Ad Networks: Prospering In The Automated World Of Display Advertising

The death of the ad network has been greatly exaggerated. From the conversations I’ve been having with ad net execs, the market is holding up and looks set to power on in Q3 and Q4.
The distinction between an ad network and site rep firm (or sales house) should be clarified. An ad network in its truest form is very much technology-driven and has a strong sales resource.
The site rep firm relies less on the technology and more on the exclusive relationship it has with the agency and the publisher.
Ad nets have the people and the know-how to optimise online campaigns. They have the data to target specific audiences. And they’ve got a flexible model, capable of evolution and change.
Written off continuously over the past year or so, the tech-savvy ad net is prospering in the new automated world of display advertising. Here are some of the reasons why:
– Technology: If you want to survive as a middle-man in this market, you need to offer the publisher and agency value for money. Performance-based ad networks like Specific Media and Adconion are but two examples of how ad nets can use in-house behavioural targeting technology to achieve results on CPA campaigns for the big brands.
– Data: Ad Networks have been trading for a long time, and have accumulated a lot of campaign data. Successful networks have segmented this campaign and user data, and use it target specific audiences for agency clients
– Yield Optimisers: Publishers are beginning to work with companies like Rubicon, Admeld and Improve Digital who can manage and optimise ad network relationships. This is good for ad nets as these yield specialists make it easier for publishers to automate non-premium inventory. The auctioning of inventory can often push up the price of ad impressions. But by getting access to strong ad inventory, the technology-driven ad nets are able to deliver better results for clients.
– Ad Exchanges: The trading platforms have been slow to take off in Europe on the publisher side – but the ad networks saw a huge opportunity to trade with agencies and some publishers and seized it. Some networks have developed successful new business models on the exchanges.
Ad Networks are going nowhere. As more and more publishers look to bring their premium sales in-house, they will look to automate all non-premium. This will benefit the ad networks, and allow those who can add real value to succeed and grow.