Use of Ad Networks Due to Grow in 2007
According to Collective Media’s 2007 ad network study “88% of online advertisers say they plan to use online ad networks in 2007, while 67% say they plan to increase their use of ad networks in 2007.”
In an effort to analyse the sector and identify key trends a number of specific findings were highlighted:
• 66% of advertisers plan to increase their usage of ad networks in 2007 with 88% of respondents planning to use online ad networks in 2007 (up from 77% in 2006). While usage and ad spending is growing, respondents believe there are too many ad networks in the marketplace, making it more complicated to select which ad networks with which to work. The vast majority of media buyers surveyed (over 62%) felt there were too many ad networks.
• Despite the fact that online marketers felt there were too many ad networks, they still overwhelming believed that ad networks differed from one another with only 17% of respondents believing that all ad networks are alike.
• When trying to determine what criteria makes one ad network different from another, over 57% of respondents believed how an ad network targets audiences was the differentiating factor.
• Reach (at 52%) and Efficiency (at 66%) were still the key drivers for why agencies/advertisers include ad networks on the buy. So, while not fundamental advantages when comparing one ad network to another, Reach and Efficiency still mattered most when determining why ad networks should be included on the buy in the first place.
• When analyzing why agencies/advertisers limit their use of ad networks, editorial control was the biggest barrier at 59%. Audience duplication caused by publisher overlap among ad networks was a solid 38%.
What does this all mean?
• One swallow doesn’t make a summer but I think there is no good reason why growth in this sector will not continue to pick up the pace. The ability to hit niche demographics is a real USP.
• I do not entirely understand the issue with too many ad networks - as this must surely be seen as the strength of a competitive market.
• Editorial control is a perennial issue and I do not see a long term solution other than for networks to carry on muddling through the mine field.
(Via Marketin Vox)
READER COMMENTS:
No comments yet.
