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BizReport : Advertising archives : April 17, 2008

Collective Media: Niche ad networks may fare better

Advertising networks aren't going anywhere. Especially if the ad network is narrowly targeting for a niche audience. According to the recent 2008 Ad Network Survey 60% of marketers will utilize an ad network in 2008 compared to 40% in 2007.

by Kristina Knight

The survey found that marketers are using ad networks for both brand advertising and for direct marketing initiatives. Inventory quality and site transparency are important aspects in choosing the right network according to the survey.

"The conventional thinking is that ad networks are for direct marketing only," said Joe Apprendi, CEO of Collective Media. "I think this study has shown that's not the case anymore for a growing segment of the market."

Despite some warnings from brands who say ad networks de-value their brand because of the placement of ads and the low-quality of inventory supplied by some networks, marketers continue to flock to networks.

There are problems to be worked out, however. The survey found that 62% of marketers feel there are too many advertising networks; about three-quarters of marketers work with only one or two networks during the course of a campaign.

According to a report from JP Morgan and comScore, $3 billion is expected to be spent through advertising networks. About $2 billion of that spend is expected to come from US marketers.

Tags: online ad networks, online advertising

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