Can ad networks help save newspapers?

Earlier this year Merrill Lynch predicted that newspaper advertising revenue would drop nearly 4% by the end of 2007. With circulation dropping, as well, many newspapers have begun looking in a new direction to help stem the tide: online ad networks. Can ad networks help newspapers rebound?

by Kristina Knight

"[Advertising networks] help advertisers determine which ad/ad sources are best for their business and focuses on getting the greatest value from the audience and/or advertising assets," Ben Crain, vice president of marketing and alliances for Rapt, said. Crain went on to say that perhaps the biggest benefit of an ad network is that the network can help advertisers determine which pages/sections of a newspaper will have the best benefit for their campaign.

The idea of ad networks is a promising one for newspapers, especially local or regional papers who have a limited consumer base. By co-opting with other newspapers, they can tap into budgets that otherwise wouldn't be available to them; for advertisers the same is true. Rather than advertising in one local paper, a marketer may be able to purchase remnant inventory in several area newspapers, thereby increasing the reach of a single ad.

The first step, according to Crain, is segmentation or determining which ads should be placed in an ad network and which ads should remain direct sale. Craig also cautions advertisers not to think of ad networks as only for direct marketers.

"Some of the new network models emerging in the newspaper space are providing access to different markets. A local paper may have indirect access to national buys through another sales channel," said Crain. He advises marketers to shop around before deciding on one advertising network.