iMedia's exec editor chats with Tribal Fusion's Dilip DaSilva about ad network differentiation, reach, capabilities and outlook.

Dilip DaSilva is Tribal Fusion's president and chief executive officer. He has over eight years of experience in the online advertising industry and over 18 years of experience in Silicon Valley to Tribal Fusion. Previously, Dilip designed and built ad-serving systems for Flycast Communications and Engage Media. Building on his experience at Flycast, he designed and built Tribal Fusion's ad-serving solution to evolve with the demands of the online ad industry.

Brad Berens: After the bubble, ad networks had a bad reputation, but lately the stock for this sort of business seems to be rising... why is that?
 
Dilip DaSilva: In the past, many ad networks were focused on reach, not quality. Working with an ad network was simply about finding as many eyeballs as possible across the web to see your message. Advertisers had little to no visibility into where their ads were running; this lack of visibility encouraged the recruitment of low-quality sites by many of the networks.

Since the bubble, many of the surviving ad networks have approached the challenges of overcoming the bad reputation of the past in different ways. Tribal Fusion's approach has been to focus on a visible list of quality sites, great customer service and superior optimization results for advertisers. Advertisers are increasingly relying on ad networks to meet their campaign objectives. This, along with a visible site list, is helping to bring confidence back to the ad networks as a valued media partner for advertisers and agencies.

Berens: Relatedly, 2005 seemed like a terrific year for ad networks-- with a new ad network seeming to appear on the landscape every few days. Why do you think this happened in 2005? And what do you predict for ad networks in 2006?

DaSilva: 2005 was the year the tide of advertiser opinion about ad networks switched directions and ad networks were included as a primary component of an increasing number of media plans. This trend will continue to accelerate in 2006. Media buyers and planners have come to realize the value of working with an ad network in reaching their target audience and exceeding campaign objectives. This increased confidence and knowledge has given way to renewed interest from investors and new networks coming online.

In 2006, as buyers learn more about what is working for them, I predict that they will look to ad networks for more impactful media opportunities online. Additionally, I believe the bar will continue to rise for networks. Our clients will increasingly demand transparency, deep contextual relevance and the custom placement opportunities that make networks a primary component of their media plans.
 
Berens: Let's talk about differentiating factors among different networks, and this is something that we've been following closely here at iMedia for a while, as you might have noticed from our Ad Networks Crib Sheet. Without it being too much of a commercial for Tribal Fusion, what are the three factors that you recommend advertisers think about when trying to choose an ad network?

DaSilva: The first factor advertisers should consider is whether the ad network is transparent and stands behind the quality of the sites in the network by providing a visible site list. Advertisers should always be concerned about where their ads are running. From our inception, Tribal Fusion has provided a visible site list on our website. We've taken the approach of representing a smaller number of publishers and working closely with them on a revenue share basis. As a result, we have long-term relationships with our publishers and can offer advertisers more than just standard placements. Additionally, we do not allow other networks to rotate ads within our network, nor do we buy inventory from other networks. This ensures that our publisher goals are aligned with those of our advertiser clients.

The second factor to consider is how responsive the ad network is to meeting the advertiser's needs and objectives. We listen to our clients needs and respond to each media plan with a variety of unique opportunities that deliver client objectives. These can include building custom channels to reach a specific audience, or immersive opportunities like micro-sites or sponsored content. Once a campaign is live, a dedicated account manager is proactively managing the campaign to insure it meets or exceeds the advertiser's objectives. If the advertiser needs to make changes to the campaign, we try to respond within a couple hours. One of our key objectives is to consistently deliver the highest level of service to our clients.

The third factor to consider is the effectiveness of the optimization technology used to maximize the performance of the campaign. Tribal Fusion's optimization technology works in real-time-- it learns through every impression, click and conversion what works best for advertisers and constantly updates campaigns to best achieve the objectives. This means less waste for advertisers and more effective campaigns. 
 
Next: Berens and DaSilva discuss limiting reach, ad networks' technological outlook, and what's going on beyond the PC browser.