Berens and DaSilva discuss limiting reach, ad networks' technological outlook, and what's going on beyond the PC browser.
Berens: A lot of the time people think about ad networks as a terrific way of extending the reach of a campaign, but what about usefully limiting reach? Can ad networks limit reach and target by geography, daypart or demographic? If so, what are the strengths and limitations of this sort of targeting compared to simply going with local publishers or some other differentiating factor?
DaSilva: Ad networks regularly limit reach to meet campaign objectives. Optimization technology constantly limits reach by shifting impressions to inventory that performs. Like other ad networks, Tribal Fusion offers many targeting capabilities-- content channel, geography, demographics, day-part and behavior. On Tribal Fusion advertisers often limit reach by targeting specific channels like Parenting or Digital Cameras, by creating custom channels or by targeting specific sites. Additionally, because we reach more than 50 percent of the online audience, even with a high degree of targeting, networks like ours can still provide a substantial number of users for a given audience.
Ad networks are a much more effective mechanism for shaping an optimized campaign across multiple sites than purchasing individual sites directly. When advertisers buy inventory on specific sites directly, the only way for them to optimize the campaign is to cancel the order on under-performing sites and shift budget to better-performing sites. However, this is a manual process and labor-intensive. With a network like Tribal Fusion, the media buyer places a single Insertion Order and our optimization technology works to automatically shift impressions to inventory that performs. Many variables are taken into account when determining performance, including site, frequency, contextual topic and user behavior. Even when an advertiser purchases a single site, our technology automatically shifts impressions to the best performing inventory on that site.
Berens: Technologically, what do you think the big ad network developments will be in the next six months, 12 months, or few years?
DaSilva: Over the next several years we will see the convergence of many of the technology innovations in ad serving and targeting that are currently coming from individual companies. Today, most networks primarily focus on a single offering-- contextual, behavioral, local, video, rich media, performance advertising or brand advertising. In the future, the leading ad networks will successfully combine multiple aspects into a single optimal solution.
I also believe that Fortune 1,000 companies focused on building brand awareness will increasingly move their advertising budgets from offline to online. To meet this demand, companies like Tribal Fusion are developing solutions that enable advertisers to optimize to maximize brand lift. Technology improvements will also ensure that an advertiser's message is displayed in a safe environment, free from questionable content that could damage their brand.
Berens: Generally, with the rise of Wi-Fi, internet connected PDAs and mobile phones, and local search, there's a whole lot of interactive activity going on that is moving beyond the desktop/laptop browser. Where do networks fit into this growth?
DaSilva: As advertisers become accustomed to delivering their message on devices beyond the desktop/laptop browser, I see ad networks playing a primary role in matching ads to users. Ad networks use dynamic matching technology to determine the optimal ad campaign to serve to a particular user. This decision capability can be utilized across any type of media platform, including web browsers, mobile phones, game consoles, PDAs and IPTVs. As with targeting browsers, many factors will be considered in deciding which ad is the optimal one to serve to a mobile device, including the content being viewed, past behavior, user preferences and location.
In time ad networks will also create solutions that make it easier for buyers to navigate through the many different choices that these new media formats present.
Berens: Let's end on a Tribal Fusion-specific note. What's on your immediate horizon that you're excited about?
Da Silva: We are excited about the rapid growth trajectory of the industry and the innovation that this pace demands. I am particularly excited about the convergence of multiple solutions like contextual, behavioral, local and others that will allow us to provide an optimal solution for both advertisers and publishers.