Ad Networks are Changing Online Metrics

With consumers spending more time online and advertisers increasing their spending in this arena, it seems logical that ad networks are becoming a major force in allocating the inefficiencies of this marketplace. A recent Bain benchmark survey indicates that ad networks are rapidly gaining market share.

• In 2007, ad networks sold 30% of total display ad space - a substantial increase from the 5% market share they garnered in 2006.
• Another noticeable trend is that ad space inventory more frequently sells out but at a lower price when an intermediary such as an ad network is used. Further, the CPM (cost per thousand views) for an online video ad goes for 2-3 times the rate of a display ad.
• The survey also indicates that online publishing revenue increased 32% in 2007 but online ad network revenue increased 50% in 2007.

Review the entire survey to understand the changing nature of selling online ads and discuss ways to improve marketing strategies with your online publishing clients.

[Source: Interactive Advertising Bureau, 8.11.2008 release]