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Ad Networks 101

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Simple introduction to online ad networks.

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Ad Networks 101

  1. 1. Ad Networks 101 Understanding how ad networks play into your online property.
  2. 2. What is an ad network? <ul><li>Ad Networks are built by connecting to thousands and in some cases millions of websites. </li></ul>
  3. 3. What are the differences <ul><li>Ad networks will vary based on the types of targeting available, types of pricing and caliber of websites. </li></ul><ul><li>The top 20 ad networks: </li></ul><ul><li>Advertising.com (Platform-A) </li></ul><ul><li>Yahoo Network </li></ul><ul><li>ValueClick </li></ul><ul><li>Google Ad Network </li></ul><ul><li>Specific Media </li></ul><ul><li>FOX Audience Network </li></ul><ul><li>24/7 Real Media </li></ul><ul><li>Microsoft Media Network </li></ul><ul><li>Traffic Marketplace </li></ul><ul><li>Tribal Fusion </li></ul><ul><li>interCLICK </li></ul><ul><li>Turn, Inc. </li></ul><ul><li>Casale Media </li></ul><ul><li>CPX Interactive </li></ul><ul><li>Collective Network </li></ul><ul><li>AudienceScience </li></ul><ul><li>Adconion </li></ul><ul><li>Burst Media </li></ul><ul><li>ADSDAQ by ContectWeb </li></ul><ul><li>AdBrite </li></ul>
  4. 4. Ad Network Buyer Benefits <ul><li>Simplicity - Buy thousands of sites with one IO. </li></ul><ul><li>Uber Targeting - Demo, Geo, Behavorial, Content. </li></ul><ul><li>Cost - Ad Networks typically price very aggressively </li></ul><ul><li>Scale - huge reach into the web from premium sites into the mid and long tail. </li></ul>
  5. 5. Ad Network Publisher Benefits <ul><li>Monetize unsold inventory </li></ul><ul><li>Access to premium advertisers </li></ul><ul><li>Don’t have to hire and manage an ad sales force </li></ul>
  6. 6. Direct vs. Ad Network <ul><li>Question: </li></ul><ul><li>I was at an agency the other day and the buyer told me she buys my online property through Valueclick - what is ValueClick and how come the buyer won’t buy me direct. </li></ul><ul><li>Answer: </li></ul><ul><li>ValueClick is an ad network. </li></ul><ul><li>Many websites will use ad networks to sell off remnant inventory based on a revenue split where the ad network keeps a percentage of the CPMs earned. </li></ul><ul><li>In this case, ValueClick more than likely has a relationship with the online property and as a result can sell inventory into the online property at a substantial discount because the inventory is considered remnant. </li></ul>
  7. 7. Direct vs. Ad Network <ul><li>Question: </li></ul><ul><li>If the media buyer can buy my web property so cheap through an ad network, then how can I compete? </li></ul><ul><li>Answer: </li></ul><ul><li>In my opinion, you should focus on high impact elements that deserve a premium. </li></ul><ul><li>Site skins, home page takeovers, clutter busters and road blocks are all high impact placements that get a very high share of voice, if not a full 100% SOV. Since these units are not remnant, ad networks don’t have access to them. </li></ul>
  8. 8. Dirty Little Secret <ul><li>A dirty little secret I learned is that when an ad network can’t fill an order, it will often initiate an IO with a competing network to buy more inventory. </li></ul><ul><li>While the practice is frowned upon, it happens. </li></ul>

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