tom Hespos
Tom Hespos February 5, 2010 at 11:57 AM

I think the networks themselves ought to be thinking about differentiation more than agencies currently are. After all, it's their own long-term survival that depends on it.

To answer your questions, Benny, I do differentiate between banks - Chase and Citibank might have checking account offerings that are at parity, but my local credit union beats the pants off them both, so differentiation does matter. Same goes for the Camry vs. Accord thing - I'd probably pick an Accord, based on my needs and impression of Honda vs. Toyota. More likely, though, I'd pick a Dodge because I don't need an economical sedan. I need a big pickup truck.

The best way to avoid commoditization is to keep your offering differentiated from everything else in the category. If you serve a particular need in a better or different way, you have a better chance at sustainable revenue. From the agency perspective, though, we just want to know which networks are best at addressing which types of marketing challenges.

Then there's the notion that this market doesn't have the volume of dollars to support 300+ networks that all do the same thing in the same way. Some will have to go out of business and some will have to develop distinct offerings and positionings to survive.

Sarah Zielie
Sarah Zielie February 5, 2010 at 11:00 AM

It's like you are reading my mind! I hope everyone that works at an ad network reads this.

I did have one ad network come in for a meeting recently and admitted if we already have strong partners in place there probably isn't a reason to try them. I thought it was very honest and also a time-saver for them and us.

One thing I would add to the list is be thorough in the proposals. So many networks put vague targeting placements such as "Behavioral Targeting Home Improvement Enthusiasts". What does that MEAN exactly. How are you doing this? Not all targeting is created equal.

Benny Radjasa
Benny Radjasa February 5, 2010 at 1:12 AM

Tom, do we need to have all the Ad Networks differentiated out? I think the pie is large enough for everyone to get a piece of the action, obviously is good to have a differentiation factor. Some companies even try to differentiate themselves with proprietary technology that do not even work, I am sure we seen a bunch of those before. Is there a differentiation factor that comes in mind when choosing which bank you choose to do business with: like Chase vs Citibank or traveling with Delta vs American Airline or choosing between Honda Accord vs Toyota Camry? There are some subtle differences but it all comes down to personal preferences and taste.
There are more than 300+ ad networks out there; I think there is not enough game changing technologies / processes to support and differentiate these 300+ ad networks. They all will have to share the some of the technologies, access to these technologies are quite cheap these days. Most will say we have superior service for differentiation. I do agree with you.
It just upset me when agency folks demand to know exactly what an ad network differentiation is. I just wonder if they ask their bank representative, let say Citibank, how this bank differentiate from Chase bank. I don't think most people think like that, or ask these differentiation questions on commoditize services. Yes people, I said commoditized services. I believe ad networks are trying to not commoditize themselves, which results in the demand by the agency folks to ask what are the differences in the ad networks. In a sense no matter how we spin it, most of ad networks services are like commodity product , or will be commoditized in the near future.
People have different prejudices when it comes to a certain circumstances, we are all hypocrite at some point in time, and we are all too human, it is in our nature.