It used to be that companies were content to spend marketing money just to raise awareness, but since the beginning of this year it's all retail oriented. With a recession at the doorstep, everyone wants as many clicks for the dollar as possible.
And so ad networks are rising high into the scene. This of course could mean a smaller share for internet portals that carry more traditional display advertising like Yahoo.
More and more advertising is being made through ad networks because they charge much less than ads on display on premium sites like MSN. Improved technology and targeting in ad networks are also helping its success.
However.... “These are the gold rush days now for ad networks,” said David Hallerman, senior analyst with eMarketer. “And that kind of counters the appeal of ad networks for advertisers’ agencies, which was to simplify the purchase of ads. And that’s why its unlikely that a great number of ad networks will survive.”
I wonder how much ad networks can take as advertising prices are rising, how long will it take before this bubble bursts and what the consequences will be...
Full article:
A Web Shift in the Way Advertisers Seek Clicks
http://www.nytimes.com/2008/04/21/business/media/21online.html?ref=media
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