Ad Networks, Zapped by ESPN, Forbes, See Uncertain Future
ADOTAS — In a bleak advertising landscape, ad networks might be the ones that will be either squeezed or shut out entirely.
Internet advertising spending is expected to have a 6.1 percent increase this year, mostly driven by search ads. Good for Google, but bad for those in the display ad business. A smaller pie will mean a tougher stance on what brand names say are third parties leveraging unique content to devalue brand value.
“The notion of selling somebody an ad based on a click away from a site vs. the engagement one feels on a content site — ESPN or elsewhere — undervalues or commodifies the experience that advertising is trying to achieve,” ESPN President-Sales Ed Erhardt told AdAge. “My sense is this kind of sales proposition is dangerous for advertisers and for agencies and ultimately for the media companies spending billions on content.
I imagine with large brands, such as Forbes, ESPN, etc., developing, keeping and selling heir own data is doable, but I’m unsure if that works long-term. And there are others who say that the death of ad networks are greatly exaggerated.
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