Report: Number of Ad Networks Will Grow 30% in ’08
ADOTAS – The Rubicon Project today released a market research report that focuses on the changing online advertising landscape … and where it’s headed.
According to Rubicon, about $27 billion is changing hands industry-wide, and a veritable gold rush has been created in recent years as the media shifted its ad dollars online. From just 15 ad networks seven years ago, more than 300 advertising networks currently exist – ranging from vertical to format-focused to local to international, Frank Addante, CEO and Founder of Rubicon, tells Adotas.
And because ad spending is no longer concentrated on a few select networks, many reporting methods for ad revenue are inadequate and undependable – which prevents publishers from signing on. Currently, 33% of a consumer’s time is spent online, but only 7% of overall ad spending is devoted to interactive advertising.
While more money in ad budgets is being earmarked for online use (5% three years ago and 7% last year) it doesn’t come close to matching to amount of time consumers are spending online, Rubicon reports.
Among Rubicon’s predictions for the future:
- The ad network explosion will continue; the market will see simultaneous consolidation and expansion with net positive growth. International and vertical networks will be big drivers
- Ad servers will be free
- The number of ad networks with grow 30% in 2008 with international, vertical and big media networks being the biggest growth contributors
- Web sites will use multiple networks to effectively monetize their sites
- An abundance of ad space inventory and a new, fresh wave of technology is good news for advertisers: easier buying access, greater visibility, better metrics and more competition result in increased efficiency and more effective conversion
International monetization will gain greater importance as up to 50% of U.S. website visitors come from outside the United States
In other news, Rubicon announced that it has established a Certified Ad Space program. It was created to satisfy ad network and advertiser needs. “The product allows publishers to control ad-quality,” Addante said. “That way they can screen out dancing office girls, punch the monkey ads or ads from competitors. Some of our clients are working with more than 60 networks and it’s a serious challenge keeping up with all of them, especially when they have different criteria for what’s acceptable and what isn’t. With this new product, they can just go to one place to screen all of their networks.”
The program features a 21-point certification checklist and ratings system that has verified more than 10 billion ads and 725 sites to date. (More than 5,000 web sites applied for Rubicon’s private beta of the program).
The Rubicon project launched its first ad network optimization service in October of 2007; since then, more than 4,500 sites have signed up for the service and the company’s “smart matching” technology.
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