Comments on: The Ad Revenue Waterfall http://www.adotas.com/2008/08/the-ad-revenue-waterfall/ Where Interactive Advertising Begins Fri, 10 Feb 2012 11:04:20 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Sales Dude http://www.adotas.com/2008/08/the-ad-revenue-waterfall/#comment-558211 Sales Dude Tue, 12 Aug 2008 23:37:50 +0000 http://www.adotas.com/2008/08/the-ad-revenue-waterfall/#comment-558211 I agree with many of Heather's comments. Traditionally, direct sales from publishers have experienced poor online operations and executions. The scary thing for Heather and other ad networks is that traditional publishers have started to bring their back-end (operations) in line with their front-end sales growth (online). In short, the publishers are getting better. And, to boot, they know their client's markets better than broad ad networks. There are now too many ad networks all fighting over publisher's traffic. Content, my dear friends, is what brings in the audience in the first place. And content is king and always will be. No content or application. No audience. As publishers continue to evolve their operations, the over-saturated ad network market will continue to decline. I agree with many of Heather’s comments. Traditionally, direct sales from publishers have experienced poor online operations and executions. The scary thing for Heather and other ad networks is that traditional publishers have started to bring their back-end (operations) in line with their front-end sales growth (online). In short, the publishers are getting better. And, to boot, they know their client’s markets better than broad ad networks. There are now too many ad networks all fighting over publisher’s traffic. Content, my dear friends, is what brings in the audience in the first place. And content is king and always will be. No content or application. No audience. As publishers continue to evolve their operations, the over-saturated ad network market will continue to decline.

]]> By: Jason Baer http://www.adotas.com/2008/08/the-ad-revenue-waterfall/#comment-557860 Jason Baer Tue, 12 Aug 2008 17:57:05 +0000 http://www.adotas.com/2008/08/the-ad-revenue-waterfall/#comment-557860 This whole ad network scenario is a short-term boom and a long-term bane. Given that you can buy solid inventory at a fraction of the cost, why wouldn’t you use ad networks almost exclusively, especially for test campaigns when you’re trying to optimize creative and call to action? But ultimately, this whole model is unsustainable. Sites cannot continue to sell an increasing share of their ads at a couple bucks per thousand, and the increasing competition is going to cause ad network failures and consolidation SOON. I just put up a blog post with more detail on how this is going to shake out. "Ad Networks Are a House of Cards - But a Great Deal" http://is.gd/Ste Jason Baer Convince & Convert - digital consulting for agencies http://www.convinceandconvert.com/convince-convert-digital-marketing-blog This whole ad network scenario is a short-term boom and a long-term bane.

Given that you can buy solid inventory at a fraction of the cost, why wouldn’t you use ad networks almost exclusively, especially for test campaigns when you’re trying to optimize creative and call to action?

But ultimately, this whole model is unsustainable. Sites cannot continue to sell an increasing share of their ads at a couple bucks per thousand, and the increasing competition is going to cause ad network failures and consolidation SOON.

I just put up a blog post with more detail on how this is going to shake out.
“Ad Networks Are a House of Cards – But a Great Deal”
http://is.gd/Ste

Jason Baer
Convince & Convert – digital consulting for agencies
http://www.convinceandconvert.com/convince-convert-digital-marketing-blog

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