The Quick Ten
The latest developments in Ad Networks
Brand marketers go online
With consumer attention now increasingly split between TV and online, ad networks are giving brands a way to inform and entertain consumers while helping marketers achieve a scalable way of reaching their target audience.
Time, not clicks
Advertising approaches that support rich-media experiences, from video to real-time data feeds, are offering more ways for brands to interact and engage with consumers.
Pricing models
CPE (cost-per-engagement) pricing is becoming more popular. Pioneered by VideoEgg, CPE sees advertisers charged when a consumer spends time with a brand message.
Focus on research and data
According to Troy Young, chief marketing officer at Video Egg, advertisers will increasingly demand tools and services that enable brands to validate the impact of their investment, and turn data into actionable insights.
Increasing uptake
wo-thirds of brands are working with online ad networks, while almost half say they are using them more than they were a year ago, according to Econsultancy.
Boosting the digital ad market
It is expected that advertisers will increasingly rely on networks to book their online campaigns. The IAB claims brands spend an average of 31 per cent of their digital display budget via online ad networks.
Increased transparency
Marketers are keen to know on which sites their ads will appear when they use ad networks. A handful are still unwilling to disclose this information, although this number is steadily decreasing.
Strategic services
Strategic services from media experts will become more popular, with advertisers deciding which ad networks and technologies to use, how to package messages and how best to use research.
Targeting technology
For marketers to get the most out of their ad-network relationship, they need to look at opportunities to target by geography and behaviour.
Changing models
According to a report by Razorfish, the number of online ad networks will fall as there are too many competing for the same inventory. Branded networks are likely to expand.
Second Opinion
Ad networks are becoming an integral part of marketers’ online strategies. Recent research by Econsultancy shows that 31 per cent of display ad budget in the UK was spent via networks in the past year, and that this is set to increase.
The 2008 UK market for ad networks was worth between £300 million and £350m, with 10 per cent growth predicted for 2009. This increased appetite is testament to the continuing innovation and application of technology by the networks to drive performance.
With media budgets increasingly scrutinised, ad networks need to develop ways to further improve performance, as well as being able to measure ROI. The success of display campaigns run via networks depends on the networks providing the right technology and targeting capabilities.
A successful network needs to be able to target relevant consumers, as well as show advertisers all the value and insights gained. This will then help display advertising to become integrated into the wider marketing mix, adding value across all channels and creating a multi-dimensional approach.
Looking ahead, 42 per cent of advertisers say they expect to boost ad network spend over the next 12 months and more budget is being directed towards ad networks for branding purposes.
Brand advertisers, including major FMCG companies, are increasingly seeing the value of online advertising. Additionally, many networks are forging closer relationships with media planners, who often make the critical decisions in placing media budgets.
Ian Dowds is the UK vice-president of Specific Media