Ad spends are increasingly moving to ad networks, thanks to new technology-based platforms.
I always look forward to reading Eric Picard.He is a champion of our industry and a deep thinker. As usual, his most recent article got me thinking about the health and well-being of the online advertising business.
Eric thinks we're in a death spiral of online ads not covering the cost of the content that hosts them. I know many of our leaders, such as Steve Goldberg, share the same fear. But I'm not so sure that the economics are THAT far out of whack.
I have always assumed, as have many others, that oversupply of display impressions has been the primary culprit in the cratering of CPMs. But looking at Eric's chart showing cross-media impression volumes, it becomes clear that display volume, on a relative basis, is not out of line with other media types; in fact, newspapers have the highest impression volume. This tells me there is much more than pure over supply at work here. Seeing this was a "myth-buster" moment for me.
Eric also raises a good point about how much money, time and energy is spent on optimizing ad performance and direct response while brand marketing gets lost. And his point about enlarging creative units makes... Read more
I chuckled at the recent article by research firm McPheters & Co. commissioned by Conde Nast, which found that relevant website content was a key factor in ad recall.
I didn't laugh just because someone found it necessary to do a study to confirm that readers of a food magazine might find food ads relevant. Rather, I laughed because they published the statistic that put the recall at "61% higher than ads in unrelated content".
Is Conde Nast trying to convince us all not to buy their content??
Look, it doesn't take a study to tell you that website content matters – it absolutely counts, both for audience targeting and for message relevance. But if you are a branded content publisher, this study does not make your case. In fact, it is pegging your "CPM premium" at only 61% higher than untargeted run of network (RON) inventory!
Hey you media planners out there…tell Conde Nast you are only willing to pay them 161% the price of what you pay for RON on a network or exchange, and cite their own research. That should get you premium inventory at less than $2.50 per thousand!
But all sarcasm aside, how important... Read more
One of the things I love most about working in online advertising is the pace. At various times since 1995 our industry has seen periods of rapidly accelerating change, and it seems once again to be evolving in the blink of an eye. Ad exchanges, audience based targeting and powerful new data sources are evolving so fast that what's new today seems old by tomorrow. But these trends are all driving toward a renewed period of growth. A newly-released PriceWaterhouseCoopers report projects that digital advertising will represent 25% of all advertising revenues by 2013.
Today as never before, online advertising is at a tipping point, with all the enabling factors coming together for a true breakthrough. I'm not referring to the current first step of simply buying remnant inventory on the cheap from ad exchanges, but a total transformation of the entire media buying process.
Yet while this new potential and excitement lay out before us, many media planners and buyers still have their feet firmly planted in the old model of buying site presence rather than audience. Sure they add a few networks to the buy in order to meet an overall plan efficiency metric. But few... Read more
The recent iMedia Brand Summit got me thinking about the future of ad networks. In particular, I found myself nodding along when Sean Cheyney, vice president of marketing and business development for AccuQuote, predicted that we will see a major consolidation of ad networks over the next 12 to 18 months.
In fact, I would go one step further: Not only will we see a consolidation of ad networks but there also will be a fundamental restructuring of the network model.
In today's marketplace, ad networks fulfill two functions for agencies and advertisers: they simplify the buying process by consolidating and packaging inventory from mid- and long-tail websites, and in many cases they provide technology and/or data that allows for better targeting. From the sell side, networks provide publishers with access to buyers, plus the technology and sales infrastructure small sites can’t provide for themselves.
Going forward, I see two emerging trends driving change in the near-term. First, ad exchanges will provide direct access to buyers, reducing the need for a sales force. Second, major agency holding companies like Omnicom and WPP will launch “private ad networks”, as they continue to acquire network infrastructure and targeting technology and platforms. They’ll... Read more