The president and CEO of this site-specific rep firm describes attributes and benefits of this type of ad network.

Winstar Interactive Media was launched in 1996 and is a division of Interep National Radio Sales. It is a site-specific representation company whose experience with online advertising dates back to the early days of the internet. The company specializes in creating customized ad packages for some of the top media brands on the internet. We talked with Adam Guild, president & CEO, to learn more.

Dawn Anfuso: Define "site-specific representation company" and tell me how it differs from other ad networks.

Adam Guild: Winstar's philosophy is to work with top sites that have developed brand recognition with consumers. We focus on sites that excel in their categories and also sites that are established media brands. While we can package sites together to produce greater reach, unlike with some ad networks, our advertisers ALWAYS know where their ads are running-- on sites with credible and appropriate content that attract audiences right for the marketer.

When Winstar sells, we strive to educate the advertiser on the value of the brands we represent and we sell each one of our publishers based on the unique characteristics of their brand. From brand awareness and integrity to revenue, we are accountable to our partners. We go the extra mile to brand our publishers with internet advertising decision makers.

Anfuso: What are some advantages for marketers to use a site-specific network?

Guild: Brand. Brand. Brand. If you are not site specific nobody is focused on your brand. Why work hard to establish a branded web destination then subjugate it to be part of a network buy? We think advertisers like to be associated with established individual brands because they get the "rub off" effect of the loyalty the consumer has to the media brand.

Also, CPM pricing-- we value our publishers' reputations and believe that advertisers should pay a fair and appropriate CPM for the inventory.  

Anfuso: What is the potential for an ad inventory shortage when working with limited sites? How do you prevent it?

Guild: Our goals are based on historical supply, historical revenue models and projections of the market, so if we are sold out it's a good thing for everyone. We invest the majority of our revenues back into our infrastructure. As a result, Winstar has grown about 30 percent a year. What's weird is that this growth is considered slow for today's interactive standards, but I ask you to take $5,000 and compound it by 30 percent over 50 years or make it 150 years. Slow and steady is the best way to service our clients.

Anfuso: Winstar has been around since before the bubble burst. What are the most significant changes you've seen in the industry since then, particularly where ad networks are concerned?

Guild: There are at least four things I can think of:

1. Most of the companies in our space are real companies and most are profitable. They don't need massive infusions of VC cash to stay open. They live off their sales and are growing.
2. Mature decision making (by most).
3. Pre-2001 ad serving companies owned by networks and "site-specific" rep companies were gouging publishers. Today these companies and their competitors are more reasonable on their costs to serve ads.
4. The inventory glut is over. Demand is greater than supply on all the top sites and CPMs will continue to rise.

Anfuso: What's on the horizon for the ad network business? More consolidation? More fracturing? Or … ?

Guild: Moving forward, there will be more pressure on inventory. We are seeing CPMs rise across the board. Advertisers need to pay for inventory with fair CPMs not CPA or CPC campaigns. Rep companies with real and established site-specific sales teams will have more control over inventory, for the simple reason that more inventory will be bought site specifically. As a result, publishers' CPM will go up and they will have less pressure to sell via networks. Site-specific repping will control more and more inventory. Interep Interactive has an investment in a network called Gamma Ray. 

The difference in our model is that our network compliments are core site-specific model-- keeping the publishers' needs first. Gamma is not an arbitrager and our rates are lower because it's best for the publishers.

As for consolidation-- definitely! Sarbanes Oxley has made going public very difficult and expensive so, I think companies will want to be acquired rather than having their own IPO. Or they will raise capital overseas where regulations are a bit more relaxed.  

Finally, we will see video become a bigger part of our world. And this will lead to a quick change of direction on distribution of content. Large publishers will be able to dismantle traditional forms of content distribution.

Anfuso: Any other comments?

Guild: I'm proud to be an internet ad guy.