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Are Online Ad Networks the New Smelly Kid in Class?

May 6th, 2010

There has been a lot of chatter lately in the advertising world about online ad networks.  Are these networks the right way to go for our clients?  Are they trustworthy and reliable?  Is it really worth paying a lower CPM if it jeopardizes your brand? 

What the majority of online ad networks do is sell remnant inventory (which they have purchased from other publishers) at a lower CPM.  Typically this will get you exactly what you pay for.  Quite often you will not know exactly where you are running or worse yet you could be running next to questionable content on the web.  This lack of transparency and control can kill your brand. 

Many publishers like Disney have also said enough is enough and will not sell unsold (remnant) inventory to ad networks anymore.  Publishers like Disney would much rather the inventory be used for co-branded initiatives than sold to ad networks resulting in lost revenue for Disney.

Years ago many of us (myself included) jumped on the ad network bandwagon partly due to its appealing price tag for our clients.  Now it seems like online ad network companies are multiplying and coming out stronger than ever for business.  I probably get at least two phone calls a day from a “new” online ad network wanting to pitch me their business.

It seems to me like more advertisers and publishers are rediscovering the value of associating products and brands with high-quality premium content over ad networks.  Don’t get me wrong, I love a great deal just as much as the next person but it’s important to remember you get what you pay for.

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