Tuesday, October 6, 2009

Pros and Cons of Online Ad Networks

Ad networks hold wide appeal for both publishers and advertisers. On the content provider side, they offer an easy way to sell a large amount of inventory—even if the revenue per impression is typically less than with direct sales.

On the advertiser side, according to a worldwide study by Econsultancy and the Rubicon Project, the main benefits of using ad networks are increased reach, flexible payment models and lower costs.

There are also challenges, however, associated with giving up full control over ad placements. Nearly two-thirds of respondents (65%) said they worried about their ads appearing next to inappropriate content. Almost as many (62%) complained of discrepancies between their own data and that from networks.

Still, the benefits of reach, flexibility, cost and targeting cannot be ignored. Respondents told Econsultancy that 30.61% of their display ad budgets were spent via ad networks, and 31.91% of media plans included networks.

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