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With "The New York Times" reporting that there are
more than 200 ad networks operating in 2008, and other sources putting the
number at twice that, it's clear that e-tailers have lots of options for
marketing their Web shops in these channels, said Robert Tas, founder and CEO of
Sportgenic, a network targeting sports enthusiasts. But, how do you figure out
which ones will work best for your particular e-business?
Tas, in an effort to educate Web shop owners new
to the ad network game, wrote a white paper on the topic and spoke with
E-Commerce-Guide.com about the
highlights exactly what ad networks are, what they can do for you and how to
choose one.
Ad networks, put simply, aggregate online advertising inventory from a variety
of sites and provide a single solution for the advertisers, said Tas, with
business owners working with the network to buy advertising across some or all
of the sites they represent. |
Key Terms To
Understanding Ad Networks
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Times Have Changed
When ad networks first appeared in the late 1990s, he said, they were not
researched well, and therefore, not very popular. "By aggregating pages
across a huge number of not-well-vetted sites, advertisers had little or no
control over where their messages ran or if they appeared on inappropriate
content. So, advertisers placed minimal value on networks as a whole, or
were simply unwilling to run messages on them."
Now, all that has changed. Tas said the industry cleaned up its act by
making significant improvements in the quality of sites offered and offering
contextual and behavioral ad placement as well. As a result, currently
advertisers use networks for the six following functions, as outlined by Tas:
- Behavioral targeting and re-targeting
- Easy-to-reach vertical targets, such as
auto buyers, or women or sports enthusiasts
- One-stop advertising on long-tail sites
- Connections to the passionate, or those
people demonstrating loyalty to a brand
- Large amounts of exposure on short
notice
- Broad reach and heavy frequency beyond
the reach of portals
Maturity Brings Specialization
In addition to improvements in the quality of ad networks, there are now
different types. The general interest ones are called horizontal networks,
such as ValueClick.
Vertical networks specialize in a particular
type of content or audience, and represent only sites related to that topic.
Tas cited the following as examples: Glam Media, representing sites
targeting women 18 to 49, his own company, which focuses on both sports fans
and participants, and Jumpstart Automotive, which aggregates auto
impressions across auto sites and its network.
A third type of ad network and relative
newcomer is called the platform network, designed to take advantage of
emerging digital platforms, such as mobile and console gaming, Tas said.
Examples include Ad Infuse, AdMob and Double Fusion.
"As the number of ad networks has increased, so too has the degree of
specialization in the category," said Tas. "But the basic concept
aggregating impressions across sites so that marketers have an easier way to
reach consumers, and take advantage of better targeting has remained the
same."
Hot Trend: Vertical Networks
Though there are three different types of ad networks, vertical networks are
the ones that have been gaining popularity. He points to numbers from Lehman
Brothers showing 43 percent growth in overall ad spending on vertical
categories in 2007, compared to a 5 percent drop in spending at general
portals.
"The Web
is fragmenting, and to capitalize on that, you need a vertical ad network
that has expertise in the specific area you want to reach, whether its
travel, an ethnic group, say Hispanics, or sports, because they know where
and how to reach these people without being intrusive," said Tas.
Finally, if you're wondering if ad networks are affordable for small Web
shop owners, the answer is "yes." Tas said he has one client, he dubbed as,
"the next Gatorade," that advertises with Sportgenic to target endurance
athletes. "Lots of up-and-coming companies can afford ad networks because
many work for all scales of businesses," he said.
He outlined the following benefits for advertisers as the reasons why
verticals are taking off: quality content for ad serving, the targeting of
extremely passionate viewers and the ability to have custom campaigns
created.
Nine Questions to Ask When Choosing a
Network
Tas also shared his checklist for choosing an ad network. Here are his
nine tips:
- What are the site quality standards of
the network? How do they decide whether a site is good enough to run my
advertising? The network should have impeccable standards to ensure your
ads run in brand-enhancing environments. Running next to the wrong kind
of content can do damage to a brand.
- Is the network willing to share its site
list, as well as the actual site list on which my ads will run? You have
the right to know where you will be advertising. At a minimum, you
should see the site list of your campaign.
- What is the reach of the network to my
target audience? Reach isn't everything, but working with larger
networks makes the job of buying, reporting and optimization easier.
- How robust are the targeting options?
Can they pinpoint my audience? Can they segment my audience and offer
tailored campaigns? Digital advertising is getting increasingly
sophisticated, and the capability to offer these will become
increasingly important over time.
- Does the network offer me opportunities
to develop programs across digital platforms such as mobile, widgets,
social media and gaming? Audiences are fragmenting across platforms.
Having a network that can offer you platforms beyond PC-based Web pages
will make it easier to migrate more and more of your advertising to
follow your audience in the near future.
- Is the network growing? Are the sites
within the network growing? The health of the network will give you a
sense of the passion that the audience feels for the sites, and by
extension, the advertisers.
- Does the network have exclusive
representation agreements with its sites? Exclusive representation means
you will be getting the best ad placements available.
- What are the reporting capabilities of
the network? Can I see them before I buy? Can it be integrated into my
current reporting platform? The network you choose should make these
critical tasks easier, not harder.
- Is the sales rep I would be working with
responsive? Do they strive to meet reasonable requests and deadlines?
Personnel is critical; the staff should make your job of planning,
buying, reporting and optimizing easier, as well as offer ideas for
improving your campaign and ways to plan for the future.
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DID YOU KNOW...
About Robert Tas:
Prior to creating Sportgenic, Tas was senior vice president of
media and technology for 24/7 Real Media. During his tenure, he
closed deals with Marketwatch.com, USA Today, Discovery,
800Flowers and others. Previously, he also helped launch Tacoda
Systems, a behavioral targeting software and network firm.) |
By Michelle Megna
Article courtesy of ECommerce-Guide.com.
Last updated: August 06 2008
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