ADOTAS — Despite the gloomy numbers released by Pubmatic recently, co-founder and CEO Rajeev Goel says there are still opportunities for ad networks.
Goel admits that the number of networks, more than 350, is likely unsustainable, and with the economic downturn there will be fewer media buyers and dollars to spend. But he says that networks, even ones that are launching this year, should be looking for overlooked markets, for example in crafts, do-it-yourself areas. Though he added that it has to be a market large enough to entice advertisers.
“You can get talent that you couldn’t before,” he said. “You can get office space, ad servers, etc., at half the
PubMatic’s fourth quarter AdPrice Index, showed that all sizes of websites (small, medium, and large) were down
dramatically from Q4 2007; small, medium, and large sites dropped 52%, 23%, and 54%, respectively, from the previous year. All sizes of websites were down from Q3 2008 to Q4 2008, but the drops leveled-off, bucking the trend of larger drops from quarter to quarter throughout 2008; this may be an indicator that the online ad sector received enough of a boost from holiday advertising to keep ad rates steady.
Goel said the business and financials didn’t do well. He thinks networks specializing in geography or verticals, niche players, will be the ones that will have problems as opposed to the ones with a larger portfolio. He says that the ad networks that will survive are the ones that have advanced proprietory technology to better target ads and ones built out with deep access in a particular area.
He also noted that with few encouraged with the performance of social media marketing, “it means everyone is trying to figure it out. There will be a deep targeting involved.”
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