Bigger, fewer ads works, dooms reluctant ad networks
ADOTAS — When the online publishers association released new advertising formats a few months ago, it was clearly a shot at ad networks, especially ones that don’t adapt.
And if initial indications prove reliable, the larger ads are here to stay and will squeeze third-party networks even more. Speaking at a ContentNext Media event Monday, Mike Keriakos, co-founder and president of the Everyday Health Network, said the company has been testing the new formats. He says the larger ad units have shown 5x click through rate and Everday Health is measuring beyond that. The company also expects to stop using ad networks by Q4, Keriakos said.
The three new ad formats are supposed to allow advertisers to be more creative and give more options. All are bigger than standard display ads: a “Fixed Panel” that’s 336 pixels wide and 860 pixels tall, an “XXL Box” that’s 468 by 648 pixels, able to embed video; and a 970-by-418-pixel “Pushdown” ad that opens up and then rolls up to the top of the page. An intended byproduct is to create a scarcity of inventory. At this point, the ad units will be available only through the direct sales forces.
So where does that leave ad networks, especially ones that don’t cater to a niche or refusing to adapt? They’ll be doomed. One space that ad networks might move into is social networks. Keriokas later said that the online advertising world will split into two general worlds: premium brands and direct response.
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